* Greg Hinz…
Even if she wins in November, the conservative lawmaker running against incumbent Gov. Bruce Rauner in the March Republican primary says the income tax hike that was enacted on his watch will have to remain in place for at least two more years. And Chicago and Cook County taxpayers should be prepared to dig deeper if her state budget plans pan out. […]
[Rep. Jeanne Ives] Ives said she’d start by working to repeal the income tax hike that was approved over Rauner’s veto. But “I wouldn’t do that immediately,” she said. “I suspect that, within two years, we could set that out as a goal.” […]
On her list for axing are hundreds of millions of dollars of year in new state funding that CPS got under terms of the fiscal 2018 state budget. Chicago, for purposes of the new aid formula, is considered a poor, Tier IV district, even though in reality the city economy is doing so well that Chicago actually is Tier 1, she said. […]
Ives would save another big chunk in the budget by eliminating the Obamacare expansion and making other cuts in Medicaid, even though the former has shifted hundreds of millions of dollars a year from Cook County taxpayers to the state and federal governments. “Chicago’s got a lot more state support than they should,” she said. And if that means local taxpayers will pay more to give relief to taxpayers outside of the city, “I don’t have to win (Chicago and Cook County) to be elected, she said. “This is a 50-percent-plus-one race.” […]
New workers need to be shifted from a defined-benefit pension to a 401(k)-style defined-contribution model, perhaps with a “generous” inducement, she said. Old pension debt, roughly $120 billion just in the state retirement system, can be “renegotiated” with employee unions that have rejected such actions so far, but may come to the table as they realize some of the pension funds are “one (economic) downturn away from failing.”
Yeah, that’ll pass. Right.
Ives’ scenario is as pie in the sky as Rauner’s.
Taking away all of CPS’ new state money ($450 million) and canceling the Medicaid expansion (which is mostly funded by the federal government) won’t balance the state’s budget.
Also, the Illinois Supreme Court has ruled that pension benefits are individual contracts. Unions can’t negotiate any benefit reductions without all individuals signing off on them one by one.
The full editorial board meeting video is here.
* Meanwhile, the governor confirmed yesterday during an event that he and Ives will appear together before the Chicago Tribune editorial board.