Our sorry state
Thursday, Mar 10, 2016 - Posted by Rich Miller
* Joliet Herald-News…
The Joliet Region Chamber of Commerce & Industry has sent a letter to Gov. Bruce Rauner and legislators saying economic and social progress made in the Joliet area is being “wiped away” by the actions of state leaders.
The letter which outlines cuts being made by local social service agencies, argues that the business climate in Illinois is being ruined by the state budget crisis and suggests the fault lies with the state’s political leaders.
“Partisan opposition and tactical maneuvering are not new elements to the political landscape in Illinois or in the nation,” the letter reads. “So this begets the question, are the issues Illinois is presently facing any more complex than those of the past, or is the current roster of political participants simply not up to the task?”
Good question.
* Comptroller Leslie Munger was in Joliet this week…
Imagine, if you would, Munger said: $7,000 in bills on the kitchen table, $2,000 in bills in the mail, $110,000 in credit card debt and $100 in your bank account for daily spending.
Illinois is grappling with that same ratio, she said, but tack on six additional zeroes at the end of those figures.
“That’s no way to run a state,” she said.
I assume that $110,000 she refers to is pension debt, so it’s more like a long-term mortgage than credit cards, but it’s not a bad analogy otherwise. People in situations like that often have to get another job, by the way. It’s what my parents did when I was a kid. Bankruptcy was not an acceptable option (and it’s not possible with the state). They economized away luxuries and extras, but they needed more revenue to keep the kids fed and housed and the car running.
* On to the Illinois Observer…
Illinois African-American lawmakers came out swinging against Governor Bruce Rauner on Wednesday over a jobs training program crippled by the Illinois budget impasse.
State Senator Emil Jones III (D-Chicago), chairman of the Senate Black Caucus, complained yesterday that without a budget the Transportation Construction Apprenticeship Readiness Training (TCART) program, which provides minorities, disadvantaged people and women with access and training to work in the highway construction trades is no longer functioning.
“The governor’s political battle over his turnaround agenda is killing jobs and opportunities for young black males in communities across the state,” Jones said. “I just find it particularly interesting that the governor is willing to let successful job programs suffer, but cut deals to find funding for downstate prisons.”
According to Jones, as of May 15, 2015, the TCART program had generated 340 jobs for African Americans, women and the disadvantaged. The average hourly wage for participants is nearly $17 per hour, with more than 41 percent of those hired earning between $16 and $43 per hour.
State Rep. Marcus Evans (D-Chicago) cited the governor’s Illinois “turnaround” theme to argue for the jobs training program.
“I believe government should be focused on trying to solve programs,” Evans said. “Bringing more income into the state through business growth and developing neighborhoods is the key to sustainable results. This governor talks about turning this state around – this program takes us in the direction of doing just that.”
Gov. Rauner made a very big deal last year out of helping minorities move into construction trades.
- Saluki - Thursday, Mar 10, 16 @ 1:36 pm:
“So this begets the question, are the issues Illinois is presently facing any more complex than those of the past, or is the current roster of political participants simply not up to the task?”
I believe that question answers itself.
- CD Sorensen - Thursday, Mar 10, 16 @ 1:39 pm:
The $110,000 Ms. Munger likens to credit card debt is more like owing your parents $110,000. They wanted to retire with that money, and while you hammered out a timetable to get it back to them, you keep changing the agreement because you’re not bringing in as much money as you’d hoped.
- Wensicia - Thursday, Mar 10, 16 @ 1:42 pm:
There’s one difference between the “current roster” and the prevoius, in effect since January 2015. This ain’t rocket science.
- PublicServant - Thursday, Mar 10, 16 @ 1:43 pm:
=== or is the current roster of political participants simply not up to the task?===
- PublicServant - Thursday, Mar 10, 16 @ 1:44 pm:
Who’s been recently added to the Roster…The name escapes me.
- wordslinger - Thursday, Mar 10, 16 @ 1:46 pm:
–“Partisan opposition and tactical maneuvering are not new elements to the political landscape in Illinois or in the nation,” the letter reads. “So this begets the question, are the issues Illinois is presently facing any more complex than those of the past, or is the current roster of political participants simply not up to the task?”–
Great question. Well done.
What’s new this year?
- DuPage - Thursday, Mar 10, 16 @ 1:46 pm:
Did Ms. Munger ever pay back the pension payment that was skipped last fall?
- VanillaMan - Thursday, Mar 10, 16 @ 1:47 pm:
“So this begets the question, are the issues Illinois is presently facing any more complex than those of the past, or is the current roster of political participants simply not up to the task?”
Bruce Rauner didn’t have to sandbag governance in Illinois, in order to change it or reform it. He didn’t have to shut down bipartisanship. He didn’t have to hold any Illinoisan hostage, lay off anyone or destroy any unions. He didn’t have to criminalize the Democrats.
He could have just done what every other governor, including the infamous Rod Blagojevich did - and govern a little bit every day. Nothing needed to be blown up. No one had to say a snarky thing to get their point across. No need to grandstand, or run commercials demonizing your governing partners.
Rauner is failing, because he has failed to understand or recognize the power of being a governor - other than to hurt people by not governing. Bruce Rauner took the lazy way. He has done no work beyond pointing a finger and writing bank checks.
Any attempt he made during his first year in office would have been greeted favorably, generated good will towards him and his staff, and comforted Illinoisans. Every day that he did his elected job, he would have been gaining credibility in understanding his job. Illinoisans would at least listen to him right now, if he demonstrated that he tried to be governor.
Bruce Rauner has failed because he has failed to govern. To show us that he could govern. To show us that he values governing over politics. That he values unity over division. He didn’t have to blow everything up until he made his case that he tried. Bruce Rauner has never tried, and that makes all his arguments weak.
Bruce Rauner is like the five year old who keeps telling us why he can’t ride his bike, yet has never tried to ride it. He says the bike is the wrong color. He says that the training wheels are embarrassing and should be removed first. He says that it is the wrong brand. He complains that the other kids are riding their bikes well. Bruce Rauner has never showed us that he could be a governor - WITHOUT any financial problems. Why would we ever permit him to do what he wants to do to us, without every doing a day’s lick of governing?
Every day, Rauner repeatedly demonstrates how he has become the worst governor in Illinois history. He would be the worst, even without any of our problems. Governors are supposed to govern. A governor who doesn’t needs to spare us all and just resign and let someone who really wants to govern, do the job for all Illinois.
- Handle Bar Mustache - Thursday, Mar 10, 16 @ 1:47 pm:
As others have noted, there is only one major change in the roster since our colossal, immoral budget implosion has occurred. Rhymes with Clowner.
- Abe the Babe - Thursday, Mar 10, 16 @ 1:48 pm:
Hold on, keep the faith, its all worth it, things will be better, Jobs!, Turnaround, Run-a-ground, layoffs, sinking deeper, what could be worth this, hold off on governing.
- Anon221 - Thursday, Mar 10, 16 @ 1:50 pm:
Warning- snark ahead…
It was obvious from the testimony of sirs Nuding and Goldberg that the Governor’s hands are tied because of the lack of a balanced budget from the ILGA, and all the strings attached to monies in the budget. The Governor is simply unable to do anything because there is no money. And until the reforms are passed for the Turnaround Agenda, the Governor cannot create any job opportunities for Illinois. And, until Illinois is able to grow jobs, there will be no Turnaround. Also, the Governor’s AV pen is broken and there’s no money to buy a new one until the ILGA cuts loose the pen monies and regulations.
End snark.
- Anon - Thursday, Mar 10, 16 @ 2:00 pm:
Except you eventually pay off a mortgage.
- cdog - Thursday, Mar 10, 16 @ 2:01 pm:
Munger forgot the part about her way-ward spouse that refuses to act like an adult in tackling the kitchen table finance problem.
Her spouse, in this example is Gov Squander, who refused to keep the job that was making 25% more (expired income tax reference), but still continues to spend more money than he is bringing in to the family.
Worse he won’t even focus on this real issue of negative cash flow, and spends his days in lalaland taking about if only he had enough fairy dust everything would be ok.
That spouse needs to bring in some revenue to keep a roof over his family’s head and he needs to quit running around insulting people.
This family had made so much progress in recent years, despite the Bush Recession.
It almost sounds like she wants a divorce. /s
- RNUG - Thursday, Mar 10, 16 @ 2:16 pm:
== The $110,000 Ms. Munger likens to credit card debt is more like owing your parents $110,000. They wanted to retire with that money, and while you hammered out a timetable to get it back to them, you keep changing the agreement because you’re not bringing in as much money as you’d hoped. ==
- CD Sorensen -, good analogy on the pension debt. I may have to steal it …
- Austin Blvd - Thursday, Mar 10, 16 @ 2:36 pm:
Wondering if the Joliet Chamber, like the Illinois Chamber and Bruce Rauner, supports re-electing Ken Dunkin’ as priority one.
- Big Joe - Thursday, Mar 10, 16 @ 2:38 pm:
Back to the earlier question. Did Munger make good on the skipped pension payment last Fall?
- wordslinger - Thursday, Mar 10, 16 @ 2:39 pm:
–Yep. Everything was just peachy before Rauner showed up It’s all his fault. Move along.–
Listen, kid, no one is saying that. No intelligent adult would say that. Ever.
But no intelligent adult thinks that whatever sins they choose to find in the past gives them license for destructive recklessness today.
So unless you and Mr. Peabody can fire up the WABAC machine and go correct the issues you have with the past, start wrapping your thoughtsicles around the problems of today.
And stop being such a whiny victim.
- Mama - Thursday, Mar 10, 16 @ 2:39 pm:
“Gov. Rauner made a very big deal last year out of helping minorities move into construction trades. ”
That was last year - this year is all about saving Dunkin and ruining Madigan and McCann!
- Juice - Thursday, Mar 10, 16 @ 2:45 pm:
“Gov. Rauner made a very big deal last year out of helping minorities move into construction trades.”
Well the clear difference is that his verbiage allows him to go on his rant about unions, while hoping to drive a wedge.
The other would require some semblance and combination of governing and actually being cognizant of general subject matters so that it can be determined whether there is a correlation between one’s words and one’s actions. So obviously the complaining about unions wins out.
- cdog - Thursday, Mar 10, 16 @ 2:46 pm:
Pure gold — “So unless you and Mr. Peabody can fire up the WABAC machine and go correct the issues you have with the past, start wrapping your thoughtsicles around the problems of today.”
Lots of good stuff on CF today; Vman positions, one-liners from several, and of course OW’s latest episode of Dad’s Home State. All have been a bright spot!
- RNUG - Thursday, Mar 10, 16 @ 2:52 pm:
== “Gov. Rauner made a very big deal last year out of helping minorities move into construction trades.” ==
Damn. There’s the problem … Sam is in the construction business but he’s not a minority!
- CD Sorensen - Thursday, Mar 10, 16 @ 2:54 pm:
@RNUG, please use away, I’m sure if I’ve contributed to an RNUG pension-oriented thought I’m starting to make it big on CapFax. Now I need to figure out a way onto OW’s tee vee show…
- wordslinger - Thursday, Mar 10, 16 @ 2:57 pm:
–Back to the earlier question. Did Munger make good on the skipped pension payment last Fall?–
If I recall, she said the skipped payment would be made in April when tax payments come in.
But, to date, Illinois, is once again shorting pension payments.
That’s one thing Pat Quinn didn’t do.
And for the record, Pat Quinn had the backlog of state bills down to $4.3 billion when he left office.
Looks like it will be $12 billion on June 30 after 18 months of Bruce Rauner.
Just shakin’ it up, baby.
- wordslinger - Thursday, Mar 10, 16 @ 3:03 pm:
–Gov. Rauner made a very big deal last year out of helping minorities move into construction trades.–
To paraphrase the great Dorothy Day, with all politicians, pay no attention to what they say, but what they do.
- Saluki - Thursday, Mar 10, 16 @ 3:23 pm:
Well said Vanilla Man.
- Ghost - Thursday, Mar 10, 16 @ 3:25 pm:
not to quinnle, but one of my pey oeeves is referring to the pensio. by a total payout today number, which is not what is actually owed. there is no 110,000 credit card DEBT. the actual debt is the amount that has to be paid every year. the rest of that is moeny in saving to cover the monthly payment without having to use any money. its more like saying we need 1000000 in the bank tight now so the interest will cover our 100 loan….. the amount stated is way over whats needed to pay the annual amounts due, and its not a lump debt.. the actual . looking at srs. last year it paid out 2bil and made 680mil on investments. so it is 1.4bil short of having the investments cover costs. so if you put 20 billion in it would generate enough interest to cover its costs w/0 the state ever making another contribution. but we dont need to put that 20bil in all tomorrow. it coild be phased in. and each year tou put extra you increase the i terest and decrease the extra liability. right now we put in 3 bil extra a year. if we reduce that to 1 bil we still add to the total pay up of the investment, and save 2 bil a year
- sal-says - Thursday, Mar 10, 16 @ 3:56 pm:
Well, the Joliet Region Chamber of Commerce & Industry seems to be a lot smarter than the IL CofC and Toddie.
- Phoenix - Thursday, Mar 10, 16 @ 5:38 pm:
Well said VanillaMan - Thursday, Mar 10, 16 @ 1:47 pm:
- Arthur Andersen - Thursday, Mar 10, 16 @ 6:00 pm:
Ghost, the unfunded pension liability is not the “everyone retires at once” number because that’s not legally possible. It represents instead the accrued actuarial liability for all active, inactive, and retired members of a pension fund less the assets available to pay those liabilities.
Even now with the ramp gone, Illinois pensions are not receiving sufficient funding to cover current pension expenses and must tap investment returns to cover the bills. Look at your example for SERS. Paying out $2 billion while only contributing about $1.3 billion requires ISBI to pull out $680 million in investment earnings, or to liquidate investments, to pay current pensions. That money is now gone and can’t be invested for the future. This is a problem for all the 5 funds and it has been going on for over a decade, made materially worse when Blago and Filan took the $2 billion holiday and reset the ramp 10 years ago. In theory, the member and employer contributions should cover the normal cost of the pensions, and they do, but funding the unfunded throws everything else out of whack.
- JS Mill - Thursday, Mar 10, 16 @ 6:16 pm:
@AA- Brother, when you are good, you are good! Excellent analysis and explanation!
The impact of the underfunding is felt today in lost investment opportunities.
- Arthur Andersen - Thursday, Mar 10, 16 @ 9:30 pm:
JSM-thank you, sir. If you want to read an excellent analysis of the pension buyout proposal, check out TRS’ Website or FB page. They posted a copy of Director Ingram’s testimony before House Pensions earlier this week-very well done.
- Tom K. - Friday, Mar 11, 16 @ 5:54 am:
AA, I think I read Ghost’s post to mean that since state pensions are 100% guaranteed by the constitution, why does there even NEED to be a pension fund? Can’t pension payments just be paid from revenue each year? Or is there such a huge bubble coming in the future, that a surplus of cash is needed now to cover it, much like Social Security, that taxes would have to be raised to an unsustainable amount in the future to cover the annual payouts, if there was no fund? Is such a curve available somewhere? Honest question, no snark.