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Another splash

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Illinois

Once again, Comptroller Dan Hynes, has managed to make a big media splash. That’s twice in a week. Last week it was the “Barack should run for president” press conference. Yesterday, he warned of an impending state crisis.

Paying increased costs for employee pensions, health care for the poor and debt service will eat up virtually all new money the state can expect to bring in over the next three years, Comptroller Dan Hynes said Monday.

The state faces “a serious crisis” by 2010 unless lawmakers take a long-term view of state finances, Hynes told a business group in Chicago. But a spokeswoman for Democratic Gov. Rod Blagojevich said the administration was well aware of the problems when it came into office and has continued to alleviate them.

Hynes, a Democrat, said the state will have to pay about $1 billion more each year to keep up with growth in the built-in budget obligations. That’s just about the amount of new money - through increased tax revenue, for example - the state has gained annually for the past 10 years, he said.

“If current trends continue and the state fails to address these looming issues, the state could face a serious crisis by fiscal year 2010,” Hynes told the state finance task force of the Civic Committee.

It’s not easy for a comptroller in a ho-hum race to get publicity, but give Hynes credit for rising to the challenge.

It’s also a serious issue, of course. One day, one way or another, the piper is gonna have to be paid.

[Some readers have noted that Hynes is essentially slamming the guv close to an election. I must admit I hadn’t thought of that angle (I must be slipping). But they make a good point.]

posted by Rich Miller
Tuesday, Sep 19, 06 @ 8:11 am

Comments

Google around and I think you’ll find him voicing these alarms before. But why is he doing this now before the election and right when Judy’s first attack ad is coming out?

I was on a selection panel once and guy told me the problem was the qualified people all had the good sense not to apply for the crummy job. Everyone on the list was unqualifed and the first tip off was they were nuts enough to apply for the job in the first place.

You almost get the feeling like being Gov of Illinois in these circumstances is so dauting, that you’re bound to fail given our future, that you’d have to be off-balanced just to want the job.

Comment by Bill Baar Tuesday, Sep 19, 06 @ 8:17 am
Isn’t that almost exactly what Topinka said when she put out her budget plan? What does Danny think we oughta do about it? Hasn’t he been the Comptroller for 8 years now?

Comment by Not News Tuesday, Sep 19, 06 @ 8:21 am
So….Dan not only wants to be senator or 2010 governor, he wants to raise our taxes?

Funny how nobody ever mentions the possibility of cutting state government, especially those lush compensation packages we have to pay for, when they lay out these doomsday scenarios. And Dan has hardly been a crusader against pork.

I say, he may be right, but the circumstances of his statement make him less than credible.

Comment by Cassandra Tuesday, Sep 19, 06 @ 8:24 am
Is this the equivilant of Danny Boy throwing Rodney under the bus?

Comment by Wumpus Tuesday, Sep 19, 06 @ 8:37 am
I love it when Cassie blogs about the “lush compensation packages” and “lifetime jobs” of state employees!

Comment by Bill Tuesday, Sep 19, 06 @ 8:38 am
It’s funny how the Medicaid bills are being paid in a timely basis NOW. Must be an election coming up. I can just hear it now in November how it will be a CRISIS and the cash will slow down again.

These pieces of dog-doo that run our State government make me sick.

BLAGO’S GOTTA GO!!!!!!!!1

Comment by BIG R.PH Tuesday, Sep 19, 06 @ 8:45 am
Cassandra probably wants to cut state spending on health care, forcing the most vulnerable amongst us - seniors - to have to choose between buying essential medication or buying food.

Shame on you, Cassandra. Shame, shame shame.

State spending should not be cut under any circumstance. We haven’t had an income tax increase in 40 years. Raise those. We’re overdue.

Comment by Nellie Tuesday, Sep 19, 06 @ 8:45 am
Hynes wants so badly to be a U.S. Senator that he begs the man who wiped the floor with him in the primary to run for president so that his seat would be vacated. I would bet the farm that he is trying to cut a deal with the speaker that Danny Boy would support Lisa for Governor in 2010 if Lisa would appoint him to Barack’s Senate seat. I guess if you cant win on your own, the next best thing is to cut some back door deals.

Whacking the top democrat on the ticket just 50 days from the election. That’s pathetic, Danny. I hope Barack becomes President and Rod gets reelected Governor. We would see U.S. Senator Gary Forby and Comptroller Danny Boy Hynes for life

Comment by Anon Tuesday, Sep 19, 06 @ 8:48 am
Nellie: Actually, our last state income tax increase came in 1989. But I agree with your underlying sentiment - it IS time to increase that tax in order to deal with a lot of the very important bills coming due in this state.

Cass, I too am all for making budget cuts targeted at bloat and fat-cat stuff. And it’s past time that kind of activity start. But like Nellie, I’m concerned that we keep that ax away from health care and other services for more vulnerable Illinois residents.

Any budget-cutting frenzy to help this hemhorraging state would never find enough $$ through cutting “waste” alone.

Comment by Anani Mouse Tuesday, Sep 19, 06 @ 8:57 am
Question: Who was the Governor the last 4 years that allowed this to happen? I thought he fixed the problem?????

Comment by Wheres the leadership??? Tuesday, Sep 19, 06 @ 9:05 am
What the IL state government needs more than tax revenue is some fiscal responsibility and prudence. If so many of these programs are expanded, and new ones started, when we DON’T have the revenue to pay for them, how can we expect politicians to reign in the spending when they DO have the revenue? They act like all of those lottery winners you read about that vow to “pay off debts, invest some money, and help out my poor family”, but then end up 3 years later much further in debt than they originally were. Unfortunately, I have yet to see a candidate in Illinois who vows to truly cut programs that need cut while also raising needed revenue to actually pay for programs that exist.

But at least I was relieved to hear that the governor was aware of the problem when he came into office and continues to work to alleviate them. I guess credit for medicaid expansion, All-Kids, ISaveRx, etc. needs to go to the previous administration if the budget problems existed before. Who has a harder time sleeping at night; the governor, or the spokespeople who basically had to sell their soul to do their job?

Comment by schroedk Tuesday, Sep 19, 06 @ 9:28 am
Actually, if you have read some of my earlier posts, I am in favor of universal health insurance for Illinoisians, one million of whom are currently uninsured. Guaranteed access and community rating, meaning nobody can be turned down and everyone pays the same for the same level of insurance service. I would like see it done through a public/private partnership because I nor anybody else trust government to do it alone. But state government should ensure that it gets done through law and through appropriate subsidies without raising our taxes.

My point is, government should be paying for these kinds of programs, not for pork, a bloated state management corps, pay to play state contracts, and way-above-market compensation for a bloated civil service which is selected through patronage, not merit.

It’s our money and we should benefit from it directly.

Comment by Cassandra Tuesday, Sep 19, 06 @ 9:30 am
It’s Dan Hynes’ job to speak out on damaging fiscal patterns in Illinois. He’s done it for the past eight years, regardless of who is in the Governor’s mansion. That’s leadership, folks.

Comment by values matter Tuesday, Sep 19, 06 @ 10:05 am
You can’t spend money like a “drunken sailor” and expect to have funds to pay bills. Gee, that’s what the legislature was accused of doing. However, the legislature is not going to Marion, Illinois to hand out $4M for a ballpark or to Carterville to hand out $1.9M to repair an old school that will be abandoned in a few years for a new $20+M high school complex. This state can’t afford the election year campaign spending this governor is doing for the sake of buying votes. Hello pot (Blogo), this is kettle (legislature), and you’re black!

The Medicare backlog is not being eliminated. The bill paying is being stepped up by a few days until the election is over. Then it will go back to business as usual with the medical providers bearing the burden for Blogo’s new medical/healthcare creation of the day.

Comment by Little Egypt Tuesday, Sep 19, 06 @ 10:48 am
I can see that only the Libs are on here this morning.

How about this for a radical suggestion. How about rolling back all of the “fee increases” that Gov Bla Bla put on businesses the last 4 years.

This would expand the “base” from which taxes are generated. Thereby raising revenues without raising taxes. It’s called conservativism and it works EVERY TIME IT’S TRIED. JUST MAKE SURE THAT YOU DON’T COUPLE IT WITH A BUNCH OF NEW SPENDING.

Comment by BIG R.PH Tuesday, Sep 19, 06 @ 10:50 am
I love how hynes likes to get up in front of an audience every 6 months or so and proclaim doom and gloom about the state’s finances, but never offer up a plan or any solutions. it must feel good to be the one to deliver bad news, then wash your hands of it and pat yourself n the back for doing so. he should have been more vocal before blago got in when pension underfunding and medicaid growth was already out of control. regardless of who the sitting gov is today, these problems are hardly new.

Comment by a friend Tuesday, Sep 19, 06 @ 12:20 pm
Kudos to Dan Hynes for being an honest broker in terms of disseminating accurate information about the state’s finances and related fiscal issues. I believe he’s been speaking honestly and openly about the state budget for the last 8 years.

I don’t think it’s accurate to portray his remarks as an effort to torpedo the governor. His job is to call it as her sees it regardless of the political implications.

Dan Hynes is an honest and conscientious
public servant who deserves to move up in the Illinois political hierarchy. Even Republicans who are objective believe that he does a good job! I suggest that everyone should check their respective newspaper endorsements in the next month to see how they assess his performance.

Comment by Captain America Tuesday, Sep 19, 06 @ 3:58 pm
The IDOC just paid 5 million in FY06 bills due to the revolving funds OAE, telecom,& computer services with FY07 money. I wonder how many other agencies have bill they have been hiding????

Comment by MIDSTATE Tuesday, Sep 19, 06 @ 5:58 pm
It doesn’t take a rocket scientist to see what Buyvotesovich is doing with the state treasury; Hynes is just bright enough to realize that the account can be empty while there are still blank checks in the book - a concept John Filan is still struggling with! Danny also probably realizes that Governor Smoke N. Mirrors back loaded the State’s AFSCME contract; virtually no pay increases until January ‘07 and then - after the election, of course - Giveaway City. Cheer up, Mr. Comptroller; maybe Amy will float you a loan out of her birthday money!

Comment by Front Row Seat Tuesday, Sep 19, 06 @ 11:06 pm