Boone, there was extensive pension reform in 2010 that created Tier 2. Those hired after 2010 get meager pensions. You cannot reduce Tier 1 pensions per the Illinois Supreme Court. So stop with the empty rhetoric about pension reform. It’s like the mantra about eliminating fraud and waste.
- Blue dog dem - Wednesday, Feb 14, 18 @ 12:06 pm:
LGDF should have been slashed 50%. DCEO practically eliminated. For starters.
Mostly fluffy talk about balancing the budget by reigning in undue influence by unions. Superficial talk about supporting education by spending more (of which the extra spending will be in terms of tax incentives to invest in private education). Political rhetoric about cutting taxes and property taxes. In the end, a budget that actually doesn’t do much new, and overspends on the tried and false assumption that lowering taxes will produce the same revenues.
it is not just that there are few applause lines, it’s that as he is speaking it sounds empty. as if there is no one there, or more likely, everyone is bored and unaccepting. as it should be as his speech is filled with ways to shuffle costs elsewhere, get people to accept health care that is not as good as what they have now, and g drops.
So… strip state employee healthcare and retirement benefits (4th year suggesting this), shift school funding costs back onto the districts themselves while calling for a freeze or reduction of property taxes (that math, though) and we need to cut taxes to bring in more revenue… somehow I feel like I’ve heard this speech before. Somewhere, some time… hm
So wait he said only a quarter of Illinoisans are on Medicaid.
Which is true but it’s not going to stay flat
As the healthcare markets collapse because the individual mandate is gone we’ll see that number go through the roof.
But he was entirely perfidious about state worker health insurance
The plans the majority of us have is Silver level. Illinois is one of only two states like that. 48 states have platinum level healthcare for their workforce.
Implementation of Rauners last best and final
Would drop all state employees to bronze level.
The exact same level as
Medicaid ACA level
Most private sector employees 75%
Acknowledged by Rauner
Have better insurance
Rauner would make our insurance
And make us pay
120% more for it
No private sector CEO
Could get away with that
He/she would lose their workforce
So will Rauner
If he succeeds
Challenge the lies
Rebuke the perfidy
If you want to shift the pension costs for future employees onto schools and universities, I think that makes sense, but pushing the mountain of debt that has piled up while the state failed to fund the pensions on to the schools seems unfair.
And I’m not sure where exactly Rauner got the “90% of employee healthcare premium is paid for by the State” number. That’s not the average, though it could be close to the split for employee only (no dependents) coverage for some of the plans. I think the overall average paid by the employee was something like 23% for FY 16 (don’t quote me on that), which actually has gone down over the life of the current contract, because the employee premium is fixed. So when the contract was first signed employees paid a higher percentage than they do now.
Seriously, any voluntary consideration pension “reform” will likely be found legal. But if it follows a couple of the different pending bills, it will not be a good deal for the employee. And the only ones who opt for it will be (a) short time political hacks who don’t plan to he around long enough to collect a pension anyway, (b) someone with a terminal illness and short life expectancy, or (c) someone who can’t add 2+2 and come up with 4.
Don’t count on any pension savings from the consideration pension “reform” proposal.
On the health insurance, Rauner can stick to the employees, their dependents, and retiree dependents. But he can’t do much to the retirees; the Kanerva ruling was crystal clear … and the Justice’s even opined about reduction of benefits. But if Rauner does try it, I would expect one or more of the retiree associations to immediately request any funds charged retirees be escrowed until the courts decide about it.
Very low energy but it was his final speech
Failed to recognize karmier….oberweiss jumped to Dem side. Little applause.
Any body call over to the Mansion for the electric bills. That sounded like another “election nite phone call”
I also wonder why Intersect Illinois was not mentioned?
Could it be that the for-profit economic development company
Attracting hardly a single business to Illinois
Formed Imtersect by EO
So Rauners one, only, singular action
To stimulate jobs
Is now just gone and forgotten?
Same story different day. He doesn’t seem to understand budgeting. His ideas need the courts to back him up and that will not happen regarding pensions. I really believe that he lives in his own little world and is not aware of or interested in the issue facing our state.
==Any body call over to the Mansion for the electric bills. That sounded like another “election nite phone call”==
Can offer some info - before Rauner, all mansion invoices were processed by the gov’s fiscal office staff. Rauner shut this office and laid everyone off when he took over, and afterwards all Gov invoices were processed by Leslie mungers people at the comptroller (why they thought this was a good idea, idk). Presumably other arrangements were made after Mendoza beat munger. Maybe he and his people dont know who pays their bills? That might explain why he said took two weeks to find, maybe also why his people spent all that money that the GA never appropriated.
Also anecdotal, but a buddy of mine at CWLP says the mansion electric bills were never $100K per year, more like $25-$30K. Still a huge amount, I don’t see the need to exaggerate that number but that’s kind of what Bruce does.
JS Mill the 90% is wrong because it would only be correct if you added in the cost of the service provided.
The state does not pay 90% of my premium
I actually pay more now than my last private sector job.
Just more words. Even Rauner knows this is all going no where. He doesn’t even listen to himself. You can not simply punish one group to benefit another. Sooner or later the benefiting group becomes the new sacrificial lamb.
His line about IBHE developing a new strategic plan is news to the staff at IBHE.
- Chicago Cynic - Wednesday, Feb 14, 18 @ 2:21 pm:
I can’t wait until Civic Federation, Politifact and others put their numbers guys on this “balanced budget.” I sense a third budget “pants on fire” is in the offing. So much of this is just so phony and won’t hold up to even the gentlest scrutiny.
- Chicago Cynic - Wednesday, Feb 14, 18 @ 2:24 pm:
Thanks Eric Zorn. I thought his G droppin’ was way down.
I know, I know. States can’t declare bankruptcy. So, when Illinois ultimately fails to meet its obligations, the subject will have to be given another name. Budgets, schmugets, and set aside partisan bickering, this isn’t going to end well.
- Small town taxpayer - Wednesday, Feb 14, 18 @ 2:55 pm:
Rauner appears to want to begin shifting some of the cost of downstate teacher pensions away from the state and onto local school districts. That appears to me a move that will be followed by property tax increases by school districts.
In the Rauner Illinois ‘turnaround’ plan one of the main points was a property tax freeze to help home owners. I wonder if Rauner abandoned his election campaign pledge to the property tax payers of Illinois to at least hold the line on?
== What happened to the idea to issue bonds at a lower interest rate to pay off pension debt that is at a higher interest rate? Is he waiting for the bond rates to get even higher? ==
You can’t write an IOU to the bond holders like you can the pension funds when things get tight.
Whether we like it or not, the State’s method of managing cash shortfalls is to short the pension payments, short the school districts, delay both Medicaid and state health insurance payments, and drag out repayment on outstanding purchases and debt.
If you bond out the pension debt, you HAVE to make those payments on time with cadh on the barrel head. Never going to happen.
So I double checked employer/employee split, and the range for the employee’s part of the premium was from 7.41% (HealthLink OAP for employees making $30,200 or less) to 25.72% (blueAdvantage HMO for employees making more than $100,000). Both of those is employee only, dependent coverage is between those two extremes. Without knowing how many employees are in each plan I can’t get an average, but my 23% was high, almost as high as the Guv was low. This is evidently what I do in my free time.
Rauner has the gall to laud Wisconsin for creating 50,000 union jobs, but his end game is to destroy labor in Illinois. As OW stated, ….Do not be fooled… again.
- Arthur Andersen - Wednesday, Feb 14, 18 @ 8:24 pm:
As far as the bonds to “reduce” pension debt, along with the spot-on points made by RNUG and word, it’s a lousy time to invest a staggering sum in the markets right now. The pension funds are of course diversified beyond US stocks and bonds, but real estate (institutional quality) is priced high as well, private equity is difficult, international stocks and bonds are highly volatile, and hedge funds are just a bad idea.
The prime proponent of the 2004 POB, former budget director Filan, is also opposed this time. His interview with Greg Hinz is a good read for folks interested in this topic.