Budgeteer deets leak
Friday, May 13, 2016 - Posted by Rich Miller
* Tina…
A hike in the state income tax, an expansion of the sales tax and $2.5 billion in cuts are among the key budget recommendations that rank-and-file lawmakers have sent to top legislative leaders, sources told the Sun-Times.
A bipartisan working group dubbed the “Budgeteer” group proposed the package for $5.4 billion in new revenue and sent it to the leaders on Wednesday.
Gov. Bruce Rauner said he is generally “cheering” the group’s work, but a top Republican leader cautioned that they are not “anywhere close to a deal.”
Illinois Budget Director Tim Nuding has been part of the talks, and has given Rauner some of the revenue numbers.
* Monique…
Under the proposal, the state would bring in roughly $5.4 billion through a combination of tax increases. That includes raising the personal income tax rate from 3.75 percent to as much as 4.85 percent, expanding the sales tax to certain services and eliminating some corporate tax breaks. […]
Meanwhile, spending would be cut by roughly $2.5 billion. That includes a reduction in health care spending for the poor, saving $750 million in pension costs by ending late-career salary spikes and requiring schools and universities to pick up employee pension costs above a $180,000 yearly salary, along with unspecified changes in how the state buys goods and services. In addition, the state would no longer be required to pay back $450 million it borrowed from special funds last year to plug a separate budget hole.
The state also would borrow $5 billion to pay down a backlog of bills expected to hit $10 billion by July 1. That debt has skyrocketed this year, in part because of the tax rollback, which created a $4 billion hole that only grew worse during the impasse. That’s because while there isn’t a full budget, more than 90 percent of government operations have been kept running through various laws and court orders, but big-ticket items like higher education, prisons and social services have only been partially funded or not funded at all.
The loan would be paid back over five years, with the goal that the state would carry a more manageable load of unpaid bills of about $3 billion a year.
* Doug…
It also includes $2.4 billion in cuts to state spending to areas like Medicaid, changing state purchasing laws and adopting pension reforms Rauner outlined in his budget proposal. […]
Sources said the plan would extract about $400 million in savings from Medicaid without a rate reduction or elimination of services. About $750 million would be saved by implementing pension changes Rauner sought in his budget speech. That includes schools and universities picking up pension costs for employees who make more than $180,000 a year. […]
Rep. Fred Crespo, D-Hoffman Estates, also tried to tamp down expectations.
“There’s no agreement with the group,” Crespo said. “It was basically an exercise to put together a balanced budget. There’s no agreement in the group. We just agreed to present this to the leaders and see how they react and what direction they give us afterward.”
* Dan…
The lawmakers also outlined $2.4 billion in savings, including a $400 million reduction in Medicaid spending, about $450 million from letting the state off the hook for repaying money borrowed from special funds to plug holes in last year’s budget, and $750 million from pension changes Rauner has proposed. […]
Sen. Chapin Rose, R-Mahomet, who is a member of the bipartisan budget group but declined to go into detail about its work, said the conversations among lawmakers have been “sometimes heated but generally productive.”
- Oswego Willy - Friday, May 13, 16 @ 9:24 am:
“Yeah, um, Speaker… about that #TaxHikeMike… baloney… we’ll be ‘Green’ on a tax hike and (gulp) Governor Rauner will… (gulp)… sign it too”
- Owls that couldn’t help themselves with that #TaxHikeMike… baloney
- Robert the Bruce - Friday, May 13, 16 @ 9:27 am:
Any day that Rauner is “cheering” the group’s work rather than stating his opposition to basic mathematics (a tax hike) is a good day.
Let’s see what he says today.
- Formerly Known as Frenchie M - Friday, May 13, 16 @ 9:28 am:
I doubt that any of this matters. Rauner has no intention of signing a budget.
- They're There Their - Friday, May 13, 16 @ 9:29 am:
Thats very similar to the bill proposed by Governor Quinn. Raise income tax, cuts, and borrow to pay down bill backlog. The republicans killed the borrowing because of politics. Well played, republicans. That unpaid backlog has done major damage to vendors doing business with the state, the state’s reputation among hesitant vendors in future procurements, as well as downgrades by ratings agencies. You republicans put politics over a sound idea, and now you’re proposing the EXACT same plan. So pathetic!!!!
- Delimma - Friday, May 13, 16 @ 9:30 am:
Maybe #taxhikemike shouldn’t allow the #brucegoosetaxhike to get off the ground without concessions.
- Ducky LaMoore - Friday, May 13, 16 @ 9:32 am:
I fully support this. Get it done. NOW!
- Norseman - Friday, May 13, 16 @ 9:33 am:
We’ll see if this is the framework for a budget deal. Naturally, there will be tweaks, but this addresses revenue and cuts. Although the cuts include dubious savings estimates.
The next hurdle is dealing with the linked issues: TA & Schools.
- Belle - Friday, May 13, 16 @ 9:34 am:
At least it is something. Rauner, Madigan, etc will need to make comments or reject the ideas. WE need something to get the ball back in play.
- Mama - Friday, May 13, 16 @ 9:35 am:
“a top Republican leader cautioned that they are not “anywhere close to a deal.”
Rich, can you share any ideas on what Rauner and Madigan will agree to?
- What the What - Friday, May 13, 16 @ 9:35 am:
I agree with others that the Gov does not want a budget. The question is do any GOP in the GA want one, and can they force his hand.
- RNUG - Friday, May 13, 16 @ 9:35 am:
Going to be interesting to see the actual details. The hints this morning in the SJ-R (repeated above) imply there is still some mythological pension and Medicare savings as about $1B of the cuts. And we’ve been there before with the $5B borrowing plan to pay off part of the backlog … except last time they didn’t follow through with the borrowing.
Any movement is better than none, but I have serious doubts about some of the items.
- Oswego Willy - Friday, May 13, 16 @ 9:37 am:
===I doubt that any of this matters. Rauner has no intention of signing a budget.===
Let’s game this out a bit…
Let’s say bipartisan, bicameral agreement has 90 House votes and 45 Senate votes…
Now, Rauner decides to go “Full Veto”.
The GA overrides. What is going to stop Rauner from touring ALL of Illinois, runnin’ all over sayin’ “There they go again, career politicians, my hands are tied, I vetoed it!”… rolling the GOP members.
“My point?”
Only when the budgeteers can absolutely guarantee a perfectly clean signature will any agreement be given a full up or down, or further, Rauner will expose himself as the Raunerite he already embraces, with Ken Dunkin as the model.
That won’t happen.
If any agreement gets to “Red” or “Green”, it will be perfectly agreed to structured roll calls that Rauner will sign, quickly and applaud himself while doing it.
Trust. This is where rubber meets the road.
- Ahoy! - Friday, May 13, 16 @ 9:40 am:
Seems like a good starting point for the leaders to begin negotiating. Let’s agree on principle and haggle over the price.
I think they should look at extending the pension ramp further and try to keep income taxes lower (or some kind of swap with property taxes, but that’s for a later day). Either way it’s a decent start, but we need a lot of years of good management and budgeting to dig ourselves out of this hole.
- Cassandra - Friday, May 13, 16 @ 9:41 am:
Borrowing, pretending (the pension “savings”, the Medicaid “savings,”), smoke and mirrors (not paying back the loan the state made to itself), and unspecified procurement reforms which may or may not happen. A sales tax expansion which will disappear when the targeted businesses find out who they are and start screaming. And where are the corporate loopholes?
We are right on track to the real object of this dance which is to get into taxpayer pockets to the tune of billions in income tax increases. Then these “reforms” will fall away, and, well, we tried.
- Huh? - Friday, May 13, 16 @ 9:44 am:
Just because a budget is passed and signed into law, doesn’t mean that the money has to be spent.
MOA here we come…
- wordslinger - Friday, May 13, 16 @ 9:45 am:
The math has been obvious and unforgiving since January 2015.
Also obvious since January 2015 is that it all comes down to what Rauner will sign.
Please, no pipe dreams of fictional “super-majorities.” Getting 60/30 in a structured roll call will be tough enough.
Rauner is being awfully careful not to have anything to do publicly with this process. Unless GOP GA members really push him, I’m guessing he’ll be squeezing the beast for a while longer, with the occasional band-aid.
- Joe M - Friday, May 13, 16 @ 9:47 am:
Are they talking about the FY 2017 budget? I wonder how any of this will relate to the FY 2016 budget for higher ed and social programs. Higher ed currently has about a 70% cut for FY 2016 - and a number of social programs currently have a similar cut. Is the “sweep” money all they are going to get for this FY?
- Beaner - Friday, May 13, 16 @ 9:48 am:
Had dinner out and paid $4 for a beer, which includes 2 cents of alcohol excise tax. So thankful to daylight they did not raise this to 3 cents. ALL my favorite restaurants would close over night and hundreds of thousands of waitresses, cooks and bartenders would be force to move to Indiana. …Where of course, they would have a Right-To-Work.
Thou shall not toucheth the $4 billion alcohol subsidy. Raiseth thee the W2 wage slave taxes. Clink clink go the Wine Glasses.
And I am so thrilled the top Gaming Tax on the Big Casinos was not reduced from $200 million. I was so dern worried, I have had trouble sleeping. For the love of daylight, had they reduced it to $2 million, all the Casinos would close overnight, and then I’d have to go online to toilet flush my paycheck.
- DuPage Bard - Friday, May 13, 16 @ 9:51 am:
Better have GOP votes for a tax increase, a lot of GOP votes. The constant pounding by AFP and IPI against target Dems since the temporary tax hike means none of them will vote for this. The policy pivot and subsequent rationalization occurs in 5…4…3…2….
- Rich Miller - Friday, May 13, 16 @ 9:51 am:
People, look around. Some things have changed.
- What the What - Friday, May 13, 16 @ 9:55 am:
People, look around. Some things have changed.
No Anonymous postings?
- RNUG - Friday, May 13, 16 @ 9:57 am:
== People, look around. Some things have changed. ==
Yep, no bricks at the moment. Enough to make me somewhat optimistic about the process if not the numbers.
- Rich Miller - Friday, May 13, 16 @ 10:00 am:
===Yep, no bricks at the moment===
There are bricks, just not from Rauner.
- Oswego Willy - Friday, May 13, 16 @ 10:00 am:
===Please, no pipe dreams of fictional “super-majorities.” Getting 60/30 in a structured roll call will be tough enough.===
With great respect,
I can’t see Dems allowing a plan like this to “squeak by” at 60 and 30 unless it’s overwhelingly “Raunerite Heavy” and the verbiage of “bicameral, bipartisan” seems to insist on whopping numbers to provide cover for, not only Dems, but GOP members… and Rauner himself.
With respect.
- RNUG - Friday, May 13, 16 @ 10:01 am:
== There are bricks, just not from Rauner. ==
I stand corrected …
- Juice - Friday, May 13, 16 @ 10:01 am:
Is anyone going to ask CGFA or the pension systems how much the pension “savings” are going to cost us through the life of the funding schedule?
- From the 'Dale to HP - Friday, May 13, 16 @ 10:10 am:
I know this is far from done, but it’s kind of amazing that the increase in revenue, with GOP input, would be over $3 billion more than what Lang proposed via the graduated income tax.
- Mama - Friday, May 13, 16 @ 10:11 am:
All the corporate loopholes need to be legally closed. That should generate new revenues.
- A guy - Friday, May 13, 16 @ 10:12 am:
+++ Rich Miller - Friday, May 13, 16 @ 10:00 am:
===Yep, no bricks at the moment===
There are bricks, just not from Rauner.+++
There should be no question that a very reasonable and measured approach is underway. This is positive news. If there’s so much poison in the well (no matter how it got there, does it matter?) that a deal can’t be made, it will be clear where the bricks came from.
- JS Mill - Friday, May 13, 16 @ 10:13 am:
Theoretically these talks should put some pressure on both Rauner and Madigan. I am not sure that they care, but if rank and file forge a deal that should pressure both parties to pass it.
From Rich’s veiled caution, it sounds as if Madigan (I am totally underwhelmed with fake surprise) is the more truculent of the two parties at this point (foolish) but he has reacted to rank and file pressure before.
Everyone seems to be dancing around the issue and parsing their words when asked about progress. I really do not know what to make of that, positive or negative.
At the end of the day just freakin’ get something done for the love of God!
- Johnny Pyle Driver - Friday, May 13, 16 @ 10:13 am:
Do we have to pay the troll toll to get the answer to the riddle?
- Mama - Friday, May 13, 16 @ 10:13 am:
RNUG, how can they count on any revenue from pensions? This makes no sense to me.
- JS Mill - Friday, May 13, 16 @ 10:16 am:
@A guy- Don’t kid yourself. The governor’s lack of leadership and abysmal behavior has done at least as much as anyone else to create and prolong this disaster. Ever wonder why he has to stay so far away from the goings on at this point? He is toxic to rank and file legislators on both sides. Maybe no more, but certainly no less than Madigan. That is why this can only get done by rank and file legislators across the isle.
- SAP - Friday, May 13, 16 @ 10:18 am:
Mama: The pension savings are from controlling late career pay spikes and passing some costs on to the locals. Specifically, “That includes … saving $750 million in pension costs by ending late-career salary spikes and requiring schools and universities to pick up employee pension costs above a $180,000 yearly salary.”
- Oswego Willy - Friday, May 13, 16 @ 10:21 am:
- A Guy -
The Governor has publicly made himself an ignorant passenger, passing on his rumors of what is going on and not engaged, but “cheering”.
That’s not “genius”, that’s cowardly and refusing, publicly, to engage in processes.
To the Bricks,
No one holding hostages or placing bricks should be cheered, encouraged, or applauded at this point, or at any point if this ridiculous game that’s been playing out.
Find the conpromise.
- Honeybear - Friday, May 13, 16 @ 10:22 am:
-People, look around. Some things have changed.-
Have pity please. I don’t get it and I’d like to understand.
On another note I hate seeing the Medicaid cuts. I don’t understand where they can cut it given the increased need where I’m sitting. Is it just a fund? I thought it was 50/50 with the feds. So what happens when the money isn’t there.
Guys, I know I’m sounding like Meredith at 4, “why” “why” “why”, but when honestly and sincerely I’m trying to learn it can be like listening to Navajo code talkers. Jesus, I was up half the night trying to figure out what was meant by the Godfather narratives. Labor is Tessio. Bloody hell, there goes tonight. Actually I feel like Linus from Oceans 12 or 13 where they go to see that London contact for a job. ( the guy who places Hagrid ) There, that is exactly how I feel.
- A guy - Friday, May 13, 16 @ 10:25 am:
JS and OW, that’s the spirit! Keep up that problem solving with all the sincerity you can mutually muster. #nowonder.
- Stones - Friday, May 13, 16 @ 10:26 am:
Pension reform must be creation of a third tier. The Court has been very clear when it comes to preservation of current benefits.
- Blake - Friday, May 13, 16 @ 10:28 am:
From the ‘Dale to HP,
It’s because the top marginal rates are lower under this deal. If forced to choose, Republican donors, politicians, & their advocates will always choose higher taxes with lower effective rates on the superrich over lower taxes with higher effective rates in the superrich.
- RNUG - Friday, May 13, 16 @ 10:28 am:
== Pension reform must be creation of a third tier. ==
Tier 2 is not only totally free to the State, it also has excess funds to pay down a bit of the Tier 1 debt.
Seriously, how can you design a new Tier 3 that is better?
- Oswego Willy - Friday, May 13, 16 @ 10:29 am:
- A Guy -
Use the Search Key…
I’ve said, over and over and over… hostages, be they Rauner’s, or Cullerton’s, and even Bricks like Madigan has going are wrong in these budget processes.
Anyone.
You seem to chime in, magically, only when Rauner is a true “victim of the hostage-taker”
Your ridiculous double-standard commenting is tiring.
Bad for one, bad for all.
- atsuishin - Friday, May 13, 16 @ 10:39 am:
=Going to be interesting to see the actual details=
Agreed. I suspect the “cuts” arent actually cuts. but simply the same old budget gimmicks. Won’t resolve the structural problems. Looks like Rauner is starting on a 5 step plan to giving in to a massive tax increase.
- Mama - Friday, May 13, 16 @ 10:42 am:
I think Rauner is planning to save money off of the workers backs after he forces AFSCME to go on strike. It is my understanding no health insurance or pension payments will be paid during a strike. However, no pension payments are being paid now so…no difference there.
- atsuishin - Friday, May 13, 16 @ 10:42 am:
==Pension reform must be creation of a third tier. The Court has been very clear when it comes to preservation of current benefits.==
agreed its long past to move all new hires to 401ks. state health care plans need to move to medicaid and salary freezes until the end of rauner’s 1st term. only then should tax hikes be considered.
- Sunnyside Up - Friday, May 13, 16 @ 10:48 am:
This is in the hands of regular legislators. Will they rise up and force action like they did on higher ed and human services stop gaps? Or will they let this continue for another year?
The framework laid out by the budgeteers, despite its flaws, is a road map out. Can they get some of Rauner’s stuff mixed in and finish the impasse?
- Anonymous - Friday, May 13, 16 @ 10:48 am:
==agreed its long past to move all new hires to 401ks.==
401(k) = State paying employer’s share of Social Security, 6.5% + 4.5% average employers matching contribution = 11% State contribution, which will cost the State more than the current Tier II.
- Juvenal - Friday, May 13, 16 @ 10:52 am:
Republicans delayed passing a budget by a year so they could raise taxes by $5.4 billion instead of $4 billion.
- HangingOn - Friday, May 13, 16 @ 10:54 am:
== state health care plans need to move to medicaid==
From the Google:
For the most part, to be eligible for Medicaid you must be one of the following:
Be age 65 or older.
Have a permanent disability as that term is defined by the Social Security Administration.
Be blind.
Be a pregnant woman.
Be a child, or the parent or caretaker of a child.
So I guess you’d have to consider working for the state as a disability…
- Stones - Friday, May 13, 16 @ 10:56 am:
RNUG-
I’m pleading some ignorance here but are there still retiree health insurance benefits for long time employees retiring under tier 2?
- Anonymous - Friday, May 13, 16 @ 10:56 am:
“- Mama - Friday, May 13, 16 @ 10:42 am:”
RNUG — Mama do you think there will be a strike? What are the chances, 50-50, 40-60, 30-70?
Or
Could there be a lock out if employees don’t get their pay checks starting in July?
Thanks for any thoughts
I feel really bad for my wife and her co-workers.
- Demoralized - Friday, May 13, 16 @ 10:57 am:
==its long past to move all new hires to 401ks==
That’s a legitimate debate. But it doesn’t save squat right now.
==state health care plans need to move to medicaid==
I’ve heard that suggestion before and I don’t even know what that means and I don’t think those saying it have any idea either.
- Formerly Known As... - Friday, May 13, 16 @ 11:03 am:
==Illinois Budget Director Tim Nuding has been part of the talks==
Rauner demonstrates again a willingness to compromise and extends another olive branch.
No mention of Madigan sending anyone as an emissary.
- Triple fat - Friday, May 13, 16 @ 11:04 am:
SAP - How will that pension savings affect Teachers who are in year 1 of an agreed to three year spike?
- Anonymous - Friday, May 13, 16 @ 11:04 am:
“- atsuishin - Friday, May 13, 16 @ 10:42 am:”
Your health care can be Medicare. You can lose your retirement and your employer should give you an 80% salary reduction while making you work 30% longer per week, there fixed it.
- Demoralized - Friday, May 13, 16 @ 11:05 am:
FKA:
House Democrats were part of the group.
- Honeybear - Friday, May 13, 16 @ 11:09 am:
state health care plans need to move to Medicaid
To use Rich’s phrase. BITE ME!!!!!
Go for it pumpkin. You will see the collapse of the workforce for sure. You have no idea how hard it would be to get people to work for the state. It would be a permanent revolving temp service. Nothing would get done and it would create so many problems it would just become non functional. My God, we’ve already lost so many people.
- Anonymous - Friday, May 13, 16 @ 11:10 am:
“- atsuishin - Friday, May 13, 16 @ 10:42 am:”
Maybe you should get a salary reduction and be moved to medicade and get your retirement gutted.
- GA Watcher - Friday, May 13, 16 @ 11:11 am:
FKA: I’ve been told Representative Arroyo, one of the House Approp Chairs, has been the Speaker’s “emissary” at the budgeteer meetings.
- Formerly Known As... - Friday, May 13, 16 @ 11:13 am:
==I suspect the “cuts” arent actually cuts.==
As it stands, this would be more than $2 in taxes for every $1 in cuts. If those cuts are closer to $0 than $1, that will be a much tougher sell.
However, as @Sunnyside Up says, this is a roadmap and the product of honest hard work. If they can sweeten this bitter pill with compromise on some mainstream reforms, this could give them something to ==sell== to the voters and spell the end of the ==war==.
- RNUG - Friday, May 13, 16 @ 11:14 am:
== … are there still retiree health insurance benefits for long time employees retiring under tier 2? ==
-Stones- as far as I know, that has not changed.
- Rich Miller - Friday, May 13, 16 @ 11:15 am:
===No mention of Madigan sending anyone as an emissary. ===
He has more people in that room than anyone else.
#Subscribe
- JS Mill - Friday, May 13, 16 @ 11:18 am:
=it will be clear where the bricks came from.=
Yeah, that’s some real problem solving you are doing there, real bipartisan spirit. #hypocrite
- Tone - Friday, May 13, 16 @ 11:21 am:
Why would the state have to have a 4.5% match for a 401k? That is rather high.
- RNUG - Friday, May 13, 16 @ 11:25 am:
- Anonymous - @ 10:56 am:
Right now, I would say a strike is almost a certainty. I’ve said it would be a mistake; that strategically it would be better to have the Governor initiate a lockout. And I’m on record that, if there is a strike, it will be a long one.
As to no paychecks as of July 1, that really translates to after July 15 since the state runs a pay period behind. But that could be interpreted as the State doing a lockout. I have to wonder if that isn’t why there is a push on (and public silence from Rauner) to get a budget with spending authority to meet payroll. Rauner wants to force a strike, not have a “state caused” lockout.
Lots of moving pieces and only half glimpsed reasons going on.
- Honeybear - Friday, May 13, 16 @ 11:27 am:
state health care plans need to move to Medicaid
Do you have any idea how hard it is to find a doctor who accepts Medicaid or even our State Health Insurance right now given that they know they won’t get paid? When you go to the doctor you get seen right? How about not finding a doctor that will see you or accept you as a new patient. I PAY MY PREMIUMS WITH EVERY CHECK AND YET I CAN’T GET SERVICE, I HAVE TO PAY UPFRONT, I don’t know how this isn’t illegal. YOU WOULDN’T STAND FOR IT AND YOU KNOW IT!!! Please stop disrespecting me and my fellow public servants. Stop. TROLLS. Stop! Hell yes the well is poisoned when I and other state workers have to put up with this crap day in and day out.
- Zonker - Friday, May 13, 16 @ 11:27 am:
@FKA
=As it stands, this would be more than $2 in taxes for every $1 in cuts. If those cuts are closer to $0 than $1, that will be a much tougher sell.=
Early in his presidency, Ronald Reagan made this kind of a deal with the Dems in Congress, except there was like $3 in cuts (real ones, not the sleazy “reduction in growth” kind) for every $1 in tax increases. The tax increases happened, the cost cutting didn’t. It was on of the biggest regrets of his presidency. If anyone seriously believes that these cuts will EVER happen while the same people who caused this problem are running things, they’re as delusional as anyone who thinks Oswego Willy is really a Republican.
- Formerly Known As... - Friday, May 13, 16 @ 11:28 am:
@GA Watcher - gracias, sincerely. That gives me hope this thing might actually fly.
@Demoralized - fair enough. It can be helpful having one point person or staffer present as your ==guy== that is seen as speaking clearly for your personal views, but all of those legislators present are capable of keeping the Speaker informed and communicating his stance. I would hate to see their work scuttled at the end by a ==miscommunication== with one persone, whether it be Rauner or Madigan.
- RNUG - Friday, May 13, 16 @ 11:31 am:
== Why would the state have to have a 4.5% match for a 401k? ==
Doesn’t matter what the match percentage is; anything greater than zero is more that what the State is paying for Tier 2 now.
And the SS contribution is a valid point for the groups, like teachers, that don’t participate in Social Security now.
/RANT
When are people going to get it that there is no legal pension “reform” left that will generate any huge savings? Anything other than keeping on with Tier 2 costs more money!
- SAP - Friday, May 13, 16 @ 11:34 am:
==SAP - How will that pension savings affect Teachers who are in year 1 of an agreed to three year spike?== Devil will be in the details, but I’d expect the schools would be required to buck up and pay for the spike.
- WhoKnew - Friday, May 13, 16 @ 11:35 am:
All these budget will never fly!
There’s no mention of the Turn a Tur… err Around agenda!. /s
- walker - Friday, May 13, 16 @ 11:55 am:
Good progress. If nothing else it will further define the leadership positions. Nothing like reacting to numbers and real tradeoffs, versus general talking points.
- A guy - Friday, May 13, 16 @ 12:00 pm:
===You seem to chime in, magically, only when Rauner is a true “victim of the hostage-taker”
Your ridiculous double-standard commenting is tiring.===
OW, I rarely “chime in”. It could get more rare. If you did a case study on comments here for the last several months, you might conclude that everything is happening in a vacuum. Are you “so” correct, all the time, that it’s impossible to believe that anyone else thinks anything else? This ceases to be much of a blog if all you get is people who simply agree with one another 100% all the time. My rare “chime ins” along with very few others prevent that.
Is that healthy or not? I’d argue it is. But “tiring” is what your tirades are becoming.
- Joe M - Friday, May 13, 16 @ 12:05 pm:
=Why would the state have to have a 4.5% match for a 401k? That is rather high.=
Because that is about the average good employer contribution for employers that provide such retirement plans. Of course some companies match a lot higher, such as Caterpillar. “The Caterpillar retirement plan ranked near the top, with a 6 percent potential match and an additional contribution of between 3-5 percent” McDonalds is also offers some of the top matches among employers. For a number of its employees McDonalds offers “a 7 percent maximum guaranteed match and the 3 percent discretionary match.”
- Oswego Willy - Friday, May 13, 16 @ 12:06 pm:
===Are you “so” correct, all the time, that it’s impossible to believe that anyone else thinks anything else?===
Nope.
Consistent? I try very hard to be, even looking back and adding to my comment where I commented on the subject before.
Consistency is the measure I was inquiring of you.
- skeptic - Friday, May 13, 16 @ 12:09 pm:
“state health care plans need to move to Medicaid…” sez someone who probably thinks ObamaCare is socialist.
- RNUG - Friday, May 13, 16 @ 12:14 pm:
- SAP - @ 10:18 am:
A spiking rule requiring the districts to pay the extra is already in place, so I don’t see where they are getting any savings there.
- AARP Rules - Friday, May 13, 16 @ 12:32 pm:
So, they’re going to jack everyone’s income tax by one percent, or more, and leave retirement income entirely alone? And property taxes remain status quo?
Great. I’m moving to Indiana. The codgers and their legislators can figure out how to make ends meet on their own.
- Anonymous - Friday, May 13, 16 @ 12:37 pm:
“- AARP Rules - Friday, May 13, 16 @ 12:32 pm:”
Rauner if you move to Indiana, you will have to resign the Governorship but hey don’t let me stop you. I’ll pay your tolls if it gets you out of here faster.
- wordslinger - Friday, May 13, 16 @ 12:37 pm:
–Early in his presidency, Ronald Reagan made this kind of a deal with the Dems in Congress, except there was like $3 in cuts (real ones, not the sleazy “reduction in growth” kind) for every $1 in tax increases. The tax increases happened, the cost cutting didn’t. It was on of the biggest regrets of his presidency.–
LOL, yeah, that Reagan was just a naive huckleberry, getting fleeced by the Dems at every turn.
Funny, I don’t remember it that way.
Reagan was a skilled and wily politician who was very good at the game — particularly deflecting blame.
They didn’t call him The Teflon President for nothing.
- Keyser Soze - Friday, May 13, 16 @ 12:45 pm:
Do the leaders so despise one another that they have enlisted surrogates to tackle the mission? It looks that way.
- GA Watcher - Friday, May 13, 16 @ 12:54 pm:
Keyser Soze: It’s called plausible deniability. Leader Durkin and Governor Rauner demonstrated it with the quotes Tina Sfondeles included in the piece Rich referred to above. I believe Steve Brown exercised it as well in a news piece the other day where he indicated the budgeteer meetings were discussions, not negotiations.
- Johnny Pyle Driver - Friday, May 13, 16 @ 1:08 pm:
How is that Myth about Reagan still alive?
https://www.washingtonpost.com/blogs/fact-checker/post/the-historical-myth-that-reagan-raised-1-in-taxes-for-every-3-in-spending-cuts/2012/12/13/58a33e4c-4555-11e2-8061-253bccfc7532_blog.html
- Pot calling kettle - Friday, May 13, 16 @ 1:43 pm:
If I’m in the GA (R or D), I’m not pressing green on this deal until I have a letter from the Gov. saying that the tax increase and cuts are necessary…something akin to what Edgar did back in the day.
Why? Because I would be worried about 1) the Gov not signing the bill (he has changed his mind and burned folks in the recent past) and/or 2) having this vote used against me in the Fall. (The battle royale for seats will be well-funded and will certainly use this kind of vote.)
Such a letter would certainly help get some legislators over the hump, but it’s still hard for me to see large numbers voting for this anytime between now and November.
- Skeptic - Friday, May 13, 16 @ 1:50 pm:
“How is that Myth about Reagan still alive?” Maybe the same way Trickle-Down economics is still alive?
- SAP - Friday, May 13, 16 @ 2:01 pm:
==A spiking rule requiring the districts to pay the extra is already in place, so I don’t see where they are getting any savings there.== So, are you saying there is some sort of rule against counting the savings from that twice? Snark aside, I did not know that rule was already in place.
- Tone - Friday, May 13, 16 @ 2:59 pm:
“something akin to what Edgar did back in the day”
You mean, like creating the mess we find ourselves in today? Edgar was an awful governor.
- Lucky Pierre - Friday, May 13, 16 @ 3:09 pm:
How have the past seven + years of the government and Federal reserve trying to stimulate the economy worked out?(also known as trickle down government).
Reagan won 49 states after one term in office because the economy boomed. GDP increased by 32 percent in his 8 years and the economy grew at an average of 3.5 percent for those 8 years. The economy grew twice as fast under Reagan vs the last 7 years and the waves did trickle down to average people
Median household income up 10 percent under Reagan and flat under Obama.
- wordslinger - Friday, May 13, 16 @ 3:14 pm:
– GDP increased by 32 percent in his 8 years and the economy grew at an average of 3.5 percent for those 8 years. –
Reagan was quite the Keynesian, what with the stimulating effect of the highest peacetime deficits in U.S. history.
- Person 8 - Friday, May 13, 16 @ 3:35 pm:
RNUG
===so I don’t see where they are getting any savings there.
===
I’ll try my best to answer using TRS. Most district offer 7%(the max) in the final 4 years for teachers retiring. If that threshold is lowered to what they typically would get in as a raise (3-4%?) here’s how it would work out:
56y/o tier 1 has 31 years and currently at 75K salary. Puts into retire in 4 years.
At 7% his starting pension is $73,731(ending salary would be $98309)
At 4% his starting pension is $65,804(ending salary would be $87738)
Putting it through my calculations, the difference of 3%…with the compound interest between the two plans from age 60-70 would be 101K for that 1 pensioner). Not a ton, but added up over thousands of teachers and it would be a nice chunk of change.
- walker - Friday, May 13, 16 @ 4:19 pm:
These aren’t “leaks.” They’re chumming the waters.
- Mama - Friday, May 13, 16 @ 4:25 pm:
== Anonymous - Friday, May 13, 16 @ 10:56 am:==
Whether there is a strike or not all depends on what Rauner’s final contract offer is to the union. Sorry, I can not give you a percentage since I have no idea what Rauner’s last contract offer will include. I’m praying the union will not be forced to strike.
- Carpfish - Friday, May 13, 16 @ 4:26 pm:
Was told budget cuts DNR by another 10-15% Rosenthal telling staff to be prepared.