Capitol Fax.com - Your Illinois News Radar » Remember the budget?
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Remember the budget?

Monday, Oct 31, 2016

* Jim Nowlan gives us a rundown of where we are

This fiscal year, our state’s general funds are spending $22 billion as a result of court-ordered outlays. Then, there is $12 billion in “hard expenditures” we must pay for debt service, pensions and transfers to local governments and Medicaid accounts.

We can add to those totals another $6 billion in unpaid bills. For example, the state is as much as 673 days late in reimbursing medical providers for employee health care services. […]

These expenditures total $40 billion for the year, but we have only $30 billion in revenue coming into the general funds to pay all these bills.

Of course, we say we must tighten our belts. And, of course, we always can do some of that, but less than you might imagine.

Annual state pension payments of $7.2 billion are mostly debt service for underfunding pensions and sweetening them in years past, and the state high court has said we must pay them.

During the past decade or so, the state also has cut expenditures for schools, universities and social services significantly. State employee numbers are down, from 89,000 in 2001 to 64,500 last year. […]

All I am saying here is cutting “waste and corruption,” the default budget-cutting option of the public, sure won’t alone erase a $10 billion budget shortfall.

- Posted by Rich Miller        

32 Comments
  1. - Oswego Willy - Monday, Oct 31, 16 @ 9:47 am:

    Please note…

    Rauner in anti-Madigan ads complains about Madigan wanting to raise taxes…

    Rauner continues to complain about the Democratic “unbalanced” budgetary votes… as the Rauner Stopgap, that Rauner finally “requested” and “took” from the SDems, and then Rauner signed… was far more unbalanced… for only 6 months.

    Rauner absolutely does not care about the budget, “until” Rauner can destroy labor, by continuing to destroy social services and state universities to get to a point to take out Illinois labor for good.

    The budget? Raunerites love there’s no budget, complain about a tax they will all vote fit eventually and Rauner will sign… because… if it were about a budget, there wouldn’t be this discussion at all.


  2. - wordslinger - Monday, Oct 31, 16 @ 9:58 am:

    So, what’s the growth rate that will be produced by the Turnaround Agenda that will erase a $10 billion FY17 deficit?

    I’m sure the whiz kids at GOMB could cipher that lickety-split. Curious that they don’t.


  3. - PublicServant - Monday, Oct 31, 16 @ 10:04 am:

    I’m wondering whether we can get a comment from the Republicans regarding the Nowlan column. Specifically, I’d like some specificity regarding their ideas on cuts and revenue enhancements. I won’t be holding my breath.


  4. - Cleveland Fan - Monday, Oct 31, 16 @ 10:05 am:

    If we had a computer draw legislative boundaries, that would save the state about $5 billion right there. And then when you factor in the $5 billion that term limits would save the state, yeah that amounts to $10 billion. /s


  5. - Last Bull Moose - Monday, Oct 31, 16 @ 10:11 am:

    Clearly the State must adjust its customer base. All families that are projected to consume more State services than they pay for in State taxes over the next ten years are to be evicted from the State.


  6. - Lucky Pierre - Monday, Oct 31, 16 @ 10:13 am:

    Remember Lou Lang defending the indefensible Madigan budget being dropped on the desks of lawmakers for a vote hours before the session ended- he brought up the court ordered spending.

    What is the likelihood of getting this area of the budget reduced? All of this spending cannot be mandated by our constitution and if it it why do we even need a Governor or GA if the courts are in charge of 30 billion in spending?


  7. - DuPage Dave - Monday, Oct 31, 16 @ 10:20 am:

    Our current political culture, in the state and the nation, has immunity to logic on numbers. It is inherently simple to figure out what we as a state want to pay for, add up those numbers, then bring in enough revenue to pay for it.

    If X is the amount we need, it is foolish to pretend we can bring in less than X and things will be OK.

    Rauner’s song and dance is that busting unions and outsourcing to his cronies will solve the budget problems. But his numbers never add up to X.


  8. - RNUG - Monday, Oct 31, 16 @ 10:27 am:

    == State employee numbers are down, from 89,000 in 2001 to 64,500 last year. ==

    2001 was a peak of sorts for State employment. That’s a reduction of 24,500 over 15 years. I’ll just note that about 11,000 people retired under the 2002 ERI and about 2,000 or so more under the 2004 ERI (which was less aggressive than 2002). Most of those employees weren’t replaced with new hires. So a bit over half the reduction occurred at the end of Ryan’s term or the beginning of Blago’s term.


  9. - Jeff Goldenblatt - Monday, Oct 31, 16 @ 10:27 am:

    This is what happens when millionaires want to play government, with no actual experience in governing. He ran his businesses into the ground and wants to do the same this state.


  10. - Annonin' - Monday, Oct 31, 16 @ 10:46 am:

    We believe Mr/Ms Cleveland Fan should adjust the budget savin’ to reflect the billions available to the state from the local control/tax freeze hustle, P3 biz land rush and abolition of prevailin’ wage.
    BTW are remap/term limits savings calculated in 2023 and 2028 dollars?


  11. - Last Bull Moose - Monday, Oct 31, 16 @ 11:31 am:

    So we need a 33 percent increase in GRF to cover court ordered and hard expenditures and past due bills.

    I don’t think even that covers all that the State is supposed to spend.

    I do not see the Democrats leading the charge for higher taxes. Especially after this election season.


  12. - RNUG - Monday, Oct 31, 16 @ 11:38 am:

    == I do not see the Democrats leading the charge for higher taxes. Especially after this election season. ==

    Agree. I don’t see it happening until Rauner calls for it and pushes it.


  13. - Anonymous - Monday, Oct 31, 16 @ 12:01 pm:

    Good thing we had complete democrat control in illinois for 12 years and the budget was never an issue. It really left us a strong path forward.


  14. - illinois manufacturer - Monday, Oct 31, 16 @ 12:14 pm:

    AFSCME says it has only 37000 Who are the rest? Anyone know how many the universities have left even though they are less than a billion and now less because of the massive funding cuts.


  15. - Lucky Pierre - Monday, Oct 31, 16 @ 12:16 pm:

    Yes it is totally up to the Governor to dig us out of this mess he had nothing to do with creating. The GA will offer no compromises on government consolidation, pension reform or anything else that deviates from the status quo.

    They will just shout from the rooftops that Rauner failed to deal with Madigan, as Ryan, Blagoevich and Quinn did before.


  16. - Rich Miller - Monday, Oct 31, 16 @ 12:20 pm:

    ===mess he had nothing to do with creating===

    Nothing?

    You’re not a stupid person. But only a stupid person would say that.


  17. - Lucky Pierre - Monday, Oct 31, 16 @ 12:49 pm:

    “To address the problem, my friend, Martire, would raise taxes much more than policymakers will ever do. He would boost the individual income tax to 5 percent while also broadening both that tax and the sales tax.”

    Yes Rich the “smart people”just think we are one tax increase away from prosperity but won’t lift a finger to help our business community expand here through reforms like workers comp,property tax or tort reform.

    Illinois financial problems predate Rauner’s election. Only stupid people think we were financially sound then and needed to just keep doing what we were doing as far as our business environment and everything will work itself out.

    Our terrible outward migration and unemployment which predate Rauner and continue today prove otherwise.

    The fact the the GA has not lifted a finger to compromise on any of the Governor’s proposals or offered to change in any meaningful way how the Government operated under Quinn and Blagoevich is on them as well as those who blindly blame Rauner for the impasse and continue to praise the Speaker.

    The Speaker has acknowledged that there is more to be done on workers comp but two years later we see nothing.


  18. - Demoralized - Monday, Oct 31, 16 @ 1:10 pm:

    LP:

    I’m not sure how many times people can tell you this but maybe one of these times you’ll get it. Nobody has ever said it’s completely Rauner’s fault. We all know that we had problems before he arrived. BUT, since he has been in office he has added to those problems.

    As for your continued talk about the lack of compromise by the GA, yes, you’re mostly right. But the Governor really hasn’t been in the mood to compromise either. Again, only a hyper-partisan Raunerite wouldn’t recognize that.

    And enough already of your constant victimhood. Disagreeing with you and the Governor DOES NOT mean that we don’t think some things have to change.

    Enough of your absolutism already.


  19. - Oswego Willy - Monday, Oct 31, 16 @ 1:18 pm:

    - Lucky Pierre -

    Crain’s

    http://bit.ly/295LnYq

    “By nearly every measure, the state is worse off since Rauner took office.”

    Capiche?


  20. - Lucky Pierre - Monday, Oct 31, 16 @ 1:24 pm:

    Yes I know Willy, Rauner is to blame for the Speaker not changing the way he runs Springfield despite the fact we have a Republican Governor for the first time in 12 years.

    According to you, RNUG and Last Bull Moose it is up to Rauner to propose the higher taxes and drag the Democrats kicking and screaming along with him.


  21. - Demoralized - Monday, Oct 31, 16 @ 1:48 pm:

    LP:

    There you go again. What is it that you don’t get about the fact that Rauner is the Governor now and has been the Governor for two year. Problems existed before him. He has added to those problems. Those are two undeniable facts.


  22. - RNUG - Monday, Oct 31, 16 @ 1:49 pm:

    == According to you, RNUG and Last Bull Moose it is up to Rauner to propose the higher taxes and drag the Democrats kicking and screaming along with him. ==

    That is a political calculation, not a moral judgement. Tax increases, when they do occur, happen on a bi-partisan basis. If the D’s were to propose a tax increase, Rauner would just use it as more fodder for his ad campaign against them … hence, they won’t propose it as long as Rauner is in office.


  23. - Lucky Pierre - Monday, Oct 31, 16 @ 1:50 pm:

    Demoralized perhaps you can cite some of your posts demanding the Speaker as well as the Senate President have to change.

    Apparently you and others think if Rauner just agreed to raise taxes two years ago, these reforms you support but are opposed by Democratic donors would just magically happen.

    OW is the founding and only member so far of Republicans for Speaker Madigan.


  24. - RNUG - Monday, Oct 31, 16 @ 1:51 pm:

    As to Rauner making things worse, I would say the GA letting the income tax increase lapse (which Rauner make the mistake of asking for, so he “owns” it), the lack of a budget, and Rauner’s war on unions were the 3 straws that broke the camel’s back.


  25. - Demoralized - Monday, Oct 31, 16 @ 1:55 pm:

    ==Problems existed before him==

    Read what I’ve said in the past. I’ve said the above many times.

    ==Apparently you and others think if Rauner just agreed to raise taxes two years ago,==

    I’ve never said that. That’s your little game of absolutism where if someone doesn’t agree with you then they must believe the polar opposite.

    When you want to acknowledge that the Governor now also plays a role in our problems let us know. Until you do so you’re demonstrating yourself to be nothing more than a Raunerite who is only interested in parroting his talking points.


  26. - Demoralized - Monday, Oct 31, 16 @ 1:59 pm:

    And I’ve also said multiple times that they ALL need to compromise. ALL OF THEM. Governor. Speaker. Cullerton. ALL. OF. THEM.


  27. - MOON - Monday, Oct 31, 16 @ 2:02 pm:

    LP

    Its up to Rauner to sit down with the leaders and put together a balanced budget which must include a tax increase. In order to do this Rauner must forget his “Turn Around Agenda”.

    If Rauner did what I suggest I am sure the leaders are willing to put the needed votes on the board. Thus any tax increase will be a shared responsibility.


  28. - Last Bull Moose - Monday, Oct 31, 16 @ 2:26 pm:

    As RNUG said, a political calculation is not a moral judgment. I do not see how the State spends less than the Courts require. That plus “hard expenditures ” exceed GRF revenues. Math says a tax increase is required.

    Politics says the Democrats will not act alone. Either Rauner leads or the State condition worsens. While I hope for a bipartisan solution, I do not expect one.

    And while I agree that changes can make the State more competitive and grow faster, I don’t think we can make a huge change in the short term.


  29. - anon - Monday, Oct 31, 16 @ 2:26 pm:

    === Good thing we had complete democrat control in illinois for 12 years and the budget was never an issue. It really left us a strong path forward. ===

    The budget was far less in the red under Gov. Quinn than it is today. So how is that Quinn’s fault?


  30. - Oswego Willy - Monday, Oct 31, 16 @ 2:34 pm:

    - Lucky Pierre -

    Don’t have me embarrass you again where there are posts that compromise by all us needed.

    Making it about me means you have no point. You already know that too.


  31. - MyTwoCents - Monday, Oct 31, 16 @ 5:46 pm:

    Rauner and the Republicans made a political calculation to vilify and attack Madigan, unions and other opponents from day 1. When that happened it made the governing decisions next to impossible because where is the political benefit for Madigan? Now, if the governor came in from day 1 with a governing mindset then some things could have been accomplished. Madigan has worked with GOP governors, passed workers comp reform and whacked the CTU in the past.


  32. - peon - Monday, Oct 31, 16 @ 6:24 pm:

    Nowlan’s column is annoying because it continues the Rauner-Madigan personal conflict meme, not the underlying issue that there is a stalemate because the Governor wants labor legislation for which he does not have the votes.


Sorry, comments for this post are now closed.


* Open thread and another LSSI reminder
* In defense of Mary Todd Lincoln on her 200th birthday
* Caption contest!
* Rauner says he'll file end of term report, clear clemency backlog
* Question of the day: Golden Horseshoe Awards
* Pritzker roundup
* Cook County Public Guardian sues DCFS: "Abject moral and human rights failure"
* Mendoza signature clearance rate is high during first round
* Your holiday season moment of Zen
* Pritzker criticized over lack of Active Transportation Alliance members on his transition committee
* Color me skeptical
* Pritzker heading to White House today
* Sen. Schimpf wants Satanic sculpture removed from rotunda as Rep. Bryant introduces condemnation resolution
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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


Loading


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

Archives
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

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

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




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