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*** UPDATED x2 *** What’s on tap today?

Wednesday, Mar 29, 2017

* Tribune

Senate leaders this week are hoping to revive their sweeping budget proposal, which has stalled after the governor weighed in on the plan.

The latest talks center on a potential tax hike, with negotiators saying Rauner is pushing to make any income tax increase temporary. They say his office wants that hike to be limited to five years and paired with a five-year property tax freeze.

Some Democrats are worried about a temporary hike, saying it would create a funding “cliff” in the future (that’s what happened when the 2011 temporary income tax hike expired in 2015). They also are concerned about extending a property tax freeze for that long. They instead want a two-year freeze that would allow local voters to say if they want to extend it for three more years. […]

Senate lawmakers plan to meet behind closed doors Wednesday, when they are likely to decide whether to move ahead with another round of voting on the plan, which is being negotiated by Senate President John Cullerton and Republican leader Christine Radogno.

* But

Senator Bill Brady, (R)-Bloomington, has introduced 7 budget bills he says will create the first balanced budget the state has seen in years.

The Bloomington Republican announced his package of bills Tuesday afternoon, which he says contain $5 billion in cuts. “Cuts are never easy, and I don’t anticipate the cuts outlined in this budget will be well received by everybody, but given the situation that our state is operating at a court ordered spending plan, with billions of dollars of deficit spending it’s time to fix Illinois fiscal crisis.” he said.

Senator Brady says his proposal provides for selling revenue bonds totaling $6 billion to reduce the state’s backlog of unpaid bills and save the state millions of dollars in interest costs.

“The state’s unpaid bills now total almost $13 billion, or $1,000 for every man, woman and child in the state. If we do nothing, our unpaid bills, what we owe to medical providers, social service agencies and other vendors, will grow to move than $20 billion over the next two years. That’s not the message Illinois out to be sending to the world, and it’s not the kind of system we should ask Illinoisans to accept.” he said.

Senator Brady says this budget package is not being proposed as a replacement for the Grand Bargain, rather a supplement to it. “I have always said that a balanced budget must be an integral part of the grand compromise that the Senate has worked on. While I appreciate the hard work and progress that has gone into some of these proposals, nobody has been talking about a budget. What I’m proposing is a balanced budget that takes into account the new revenues from that compromise but also includes more than $5 billion in general revenue fund spending cuts, adjustments and cost savings, including 5 percent across-the-board cuts for most of state government outside elementary and secondary education.”

*** UPDATE 1 ***  Ugh…


From the story

“Now that I’ve read it, what I see is that there’s a significant departure from our agreement,” he says. “There’s a lengthy list of things that do not reflect our agreement. Some of those are things we discussed and I thought we had an agreement on, but the amendment doesn’t reflect that. Others are concepts that were never discussed that are being introduced now in this amendment.” […]

But after actually reading Manar’s plan, Barickman asked for lots of big changes. Manar points out that Senate Republicans have never filed a school funding reform bill, and suggests it’s time for them to do so. If they do, Manar says, “I guarantee I will have it heard in the Senate education committee.”

That bill is an integral part of the grand bargain. No SB1, no grand bargain.

…Adding… Barickman did sponsor an education funding reform bill and Manar was a co-sponsor. So it has been done before. Click here.

*** UPDATE 2 *** Yep. Subscribers know more…


- Posted by Rich Miller        

48 Comments
  1. - Seats - Wednesday, Mar 29, 17 @ 10:21 am:

    How much of Brady’s 5 billion in cuts will come from Pension Reform that could be reversed in court?

    Look forward to reading his cuts; hopefully it is something that works well for everyone.


  2. - veritas - Wednesday, Mar 29, 17 @ 10:34 am:

    Brady is working so hard to appear relevant.


  3. - Markus - Wednesday, Mar 29, 17 @ 10:46 am:

    How about a tax on political ads? That would add some revenue.


  4. - City Zen - Wednesday, Mar 29, 17 @ 10:49 am:

    A temporary tax hike is only a cliff if you choose to make it one. Resize the budget to live within the tax rate at the end of the temporary hike and use all remaining funds to pay down debt.


  5. - Fax Machine - Wednesday, Mar 29, 17 @ 10:58 am:

    Did the Governor get to Barickman?


  6. - Oswego Willy - Wednesday, Mar 29, 17 @ 11:01 am:

    ===Did the Governor get to Barickman?===

    Sen. Barickman, “who” apparently doesn’t really care about Higher Ed funding, “who” made his allegiance known at the NRI Hearings, “who” seems to continually vote against his district, and vocally makes clear its fine…

    That Sen. Barickmam?

    “Who” is to say?


  7. - OurMagician - Wednesday, Mar 29, 17 @ 11:02 am:

    Just a thought, how about a 5 year income tax increase with a trigger that’s it’s renewed for another 5 years if the unpaid bills are not below xxx amount? Would give an incentive to growth to increase the tax dollars and also cutting in some areas.


  8. - Opiate of the Masses - Wednesday, Mar 29, 17 @ 11:09 am:

    watch closely. when barickman speaks you will likely see the governor off in the corner barely making his lips move. they’ve gotten pretty good at it.


  9. - The Dude Abides - Wednesday, Mar 29, 17 @ 11:14 am:

    @City Zen, realistically it’s not possible for the state to be able to function on a 3.75% income tax rate even if there are moderate increases in tax receipts and substantial budget cuts for the next 5 years. The situation has been made worse not having a budget for two years and running up all these unpaid bills. Any honest person who understands the state budget will tell you that the fixed 3.75% tax rate should be a thing of the past. Last time I checked Iowa had a top income tax rate of 8.98%, Wisconsin 7.65% and practically everyone in Missouri is paying 6% but we are being told by the Governor that going over 5% will hurt our economy. These states all have healthier economies than Illinois.. go figure.


  10. - City Zen - Wednesday, Mar 29, 17 @ 11:25 am:

    @The Dude Abides - All those states you quoted tax retirement income.


  11. - Demoralized - Wednesday, Mar 29, 17 @ 11:35 am:

    ==All those states you quoted tax retirement income.==

    Who cares? That’s never going to happen here so I see no earthly reason why you keep bringing it up as if it is in any way relevant to any of these discussions.


  12. - Lucky Pierre - Wednesday, Mar 29, 17 @ 11:41 am:

    Taxing retirement income will never happen here.

    That is the trouble with Illinois we have more “sacred cows” than India.


  13. - Oswego Willy - Wednesday, Mar 29, 17 @ 11:45 am:

    ===That is the trouble with Illinois we have more “sacred cows” than India.===

    Your ignorance here only works if you feel Rauner should push to tax retirement income. Is that what you want the governor to propose?


  14. - Rod - Wednesday, Mar 29, 17 @ 11:50 am:

    I have yet to figure out how and where SB 1 as amended is different than HB 2808 that was drafted as part of the Illinois School Funding Reform Commission process but never apparently agreed to by the Commission members. Governor Rauner seems to have balked at the cost factor for the evidence based plan. Rauner is not the only one unnerved by the cost, several Democrats in the House have raised those concerns too during committee hearings.

    Its at least $3.5 million to get to what the bills call basic education funding adequacy. The input figure used by ISBE number crunchers appears to be the same as the FY 17 budget for K-12 education. According to ISBE spread sheets Illinois schools with this proposed evidence based funding plan in its first year would remain funded $5.5 billion below what it defines as adequacy ( see https://www.isbe.net/Pages/Illinois-School-Funding-Reform-Commission.aspx Preliminary Mechanism Worksheets ).

    The evidence based plan is very complex and expensive, so I am not surprised Barickman was not on board with the bill. Rep. Robert W. Pritchard (a leading Republican with 14 years in the Assembly) still remains a chief sponsor of HB 2808 which as far as I can tell is fundamentally the same as the amendment to SB 1. So there does not appear to be a clear Republican position to dump the evidence based model of funding reform.


  15. - Langhorne - Wednesday, Mar 29, 17 @ 11:52 am:

    Leave it to bill to lob his own package of bills over the transom.
    Q: how many cosponsors does he have, who are they? That will tell a lot.


  16. - Demoralized - Wednesday, Mar 29, 17 @ 11:54 am:

    ==Leave it to bill to lob his own package of bills ==

    Those bills were drafted by the Governor’s office.


  17. - City Zen - Wednesday, Mar 29, 17 @ 11:55 am:

    @Demoralized - I bring it up only when someone points to a state with a different (read: higher) tax rate than Illinois as an example of what we should do. If you want Iowa tax rules, that includes taxing retirement income. Remove retirement income from any one of those state’s budgets and they’d have a substantial shortfall.

    We won’t get out of this hole by exempting the fastest growing segment of the population from taxation. Simple as that.


  18. - Lucky Pierre - Wednesday, Mar 29, 17 @ 12:00 pm:

    Do you reflexively have to respond to every post OW, you are like a goalie for the status quo.

    Any true Grand Bargain should have nothing off the table so yes I think it should be in there, especially for higher incomes

    Why does the Governor have to propose everything?

    There is another co equal branch of Government that is finally coming up with a plan because they realize just obstructing isn’t one.


  19. - Demoralized - Wednesday, Mar 29, 17 @ 12:05 pm:

    ==Any true Grand Bargain should have nothing off the table==

    So you think its a good use of time to discuss something that has absolutely, positively no chance of passing? Great use of time.

    ==There is another co equal branch of Government that is finally coming up with a plan==

    Yeah, the Senate did. The Governor killed it.


  20. - Oswego Willy - Wednesday, Mar 29, 17 @ 12:07 pm:

    ===Do you reflexively have to respond to every post OW
    you are like a goalie for the status quo.===

    Rauner’s wholly, grossly unbalanced, phony budgets are the status quo, but you already knew that.

    You don’t like to be questioned?

    ===Any true Grand Bargain should have nothing off the table so yes I think it should be in there, especially for higher incomes===

    I dunno if Gov. Rauner agrees or disagrees with you on that, but anyone running for governor saying they will sign a tax on retirement income might face a severe backlash, “term limits” or not.

    ===Why does the Governor have to propose everything?===

    Article VIII, Section 2, (a), for openers…

    ===There is another co equal branch of Government that is finally coming up with a plan because they realize just obstructing===

    They need messaging more than a plan, they also need a clean signature from a governor…


  21. - Lucky Pierre - Wednesday, Mar 29, 17 @ 12:30 pm:

    Legislators have avoided “severe backlash” for decades so they can get re elected and never solve anything.

    One more reason for term limits. Term limited legislators don’t worry about severe backlash. See Ameya Pawar

    question me all you want OW, just stay away from the cut and paste regurgitations

    Demoralized, we are only halfway through the session nothing is killed. For all the drama in your posts you should write soap operas


  22. - winners and losers - Wednesday, Mar 29, 17 @ 12:35 pm:

    Just maybe Barickman did actually read SFA 1 to SB 1. I would invite others to do so.

    HB 2808 and SFA 1 to SB 1 are classic flim-flams.

    Written by Mike Jacoby (school business officials) and other school administrators, both bills say - Just give us the money with no strings attached and everything in K-12 education will be wonderful.


  23. - Oswego Willy - Wednesday, Mar 29, 17 @ 12:37 pm:

    Oh - Lucky Pierre -…

    ===Legislators have avoided “severe backlash” for decades so they can get re elected and never solve anything===

    “Those who live in the past are cowards and losers” - that’s - Lucky Pierre -, quoting Mike Ditka

    ===One more reason for term limits. Term limited legislators don’t worry about severe backlash. See Ameya Pawar===

    No. Incorrect. The next election IS a possible “term limit”, please keep up. Otherwise, elect people for 10 years, no chance to be reelected.

    ===question me all you want OW, just stay away from the cut and paste regurgitations===

    You either purposely refuse to learn what you’ve been told, or you have no short or long term memory on what you’ve should’ve learned, lol. That’s on you.


  24. - Markus - Wednesday, Mar 29, 17 @ 12:38 pm:

    COGFA weighs in with revenue and spending facts in their new 3-year projection. Corporate taxes account for 7% of the GRF revenue stream. IMO, that does not seem like a poor business climate that requires an even lower contribution from the business sector.
    http://cgfa.ilga.gov/Upload/3YearBudgetForecastFY2018-FY2020.pdf


  25. - Markus - Wednesday, Mar 29, 17 @ 12:45 pm:

    Adding- If corporations are really people as Citizen’s United established, maybe they should start paying the same tax rate in terms of gross income that real people do.


  26. - Arsenal - Wednesday, Mar 29, 17 @ 1:11 pm:

    == we are only halfway through the session nothing is killed==

    From the guy using “halfway through the session” in another thread to bemoan the lack of accomplishments…

    Pick a lane.


  27. - J - Wednesday, Mar 29, 17 @ 1:34 pm:

    That funding bill Barickman and Manar both sponsored, SB1403, asked for a study of the Evidence-Based Model. It didn’t do a thing to change the distribution model. Supporting commissions, task forces, and studies on funding are easy and bipartisan. Supporting an actual change to the system has not been so easy.


  28. - AnonymousOne - Wednesday, Mar 29, 17 @ 1:35 pm:

    How did anyone survive the recent years of 5% income tax under Quinn? We were accomplishing some pay downs under that tax rate. Now, today, are we better off?


  29. - Demoralized - Wednesday, Mar 29, 17 @ 1:38 pm:

    == nothing is killed==

    Facts can be hard to accept sometimes. You might try, though, once in a blue moon to do so.

    It’s hard to take you seriously when you dismiss even things that are facts.


  30. - City Zen - Wednesday, Mar 29, 17 @ 2:15 pm:

    =How did anyone survive the recent years of 5% income tax under Quinn?==

    For 2 years, the employee share of the Social Security payroll tax was cut 2 percentage points, so it was a wash.

    Then the following two years my child’s college savings account received drastically smaller deposits. It was either that or cut back on my own retirement funding. We also cut back on dining out, which reduced earnings for local businesses and the people they employed.

    But we “survived”, as I’m sure you’re happy to note.


  31. - Anonymous - Wednesday, Mar 29, 17 @ 2:19 pm:

    Wow. You must make a ton to have suffered such a massive loss


  32. - My New Handle - Wednesday, Mar 29, 17 @ 2:27 pm:

    “Then the following two years my child’s college savings account received drastically smaller deposits. It was either that or cut back on my own retirement funding. We also cut back on dining out, which reduced earnings for local businesses and the people they employed.”

    These are First World problems. Makes a person mad enough to throw his martini across the lawn.


  33. - City Zen - Wednesday, Mar 29, 17 @ 2:29 pm:

    Nope. After student debt, mortgage, and property taxes, there ain’t much left. It doesn’t take much to move into the red.


  34. - City Zen - Wednesday, Mar 29, 17 @ 2:33 pm:

    @My New Handle - I know, saving money for retirement is indeed a first world problem. I can’t believe such opulence as a 401k is permitted. But since my retirement can be diminished and/or impaired, I assume you consider state pensioners Uber World.


  35. - Lucky Pierre - Wednesday, Mar 29, 17 @ 2:54 pm:

    “The next election is a possible term limit”- Bagdad Willy

    Not when legislators draw the maps that make over 60 percent of the districts uncontested,

    Why do you think term limits and redistricting are so popular?

    I forgot voters are not as smart as you- one of the 25% who has confidence in our state government

    http://www.gallup.com/poll/189281/illinois-residents-least-confident-state-government.aspx


  36. - Oswego Willy - Wednesday, Mar 29, 17 @ 3:03 pm:

    ===“The next election is a possible term limit”===

    You lose you’re out. No too hard to follow, except for you..,

    ===Not when legislators draw the maps that make over 60 percent of the districts uncontested===

    I’ve supported, if I had to choose, fair maps. It was a QOTD, I chose fair maps.

    How ironic that millions are for the to GET signatures. But not any sense in getting passable language. Why is that?

    ===I forgot voters are not as smart as you- one of the 25% who has confidence in our state government===

    That’s not true. Rauner is destroying social services and higher education, why would I think Rauner’s running of Illinois is good?

    Your disingenuousness continues.

    I never said it, and you know it.


  37. - Anonymous - Wednesday, Mar 29, 17 @ 3:11 pm:

    City Zen–cut out spending on dining out and buying items that reduce income to local businesses and the people they employ? Your decreased spending hurt the local economy?

    Yup. When the status of our pensions were in question, we did the same. Now you know how harmful it can be to the local economy to reduce the flow of spending money. Since we hear ad nauseum about the massive numbers of retirees, you can only imagine the impact of decreased spending on local economies by those masses. You’ve got a good handle on that.


  38. - Oswego Willy - Wednesday, Mar 29, 17 @ 3:12 pm:

    - Lucky Pierre -

    Are you ever honest in a discussion?

    ===I forgot voters are not as smart as you- one of the 25% who has confidence in our state government===

    Hmm… To that…

    ===- Oswego Willy - Friday, Mar 3, 17 @ 12:06 pm

    “One in four? Who are these one in four? I’d like to meet just one of them. Seriously. I’d love to talk to a single person who is confident in Illinois’ state government.

    Fake poll! /s”

    This wins! Hilarious.

    To the Post,

    Couple real things I see, hear, think on this poll.

    1) I believe it, and I’d like to meet at 25% too, which leads me to..,

    2) Tens of millions spent denigrating Springfield, by both sides at times, and the continued monies driving that narrative.

    3) A Governor, a sitting governor, bad-mouthing state government, state workers… there’s a constant brow-beating by an actual constitutional officer degrating the state, when most (every one but the current one?) look to positive stories and putting the state they lead in the best light possible.

    4) Those that rely on the state making their undisputable beefs. These beefs, like not getting paid for Cripes Sake or other failures allow any and all narratives have significant weight as they parallel the loud noise of the Bad.

    5) Schools. They can be grade schools, “Chicago” schools, rural schools, new schools, old schools, even university schools, they all have the same beef, “the state”. Children, grandchildren, nieces, nephews, any student, every student hears about the funding issues and see the state poorly, let alone adults and others.

    6) Counties, cities, all munis… same as schools, social services, etc.

    See a pattern here?

    No one seems to find ANY good.

    So, who are these 25%?===

    Why do you insist on trying to be as you are?


  39. - Lucky Pierre - Wednesday, Mar 29, 17 @ 3:16 pm:

    then you support the popular initiatives like term limits, property tax freezes, reform of state government and pensions welcome aboard


  40. - Oswego Willy - Wednesday, Mar 29, 17 @ 3:21 pm:

    ===then you support the popular initiatives like term limits, property tax freezes, reform of state government and pensions welcome aboard===

    You can not read, or grossly disingenuous to a personal fault…

    ===I’ve supported, if I had to choose, fair maps. It was a QOTD, I chose fair maps.===

    Read.


  41. - AnonymousOne - Wednesday, Mar 29, 17 @ 3:22 pm:

    When people talk about pension reform, aren’t they really just saying pension elimination? Because state pensions have been reformed. There is Tier 2 which will cut benefits so badly that down the road they will need supplementation. So after the reform already took place, what is it that’s to be reformed?


  42. - Oswego Willy - Wednesday, Mar 29, 17 @ 3:27 pm:

    Let’s approach things like adults…

    term limits - No

    property tax freezes - What is the formula to pay for 308 schools. I said I pay my property taxes gladly, for the 308 schools that I get, for my property value. I do so unapologetically, and I’m waiting for real reform that won’t hurt SD309z

    reform of state government - What’s the ROI? 1.4% and $500 million isn’t reform of anything within Rauner’s Agenda, so what is the ROI in this?

    pensions - Pesky Constitution. Show me the legal way to do it.

    Ugh.


  43. - City Zen - Wednesday, Mar 29, 17 @ 3:32 pm:

    @Anonymous - I hear ya. And if I and many others are not able to save for our own retirements, we too will have an impact of decreased spending on local economies. It’ll just happen later.


  44. - City Zen - Wednesday, Mar 29, 17 @ 3:34 pm:

    ==There is Tier 2 which will cut benefits so badly that down the road they will need supplementation.==

    I wonder if any of the pension re-amortization evangelists include that supplementation in their projections. I would bet they do not.


  45. - Demoralized - Wednesday, Mar 29, 17 @ 3:39 pm:

    ==what is it that’s to be reformed?==

    Until they reduce the pensions of those currently in the system you’ll continue to hear talk of “reform.”


  46. - Anonymous - Wednesday, Mar 29, 17 @ 3:58 pm:

    ==until they reduce the pensions of those currently in the system, you’ll continue to hear talk of reform==

    And that is Tier 2. Do you mean reduce the amounts retirees are receiving?


  47. - Anonymous - Wednesday, Mar 29, 17 @ 4:15 pm:

    =I wonder if any of the pension re-amortization evangelists include that supplementation in their projections. I would bet they do not.=

    To be sure re-amortization will increase long term costs but the benefit (roi) is a flat cost instead of a ramp and a little breathing room.

    Tier 2 will one day eliminate annual costs for the state. Then only the accrues debt will need to be paid. To date, Tier 2 has reduced costs by $500 million annually. That is a big savings. Almost 25%.

    I wonder how much of the savings has been wasted in court?

    There is no reason why we shouldn’t tax retirement income above 75k, but it is a political loser and none of these clowns have the character or desire to actually do what is right so it really is a waste of time to discuss. They just won’t do it.

    Great drive by @Winners & Losers- off course what you stat s is false and you know it but great “alternative facts”


  48. - City Zen - Wednesday, Mar 29, 17 @ 4:28 pm:

    @Anonymous - You didn’t answer the question…

    I wonder if any of the pension re-amortization evangelists include that supplementation in their projections. I would bet they do not.

    What if those long term costs of re-amortization are a lot higher? maybe those Tier 2 savings are not as much as some would make you think.


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* Grabber.


* Nursing Home Violations for Second Quarter 2018
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* San Diego Comic-Con 2018: all the trailers, updates, and pictures from fandom’s biggest event
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* DC’s streaming service will be a one-stop shop for its TV shows, movies, and comics
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* Five burning questions for the second half of the MLB season


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