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* As you probably know by now, the House adjourned yesterday without taking any action on the income tax hike…
The state income tax increase proposal first became public last Thursday still had not taken the form of a bill Sunday night that the Illinois General Assembly could consider. Sunday marked the passage of another 24-hour period without any public progress to report towards solving the state’s fiscal crisis.
House Speaker Michael Madigan left the well Sunday night without explaining what had gone wrong. He had called his chamber back to Springfield for a rare Sunday session to consider an income tax increase, but obviously to some, the majority Democrats had not convinced enough of their own members.
“I think the clock is ticking, and I think they’re scrambling to find votes,” said Rep. Jim Durkin, a Republican representing Western Springs.
* There was some talk behind closed doors…
The bid to raise Illinois’ income tax remained stalled Sunday as Gov. Quinn and top Democrats in the Legislature huddled privately to tweak the troubled package enough to win over a divided House Democratic caucus. […]
Quinn met with House Speaker Michael Madigan (D-Chicago) and Senate President John Cullerton (D-Chicago) for more than 90 minutes, but none of Springfield’s ruling Democrats would answer questions about what was discussed or rate the likelihood of a revenue package passing before a noon Wednesday deadline.
* The Champaign News Gazette identified some of the possible tweaks…
[Rep. Naomi Jakobsson, D-Urbana] said the latest version of the income tax legislation she’s seen has the rate increase cut back from what was discussed last week. Instead of the individual rate increasing from 3 percent to 5.25 percent, it would rise to 4.75 percent, she said. The increase in the corporate rate would be smaller too.
If that’s the case, then the school increase might be out of the mix, as well as the property tax rebate.
* But the governor isn’t talking…
On Sunday, Quinn sought to avoid answering questions about the tax plan in a style reminiscent of his predecessor, disgraced ex- Gov. Rod Blagojevich. Quinn used back doors and hallways in the labyrinthine Capitol to escape the spotlight and attend to pre-inaugural festivities ahead of Monday’s swearing-in ceremony.
Quinn once again spent time behind closed doors with fellow Democrats House Speaker Michael Madigan and Senate President John Cullerton as the noon Wednesday deadline for quick action looms. Afterward, all Quinn would say was “we’re working hard” when asked about tax hike talks.
* Sending legislators home for the weekend with a tax hike vote hanging out there meant a whole lot of them came back to town more than a bit scared about what they’re being asked to do. The tax hike is just too high, the property tax relief is too low, and there are big concerns that not a single budget cut has been proposed.
Rep. Karen May talked to reporters yesterday after attempting to meet with the governor’s top budget staff. Rep. May said suburban legislators want no new spending or new programs and said one idea might be to nullify the income tax increase if spending caps are breached. Watch…
* Rep. Frank Mautino also wants no new spending…
Mautino said a cap on new spending, which would include no new money for education, would be more politically acceptable to downstate Democrats.
“There was a message in the last election and that message was that there has to be controls on spending,” he said.
* However, the governor doesn’t want “hard” spending caps…
Quinn doesn’t want the hard limit on state spending, arguing to Democratic leaders that he should have the flexibility to increase it, particularly for education, a source familiar with the discussions said.
* More rank and file react…
Legislators are quick to say there is little support for the current plan, and there is little agreement on a Plan B. State Rep Frank Mautino, D-Spring Valley, said hundreds of millions of dollars in new money for schools is as much of a problem as the 75 percent income tax increase.
“The main concern is that there can’t be any new spending. All of our members know that the structural deficit here is equal to a two percent income tax [hike].” […]
State Rep Mike Boland, D-East Moline, said his phone rang off the hook with complaints about the 75 percent hike.
“I’ve had hundreds of calls both to my office down here and district office, and even my home. And I’ve only had one call that was for a tax increase.” […]
[State Rep. Mike Tryon, R-Crystal Lake] said the ticking clock is getting loud.
“I think if it doesn’t pass by Tuesday it’s not gonna happen,” he said.
* The clock is definitely ticking. Democratic Rep. Jack Franks believes that, in the end, nothing will pass…
* The severe consequences of failure…
No one is certain what will happen if the tax increase package — or some permutation of it — does not pass now.
“You would have a continuation of deficit spending and borrowing, further deterioration of our bond ratings, and the image that we convey to businesses that might want to come here as that of instability,” Mr. Cullerton said grimly. “It would be disastrous.” […]
“We are very close to things becoming unraveled,” said Richard F. Dye, the co-author of a study released last week by a University of Illinois institute titled “Titanic and Sinking: The Illinois Budget Disaster.” The report suggested that doing nothing is simply no longer an alternative.
“It won’t take long,” Mr. Dye said, “for this backlog of bills to be so outrageous that people will not deal with the state.”
* That study can be found here…
Illinois’ fiscal problems are so enormous that no single option is going to balance the budget. Economic recovery will be slow, and even a dramatic decline in the unemployment rate would not come close to eliminating the deficit. Taking on even more debt is not a solution, because it just makes the fiscal situation worse in the future.
No single revenue increase—at least not any of plausible magnitude—will be sufficient to eliminate the $11.9 billion deficit projected for FY2012, much less the extra $13-15 billion deficit that includes the carry-over from imbalance in FY2009-2011.
We start so out of balance that even an absolute freeze on all spending will not achieve balance in a 10-year time horizon. Spending cuts would have to be of a magnitude that would shut down entire core functions of state government. Bringing Illinois to fiscal solvency will require state government to implement multiple and massive policy changes. If nothing is done soon, the state of Illinois faces a very bleak future.
No kidding.
posted by Rich Miller
Monday, Jan 10, 11 @ 9:01 am
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Prediction: serious recall effort against Quinn. It is finally dawning on people that he his a servant of the public employee unions. In signing no lay off contracts with state employees ad then seeking to grab an additional 75% from individuals in income tax, he has overplayed his hand.
Comment by Gil Franco Monday, Jan 10, 11 @ 9:10 am
The Zen philsosopher Basho once wrote “A spending cap that is not a hard spending cap is not a spending cap”
Comment by Leroy Monday, Jan 10, 11 @ 9:16 am
===“Titanic and Sinking: The Illinois Budget Disaster.”===
But the lights were on when the Titanic went down.
Comment by Way Way Down Here Monday, Jan 10, 11 @ 9:16 am
It might be instructive for Hynes, on his way out the door, to chime in as to what the projections are for just literally paying bills in the next year if nothing is done.
In other words, what’s the likelihood without any serious action, that some of those balls in the air will hit the floor, and a payroll or debt payment will be late?
The state has already burned through the options of late payments to vendors, school districts and universities. The wiggle room is long gone.
Comment by wordslinger Monday, Jan 10, 11 @ 9:23 am
===he his a servant of the public employee unions===
AFSCME would disagree.
Comment by Rich Miller Monday, Jan 10, 11 @ 9:23 am
Gil, recalling the Governor is the answer? He’s the problem, right? Jeesh…
Comment by PaGo Monday, Jan 10, 11 @ 9:32 am
What I have to say won’t fit neatly into anyone’s talking points, but the possibility that the General Assembly will let this opportunity to grab control of the situation slip away makes me heartsick. I like Illinois and want to be here for the long haul. I think it is quite clear that there is no single solution. We need new revenue and meaningful caps and cuts. Shared pain is not very popular, but I pray that our legislators realize that doing nothing is not a viable option. It would be helpful if they could figure that out today — an imperfect solution can be tweaked. Starting from zero on Wednesday is not a solution at all.
Comment by davidh60010 Monday, Jan 10, 11 @ 9:33 am
If Cross and Radogno have any serious ideas about how to remedy the state’s budget problems, not would be the time to come forward with them. Sitting quitely while Dems twist in the wind may be smart politically, but is is not indicative of the real leadership that our state needs.
Comment by GoldCoastConservative Monday, Jan 10, 11 @ 9:39 am
The first line should read “now” as opposed to “not.”
Comment by GoldCoastConservative Monday, Jan 10, 11 @ 9:40 am
From the NYTimes article:
“On a recent afternoon, Tom Cross, the Republican leader of the House, said he believed that the situation in Illinois could be “catastrophic” as early as May or June, then ticked down a four-page list of proposals that he says Republicans have tried to offer as ways to truly sort out Illinois’s mess. On the list: sell half of the state’s fleet of cars, require only one license plate on cars instead of two, combine the state treasurer’s and comptroller’s jobs, ban out-of-state travel for elected officials, and end the remodeling of state offices (carpet included).”
Please tell me the NYT just pulled out the cute suggestions and that this list had some real substance on it. If not, is it any wonder they are not being included in the negotiations?
Comment by Montrose Monday, Jan 10, 11 @ 9:56 am
Quinn has not been our servant. He earnestly tried to lay off AFSCME workers in 2009. We took him to court, and the ruling forced him to renegotiate with us. He tried to change the court venue from far southern Illinois to Sangamon County, to get a favorable ruling, but lost. We will continue fighting for our right to collectively bargain, as it’s free speech and is allowed in the private sector. Don’t throw out the baby with the bathwater. Just because we’re in a union doesn’t mean management should give us anything. If management decides to stiff us, that has nothing to do with our right to collectively bargain.
I think it’s sad that there apparently are no backup plans for raising revenue. I hope this tax legislation is tweaked enough to get it to pass. I don’t want to see taxpayers suffer either. Isn’t there a middle ground here?
Comment by Grandson of Man Monday, Jan 10, 11 @ 9:58 am
GOLD COAST
The GOP have a plan that will not increase taxes and will balance the budget.
Its time for the GOP’s Senator Brady to reveal his secret plan.
Lets hear about the plan, and the GOP should be engaged, after all they claimed before the election they had all the answers. We the citizens are waiting!!!!!
Comment by MOON Monday, Jan 10, 11 @ 10:09 am
What’s worse, a huge tax increase that may chase business and even individuals from IL or losing businesses and individual taxpayers because the state owes them huge $? The real problem trying to slip a monumental tax bill through in the 11th hour. Oh, and I forgot, lack of integrity on both sides of the aisle to do the right thing.
Comment by state mope Monday, Jan 10, 11 @ 10:10 am
I don’t know why everybody is So surprised that the end of session tax deal has become so chaotic. Once Quinn become part of it it became like everything else he touches.
The man is undisciplined and incompetent.
There has been no real attempt to drastically cut the budget but without a plan B something must be done. it will take a new budget director. The current one is a Quinn clone.
Comment by Realist Monday, Jan 10, 11 @ 10:13 am
Yep…keep on doing what you all(AFSCME) are doing, Grandson. You’re(AFSCME) bringing about the inevitable crash more quickly, which will help ALL Illinoisians, through restructuring.
The middle ground, Grandson, involve taxpayers taking a hit along with AFSCME contracts being renegotiated along more reasonable lines for the times we are in.
But I am content to see it crash and burn, if necessary. I don’t think AFSCME is big into ‘middle grounds’.
Comment by Anonymouse Monday, Jan 10, 11 @ 10:14 am
I agree with David 60010. Nobody likes to pay taxes be they income, property, or sales taxes. But pretending that there is some magic bullet that will solve this without revenue is a pipe dream.
Where are the Republicans? What are they offering besides unspecified cuts and no tax increases? As a Dem I want to see Illinois get to a stable place and that is going to be painful. I agree with my Rep Karen May that I want to see no new programs unless they are paid for by cuts in something else or specific fees.
Some things are worth loosing the next election over and dealing with this crisis is one of them.
This deal which will happen won’t be perfect but the whole world has its eyes on Illinois and other fiscally challenged states are going to have to do the same types of things.
Get going Mike Madigan.
Comment by Barry60035 Monday, Jan 10, 11 @ 10:15 am
MOON, that’s a good point. But they wanted an audit first, remember?
Comment by Rich Miller Monday, Jan 10, 11 @ 10:15 am
–On the list: sell half of the state’s fleet of cars, require only one license plate on cars instead of two, combine the state treasurer’s and comptroller’s jobs, ban out-of-state travel for elected officials, and end the remodeling of state offices (carpet included). –
Sounds great. Do it. Are we there yet?
Let’s see the rest of the “four-page” list. Why isn’t that out in the public domain? Don’t hide your light under a bushel.
Comment by wordslinger Monday, Jan 10, 11 @ 10:16 am
Not a servant, perhaps, but he owes them an awful lot. Maybe Quinn doesn’t want spending restrictions because of the upcoming contract negotiations, when significant and expensive payback would no doubt be expected via expensive pay hikes and benefit upgrades. This is not corruption. It is Illinois Democratic politics.
The fact is, however, that this is a very bad economic time for the middle class taxpayers who would bear the brunt of this flat tax increase.
In addition to economic recession and high unemployment, there is tremendous job insecurity for those private sector workers fortunate enough to have jobs. Gas, food and health care costs are rising, the latter especially for individual policy holders. Many fewer employers offer defined benefit pensions, meaning employees must fund their own retirements.
In short, the middle class can’t afford increased expense right now. Add this to the perception that the state will waste billions of the new funds on legislator perks, more patronage jobs, and more general graft, and you can see why many are not supportive of even a small increase.
If Quinn won’t commit to spending caps now (this is the guy who campaigned on a 1 percent increase and then increased the amount right after the election) why would we assume there would be
spending restraint when the billions come rolling in. There wouldn’t. After eight years of overspending, the Democrats have absolutely no credibility.
Comment by cassandra Monday, Jan 10, 11 @ 10:18 am
What about Quinns plan from before the election to raise the tax to 4%. It has been reported that Quinn has never even presented this magical plan of his. I wonder if Quinn knew this campaign pledge was not realistic. ( he lied)
Comment by Fed up Monday, Jan 10, 11 @ 10:26 am
The prediction of a serious recall effort wasn’t necessarily an endorsement of it. I just feel it coming on.
Comment by Gil Franco Monday, Jan 10, 11 @ 10:28 am
Ok, this may have been shot down before and I missed it but a poster here back before the election brought up the Green Party/Whitney idea of taxing specualtive trading transactions. I’m guessing the argument against is that this would just serve to dampen economic activity, drive traders away from IL or both. If not, then it could be substantial revenue stream. You know the saying - don’t tax you, don’t tax me, tax the man behind the tree.
Comment by Bitterman Monday, Jan 10, 11 @ 10:34 am
RICH
Are you saying the results of the audit would then be their basis for ” the plan “. If thats true than the GOP never had a plan !!!!!
Comment by MOON Monday, Jan 10, 11 @ 10:37 am
“–On the list: sell half of the state’s fleet of cars, require only one license plate on cars instead of two, combine the state treasurer’s and comptroller’s jobs, ban out-of-state travel for elected officials, and end the remodeling of state offices (carpet included). –
Sounds great. Do it. Are we there yet?
Let’s see the rest of the “four-page” list. Why isn’t that out in the public domain? Don’t hide [the Repulicans’] light under a bushel.”
Word-
I see your point here, but I think you are glossing over an important factor in favor of being glib: why *not* “do it” as you so casually suggest? Over a year now, I have seen spending cut suggestions here routinely ridiculed and dismissed out of hand because they do not add up to $13 billion. But I have rarely seen strong arguments against those cuts. So why are they not happening? I know when I talk to ‘regular folks’ about the state’s financial disaster that the first question they ask is where are the cuts? I genuinely believe that a tax increase is needed (although not to the insane levels that Cullerton is pushing) but am still looking for the reductions on the other side. Franks (and Madigan, I suspect, although less vocal about it) understand this. Quinn and Cullerton do not.
Comment by Anonymous Monday, Jan 10, 11 @ 10:39 am
I thought Whitney’s idea was great, and couldn’t understand why it got absolutely no traction.
Was there a concern that traders would move to other exchanges? Or did it simply get no traction because nobody understood it.
Anywyay, it’s probably too exotic for our political leaders right now.
Comment by cassandra Monday, Jan 10, 11 @ 10:41 am
@Word
–On the list: sell half of the state’s fleet of cars, require only one license plate on cars instead of two, combine the state treasurer’s and comptroller’s jobs, ban out-of-state travel for elected officials, and end the remodeling of state offices (carpet included). –
Sounds great. Do it. Are we there yet?
Let’s see the rest of the “four-page” list. Why isn’t that out in the public domain? Don’t hide your light under a bushel.
Why is it ANY cut in spending that doesn’t total 15billion (if that is amount we are in the hole) you ridicule?
I assume you will be equally critical of a tax increase that fails to raise an equal amount?
Comment by Leave a light on George Monday, Jan 10, 11 @ 10:42 am
Cassandra,
There doesn’t appear to be overspending in my department. We are severely understaffed. We may have the lowest per capita state workforce in the country.
Comment by Grandson of Man Monday, Jan 10, 11 @ 10:49 am
Given the need to raise revenue, floating a 5.25% rate and then scaling it back may have been good politics, planned from the start. “Voters sigh in relief - it’s a half a percent lower than it was going to be.”
Comment by irv & ashland Monday, Jan 10, 11 @ 10:50 am
Grandson, how many Blago holdovers in your department - you know the ones who were going to be fumigated?
How many of the same did Quinn put in a union and now we a stuck with them forever?
Comment by Leave a light on George Monday, Jan 10, 11 @ 10:54 am
The Democrats cannot get this done so now the fingers come pointing at the minority. Put on your big boy pants and act like a majority.
Comment by Old Milwaukee Monday, Jan 10, 11 @ 10:59 am
From what I read, the middle class keeps shrinking, and this has been happening for decades. I’m not convinced the Bush tax cuts have done enough to reverse this trend. Will we just sit by and let this happen? Is there anything we can do to help the state budget while trying to get better benefits from our employers, or trying to change the economic culture by negotiating with our employers for benefits that allow us to have a comfortable but far from extravagant living?
By cutting state workers’ pensions now, will this help the overall economy in the long run, and when the economy recovers, will private/public sectors’ benefits packages will recover, or will businesses continue to strip away benefits after a recovery?
Comment by Grandson of Man Monday, Jan 10, 11 @ 11:03 am
The various proposals (as re: state cars) that have been made above and on other threads should have been made anyway, regardless of the status of the tax increase.
Government bureacrats and Democratic pols, by not making these admittedly small bore savings, are showing their contempt for the taxpayer-dunces they think nearly all of us are. We should not be paying for “extras” no matter the status of the budget.
It really is not…..their…..money!! Legislators, in particular, really don’t seem to understand that. So why would we unconditionally give them more.
Comment by cassandra Monday, Jan 10, 11 @ 11:04 am
Who is preventing Cross from putting his four-page list into bill form? I think it would pass without much trouble or debate.
No, it won’t cut much from the mountain of overdue bills, but these are relatively simple, pain-free cuts that might save a few million dollars each year. Again, why is Cross more interested in getting his list in the NY Times and not in bill form so his colleagues can vote on it?
Comment by 47th Ward Monday, Jan 10, 11 @ 11:07 am
LLLGeorge,
I’m a rank-and-file worker who got my job via taking a test, not through political clout. Please don’t lump me in with political appointees.
Comment by Grandson of Man Monday, Jan 10, 11 @ 11:10 am
Grandson - Its the same in my department, too. Not enough people to do the job. I don’t think taxpayers understand just how many cuts in personnel have already been made. If we have a major snowstorm, like New York, who will clear the highways? Cuts will need to come from social service and education - that’s where the money is! As for Blago appointees, yes, there are two in my agency. We would love for them to go away - any idea how to make that happen??
Comment by Anonymous Monday, Jan 10, 11 @ 11:12 am
Ok, back to the tax on trading. If I read it right the CME/CBOT volume reports shows an average of 250 million trades per month. So not the number I suspected, I would have thought way more. But still, a “transaction fee” on 3 billion transactions yearly could raise some serious revenue. Hey, I’m starting to think like a politician looking for a cash cow. LOL
Comment by Bitterman Monday, Jan 10, 11 @ 11:18 am
I think they should expand the expansion of gambling idea to include bookmaking.
Comment by Mikey Monday, Jan 10, 11 @ 11:37 am
As a recent state retiree, there is still room for cuts. I was one of the 1% management not in the union and understaffed to the union in my agency meant having to work 6 hours instead of 5 of a normal 7.5 hour workday. Many union nonsupervisor/nonmanager PSA positions will make over $100K when they reach the top step in a few years. How about rethinking all the state paid vacation/sick/holiday time? AFSCME runs the state now so it won’t happen.
Comment by Soccertease Monday, Jan 10, 11 @ 11:42 am
The big cuts that need to balance any proposed tax hike are gonna draw some blood whether they be in the form of decommissioning some parts of agencies (or maybe entire agencies), layoffs, reduced benefits to employees and retirees, etc. The democrats don’t seem to have this in their genetics and the Republicans are bringing out the letter openers instead of the swords. The tax hike proposals are the quick “fixes” that draw too much from the revenue sources and too little from the spending sinks. It leaves the impression that the politicians really are not in control of the bureaucracy. And the managers of that bureaucracy are too involved in maintaining it for its own sake and cannot be counted on to account for its sustainability. Many of them do not seem to understand the meaning of crisis and some have been adding “wanted” and probably non essential positions like there was no problem at all. Springfield is out of control.
Comment by vole Monday, Jan 10, 11 @ 11:53 am
To elaborate on soccertease’s comment above:
My guess is that frontline supervisors in, say, private child welfare agencies are not looking at $100k plus per year salaries in a few years–or ever for doing the same work as their state counterparts.
Yet, as a result of Democrats (our Blago) allowing midlevel state managers (”public service administrators”)into the bargaining unit,
frontline supervisors in agencies like DCFS are looking at 6 figure salaries now or in the near future, especially with expected contractual raises in 2012. In fact, considering the value of the entire compensation package of low-cost health insurance and defined benefit pensions plus high salary, many if not most are probably making that now. Also in fact, many got big additional salary bumps as part of the switchover to union representation, depending on their location on the salary scale at that time. Pensions, of course, are based on salaries, so these changes affect state pension debt.
These salaries are unconnected to performance. Incumbents get them regardless of performance or added value, as part of the contract. Show up and you get the money.
Someone who actually represents taxpayer interests, not union and Democratic political interests, needs to take a hard look at state employee compensation practices before I would support a tax increase. I don’t believe, in a highly competitive global economy, that we can continue to support these kinds of salary systems.
Comment by cassandra Monday, Jan 10, 11 @ 12:11 pm
Leave, I think it’s the obligation of the opposition to present a reasonable alternative to the problem. Otherwise, why are they there?
Who knows, people might dig it and force the issue. What do they have to lose.
Comment by wordslinger Monday, Jan 10, 11 @ 12:26 pm
Someone needs to look at the pension system, but discretion should also be applied. The vast majority of state workers’ pensions are not lucrative. Some private sector employers are still paying pension contributions. I know someone who works for a law firm that’s struggling, but the employer is good and still pays into pensions. This is an act of good will.
What about tying state pension contributions to economic indexes, wherein if the state economy goes below certain levels, employer contributions would cease in all but those who will not get Social Security?
Comment by Grandson of Man Monday, Jan 10, 11 @ 12:35 pm
psst, Cassandra…my job description vs my compensation is online for you to view and compare anytime you’d like to do so.
Comment by Cindy Lou Monday, Jan 10, 11 @ 12:51 pm
@ Grandson - I presumed from the tone of your posts that you were a frontline employee and I’m certainly not disrespecting you or other front line employees.
Answer the question though. How many Blago holdovers in your department? Then ask yourself what do they contribute to whatever service your department provides to the taxpayer.
@ Word - Unless of course the reasonable alternative are cuts, right? There are still plenty of “canoe czars” and their programs in all departments of state government. It is the democrat’s job, particularly the Governor’s job to aggressively identify and pull these people and programs off the taxpayers teat. Then perhaps the necessary but still bitter medicine of a tax increase would be more easily swallowed.
Comment by Leave a light on George Monday, Jan 10, 11 @ 1:24 pm
===It is the democrat’s job, particularly the Governor’s job to aggressively identify and pull these people and programs off the taxpayers teat. Then perhaps the necessary but still bitter medicine of a tax increase would be more easily swallowed. ===
While I don’t necessarily disagree with your first sentence, the problem with the second sentence is that everybody has their own personal demands that something be done before they support a tax hike. It’s simply impossible to satisfy everybody.
Comment by Rich Miller Monday, Jan 10, 11 @ 1:35 pm
–Word — Unless of course the reasonable alternative are cuts, right?–
No, not at all, and I have no idea why you would say that.
Personally, my use of state services is minimal. I pay out the wazoo for my schools in property taxes (minimal state aid) and for my families health insurance. I use the tollways a lot more than state roads and ride the El. My contact with state government is generally twice a year — renewing my vehicle sticker and paying my taxes. I’m not going to get hurt by cuts. What’s your point?
But if you want to go there, you need to look at schools, Medicaid eligibility, corrections, DHS, etc. License plates and “canoe czars” ain’t going to cut it.
Comment by wordslinger Monday, Jan 10, 11 @ 1:48 pm
and the band played on…
Comment by steve schnorf Monday, Jan 10, 11 @ 1:52 pm
@ Rich
Satisfying everyone is impossible!! But the leaders might try satisfying enough folks that a compromise is possible.
And they might try doing it in the open. What have they got to loose. The current game plan sure ain’t workin’
Comment by Leave a light on George Monday, Jan 10, 11 @ 2:01 pm
–And they might try doing it in the open.–
Leave, I’ll agree with that. But the Dem “plan” is certainly out in the open. The loyal opposition is silent.
You want cuts, let’s see the “four-page” list referenced in the NYT. Maybe there’s something substantial there. If so, why not show it?
Do you think it contains some heavy-lifting to address a $15 billion problem? Or is it just silly talking points about license plates?
Comment by wordslinger Monday, Jan 10, 11 @ 2:07 pm
In the early 1980s the state government was able to run balanced budgets for years, living on 2.5% of the aggregate income of Illinois residents. That tax burden was then raised to 3% of the aggregate income of Illinois residents, and the state was able to live on that 3% for decades. However, despite increases in revenues from other sources, including various fees and the state’s cut of the Illinois Lottery and riverboat casinos, during the terms of Governors Ryan, Blagojevich and Quinn, the state has lived well beyond its means.
How is it that state government spending has so outstripped its assigned percentage of the state’s aggregate income? Too many new programs, pensions that are unaffordable and a lot of corruption.
Merely increasing taxes (no one believes the individual rate increase will be temporary) will just feed the beast.
I recognize that budget cuts will cut not only fat but also muscle. It may mean that, for example, the drivers license bureau will be only open 4 days a week. That is how bad of shape we are in. That will be the effect of across the board cuts, but without those cuts and without completely changing future benefits for all state workers, no tax increase is going to help for very long. What it will do is provide a boost to the economy of Indiana, Texas and Florida as business people like me move our operations, headquarters and personnel, over time, to lower tax states.
Comment by Mark G Monday, Jan 10, 11 @ 2:22 pm
===It may mean that, for example, the drivers license bureau will be only open 4 days a week. ===
It’d be worse than that, man.
Comment by Rich Miller Monday, Jan 10, 11 @ 2:28 pm
Pigs get fed, hogs get slaughtered.
4% PIT and proportionate for CIT would pass easily, everybody including Laurence Msall would be on board–maybe even pass 4.5% with some lame duck votes getting it over teh top, and they would have been about 3/4 of the way home. But 5% plus a 0.25% sop to the Black Caucus for the teachers unions, and the highest CIT (incl. PPRT) in the developed world, without even starting work on cuts in the 2012 budget? Deserves to die.
Comment by Marty Monday, Jan 10, 11 @ 2:43 pm
Agree with Marty - a corporate income tax that is highest in the developed world will (I emphasize WILL) chase companies and jobs out of state. There is no getting around that fact. If that happens then the tax revenues from the increase will fall short of projections.
Rich, if I could cut 20% of gross state personnel costs by moving all state workers to 4 days a week from 5 days a week (I know, it would be difficult to do) I would save a large load of money (particularly if coupled with pension changes).
Comment by Mark G Monday, Jan 10, 11 @ 2:53 pm
–How is it that state government spending has so outstripped its assigned percentage of the state’s aggregate income? Too many new programs, pensions that are unaffordable and a lot of corruption.–
Health care. More procedures, more availability, more costs. It’s the 800-pound gorilla in the room for this generation, and it’s just started.
Put it this way: Science keeps coming up with more, better and expensive ways to keep living. Who won’t want it? Who gets what and who pays?
Comment by wordslinger Monday, Jan 10, 11 @ 3:09 pm
Grandson and those he’s trading posts with—
My observation is that a lot of State offices are understaffed, and getting rid of any Blago holdovers, even if not replaced by Quinn/Cullerton/Madigan newbies, would be a drop in the bucket.
People won’t like it, but the choices are:
-More revenue, which means real taxes and fees that real people will notice and feel, not wishful thinking like Cullerton’s Amazon Tax.
-Cut programs–reduce some, maybe eliminate some; those who benefit from those programs won’t like it, but you do the best you can with what you have. There’s plenty of things the State does that it doesn’t have to do or it doesn’t have to spend so much on.
-Cut costs, which in the end is mostly employee compensation. Grandson won’t like it, but his claim on other people’s money is in no way morally superior to the claims of those who earned it in the first place, or the recipients of State largesse who are also facing cuts.
It’s simple. Not easy, simple things can be damn difficult. But those are your choices and the answer is some mix of them. Things like Blago holdovers or Cross’s NYT list may be the last few $million in a $10billion pile.
Comment by Marty Monday, Jan 10, 11 @ 3:51 pm
I know it wont save much but can we finally sell Air Blago and quit flying politicans and state employees around, lease a few of whatever automobile is built in Illinois.
Comment by fed up Monday, Jan 10, 11 @ 4:08 pm
Well, no matter how you slice it, the 96th GA will be one for the record books… their very first vote was to impeach Blago; their very last vote may be for or against an income tax hike.
Comment by Secret Square Monday, Jan 10, 11 @ 4:20 pm
@ Marty - Agree with you except for the order of things.
=It’s simple. Not easy, simple things can be damn difficult. But those are your choices and the answer is some mix of them. Things like Blago holdovers or Cross’s NYT list may be the last few $million in a $10billion pile.=
Let’s make Blago holdovers and Cross’s list the First few million in a 10billion pile.
Comment by Leave a light on George Monday, Jan 10, 11 @ 4:23 pm
And the biggest savings, over time, would be to freeze the current antiquated pension plan (freeze at current level of accrued benefits) and replace it for all employees going forward with a 403(b) or similar defined contribution plan.
Comment by Mark G Monday, Jan 10, 11 @ 4:45 pm
Marty,
I earn my money. The government is an employer, just like yours (assuming you’re working). I don’t have a “claim” on your money. Someone has to do the work for which I’m paid, and I’ll compare my employee evaluations with yours and anyone else’s, anytime.
Comment by Grandson of Man Monday, Jan 10, 11 @ 4:45 pm
SB3644 just passed 64 yes, 49 no 2 present.
Comment by Cindy Lou Monday, Jan 10, 11 @ 5:41 pm
So, I just did a Google search for “illinois tom cross budget cuts” and the top hit was:
http://www.tomcross.com/rep-cross-sends-budget-ideas-to-gov-quinn/
Those of you stating that the ideas were being held back, or that the Republicans were failing to offer bills for these ideas, well, I guess you can’t do a simple Google search. There are a lot of references to SB# this and HB# that in that list. I know that the “one license plate” bill is held up in the Rules Committee, as I read about that recently elsewhere, since I really don’t want to drill holes in the front of the car I just bought.
Comment by Larry Monday, Jan 10, 11 @ 5:50 pm
Larry, you’re right, there it is. What’s it add up to?
Comment by wordslinger Monday, Jan 10, 11 @ 6:36 pm