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*** UPDATED x1 *** The Democrats’ budget time bomb is starting to explode

Friday, Jan 30, 2015

* As we’ve discussed before, the state’s child care program is pretty much broke. From the governor’s office

The budget signed by (former) Governor Pat Quinn last year did not provide adequate funding for the entire Fiscal Year 2015. As a result, the Child Care Assistance Program (CCAP) faces a $296 million hole and state-funded payments to the program will cease this month unless a responsible solution and appropriate funding source is found. CCAP continues to operate on Federal funding, but those funds only support half of the program, which will result in payment delays after February 1.

Finger-pointing aside (and it’s justifiable), this is a serious problem.

* Child care providers just received a memo from the state…

“Beginning in February providers will experience a delay in payments for child care services through June 30, 2015.

The funding shortfall may also result in service reductions to the Child Care Assistance Program.

In the past we have combined Federal funds with State funds in order to pay the monthly bills for child care services; however, this is no longer possible as only Federal funds remain. This means that we are unable to make CCAP payments to providers until the latter part of the month, which is when we receive our Federal funding.

Because the allocation of Federal funding is not enough to pay an entire month, unpaid bills will be carried over to the next month and payment delays will get progressively longer each month.”

Oy.

There are a whole lot of small, owner-operated child care providers out there who are not going to survive very long.

And when that happens, working parents will have to scramble to find somebody else, or even quit their jobs. Same goes for parents in school.

* GOP state Sen. Dave Syverson was quoted in a story posted earlier today

[Syverson] warned that as soon as Feb. 1 childcare providers could not be receiving reimbursement from the state unless the General Assembly passes a supplemental bill.

“(But) if we don’t pass a supplemental, then the money dries up in the account and the day cares don’t get paid and all of these families that are currently out there working, most of them at minimum wage and low-wage jobs, they’re out of luck,” added Syverson.

Letting the money dry up would create a ripple effect and force many daycare centers to close, said Richard Wooten, associate pastor at Faith-Walk International Church in Englewood.

“The local economy would collapse if daycare centers start shutting down especially in communities already battling high unemployment. Parents would not be able to go to work and that means less money spent on goods and services,” said Wooten

…Adding… Soccermom notes

Passing a supplemental does not put money into GRF. No more than writing a check puts money in your account.

That’s correct. They’ll have to find the money somewhere, either through new revenues or skimming special state funds. Moving “extra” GRF around probably won’t work because, well, there is no extra GRF money right now.

*** UPDATE *** Riopell

State Sen. Dan Kotowski, a Park Ridge Democrat and top budget negotiator, says Rauner has a solution. He says there’s about $700 million in surplus money in dozens of accounts across state government that could be used to fill the hole. The budget was crafted to allow the governor to transfer some of that money into the state’s general checkbook, Kotowski said.

Kotowski said Rauner should transfer the money out of those accounts, which collect money from various fees.

“This is a perfect time to draw from those surplus dollars,” Kotowski said.

Rauner has referred to this move in recent weeks, criticizing lawmakers and Quinn for counting the act of borrowing money from other accounts as income. His office disputes Kotowski’s opinion, saying in a budget memo that such methods aren’t available to fix the shortfall.

“Unfortunately, current law prohibits the governor from using common-sense budget management techniques to ensure the Child Care Assistance Program and other vital services endure for the rest of Fiscal Year 2015,” the memo reads.

They need to figure this out.

- Posted by Rich Miller        

111 Comments
  1. - Soccermom - Friday, Jan 30, 15 @ 1:15 pm:

    Passing a supplemental does not put money into GRF. No more than writing a check puts money in your account.


  2. - VanillaMan - Friday, Jan 30, 15 @ 1:18 pm:

    Well, we all saw this coming and we can’t wish it away. Governor Rauner can use this crisis to swing a deal or he can let MJM and Cullerton to do the work without him.

    Let’s see some bipartisanship and a new beginning from these Three Tops and a Millionaire.


  3. - Responsa - Friday, Jan 30, 15 @ 1:19 pm:

    What did Pat Quinn plan to say and do about this had he been re-elected, I wonder. I hope some enterprising reporters track him down and ask him.


  4. - PublicServant - Friday, Jan 30, 15 @ 1:20 pm:

    Providing sufficient revenues to fund existing programs does, however do exactly that, Soccermom, as I’m sure you already know.


  5. - walker - Friday, Jan 30, 15 @ 1:22 pm:

    First response from my Republican neighbor: “Good, Rauner is already starting to cut expenses.”

    Will be interesting how this, and many more stories of disappearing funding to come, will be spun by both sides.


  6. - Cassandra - Friday, Jan 30, 15 @ 1:22 pm:

    How much could they get out of those special funds again?


  7. - VanillaMan - Friday, Jan 30, 15 @ 1:23 pm:

    I wanted to add that the GA leadership brought this to fruition and if they wanted to hang it around the Governor’s neck, it won’t work.

    Smooth move guys.
    When we see this kind of bad government, we also need to recognize that bad government is just as heartless than any Governor Scrooge. Kids depended upon them and they chose to play them like pawns.

    Shameful.


  8. - Rob Lowe - Friday, Jan 30, 15 @ 1:25 pm:

    Why should Rauner care?


  9. - Soccermom - Friday, Jan 30, 15 @ 1:25 pm:

    Public Servant, I don’t understand your point. Appropriating more than we have doesn’t solve the problem — it just pushes the can into the next fiscal.

    I completely supported extending the income tax hike, as did PQ. Rauner did not.


  10. - Rich Miller - Friday, Jan 30, 15 @ 1:26 pm:

    ===Why should Rauner care? ===

    Mrs. Rauner.


  11. - Hacksaw Jim - Friday, Jan 30, 15 @ 1:27 pm:

    === Why should Rauner care? ===

    Because he is the Governor?


  12. - Rob Lowe - Friday, Jan 30, 15 @ 1:29 pm:

    Rich…. Rauner already sleeps with the dogs.


  13. - Juvenal - Friday, Jan 30, 15 @ 1:32 pm:

    Vanillaman:

    The GA leadership had nothing to do with this.

    The Senate President and House Speaker supported extending the tax increase.

    Now, we have a revenue problem, because the tax hike expired.

    And it is up to the governor to suggest a solution. Or not suggest one.

    But the Senate President has made clear that he is not passing anything until the governor lays his budget on the table.


  14. - PublicServant - Friday, Jan 30, 15 @ 1:33 pm:

    Sorry Soccermom for not adequately explaining. Yes, I meant extending the income tax hike.


  15. - Rob Lowe - Friday, Jan 30, 15 @ 1:35 pm:

    - Why should Rauner care? -

    He doesn’t! The ba- zillionaire doesn’t know what it’s like to lose a job or work at minimum wage. He doesn’t care. It means nothing to him.


  16. - Precinct Captain - Friday, Jan 30, 15 @ 1:35 pm:

    ==- Responsa - Friday, Jan 30, 15 @ 1:19 pm:==

    Are you really that dense?


  17. - Pot calling kettle - Friday, Jan 30, 15 @ 1:40 pm:

    Rauner had to be hoping that Quinn and the GA would go ahead an extend the income tax for at least another year to protect their budget. If that’s the case, it explains why he is touring the state blaming unions, Democrats, and everyone he can think of. In the end, he will need more revenue, and an expanded sales tax on services won’t be enough. He’ll have to look at the income tax, and that make for an interesting series of conversations with members of the GA.


  18. - Team Sleep - Friday, Jan 30, 15 @ 1:41 pm:

    Juvenal - beg pardon? Then why didn’t the tax rate extension get passed last spring?


  19. - slow down - Friday, Jan 30, 15 @ 1:46 pm:

    Rauner seems entirely comfortable with letting the chips fall where they may and just blaming Quinn for all the problems. Thing is, Rauner’s no longer a candidate, he’s the Governor and there will be very real consequences to his inaction.


  20. - Sangamo Sam - Friday, Jan 30, 15 @ 1:46 pm:

    = They’ll have to find the money somewhere, either through new revenues or skimming special state funds.=

    A lot of those special state funds paid for by fees, grants and licenses and have a specific purpose. Rauner needs to understand the impact of sweeping those funds before he touches them.


  21. - Rich Miller - Friday, Jan 30, 15 @ 1:47 pm:

    ==A lot of those special state funds paid for by fees, grants and licenses and have a specific purpose.===

    Yep, but there’s a whole lot of excess cash in many of those funds.


  22. - DuPage - Friday, Jan 30, 15 @ 1:48 pm:

    Rauner and friends said the income tax should be allowed to expire, it wasn’t needed. So much for that theory. The wheels are starting to come off already.


  23. - Been there - Friday, Jan 30, 15 @ 1:48 pm:

    One way to help solve this is to cut cost. Surprised that looking at fraud, waste and abuse of this funding has not been mentioned. Many of the downstream “recipients’ of these payments are friends and/or family members of the working parent.


  24. - Pot calling kettle - Friday, Jan 30, 15 @ 1:51 pm:

    ==Rauner and friends said the income tax should be allowed to expire, it wasn’t needed. ==

    Very popular with the voters. And, frankly, it works out fine for Bruce & the folks he runs with. The government services most of us rely on are not a factor in the lives of the rich. He can play the regular guy on TV, but if he starts to cut into the services folks rely on, the voters will turn on him. I expect the GA to let Rauner propose the cuts so he can take the heat.


  25. - slow down - Friday, Jan 30, 15 @ 1:52 pm:

    Skimming from special state funds was an egregious act for Repub lawmakers when done under Blago. I wonder whether it would be viewed similarly under Rauner. Maybe Rauner could hire John Filan to handle.


  26. - Anon - Friday, Jan 30, 15 @ 1:53 pm:

    We find ourselves in trouble because “we care” so much. We care about kids, we care about the birds and the bees, the flowers and the trees. We care about ham and the green eggs that go so well with those pig parts. We care about everything, WE-CARE-GOSH-DARNIT and we are good people. But we never seem to care about how to pay for any of this. And whether we like it or not, caring costs cash, and lots of it. So once again, can we care? I care the most because I know how to spend money we just don’t have and if you say I don’t care, you are a racist. The cost of caring is high indeed…


  27. - zatoichi - Friday, Jan 30, 15 @ 1:55 pm:

    This is a surprise? Didn’t Quinn offer two budgets last year: A desired (5% stays) and a doomsday (5% lapses) version? Which one was passed by the GA? Just the start. And education will get more money? Right.


  28. - David's Blanket - Friday, Jan 30, 15 @ 1:56 pm:

    Is Sen. Syverson suggesting any new revenues or he only in his typical complainypants mode?


  29. - lil enchilada - Friday, Jan 30, 15 @ 1:57 pm:

    Don’t help working mothers with daycare and see what happens when they can’t afford to work.


  30. - Wordslinger - Friday, Jan 30, 15 @ 1:58 pm:

    – What did Pat Quinn plan to say about this….–

    Pass a bill making the tax surcharge permanent and I’ll sign it, the same thing he said from Jump Street.

    Doesnt matter now. What’ does the current governor have to say? Maybe when he’s done with his barnstorming tour pointing out who makes too much money, he’ll let us know.


  31. - Rich Miller - Friday, Jan 30, 15 @ 2:01 pm:

    === Many of the downstream “recipients’ of these payments are friends and/or family members of the working parent===

    Yes, true. But are they supposed to do this for free? Because if they do have to do it for free, how are they gonna support their own families?

    Red herring.


  32. - Federalist - Friday, Jan 30, 15 @ 2:01 pm:

    As I have pointed out before, the state spent $895 million on day care in 2013. That includes both federal and state funds but all tax dollars.
    A huge amount that escapes public attention.

    All existing bills need to be paid but for the future this program is ripe for drastic reductions.


  33. - Been There - Friday, Jan 30, 15 @ 2:03 pm:

    ===Yep, but there’s a whole lot of excess cash in many of those funds. ====
    Maybe when they build the ATV park mentioned in the other thread they can also put a huge child care center there. Take care of two problems at once.


  34. - Rich Miller - Friday, Jan 30, 15 @ 2:03 pm:

    Federalist, this is one of the better programs for helping people stuck in chronic poverty emerge from that poverty.

    Kill it and you’re dooming a whole lot of folks who are trying to improve their lots in life.


  35. - Rich Miller - Friday, Jan 30, 15 @ 2:04 pm:

    Also, this was started under a GOP governor (Edgar) as part of welfare reform.


  36. - A guy - Friday, Jan 30, 15 @ 2:09 pm:

    Necessity is the mother of taxation.

    This one falls into the category of essential I’d say. It will require a two step process. Get em through this fiscal, and create a longer term solution for next year and beyond that rids whatever waste may be in the system now.


  37. - TCB - Friday, Jan 30, 15 @ 2:10 pm:

    Hmmm, isn’t Rauner (or Nuding) already on record stating that they’re going to forego the interfund borrowing authority they have? It would either be a major pivot or the idea of special state fund is already dead.


  38. - anon - Friday, Jan 30, 15 @ 2:10 pm:

    === The Senate President and House Speaker supported extending the tax increase.===

    MJM may have thought extending the hike was a good idea, but not if Democrats alone had to wear the jacket for it in order to bail out a Republican governor.


  39. - Responsa - Friday, Jan 30, 15 @ 2:11 pm:

    Love and kisses back to you, Precinct Captain. I really would like to hear Quinn’s own public and rambling answer to why he signed a budget with known inadequate funding for the full fiscal year and then didn’t get the income tax extension passed in the many months he had to work with his GA to get it done. Sure, CCAP is Rauner’s problem now. But Quinn’s bad budget combined with inaction or inattention or un-persuasiveness — not Rauner’s –is what’s causing the immediate crisis starting in February for child care providers.


  40. - anon - Friday, Jan 30, 15 @ 2:12 pm:

    The next year or two will be a good test of the GOP mantra that the Quinn tax hike wasn’t needed, that IL has a spending problem, not a revenue problem.


  41. - AlabamaShake - Friday, Jan 30, 15 @ 2:13 pm:

    **Why should Rauner care?**

    Well, lets start with the idea that Rauner may not want his first major action to be kicking thousands of people out of child care, forcing parents to start working.

    Lets then move to the fact that child care subsidies are a key component of the welfare-to-work reforms, helping low-income working families have quality and affordable child care so that they can have a job.

    **Many of the downstream “recipients’ of these payments are friends and/or family members of the working parent**

    So? That is waste, fraud, or abuse. If the friends/family are not providing the care, the working parent needs to find the care elsewhere.


  42. - Tim Snopes - Friday, Jan 30, 15 @ 2:13 pm:

    A guy -
    Not gonna be fun watching all those vulnerable citizens fall through the safety net while we’re waiting for some future salvation.


  43. - Rich Miller - Friday, Jan 30, 15 @ 2:14 pm:

    ===they’re going to forego the interfund borrowing authority===

    Yep.

    Taking ain’t borrowing.


  44. - AlabamaShake - Friday, Jan 30, 15 @ 2:18 pm:

    **So? That is waste, fraud, or abuse. If the friends/family are not providing the care, the working parent needs to find the care elsewhere.**

    Sorry… that should say:

    That is NOT waste, fraud, or abuse…


  45. - A. Nonymous - Friday, Jan 30, 15 @ 2:20 pm:

    What did Arduin say in that profile piece about the homeless guy?

    “Get a job”

    Put those kids to work! Child-care problem solved AND we instantly grow the economy with more taxpayers in the workforce.

    It’s a two-fer.

    Heellllooooooo!!

    (/snark)


  46. - DuPage - Friday, Jan 30, 15 @ 2:21 pm:

    Rauner wanted the job and wanted the tax rollback. He got both. He made campaign promises that he now can’t keep, unless he writes a personal check.


  47. - Hacksaw Jim - Friday, Jan 30, 15 @ 2:26 pm:

    === unless he writes a personal check ===

    If Rauner did that, I would actually vote for him next time - although I don’t think that even he has that kind of scratch to throw around.


  48. - Federalist - Friday, Jan 30, 15 @ 2:31 pm:

    Rich,

    I hope you also realize that many people work quite hard are not exactly making big bucks and pay their own day care bills.

    Of course, this is the classic difference about the role of government and individual responsibility. You and I won’t settle that argument here but I least I put some actual number on the programs cost.


  49. - Pot calling kettle - Friday, Jan 30, 15 @ 2:31 pm:

    ==Put those kids to work! ==

    Hear, hear! It was those awful union bosses who pushed for the restriction of child labor. They ruined the economy.


  50. - Bull Moose - Friday, Jan 30, 15 @ 2:35 pm:

    = A. Nonymous =

    To your point, I bet those kids would work for a lower wage, which would attract businesses from RTW states like Indiana. Making IL Competitive!


  51. - DuPage - Friday, Jan 30, 15 @ 2:41 pm:

    I think it was a Ms. Harris objected to a union protected wage for her home caregiver work. She won. She now just might get the opportunity to work for less, or work for free.


  52. - Compassionate Not Conservative - Friday, Jan 30, 15 @ 2:41 pm:

    This day care provider attempted to put a (child’s) face on the problem. Check out the video from the Daily Herald.

    http://goo.gl/wN85o7


  53. - Hacksaw Jim - Friday, Jan 30, 15 @ 2:42 pm:

    === I hope you also realize that many people work quite hard are not exactly making big bucks and pay their own day care bills. ===

    I do not have kids, but based on what I hear from my friends that do, day care is a huge expense - like the size of a mortgage payment huge. Theres no way that the working poor can pay this expense. Ultimately, they will end up realizing that it isn’t worth keeping their job anymore.


  54. - Chicago guy - Friday, Jan 30, 15 @ 2:42 pm:

    My guess is parents with child care problems won’t quit their jobs. They will try to make it work with friends and family, calling in sick, etc. This will disrupt the business operations.

    After a bit, some may quit and some will end up being fired by the employer. Businesses will then need to find new employees to take their place which will take up the employer’s time and resources to find and train.

    Of course the odds of the unemployed parents ending up on food stamps and TANF increases, which will increase the social welfare costs and taxes.

    And just to keep them in the picture, there is also the issue of the impact on the kids.

    I’m not saying the State will fall apart, but this is not simply a matter of impacting the low-income parents.


  55. - Formerly Known As... - Friday, Jan 30, 15 @ 2:43 pm:

    ==The wheels are starting to come off already.==

    They sure are. And the Quinn-Madigan-Cullerton budget has been signed, sealed and delivered until July 1, 2015.

    Thanks, guys.


  56. - Aaron Burr - Friday, Jan 30, 15 @ 2:44 pm:

    The federal CCDF grant has just recently been reauthorized for the first time since 1996. This is a very bad time to get behind in childcare subsidy funding. A little GRF now would go a long way in the future, at least for this program.

    Perhaps some interfund borrowing…


  57. - Hacksaw Jim - Friday, Jan 30, 15 @ 2:46 pm:

    Re: Fund Sweeps. They should start with the Insurance Financial Regulation Fund. Over $40 mil in there and God knows it could be put to better use than what it is being used for now. The Dept. Of Insurance is full of shills for the insurance industry.


  58. - How Ironic - Friday, Jan 30, 15 @ 2:47 pm:

    @Federalist,

    Rich,

    I hope you also realize that many people work quite hard are not exactly making big bucks and pay their own day care bills.

    “Of course, this is the classic difference about the role of government and individual responsibility. You and I won’t settle that argument here but I least I put some actual number on the programs cost.”

    What is the cost to society IF the program is rolled back? The $895 Million sounds impressive. However, per the White House Council of Economic Advisers:

    “Subsidizing work-related child care expenses raises the effective return to working, thereby increasing the incentive to work. Evidence suggests that child care subsidies increase both the employment of mothers and the use of paid care among working mothers. Based on the estimates from the empirical literature, it appears that a 20 percent decrease in the cost of care for working mothers with young children who are below 200 percent of poverty is associated with an increase of 122,000 to 490,000 more mothers working and 124,000 to 318,000 more young children in paid care. Regulations may increase the quality of care but may also increase provider costs and the price parents pay, thus driving some providers out of the market and inducing some parents to switch into unregulated care.”

    You may be able to reduce the upfront childcare costs in short order, but that will have a significant and exponentially costly affect on the backend.

    If you want people off welfare, and ‘working’ then you help pay for childcare. Period, end of story. If you provide a way to work, people work. If you remove the ability to work….guess what. They don’t/can’t work and cost MORE.


  59. - Aaron Burr - Friday, Jan 30, 15 @ 2:47 pm:

    Federalist,

    An extreme majority of CCAP recipients are undereducated single women. This means that they need these subsidies just to go to work. This program is the closest we get to directly fighting the downward spiral of unemployment, poverty, and child development.


  60. - Wordslinger - Friday, Jan 30, 15 @ 2:52 pm:

    Lot of people have been saying for many years that Illinois has a spending problem, not a revenue problem.

    That was the choice last November, and a choice was made.

    Revenues have been cut so obviously spending will have to be cut as well.

    Much more to come.


  61. - A guy - Friday, Jan 30, 15 @ 2:54 pm:

    === Tim Snopes - Friday, Jan 30, 15 @ 2:13 pm:

    A guy -
    Not gonna be fun watching all those vulnerable citizens fall through the safety net while we’re waiting for some future salvation.===

    Mr. Snopes, none of this will be “fun”. Hasn’t been “fun” for quite a while. There will be some redefinition that comes out of this, with some folks who shouldn’t be receiving benefits getting moved out. For the truly needy, it will be a challenge. It’s the providers who are set up to take the real beating here. Everyone should be motivated to act well and do so quickly, but not so quickly that they get it wrong.


  62. - train111 - Friday, Jan 30, 15 @ 2:55 pm:

    train111 present family mortgage payment $1,300.50

    train111 monthly childcare cost–2 kids, private daycare with a very reasonably priced individual (not Kindercare or an institutional childcare provider whose rates are astronomical–$1,260.

    Yes, it’s a second mortgage payment!!

    I caluclated that to pay for Kindercare for a month for 2 kids (way overpriced from what we were quoted) one would have to take home $15 per hour just to pay for the childcare alone. So your a single mother with 2 kids and a high school education–good luck getting the pay needed to cover childcare.

    Whoever stated above about increased TANF and food stamp costs hit the nail on the head. The costs will just be passed on to another program.

    Time for the GA to put on their big boy pants and accept some of the pain of governing.

    Also, the train111 family is paying its childcare without aid (although we’ve looked into it–Illinois DHS puts the “dys” in dysfunctional to say the least.

    train111


  63. - Formerly Known As... - Friday, Jan 30, 15 @ 2:57 pm:

    == I really would like to hear Quinn’s own public and rambling answer to why he signed a budget with known inadequate funding for the full fiscal year and then didn’t get the income tax extension passed in the many months he had to work with his GA to get it done==

    This budget was the easiest option for Quinn and crew, but the worst option for the state. Raise taxes? Cut deeper? Go back to some of the tricks that caused our financial mess and blow a massively deeper hole in next year’s budget?

    They gambled with the state’s budget, and have since failed to execute any sort of backup plan after that gamble failed. We are just now beginning to reap what has been sowed as a result of terribly negligent budgeting.


  64. - econ prof - Friday, Jan 30, 15 @ 2:57 pm:

    12 years of total Democrat rule and their reckless fiscal behavior is about to come home to roost. It’s going to be ugly, and everyone is going to suffer. And I hope we all remember who caused it and blame those individuals…not the ones who are tasked with the unpopular task of cleaning it up.


  65. - Jeff Trigg - Friday, Jan 30, 15 @ 3:03 pm:

    $895 million a year for day care. $1+ billion a year for child births. Why are so many people having kids they can’t afford? What can be done about that? More free condoms? Better sex ed? I honestly don’t know, but it seems this issue is much bigger than just inadequate funding.


  66. - David's Blanket - Friday, Jan 30, 15 @ 3:08 pm:

    L’il E: ==Don’t help working mothers with daycare and see what happens when they can’t afford to work.==

    They don’t pay their rents to Republican (and other)landlords…

    Rauner was elected to solve these types of problems and cut our taxes. As Adam Ant would say: “Stand and Deliver!”


  67. - Precinct Captain - Friday, Jan 30, 15 @ 3:14 pm:

    ==- Responsa - Friday, Jan 30, 15 @ 2:11 pm:==

    http://www3.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=12381

    Re: the update, from the Tribune, all the way back in June, “The new budget is propped up with $650 million in borrowing from other specially designated funds for myriad programs that the governor can choose to tap.”

    http://www.chicagotribune.com/news/local/politics/chi-quinn-lawmakers-continue-feud-over-capitol-repairs-20140630-story.html


  68. - jerry 101 - Friday, Jan 30, 15 @ 3:15 pm:

    any idea which program is next?

    Support for elder care?

    Schools money?

    Maybe prisons? The courts?

    Maybe the state should privatize the tollway and then blow the money on covering the budget hole. Worked for Daley.


  69. - ZC - Friday, Jan 30, 15 @ 3:16 pm:

    econ prof 2:57 pm

    >> 12 years of total Democrat rule and their reckless fiscal behavior is about to come home to roost. It’s going to be ugly, and everyone is going to suffer. And I hope we all remember who caused it and blame those individuals…not the ones who are tasked with the unpopular task of cleaning it up.

    Substitute “12 years” for “8 years” and … Didn’t work for Barack Obama.

    Won’t work for Rauner, either, is my prediction.

    Besides, he’s already implicated. He helped shoot the state’s budget in the foot when he let the 5% rate expire January 1.


  70. - Arsenal - Friday, Jan 30, 15 @ 3:18 pm:

    “I hope you also realize that many people work quite hard are not exactly making big bucks and pay their own day care bills.”

    That’s a really good argument to EXPAND the program.


  71. - truthteller - Friday, Jan 30, 15 @ 3:19 pm:

    We all saw Rauner try to extract a pledge from Quinn that he wouldn’t extend the tax in the veto session. Rauner got his wish and now finds himself a few billion short. Shouldn’t complain if you get what you ask for.

    It is a revenue problem.


  72. - Soccermom - Friday, Jan 30, 15 @ 3:21 pm:

    The special funds are a fiscal nightmare. It’s like saying, “We don’t have money to pay the mortgage. But we have a special savings account to cover the kids’ piano lessons, with plenty left over for next year’s lessons. We couldn’t touch THAT.”

    No other states have anywhere close to the same number of special funds that we do. If Rauner is really committed to fiscal sanity, he’ll close them down and shove that money into GRF where it belongs.


  73. - Rich Miller - Friday, Jan 30, 15 @ 3:24 pm:

    ===he’ll close them down and shove that money into GRF where it belongs===

    I don’t think the special funds are bad things. But for some of the funds, either some of the fees are too high or some of the people running them aren’t doing their jobs because there’s so much leftover cash.

    Sweep ‘em, then lower the fees and/or hire better administrators.


  74. - Soccermom - Friday, Jan 30, 15 @ 3:25 pm:

    Why are people having kids they can’t afford? Gosh, I don’t know — maybe because they were employed when they decided to start a family but lost their jobs due to outsourcing? Maybe because the mother thought the father was committed to raising his children from birth to age 18 but the dad had other ideas? Maybe because, you know, children are necessary to society, and failure to bring new lives into this world would turn us into Japan?

    Oh dear heaven, what is wrong with people?


  75. - Wordslinger - Friday, Jan 30, 15 @ 3:27 pm:

    FKA, I don’t understand your beef.

    The “backup plan” was to let the new guy do his thing.

    Rauner said taxes were too high, now they’ve been cut.

    Rauner continues to say spending is too high, now he can prioritize within the revenues that are available.

    Rauner says too much is spent on state employees, well, he can do something about that right now with layoffs.

    This is all right in the wheelhouse that he campaigned on for about two years. Time to get cracking.


  76. - walker - Friday, Jan 30, 15 @ 3:31 pm:

    Many more programs to run out of funding. This is by no means the worst, or the only one seen as essential or a no brainer. Save whatever transfer tactics you might have til you see them all.


  77. - Responsa - Friday, Jan 30, 15 @ 3:32 pm:

    soccermom–with respect to the issue of special funds that you raised–whether it’s closing them down and transferring money to GRF, or sweeping them as Rich suggests, what kind of dough are we talking about here?


  78. - Jeff Trigg - Friday, Jan 30, 15 @ 3:33 pm:

    Soccermom, do you really believe that is the case with half of all the children born in Illinois? I do agree, what is wrong with people?


  79. - Pot calling kettle - Friday, Jan 30, 15 @ 3:37 pm:

    ==12 years of total Democrat rule and their reckless fiscal behavior is about to come home to roost.==

    Elected by folks who demand that kind of policy. Look at the grief that comes just considering program cuts. The voters punish fiscal responsibility big time, and they are encouraged to do so by politicians. (Vicious cycle!)

    One of the best examples is the time-honored accusation of Dems being “tax-and-spend” liberals. When you break it down, it’s actually responsible governing; yet, its become an accusation.


  80. - Precinct Captain - Friday, Jan 30, 15 @ 3:41 pm:

    ==- Jeff Trigg - Friday, Jan 30, 15 @ 3:33 pm:==

    How do you propose to pay for your eugenics program JT?


  81. - Soccermom - Friday, Jan 30, 15 @ 3:44 pm:

    http://www.illinoistax.org/app/webroot/userfiles/file/2012_2%20IFPC%20Research%20Report.pdf


  82. - Jerome Horwitz - Friday, Jan 30, 15 @ 3:45 pm:

    @Jerry 101 - mental health, substance abuse and services to the developmentally disabled will be the next round of cuts.


  83. - Soccermom - Friday, Jan 30, 15 @ 3:47 pm:

    Jeff Trigg — so you’re saying my mom should have aborted me, and that we should have put Soccerchild up for adoption when she was 6 months old and Soccerdad lost his job…


  84. - Rich Miller - Friday, Jan 30, 15 @ 3:48 pm:

    ===Skimming from special state funds was an egregious act for Repub lawmakers when done under Blago. ===

    George Ryan tried it too. As did, IIRC, Jim Edgar.

    It’s not a partisan thing, it’s a special interest thing. Everybody’s got a fund and they protect it like it was their own child (or puppy, as the case may be).


  85. - train111 - Friday, Jan 30, 15 @ 3:50 pm:

    Mr Trigg–You and your Libertarian friends have been smoking too much weed to be in touch with real life.


  86. - southwest - Friday, Jan 30, 15 @ 3:51 pm:

    People are going to have to take responsibility for their families! When I first had my kids I was shocked over the cost of daycare and eventually decided I was better off becoming a daycare provider myself and did so for over 15 years. Someone posted a video of a daycare costing 250 per week! And the taxpayers are subsidizing that!!!!! Ridiculous


  87. - Rich Miller - Friday, Jan 30, 15 @ 3:54 pm:

    southwest, this is meant to be transitional care, not permanent care.

    There could very well be some abuse in the system and that should be worked out. However, the concept is sound.


  88. - train111 - Friday, Jan 30, 15 @ 3:55 pm:

    Southwest

    Kindercare quoted me $300 per kid per week, so $250 is not all that expensive.


  89. - Federalist - Friday, Jan 30, 15 @ 3:58 pm:

    @How Ironic,

    You cited a 1997 study done under the Clinton administration.

    Did you know that. Did you think I would not know that?

    And what would you expect this administration to say?

    And please read my response to Hacksaw Jim at 2:59pm for further insight to what such White House Councils often purposely overlook.

    No, it is hardly “Period. End of Story.”


  90. - Been There - Friday, Jan 30, 15 @ 3:59 pm:

    ===Everybody’s got a fund and they protect it like it was their own child (or puppy, as the case may be).====
    People are kind of funny like that when they are the ones paying the fees to source those funds.


  91. - Responsa - Friday, Jan 30, 15 @ 4:09 pm:

    soccermom–thanks for the link to the worthwhile “funds” article. It was well charted and I learned some stuff. It was especially interesting to note how many times the phrase “the fiscal situation” was preceded by either the word “distort”, “misrepresent”, or “manipulate”. :)


  92. - Rich Miller - Friday, Jan 30, 15 @ 4:10 pm:

    I suppose the costs could be higher… http://www.msn.com/en-us/money/personalfinance/billionaires-ex-wants-dollar1m-a-month-to-raise-kids/ar-AA8Msfp?ocid=HPCDHP


  93. - How Ironic - Friday, Jan 30, 15 @ 4:12 pm:

    @Federalist,

    And what? Do you think the findings have changed? You are suggesting to cut off peoples access to childcare, and that it’ll be a ’savings’.

    Content to wallow in your own ignorance, I suppose it would make sense.

    However, what you leave out of your ‘$895 Million’ is the cost to both society AND taxpayers if those families DO NOT receive assistance with childcare.

    It’s not a zero sum game. You can’t slash child care subsidies and expect it to be ‘free’.

    As I said, Period, End of Story. You cut the subsidy, you pay more in welfare, unemployment, TANF, you name the poor assistance program, it’s going up. And not $=$ either. $1 cut in daycare is going to result in a substantial increase in other benefits.

    Why? Because now society (taxpayers) will be underwriting 100% of the families costs if they can’t work. Before it was maybe 20%.

    But whatever, be penny wise and pound foolish. Just don’t pretend that you can cut the program and avoid more expensive consequences.


  94. - Sangamo Sam - Friday, Jan 30, 15 @ 4:17 pm:

    This is a pretty good Illinois Issues article from 2012 about fund sweeps that includes input from friend of this blog Steve Schnorf:

    =He says lawmakers must take care when scrutinizing the transfers to make sure that they understand the history of each one. They just didn’t pop out of nowhere for no reason.”=

    http://illinoisissues.uis.edu/archives/2012/04/fundsweeps.html


  95. - Responsa - Friday, Jan 30, 15 @ 4:18 pm:

    Rich–speaking of distort,

    is there something that can be done about the 3 line long link up above around 3:08 pm

    that’s distorting the page view of this entire thread making it very difficult to read?
    Thanks


  96. - Rich Miller - Friday, Jan 30, 15 @ 4:19 pm:

    Responsa, thanks. Fixed.


  97. - Formerly Known As... - Friday, Jan 30, 15 @ 4:48 pm:

    Wordslinger - no beef, as long as we recognize who put this budget and plan in place. If you set an entire state budget up to fail, is that the fault responsibility of the people who caused the problem and are still in place or the fault of the guy who came in after the fact? Let’s keep things in perspective.

    This is on Quinn, Madigan and Cullerton, and anything Rauner does or does not do to clean up their mess is a reaction to that problem, not the cause of it.

    Rauner is fully responsible for whatever his budget has in store from July 1, 2015 on. Before then, anything that goes wrong only strengthens the claim of those like @econ professor that Rauner was elected to clean up these types of problems and these issues only strengthen his hand in the public’s view.


  98. - Federalist - Friday, Jan 30, 15 @ 4:55 pm:

    @How Ironic.

    You state to me:

    “Content to wallow in your own ignorance, I suppose it would make sense.’

    Obviously any such ‘council/advisory group’ has its own agenda. And you probably won’t like it when Rauner comes out with his advisory/council group and what they have to say.

    But when you call me ignorant you only resort to the tactics of those who that can not handle the discussion and name call.

    So much for you. Bye, Bye!


  99. - Tim Snopes - Friday, Jan 30, 15 @ 4:59 pm:

    Maybe Moms can just stay home again like they did back in the 50s and 60s. Oh, I forgot , Rauner has just waged war on the middle class. Never mind.


  100. - How Ironic - Friday, Jan 30, 15 @ 5:05 pm:

    @Federalist

    “But when you call me ignorant you only resort to the tactics of those who that can not handle the discussion and name call.”

    When you only provide 50% of the argument ($895 Million in spend) w/out providing any context to the consequence of cutting such spending, there really isn’t a ‘discussion’.

    That’s the problem with ignorance (either willful or accidental), it’s only apparent when pointed out. And you’ve been called out. If you wish to have a thoughtful discussion than try to be intellectually honest in your posts.

    Or are you honestly suggesting that by cutting the child care subsidy, that Illinois working poor will be better off? If so, please provide some substantial proof either through similar cuts in other states or other evidence to the contrary.

    You can’t cut the subsidy w/out causing exponentially greater expense on the back-end. The subsidy lowers the amount of public assistance these families need, and lowers the actual cost to the state.

    Provide opportunities for people to work, and they will. Cut the rug out from under them, and they will fail. And cost you as a taxpayer more.

    Bye, bye!


  101. - Precinct Captain - Friday, Jan 30, 15 @ 5:07 pm:

    ==- Federalist - Friday, Jan 30, 15 @ 4:55 pm:==

    Are you really that blind to your hypocrisy?


  102. - Getsold - Friday, Jan 30, 15 @ 5:26 pm:

    Still waiting for the “Compassion” part of this governing. Though it always kinda felt like they were just trying to remind THEMSELVES to be compassionate with that tag line.


  103. - Children First - Friday, Jan 30, 15 @ 5:56 pm:

    Charge employers who pay most of their employees minimum wage an additional 1% tax and use those funds to supplement the CCAP program since those earning minimum wage are more likely to utilize CCAP.


  104. - walker - Friday, Jan 30, 15 @ 6:30 pm:

    “Appropriations Committee ” above of course. Smart technology be damned.


  105. - Ghostbusters - Friday, Jan 30, 15 @ 7:22 pm:

    Is Kotowski just ginning up some press in case Duckworth pulls the trigger on that Senate run?

    Rauner did freeze all those special funds didn’t he?


  106. - bird - Friday, Jan 30, 15 @ 7:46 pm:

    Well here we go. Lets just hope that he understands that the unemployment rate in IL just went up. That’s gonna make Rauner look really bad, more people will be on medicaid thats going to cost the state and still more in the welfare line. Guess Rauner will learn what the trickle down means.


  107. - truthteller - Friday, Jan 30, 15 @ 7:58 pm:

    Remember George Bush was the “compassionate conservative” in 2000. So Rauner is ” the compassionate ???


  108. - DuPage Dave - Friday, Jan 30, 15 @ 9:15 pm:

    It’s sad how many people want to blame poor people for being poor. The deal with welfare reform was that you had to work, so the state (and feds) pay for child care while you are working. Otherwise you’re back to AFDC paying moms to stay home and not work. Geez Louise…


  109. - Holdingontomywallet - Friday, Jan 30, 15 @ 10:03 pm:

    I can’t believe Rauner hasn’t fixed this mess in the first 2 1/2 weeks that he has been in the Governor’s Office. This is outrageous! Recall Now!


  110. - Scott Walker - Friday, Jan 30, 15 @ 10:28 pm:

    I’m Lovin It!! Can I offer anybody a happy meal about now in Illinos? Wisconsin red is spilling into Illinois. Our plan has only just begun little minons of illinois. Bah..bah..bah..bah.


  111. - Anonymous - Saturday, Jan 31, 15 @ 12:40 am:

    @ Federalist

    I have read every post in this thread which you have posted, and it’s forcing me to go to sleep early tonight. Seriously man, what point are you trying to make?


Sorry, comments for this post are now closed.


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