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Cutting the budget ain’t easy

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Illinois

* From a State Journal-Register editorial…

Of all the cuts proposed by Quinn as he grapples with a budget deficit of more than $7 billion, closing the state’s “supermax” prison should be among the most easily justifiable. Yet resistance has been strong as opponents decry the potential danger of eliminating a facility that opened in 1998 to house the “worst of the worst” of the Illinois prison system. The main argument of the opposition is that the isolation provided at Tamms is the surest way to keep the most dangerous prisoners — those who menaced other inmates, correctional officers and prison workers — from doing more harm.

As an outpost of complete segregation, Tamms works. But its economics simply don’t work in 2012.

Consider this: When Tamms opened, the state closed its fiscal year with a budget surplus of $1.2 billion. In 1998, the state had the means to devote an entire prison to its worst inmates. That’s not the case today.

At an annual cost of $64,805 per inmate, incarceration at Tamms costs the state more than three times the $21,405 average annual cost per inmate at the 27 other Illinois Department of Corrections facilities. Though it’s known as the state’s super maximum security prison, its population is divided almost evenly between maximum security and minimum security inmates (186 super maximum, 189 minimum). It operates at about half its capacity of 700 inmates.

* Matt Dietrich wrote that editorial and wrote on his blog about the resulting backlash…

I purposely sidestepped the human rights side of the anti-Tamms argument in the editorial and focused exclusively on the numbers. I don’t mean to downplay that side, but going simply by the figures (and I don’t just mean the $26.3 million the state will save closing Tamms), this should be one of the easiest of the many difficult decisions that will have to be made as the state budget is crafted between now and Memorial Day. […]

Judging by the online comments, there is ample public disbelief that Quinn would even consider closing Tamms, and that anyone would agree with him. I say if you can’t accept this cut, you’ll never accept any kind of reduction, especially when it comes to taking away healthcare and a lot of other things that will be even more emotional.

And this is only one cut. It will take about 266 cuts of $26 million to get the state’s budget back in the black. Sorry, folks, but grounding a couple state airplanes won’t get us there.

In hard times, the luxuries go first. There’s no bigger luxury in corrections than Tamms.

* Meanwhile, Sen. John Sullivan had this to say to his local paper about Medicaid cuts…

Sullivan says a small group of lawmakers assigned to study Medicaid has not reached a consensus on how to deal with the problem. He says some want to spread out the cuts over several years while others want to find the entire $2.7-billion this year.

Every dollar in Medicaid cuts that is deferred or not paid for with cuts in other programs or new revenues will mean another dollar added to the state’s already gigantic mountain of backlogged bills. It’s a really stupid idea to defer anything, but politically it may just not be possible to make all these cuts.

* Related…

* Critics of super-prison closure question safety

* Former inmates, employees and congressman oppose closures of prison transition centers

* Timeline for shutting Tinley Park Mental Health Center is called rushed by some lawmakers

* McHenry County day care facilities can’t stand state reduction, providers say

posted by Rich Miller
Wednesday, Apr 11, 12 @ 10:38 am

Comments

Despite their complaints to the contrary, Illinois’ hospitals, nursing homes and doctors have ALWAYS preferred payment delays to rate cuts when it comes to Medicaid.

Now that the House has already approved a budget that cuts $1 billion — primarily from human services and education — there is absolutely no reason for the nursing homes, hospitals and doctors to agree to a rate cut.

They get to have their cake and eat it too.

The House has put themselves in a TERRIBLE negotiating position.

Comment by Yellow Dog Democrat Wednesday, Apr 11, 12 @ 11:02 am
I wonder what it will take to get the electorate and rank-and-file politicians to actually take the tough decisions. Getting the state prison system out of a form of imprisonment that flunks every standard of efficiency, effectiveness, humanity, and practicality should be an obvious move. Perhaps we need a concerted effort by leaders who aren’t in the legislature to push proposals that hit people directly in the pocket, such as tolls on interstates. And then and only then people will start to seriously engage the problem.

Comment by Angry Chicagoan Wednesday, Apr 11, 12 @ 11:05 am
Each line item in the budget has its’ own special constituency. No matter where you cut, or how much, the howls will be heard on the 6pm news.

Good luck, Mr Quinn.

Comment by dupage dan Wednesday, Apr 11, 12 @ 11:08 am
BTW, Governor, the GA is its’ own special constituency.

Comment by dupage dan Wednesday, Apr 11, 12 @ 11:08 am
@Angry Chicagoan -

The prison closures hit people directly in the pocket, which is the only reason we’re talking about them.

The Dept. of Corrections has been propping up the economies of downstate counties and turning a pretty penny for a bunch of vendors as well. If this were only about AFSCME, these cuts would have happened a long time ago.

Comment by Yellow Dog Democrat Wednesday, Apr 11, 12 @ 11:51 am
The prison closures hit people directly in the pocket, which is the only reason we’re talking about them.

Please, you’re a thoughtful guy, you’re better than this. There are many, many reasons apart from economics to take issue with a Corrections budget proposal that would:
(1) reduce beds in a system already overcrowded to 140% of capacity, with inmates in gyms, hallways, offices and basements;
(2) cut $13 million from drug treatment and job training in every prison;
(3) shutter six special transitional centers that help reintroduce inmates to work and community, thereby reducing recidivism, instead simply releasing them early with an ankle bracelet and no services;
(4) close the closed-maximum-security prison that functions as the system’s safety valve;
(5) wipe out the Dwight women’s prison and its range of special programs the late Rep. Lou Jones worked so hard to establish there; and
(6) lay off half the state’s parole agents, transforming them from a dual public safety/social work role assisting offenders in the community to merely sitting at a desk, hoping parolees make monthly call-ins.

Comment by Reality Check Wednesday, Apr 11, 12 @ 12:15 pm
Raelity,
Excellent points. So, I take it you are in favor of raising taxes rather than making those cuts.

Comment by Bill Wednesday, Apr 11, 12 @ 12:40 pm
@Bill, it seems difficult to imagine an outright tax increase in the current atmosphere. But debt restructuring, closing loopholes, sweeping special funds, deferring the corporate and estate tax provisions of the Sears/CME bill and extending payment cycles are all preferable to these and other awful cuts, yes.

In the long run, the only answer is fair tax reform - with graduated rates that end the easy ride for the rich, no more 2/3 of corporations paying zero corporate income tax, and no more sales tax exemption for luxury services.

Comment by Reality Check Wednesday, Apr 11, 12 @ 12:56 pm
@Reality Check -

We should cut wasteful spending AND reform our tax code.

Comment by Yellow Dog Democrat Wednesday, Apr 11, 12 @ 1:30 pm
To cut those types of numbers, IL is going to have to hit a couple of ’sacred cows’ - specifically, state revenue sharing for both municipalities and counties.

That means large chunks (if not all) of the share of state income tax and state sales tax collections stay with the state of IL, and the units of local government are on their own.

How about our ‘fearful leader’ (Gov. Quinn) issueing an immediate directive to all state office departments, boards and commissions, and purchasing agencies that effective immediately, no more purchases of licenses for MS Office (in any version) will be allowed. All users of MS Office products must switch immediately to using comparable open source products (such as Open Office or even Google Docs).

You want to save a fair number of millions of dollars, there’s one way. Might actually hit, or even exceed one or more of those magical $26 mil dollar numbers.

Comment by Judgment Day Wednesday, Apr 11, 12 @ 1:49 pm
Another idea. This one raises a little bit of revenue, but more importantly, puts issues into perspective (be unpopular, though).

Make every appeal filed with the IL Property Tax Appeal Board have a filing fee:
Agricultural; less than $100k reduction: $60.00
Agricultural; more than $100k reduction: $90.00
Residential; less than $100k reduction: $60.00
Residential; more than $100k reduction: $90.00
Commercial; less than $100k reduction: $80.00
Commercial; more than $100k reduction: $120.00
Industrial; less than $100k reduction: $150.00
Industrial; more than $100k reduction: $225.00
Other; less than $100k reduction: $80.00
Other; more than $100k reduction: $120.00
Tax Exempt application; $90.00 straight fee.

Currently, the state gets nothing, does all the work, is seriously backlogged, and local governments are pushing more and more potential caseload off onto the IL Property Tax Appeal Board.

It’s becoming a big game with everybody trying to ‘play the system’, and there needs to be costs assigned to the services being provided.

Comment by Judgment Day Wednesday, Apr 11, 12 @ 1:59 pm
Is anyone calculating the lost federal financial participation with every $1 in Medicaid cuts? The reality is that the net GRF impact of Medicaid expenditure growth has not been radical. Most of the growth has occurred through Medicaid Provider Taxes, intergovernmental transfers and federal matching funds. Short-term borrowing to reduce payment delays will expedite the return of federal matching funds.

Comment by ANAL Wednesday, Apr 11, 12 @ 2:04 pm
@ANAL -

LOL. I don’t know where you’ve been for the last 15 months, but Republicans oppose borrowing.

Comment by Yellow Dog Democrat Wednesday, Apr 11, 12 @ 2:07 pm
@YDD do you have specifics behind the “cut wasteful spending” bumper sticker?

Comment by Reality Check Wednesday, Apr 11, 12 @ 3:14 pm
if the tamms facility is newer and in better shape than others, then why not close others and move the inmates to the newer facility. the “daily routine” could be altered to be less harsh if so desired.

Comment by Anonymous Wednesday, Apr 11, 12 @ 3:20 pm
Tamms may be newer, but it isn’t in better shape. Budget cuts in prior years mean no money for repairs. Staff have had to take “spare parts” off of empty cells to keep the rest working. Tamms simply can not be used efficiently.

Comment by Alan Wednesday, Apr 11, 12 @ 3:40 pm
Judgement Day - Cutting revenues to municipalities may help the state, but will create more problems for the locals. My town has already reduced staff and the GF budget by over 20%. Only after the state makes similar cuts should they ask locals to ’share’ in solving the problems the state created. Now if you said, in return for eliminating shared revenue, the state can never pass another law or take any action, that cost the locals more money, we can talk.

Comment by LocalGovGuy Wednesday, Apr 11, 12 @ 3:58 pm
LocalGov, I’m absolutely in agreement with you about State of IL dumping all sorts of crazy regs and nonsense on units of local government. Will such a cutback in revenues cause MASSIVE problems for units of local government? - no doubt.

But I’m just saying that it’s probably going to have to happen. State government is in such a terrible financial position, and raising state taxes (again!) just isn’t going to happen anytime soon. Same thing applies to bonded indebtedness. With Quinn as governor, the Republicans won’t vote for a tax increase (can’t blame them, actually), and I think it’s unlikely the MM would be willing to order/persuade his forces to go into battle for yet another general tax increase.

LocalGov, but as a point, I know that although a substantial number of local governments have cut back, there’s a substantial majority which have made at best minimal (if any) reductions. And honestly, for many counties, there’s precious little creative, innovative thinking going on as how to change/improve the way they are currently doing business (Municipalities are much better then Counties at doing that, but that’s not saying much).

Comment by Judgment Day Wednesday, Apr 11, 12 @ 5:23 pm
Judgement -

$8.75 to $10/mo. X 12mo. X 70,000 seats (2010 employees) = 7.4 to 8.4 million/Yr. (nowehere near $26M)
That is the CMS published price to agencies, & probably includes some measure of ‘CMS Tax’.
It’s also a negotiated volume price. So we cut out Office, and Microsoft jacks up the price for Windows and other products to make up the difference…

If you have the magic wand that can make the state move from Office to Open Source/some sort of free Ofc Suite in less than a year, just use it to wave in a bunch of revenue and erase the deficit!

Comment by Returning Dog Wednesday, Apr 11, 12 @ 6:28 pm
Cutting local gov’t revenue sharing will hurt big time. However, 1) we could start by eliminating townships and consolidating their functions into the county governments. 2) As alluded to already, I will be more receptive to cuts to locals if the State makes other changes such as a) allowing locals to opt out of unfair prevailing wage rates, b) design their own local police/fire pensions instead of dictating what locals have to do, c) open more home rule provisions to non-home rule cities so they can fund operations as local elected officials see fit, d) alter collective bargaining rules so cities/counties can negotiate affordable contracts, e) repeal ptell so cities/counties can recoup losses, etc.

Comment by Shemp Wednesday, Apr 11, 12 @ 8:18 pm
I know I am a day late with this, but havent had time to read this until now.
The Governors proposal to close Tamms has absolutely nothing to do with the Budget. In early 2010 the State brought in the Vera Institute for Justice, (which is Social Justice and not Criminal Justice, there is a big difference) and DOC partnered with Vera in their Segregation Reduction Project. Vera has brought this to other states and the goal is to eliminate segregation in general and specifically to end super-max prisons nationwide. To verify this please check Veras website. It is all there.
Closing Tamms is about pushing an agenda, not what the Governor claims. The Governor and those who support him continue to use exaggerations, myths and outright lies to push this agenda thru. What people should be asking is why Quinn and those supporting him can not come out and tell the truth about what they are doing, and why.

Comment by SO IL M Thursday, Apr 12, 12 @ 7:24 am
“$8.75 to $10/mo. X 12mo. X 70,000 seats (2010 employees) = 7.4 to 8.4 million/Yr. (nowehere near $26M)
That is the CMS published price to agencies, & probably includes some measure of ‘CMS Tax’.
It’s also a negotiated volume price. So we cut out Office, and Microsoft jacks up the price for Windows and other products to make up the difference…

If you have the magic wand that can make the state move from Office to Open Source/some sort of free Ofc Suite in less than a year, just use it to wave in a bunch of revenue and erase the deficit!”

RD, there’s the problem. The digital business models are rapidly changing, and the State of IL (and CMS, in particular) is way, way behind the curve. They’re (CMS) still trying to figure out ways to shave nickels off ‘per license’/volume agreements, when what they need to be doing is starting a push to move everybody into a new digital environment.

You’re not going to move 70k+ users off MS Office overnight. Isn’t practical. But you can start to make inroads by saying “You can get MS Office upgrade, and it will cost this, or you can get the OpenOffice equivalent, and it will cost this amount (as one is free, there better be a price difference, or CMS is identified as a cost that needs to be removed from the overall process).

It’s real simple - there’s not enough money to go around, and it’s not going to get any better anytime soon. So the State either has to find ways to raise massive amounts of new revenues (which is what they have already tried to do), or the state gets to change it’s ‘business model’.

No, I don’t have a magic wand - re: planning out the move (software migration). But if you look at most companies about how they move/migrate to different software/hardware environments, you will note that it’s normally anything but an organized practice. But it works!

And in most cases, both the structured IT/Data Processing environments (and the purchasing entities) are all uniformly opposed (initially) until they finally get beaten up badly enough (by users) to a point where they turn and become in favor of the new technology.

The reality is that state government in too many areas is a technological laggard, and trying to work through the existing structures to get back into the game just isn’t realistic. What we have created is a structured, high cost environment which is almost unmanageable, and is built to ‘fight the last war’.

Bottom line: Where we are today is simply not affordable going forward. When you ask what my solution? Here’s an idea - tell the department head to plan on losing at least 1/3rd of their entire budget over the next 3 years. So what steps are they going to take to keep operating?

Because that could easily turn into reality…

Comment by Judgment Day Thursday, Apr 12, 12 @ 9:22 am