* Vinicky looks at the Democrats’ upcoming budget proposal…
Insiders, including legislators, say the Democratic version is shaping up to contain cuts too, but drastically smaller ones. Rep. Ken Dunkin, D-Chicago, who chairs the House Higher Education Appropriations committee, says universities will see cuts of less than ten-percent.
“This is where our talent gets trained and educated, and for us to dismiss them in a such a way — or to write them off … is not the right message that we need to send,” Dunkin said.
What appears to be missing from the equation, so far at least, is a way to pay for that spending, given that it’ll be the first full budget year with the new, lower tax rates. Democrats could be content to send Gov. Rauner a budget that dares him to make the drastic cuts he’d outlined.
While there’s been no action on revenue enhancers like a higher income tax rate, retirement tax, adding a sales tax to services (as Gov. Rauner had promoted during his campaign), there are revenue options.
Gambling is a possibility — a legislator involved with those negotiations say a proposal with five casinos (in Chicago, Lake County, the south suburbs, Rockford and Danville) is shaping up. The House Speaker, Michael Madigan, is also keeping alive a “millionaires’ tax”; a constitutional amendment that could lead to the surcharge on income over a million dollars advanced out of a House committee. It’s opposed by Gov. Rauner and his business allies.
* And…
While Democrats say a revenue hike is needed, they insist they won’t do it without the GOP.
That sets up a scenarios where Democrats send Rauner a budget without deep cuts or any tax increase. Basically, leaving it to Rauner to sign — or slash (that could put both parties in a political pickle. Democrats may look like the out-of-control spenders their critics paint them to be; Rauner could look like the cutthroat, out-of-touch millionaire. Will it be that Democrats throw the governor a hot potato, or will they play into his hands, making it easy on Rauner to throw the gauntlet?).
“What I think will happen with the budget is … we’ll pass one,” Rep. Linda Chapa LaVia, D- said. “And people need to realize that we just give directive to the governor on .. how to spend the money. It’s up to him to write the checks. And he can take our advice or he can ignore us.
“That’ll leave things “in a big mess,” Senate Republican Leader Christine Radogno says.”The fact of the matter is, if they do that, the governor will manage it and that will hurt the very constituents they’re talking about wanting to help. So it’s very incongruous. I think it’s very cynical. They need to get to the table and have a very serious discussion about reforms.” And then, she says, Republicans will have a serious discussion about raising taxes that could stave off cuts.
But that’s only after Rauner’s pro-business, anti-union agenda advances.
Thoughts?
*** UPDATE *** Erickson…
While Republican Gov. Bruce Rauner’s budget blueprint called for a 31 percent cut to universities in the fiscal year beginning July 1, the Democratic proposal would pare the reduction to 6.5 percent, the Herald & Review Springfield Bureau has learned.
The potentially positive change for higher education is among a number of alterations Democrats are expected to highlight when they begin debating their spending plan in the closing days of the spring legislative session.
Republicans said university officials should remain wary of the Democratic budget since Rauner could veto all or parts of the plan if it is unbalanced.
“That’s a facade budget. That’s not going to be the budget at the end of the day because the governor is not going to sign that budget,” said Republican state Rep. Dan Brady of Bloomington, who represents Illinois State University.
* Flannery…
Sources also told FOX 32 News that the Democrats may call for spending up to $37 billion. Gov. Rauner said the state has only about $32 billion for next year.
So if that budget passes, the Governor could sign it. He has the power to spend only for the services he thinks the state can afford.
Or, Option 2: Rauner could veto it outright.
Democrats would then need a supermajority to override his veto. But that would leave the governor with the Democrats budget and he again would spend only on the services he thinks the state could afford.
Or, Option 3: He could go line by line vetoing the parts of the budget he doesn’t like, which the Democrats would have to override line by line.
* Related…
* CTU to rally against Rauner turnaround plan: The Chicago Teachers Union is sending a delegation to Springfield this morning to lobby state lawmakers for more money, more benefits, cheaper housing and child care for union members, and higher taxes to pay for it all.
* Our Crazy Treatment of the Mentally Ill - Prison cells have replaced mental institutions.