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* My weekly syndicated newspaper column…
After he was elected, but before he was sworn in to office, Bruce Rauner repeatedly lambasted Gov. Pat Quinn and the legislative Democrats for passing a “booby trap” budget that was about to blow up in the state’s collective face.
Rauner was absolutely right. Last year’s budget was irresponsible and didn’t deal with the reality of the expiring income tax hike. As a result, the state’s budget is in a terribly deep hole right now.
But did Gov. Rauner really make all the “tough choices” necessary to get us out of that hole during his budget address as he promised? Well, he sure proposed a lot of cuts. But he planted at least one major booby trap himself.
As you may already know, Rauner proposed a pension reform plan that he says would save at least $2.2 billion in the first year.
Set aside the fact that both Rep. Elaine Nekritz and Sen. Daniel Biss, who both worked very hard on the Legislature’s pension reform law, cannot fathom how Rauner’s proposal to move every state employee and public school teacher into the lower-cost “Tier Two” pension plan on July 1 will actually save that much money in the first year, or “immediately” knock $25 billion off the state’s massive unfunded liability. Let’s just take him at his word on this one, as supremely difficult as that likely is.
The problem with the plan is that he’s counting on that $2.2 billion “savings” to help balance the budget next fiscal year. All those who believe that a judge won’t almost immediately stop the plan’s implementation, as another judge did to the last pension reform law, please raise their hands.
Anybody?
Hello?
I didn’t think so.
There is no way on God’s green Earth that the state can rely on that $2.2 billion savings next fiscal year. It’s a complete and utter fantasy, which makes this yet another dishonest budget.
House Speaker Michael Madigan called the idea “reckless” after the governor’s budget address.
Madigan’s right, but his counterproposal wasn’t a solution, either.
Madigan resurrected the idea of a 3 percentage point tax on personal income above a million dollars. But, at most, Madigan’s proposal would only raise a billion dollars a year. The deficit is nine times that amount.
And then there’s the problem of implementation. Madigan’s spokesman reaffirmed that the proposal can’t be put into place without first winning the approval of voters via a constitutional amendment referendum. But that can’t be done for almost two years. The idea has zero worth for next fiscal year’s budget, which begins on July 1.
OK, back to Rauner. During and after the campaign, Rauner said Quinn and the Democrats had constantly “kicked the can” down the road. Again, he was right. This fiscal year’s budget plan moved spending off budget, which created gigantic holes in next fiscal year’s budget.
But Rauner did the exact same thing last week with employee group health insurance. The state’s backlog is about a billion dollars. Some providers aren’t being paid for a year. But Rauner would increase that backlog by up to $700 million by cutting the money spent on health insurance next fiscal year and not dealing with projected cost increases. His “savings” are completely illusory.
Ironically enough, the governor visited a Hormel Foods plant the day after delivering his budget address. No word on whether he kicked a can of Spam down the hallway while he was there.
And then there’s the myriad smallish savings he derives from eliminating tiny programs that benefit some of the most vulnerable people in Illinois. Homeless youth services will be eliminated, for example. And at a time when heroin use is skyrocketing, Rauner proposes to cut the state’s treatment program.
The state eliminated Medicaid funding for dental services a few years ago. It was restored when Democrats, with plenty of evidence, claimed the cut was actually leading to higher costs elsewhere in the Medicaid budget. Rauner wants to eliminate it again.
The bottom line here is that no matter whatever else you read or hear, this budget is neither honest nor real.
It’s instead a too-clever-by-half concoction of budgetary magic beans.
After two years of avoiding any sort of detailed questions about his budget plans while on the campaign trail, Rauner basically punted the entire budget to the General Assembly last week. And it’s difficult to have much confidence in those particular folks after how badly they screwed up this year’s budget.
posted by Rich Miller
Monday, Feb 23, 15 @ 9:43 am
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I honestly think they got to a point where even they realized there were no more cuts to be made without totally shutting the state down and they had no choice but to include the $2.2 billion figure as “savings.”
Comment by Demoralized Monday, Feb 23, 15 @ 9:48 am
What did we expect from the man behind the Chicken Budget?
Comment by Precinct Captain Monday, Feb 23, 15 @ 9:51 am
Rauner ran on the basis that he could run things without the 5% tax rate being extended, simply by eliminating corruption and waste. Cutting revenue when there already was not enough revenue does not seem to be working.
Comment by DuPage Monday, Feb 23, 15 @ 9:54 am
=== Rauner basically punted the entire budget to the General Assembly last week. And it’s difficult to have much confidence in those particular folks after how badly they screwed up this year’s budget. ===
I wouldn’t say he punted to the General Assembly.
This is less like football, more like golf.
I’d say he shanked it into the woods, and I suggest he ought to be given a Mulligan.
Comment by Juvenal Monday, Feb 23, 15 @ 9:56 am
Right on, Rich! There’s troubles here in River City.
Comment by Rufus Monday, Feb 23, 15 @ 9:58 am
Rauner is lost in space…. Madigan and Cullerton need to let him fail in HIS budget so the downstate rep can see how big of a mistake they have made.
Comment by Upstate Monday, Feb 23, 15 @ 9:58 am
—
What did we expect from the man behind the Chicken Budget?
—
For me — and perhaps for others, too — this budget shows that Rauner had no clue what a budget would look like when he was campaigning. He literally — literally — had no idea. And there was no one was “working diligently” to crunch numbers behind the scenes during the campaign.
Rauner was essentially buying time — and probably a lot more than that — until he vanquished the (unusually) weak challenger. Then he sits down with someone who doesn’t know the first thing about Illinois and tells her to cut whatever she needs to cut to create what must appear to be an authentic.
The whole thing — from the campaign to the 2/18 budget speech — has been — and will no doubt continue to be — smoke and mirrors.
The only good thing about all this is that since Rauner is doing exactly what Quinn was doing Rauner will be as weak as Quinn was when it comes time to vote in the next guy/gal.
Comment by Frenchie Mendoza Monday, Feb 23, 15 @ 9:58 am
Good column, Rich….and great questions!
Comment by Jack Stephens Monday, Feb 23, 15 @ 9:58 am
If Governor Rauner believes that it will be the Democrats who need to be the ones to propose any true tax hikes by having this proposed budget as a doomsday budget, and it will bring Democrats around to other ideas for those revenues, he’s only half right there too.
It will be a bipartisan bill that will be structured, with loads of GOP botes to pass, rgat obky leads to more pain for GOP GA members…
…and only half smart thinking it will bring Democrats around, because as Governor, it’s up to him to propose solutions and bring solutions around, even if Speaker Madigan says he’s “open” to it.
The learning curve on this budget instance is only going to lead to how much pain Rauner, personally, wants to level on the ILGOP GA. Maybe that was the plan all along(?)
Comment by Oswego Willy Monday, Feb 23, 15 @ 9:59 am
“It will be a bipartisan bill that will be structured, with loads of GOP votes to pass, which only leads to more pain for GOP GA members…”
Better.
Great work, as always, Rich.
Comment by Oswego Willy Monday, Feb 23, 15 @ 10:02 am
Great column. I got educated and disabused about a millionaire surcharge, which can’t be implemented without amending the constitution.
Rauner and the ILGA are going to have to find the guts to pass an income tax increase, along with whatever else they’re going to do. Democrats should push for closure of some corporate tax loopholes to balance possibly inevitable cuts that will affect the poor.
Comment by Grandson of Man Monday, Feb 23, 15 @ 10:02 am
I’m still amazed (actually sickened!), but not surprised, at the gullibility of the voting populace that bought Rauner’s rhetoric hook, line and sinker.
Comment by forwhatitsworth Monday, Feb 23, 15 @ 10:03 am
Speaking of having no idea…he has no idea how to take criticism or input. When you’re used to running your own show, your own way with enough money to make people go away, this gig might be pretty rough to handle. Maybe he’ll quit. lol
Comment by AnonymousOne Monday, Feb 23, 15 @ 10:04 am
Great work, Rich. The question remains as to what Rauner’s real objective is. Does he even know himself?
Comment by Avery's Binky Monday, Feb 23, 15 @ 10:05 am
Vulture capitalism at its finest
Comment by foster brooks Monday, Feb 23, 15 @ 10:06 am
Rich, you (and Oswego Willy) are the most sane, adult voices in the room on the state of our State. Can we install you as Governor and Speaker, respectively?
Comment by Concerned Monday, Feb 23, 15 @ 10:06 am
forwhatitsworth, were you as sickened when people elected Obama? TWICE????
Comment by anon Monday, Feb 23, 15 @ 10:07 am
The low hanging fruit has already been picked.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 10:09 am
Rauner’s fantasy budget just makes it harder and harder to take that goofy smirk he wears on a regular basis. Illinoisans must have thought they were voting for Warren Buffet — instead they got Donald Trump.
Comment by kimocat Monday, Feb 23, 15 @ 10:11 am
I can’t envision any scenario where Rauner’s proposed pension cuts passes muster with the Courts. At the end of the day, any changes will either need to be negotiated with AFSCME or a Constitutional Amendment will need to be passed to allow such an action. Either solution could take years.
Comment by Stones Monday, Feb 23, 15 @ 10:12 am
My biggest complaint/confusion with the budget address are the interests who are upset to see their various medical programs cut (like cancer screenings). These are the same people who say that Obamacare is giving everyone insurance.
Maybe I’m confused, maybe I’m missing something here, but if all these low-income people have insurance/Medicaid through Obamacare, do they still need all their various little programs?
Comment by Just Me Monday, Feb 23, 15 @ 10:12 am
So, smart boy, what’s your plan? Thought so.
Comment by Neglected stepchild Monday, Feb 23, 15 @ 10:12 am
Forwhatitsworth - Not amazed at all considering Blago was elected to a second term.
Comment by XDNR Monday, Feb 23, 15 @ 10:13 am
Anon … Not really!
Comment by forwhatitsworth Monday, Feb 23, 15 @ 10:13 am
Describing Madigan’s Millionaire Amendment asa counterproposal remains a mistaken description — just as it was last week. It is a good way to reform the tax code — which is something BVR frequently cranks about.
BTW as long as we are discussing BVR budget high jinks how about counting $700+ million in health care savings? That only happens if negotiations agree — unless BVR wants to spread out the payment cycle to 2 years from the current unseemly Quinn era 365+ days.
Didn’t some state pass a budget law that bars pols from spending $ before it is in hand. Seem to recall that was a Jack Franks Folly from a while back. Maybe JF can issue some arrest warrants to the BVR premature spenders.
Comment by CircularFiringSquad Monday, Feb 23, 15 @ 10:13 am
who is going to step up and lead us out of this mess? our house may not be fully engulfed in flames. yet. but there is smoke coming out of every heating duct. somewhere in the next 100 days things will become unbearable. probably less than 100 days.
so who will it be? maybe munger can get things moving by giving us a list of which programs and functions will collapse week by week. are the legislative “leaders” willing to sit by and do nothing?
who put rauners budget together? arduin? i hope nuding doesnt regret his jump to team rauner.
Comment by langhorne Monday, Feb 23, 15 @ 10:14 am
An interesting thing about the Rauner budget is that Rauner and his new lap dog Ron Sandack have spoken about the “honesty” in the budget, which, according to those two, is different from the way things have been done.
Given that there is no way to make that pensions savings part of the budget, it appears that those two either don’t understand budgeting or they don’t understand “honesty.”
It is very disappointing. I actually thought Rauner would bring much needed fiscal conservatism. I didn’t expect more of the same when it came to budgeting tactics.
Comment by Gooner Monday, Feb 23, 15 @ 10:16 am
@Just Me: the sorts of cuts you’re talking about are cuts to Medicaid. People who are Medicaid eligible are not eligible for subsidies under the PPACA (and are almost invariably too poor to afford insurance without subsidies).
Comment by UIC Guy Monday, Feb 23, 15 @ 10:19 am
Rich, is there any talk about gaining some revenue by adding slots to the ailing racing industry in Illinois? That would help with not only gaining tax revenue, but also keep people in the racing industry working.
Comment by Big Joe Monday, Feb 23, 15 @ 10:20 am
Rauner is banking that Afscme will bargain everyone into tier 2. Good luck on that
Comment by foster brooks Monday, Feb 23, 15 @ 10:20 am
Elections have consequences. Pat Quinn and the Dems were completely incompetent and irresponsible when they were in charge. Rauner won the election, and he’s the only one that I’ve seen that’s not afraid to have an adult conversation with the citizens of this state. Is his proposal perfect? Not likely. But I think after 12 years of Blago and Quinn, Rauner deserves the benefit of the doubt.
Comment by econ prof Monday, Feb 23, 15 @ 10:22 am
—
… and he’s the only one that I’ve seen that’s not afraid to have an adult conversation with the citizens of this state
—
Where exactly did that conversation occur?
Comment by Frenchie Mendoza Monday, Feb 23, 15 @ 10:24 am
@foster brooks: as has been pointed out here many times, the unions do not have the power to bargain away pension rights.
Comment by UIC Guy Monday, Feb 23, 15 @ 10:25 am
“Rauner is banking that Afscme will bargain everyone into tier 2.” Considering that AFSCME doesn’t bargain for everybody, that is a stretch.
Comment by Skeptic Monday, Feb 23, 15 @ 10:26 am
What’s curious is to me is why Rauner proposed some of the most controversial cuts if he was just making up “savings” anyway.
With pensions, health benefits, and “operational efficiencies,” he’s banking about $3.1 billion in phantom savings. That’s about ten percent of projected GRF revenue.
Why stop there, if it’s all pretend? Throw a couple hundred million more on to it, and you don’t take the heat.
After two years of promises of comprehensive and detailed plans, Rauner apparently drew up the budget in the van ride over to the Dome.
Technically, I guess, he fulfilled his Constitutional duty, but the reality is that he and the GA need to start all over. It’s not even a reference point for negotiations.
Comment by Wordslinger Monday, Feb 23, 15 @ 10:28 am
@UIC, although I believe you are correct when speaking of benefits that have already been accumulated the discussion is about benefits going from this contract forward. It’s not going to be pretty watching this knife fight.
Comment by Stones Monday, Feb 23, 15 @ 10:29 am
Let’s be fair here. About 75% of Rauner’s budget changes consist of legitimate, if controversial, proposals. To outline such a severe case for spending cuts provides at least a start for serious decision-making.
The first lesson provided is that even with these drastic cuts the budget won’t balance, and the whole meme of “waste, fraud and abuse” being the bulk of our problem, has been proven stupidly wrong.
The second lesson is that even if all these cuts are made, we still would need more tax revenue to balance the budget. The alternative is to blow up and shut down the whole operation — which helps no one.
The last roughly 25% are indeed magic beans, or things already proven to have failed fiscally in Illinois. How would Team Rauner actually fill in that last hole?
The ball will be entirely out of their hands, unless they come up with some more legitimate propositions.
Comment by walker Monday, Feb 23, 15 @ 10:30 am
“Can we install you as Governor and Speaker, respectively?” If you go back and read the pre-election posts, you’ll find there was a concerted effort (at least on my part) to make that happen. Alas, it was in vain.
Comment by Skeptic Monday, Feb 23, 15 @ 10:33 am
Rauner, get out your checkbook…you wanted and bought the job…. now pay up.We need your money now….all of it
Comment by jazzy Monday, Feb 23, 15 @ 10:33 am
- econ prof -,
I get it, I ubderstand the thought process, heck, I’m the first to say elections have consequences…
but, do you think the budget, as being proposed, sold, and defended, do you think 60 votes in the House, and 30 votes in the Senate can be found, and further, how much damage will be done with all these “bad green lights” lit next to GOP members’ names?
It’s one thing to be the instrument of “change”, it’s another to be the instrument to destroy the party you claim to be a member of by hanging this on them too.
Rauner can’t do any of this alone
60 & 30 make it impossible for Rauner to go this alone.
- Concerned -, I honestly thank you for the kind words you added me too, but I know I learn more from other here, starting with Rich. That’s what’s so great here. It’s not your dad’s newspaper blog.
Comment by Oswego Willy Monday, Feb 23, 15 @ 10:34 am
Econ prof, what on earth are you talking about. Quinn said that revenue was needed to balance to budget. Rauner said that much revenue wasn’t needed, and he could balance the budget. So, he gets the big chair, and balances the budget by taking a 2.2 billion dollar pension holiday. Then on top of that, criticizes Quinn for leaving him a massive backlog of bills in group health, (which is fair), but then does the exact same thing that Quinn and the GA did to create the backlog in the first place by assuming massive savings in the budget with little regard for whether those changes can even be negotiated or made. You put those two things back in the budget right there, and you are look at an income tax rate of 4.75 percent to fund government. And that is before any of the other cuts that have folks up in arms.
Comment by Juice Monday, Feb 23, 15 @ 10:34 am
So much of this budget simply uses other peoples money attempting to bring his budget in the black:
Cutting aid to cities makes them choose to raise taxes.
Cutting medicaid forces hospitals to ask insurers to pay more.
I’m really sort of surprised that the TRS pension costs were not shifted to the local districts, because not doing so runs counter to the established strategy which is ” taxes will be raised, but not by us”
Comment by Madison Monday, Feb 23, 15 @ 10:35 am
Forwhatitsworth—-Didn’t think so which pretty well sums up where you stand.
Comment by anon Monday, Feb 23, 15 @ 10:41 am
Dear General Assembly,
Please promise that you will not do another “lump sum” budget. I am begging you.
Comment by Soccermom Monday, Feb 23, 15 @ 10:42 am
Most people on this comment page seem to be in favor of higher taxes and more spending. Let the Democrats implement a constitutional amendment for a progressive income tax and then watch the number of people and business flee the state. Cuts, as painful as they are, are necessary and the state will survive.
Comment by Apocalypse Now Monday, Feb 23, 15 @ 10:43 am
Econ prof, you’re a laugh riot. Let us know when the adult conversation starts.
Comment by Wordslinger Monday, Feb 23, 15 @ 10:44 am
== Rauner deserves the benefit of the doubt. ==
Should we pretend his pension scheme is actually reliable source of $2.2B in funding for FY 16? No one so far on this blog has tried to defend the $2.2B. There’s a reason.
Comment by anon Monday, Feb 23, 15 @ 10:46 am
@Just Me: As @UIC Guy said, some of the “various little programs” (say, dental care) are Medicaid services. If the Medicaid program eliminates services, very poor people don’t get them. Others of the “little programs” aren’t medical, and are not covered by Medicaid. The Homeless Youth program, for example, provides housing, food, clothing, social services for young people who are also get Medicaid. And some programs — autism, substance abuse — may be at least partly “medical,” but are covered by few, if any, private health insurance policies.
Comment by wendy Monday, Feb 23, 15 @ 10:48 am
60 and 30 are the only numbers that matter! (OW said it first and it is still true)
Comment by Avery's Binky Monday, Feb 23, 15 @ 10:51 am
The legislature is not about to vote on another pension law until the ISC rules. Those are not easy votes for most of the members and they don’t want another vote until they know the lay of the land. Rauner knows this, and I think it is more about the upcoming contract negotiations then a new legislative solution.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 10:51 am
- Soccermom -,
If Cullerton and MJM really wanted Rauner to “own” all this, and actually help and save ILGOP GA members, that is probably the way to go.
However, I see both Cullerton and MJM as more of a watchdog against Rauner, different than trying to “assist” Rauner.
The blowback against the H&SDems, giving Rauner autonomy, instead of being the check or balance, would be as loud, if not louder, that those screaming at Rauner for him accepting that budget and running the state from it as such.
But you hit a fear I know I have, I just hope we all learned a lesson last time.
Comment by Oswego Willy Monday, Feb 23, 15 @ 10:51 am
@apocalypse:
There are many, many reasons why people go into business, stay in business, go out of business, or move their business.
Taxes may or may not be one of those reasons.
But to just say taxes are the only reason people will flee is deceptive at best.
Comment by Jack Stephens Monday, Feb 23, 15 @ 10:51 am
Apocalypse, you are right, because the majority of posters on this board are tax and spend dems.
Comment by anon Monday, Feb 23, 15 @ 10:53 am
Apocalypse Now….and I guess you think they’ll flee to our surrounding States that all have progressive tax rates? Whatever.
Comment by sideline watcher Monday, Feb 23, 15 @ 10:58 am
For the past 18 months, Rauner was full of (vague) ideas and ran on a platform of being able to do more with less.
Now that I’ve heard the “less”…where’s the “more”?
Comment by Jocko Monday, Feb 23, 15 @ 10:58 am
@anon - Monday, Feb 23, 15 @ 10:46 am:
== Rauner deserves the benefit of the doubt. ==
I don’t think Gov. Rauner pension proposal budget savings deserves the benefit of the doubt because to propose anything until the ISC rules seems silly to me. It is on a fast tract for a reason. Let the Supremes rule and then go from there. I suspect, like most, that the pension law will be confirmed unconstitutional — and probably very little direction to the GA and Gov. as how to proceed. I suspect about the only options left will be to re-amortize the debt and make the payments as required by law. Future union contracts will likely be lean and perhaps some pension issues might be a part of some grand contract agreements. I know, pensions are individual rights and those can not be negotiated away….we shall see how all of those issue play out. I also, believe that all of a sudden every elected official will finally start to discover (and tout) the huge overhaul that tier II represented.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 11:00 am
=== the majority of posters on this board are tax and spend dems. ===
Suppose that statement is true. Does that automatically invalidate the recognition that the Rauner budget is based upon fantasy, that the pension savings is smoke and mirrors?? No one, including those who say the rest of us are Dems, has addressed the purported $2.2B. Why not?
Comment by anon Monday, Feb 23, 15 @ 11:00 am
And the only people hurt by this budget are the poor and middle class. Rauner’s buddies get to keep it all.
Comment by RetiredStateEmployee Monday, Feb 23, 15 @ 11:00 am
===to propose anything until the ISC rules seems silly to me===
Meh. Proposing is fine. And it’s expected, no matter how weird the proposal.
Immediately booking the savings, however, is a real problem.
Comment by Rich Miller Monday, Feb 23, 15 @ 11:04 am
Apocolypse and anon: Did you miss the part where all of Rauner’s cuts still don’t balance the budget? That’s what most of the comments have been about.
Even if we all agree with all of Rauner’s proposed cuts, we still have a massive fiscal problem.
Putting labels on people doesn’t solve the arithmetic problem.
Comment by walker Monday, Feb 23, 15 @ 11:04 am
Rauner has been digging himself a hole faster than a deranged badger in horse manure. The crap is flying sky high and no one is enjoying the smell either.
Consequently, he has lost the independent edge that won him the election with his unserious nonsense. Voters thinking we couldn’t get a more incompetent governor than Quinn are discovering that Rauner’s need to fight anti-union windmills immediately after the inauguration makes him look downright crazy. Rauner’s behavior during his first month in office has been very disappointing.
So he is now in a hole politically. Polls already confirm this. He is down by ten percent. What would have happened if he proposed increased tax revenue now? If he was worried that his voter base was evaporating, or thought he could build a strong majority with his union bashing - he should be even more worried now.
He hasn’t even tried to deal with reality. What is going to happen when his voter base stops dreaming about easy cut backs and waste savings? The last thing Rauner needed to do is show everyone that he didn’t know how to build coalitions and bipartisanship. His political miscalculation cost him support in the GA, and among his own fellow GOP/Whig party. GOP leadership has been quiet as he dug himself deeper into an unwinnable situation.
His budget is a joke. A new governor shouldn’t beclown himself like this. As the sole GOP leader elected statewide, after JBT’s passing, he needed to prove himself. He hasn’t.
Comment by VanillaMan Monday, Feb 23, 15 @ 11:07 am
-Apocalypse-
Most who comment here are fairly well read individuals with a deep interest in our state. They lean left, but are informed and concerned. I, too, am against the progressive tax. But I read these comments to find ways to keep people here in Illinois and make our state great again. I hear about people who are going to leave for this reason or that, but too this day I know of only one of my neighbors who has had the guts to pick up and move out of state. Too many people just take whatever the State gives us and do not take the time to get informed on the issues and offer constructive solutions. At least I get informed by these commenters.
Comment by Avery's Binky Monday, Feb 23, 15 @ 11:07 am
Thanks VanillaMan, I thought I had a clever nickname. Now I want to change it to “Deranged Badger in Horse Manure” lol
Comment by Avery's Binky Monday, Feb 23, 15 @ 11:11 am
==- Apocalypse Now - Monday, Feb 23, 15 @ 10:43 am:==
According to IPI people flee b/c of the “death tax,” not income taxes, workers comp, etc. https://twitter.com/illinoispolicy/status/569880150789062657
Comment by Precinct Captain Monday, Feb 23, 15 @ 11:15 am
@Apocalypse now, I think it’s time for a new talking point regarding the folks who like to constantly sound the warning about progressive tax rates leading to people leaving the state.
In Iowa anyone making over $68,175 is paying a state income tax of 8.98%. In Missouri anyone making over $9000 is paying 6%. In Wisconsin anyone making over $21,820 is paying 6.27% and those making over $240,190 is paying 7.65%. In Kentucky anyone making over $8000 is paying 5.80% and those making over $75,000 are paying 6%.
I think you would agree that those states finances are in better shape than they are here.
Given what our neighboring states are doing it’s pretty clear that Illinois biggest budget problem is revenue, not spending. certainly there are some efficiencies here and there that can be introduced that will save some money but most of the low hanging fruit has been picked and our budget is way out of balance. We know the way out of this mess, which is a progressive tax but will our politicians find the political will to do it.
Comment by The Dude Abides Monday, Feb 23, 15 @ 11:16 am
It should be noted that Rauner’s proposal does include some new revenue, which is the claw back of half of local governments share of income tax revenues.
That’s no slam dunk. Every member of the GA is going to get ear holed on that by the folks back home.
Comment by Wordslinger Monday, Feb 23, 15 @ 11:18 am
Bruce is being surprisingly timid — why didn’t he just count on “revenue” from a winning lottery ticket and balance the budget for THIS fiscal year?
– MrJM
Comment by MrJM Monday, Feb 23, 15 @ 11:30 am
For those postings declaring the state income tax is higher in some adjoining states, can you also provide comparisons with:
Sales tax
gas prices
real estate taxes
Thanks!
Comment by anon Monday, Feb 23, 15 @ 11:31 am
Rauner’s budget is not about balancing the budget. His game is about playing the power card to find out who is with him. Our gov does not care who he hurts to get what he wants.
Comment by Mama Monday, Feb 23, 15 @ 11:33 am
Rich — Let’s not forget how well the “book savings in the current year” thing worked for Rod.
Comment by Soccermom Monday, Feb 23, 15 @ 11:34 am
@anon, there are some good search engines available on the internet. I usually use google. Feel free to do a little research, that’s what I do.
Comment by The Dude Abides Monday, Feb 23, 15 @ 11:36 am
“Let’s be fair here. About 75% of Rauner’s budget changes consist of legitimate, if controversial, proposals.”
And waaaaay more than 75% of the punch bowl consists of legitimate fruit drink — the only problem is that one, single “irregularity” floating in it.
– MrJM
Comment by MrJM Monday, Feb 23, 15 @ 11:42 am
- anon - Monday, Feb 23, 15 @ 11:31 am:
1. Gas prices (state/local taxes) are suppose to pay for much needed road/ bridge repairs. 2. Real estate taxes go to the schools to pay expenses. Running PK - 12 schools is not cheap.
Comment by Mama Monday, Feb 23, 15 @ 11:42 am
the above should say: “are” not Sorry
Comment by Mama Monday, Feb 23, 15 @ 11:44 am
You mean a budget crafted out of IPI talking points won’t actually work?
Comment by Toffee Monday, Feb 23, 15 @ 11:52 am
@Anon-here, did the heavy lifting for you…http://www.investopedia.com/articles/personal-finance/110614/overall-tax-burden-state.asp
Comment by Will Monday, Feb 23, 15 @ 11:57 am
What about selling some state assets to help pay down debt, i.e., that white elephant called the State of Illinois Center in Chicago, Wildlife Prairie Park in Peoria (which IDNR didn’t want to begin with) and that notorious third airport at Peotone.
Comment by SaxMan Monday, Feb 23, 15 @ 12:04 pm
The Governor is saying, “My predecessors proposed and approved unrealistic budgets and that is despicable! I am also proposing an unrealistic budget but that is O.K. because it’s me”
Some things will never change.
Comment by One of the 35 Monday, Feb 23, 15 @ 12:04 pm
@Rich Miller - Monday, Feb 23, 15 @ 11:04 am:
=Meh. Proposing is fine. And it’s expected, no matter how weird the proposal.
Immediately booking the savings, however, is a real problem. =
It may be fine (not sure what that means) but it is silly. Nothing happens on the pension front legislatively until the ISC rules. Yes, booking the savings goes from silly to a “real problem” and that is not about to happen.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 12:07 pm
But when the whole farce of a budget crashes and burns, he can always blame the greedy public employees for not magically agreeing to massive cuts in pensions, etc. So it’s a win win for Bruce and his agenda.
Comment by anon Monday, Feb 23, 15 @ 12:07 pm
The old saying is “the gov. proposes, and the legislature disposes” and that will never be more true then this year. The legislature is not about to give Rauner a 2B pass on the budget with his silly pension proposal savings. The legislature will force him to fill that gap with cuts and or revenue. The Dems want Rauner to own this thing, but at the same time not be seen as unwilling to work with him. MJM is the “velvet Hammer” and Rauner, if he does not understand that, will find out.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 12:11 pm
Anon, the state doesn’t control property taxes, local elected officials, your neighbors, do. And as virtually everyone knows, most of the property tax bill goes to schools.
When you talk to school people, they claim property taxes are at the level they are because the state habitually underfunds its obligations to local education agencies.
This isn’t just an expense problem, it is a revenue problem too.
I have lived here in Illinois since 1979. I came here from another state for great career opportunities. I have lived in five suburbs, some close to Chicago, some closer to Rockford.
This is a great State. We need to fix it. An earlier poster said that giving blog posters labels does not help the math. So anon, I ain’t leaving. If you and others want to keep bashing the state, go ahead and enjoy your right to expression. But every once in a while, come up with an idea instead of just recycled complaints.
Comment by Mongo Monday, Feb 23, 15 @ 12:17 pm
== Rauner is banking that AFSCME will bargain everyone into tier 2. ==
== the discussion is about benefits going from this contract forward ==
Doesn’t matter what pension benefits you are talking about. The pension is an individual, not group, right and the unions can’t waive each person’s INDIVIDUAL RIGHT to their pension … and so far the IL SC has said you CAN’T CHANGE the terms of the pension contract except to better it for the employee / retiree and that INCLUDES YET TO BE EARNED benefits. You may not like it or agree with it, but that is the current state of the law in Illinois.
Comment by RNUG Monday, Feb 23, 15 @ 12:20 pm
Thank you RNUG
Comment by Griz Monday, Feb 23, 15 @ 12:32 pm
RNUG I know that , you know that but according to what bruce Rauner said in his budget speech he doesn’t know that..I’m sure Donna arduin doesn’t know that either.
Comment by foster brooks Monday, Feb 23, 15 @ 12:37 pm
As far as the $2.2B pension savings hole in the FY16 budget, this is coming down to who gets assigned the blame for the coming tax increase … Rauner, the General Assembly or the IL SC?
IMO, the latest iteration of the blame game started two years ago as a ploy by the GA to assign blame to the IL SC for the needed increase.
In some ways it is partially the fault of the IL SC’s decisions in IFT v Lindberg (1975) and subsequent cases. While it affirmed the Pension Clause, it also upheld the Separation of Powers between the executive / legislative and judicial branches, it allowed the GA to avoid properly funding the pensions systems. In their defense, at least in the IFT decision, I don’t think the court envisioned the GA ignoring the pension problem to the extent that happened.
So I think the Executive and Legislative branches bear the larger portion of the blame for 40 years of kicking the pension funding down the road.
It’s going to be interesting to see the language the IL SC uses in striking down SB-1. Given several sentences in Kanerva (which were the judicial equivalent of a couple of language banned here), I’m expecting the court to deliver some more slap-downs to the legislature … and that language will be there because the court isn’t going to take the blame for 40 years of misspending by the other two branches.
So I expect we will eventually see the GA pass a revenue increase … and it will be interesting to see how it gets spun in an attempt to avoid the anger from the taxpayers. After the demonizing of state employees / retirees the past several years by various (mostly right wing) groups, that spin is going to look like a pretzel that’s been run through a wringer.
Comment by RNUG Monday, Feb 23, 15 @ 12:41 pm
Despite attempts to instill high drama, this really isn’t complex. The Governor proposed a budget with real cuts. The legislature is now on. They’ll offer something different, something less painful … with more spending likely. The Governor will then veto it or AV it. And then it’ll get real interesting.
Comment by Georg Sande Monday, Feb 23, 15 @ 12:44 pm
For my own curiosity, I found the overall tax burden by state for Illinois and neighboring states. it shakes out like this, lowest to highest:
Missouri 11.1%
Kentucky 12.5%
Illinois 12.9% @ 5%, 11.7% at 3.75
Wisconsin 13.1%
Indiana 13.3% (average county income tax @2%)
Iowa 15.2%
I was surprised. Illinois is actually better than all our neighbors except for Missouri. Missouri also has a personal property tax, that was not included in these numbers.
Comment by Will Monday, Feb 23, 15 @ 12:45 pm
===They’ll offer something different, something less painful … with more spending likely.===
Nope.
The Dems will want a first “up or down” vote on Rauner’s budget. The only real way to avoid that is a compromise, that has GOP sponsors, and voted in a structured roll call, making sure the ILGOP, the governor and the GA members, wear the jacket.
Proposing something is a governor thing. Conpromise bills is a legislative thing. Given the parties involved, those are the choices.
No way these veto-proof majorities vote on a raised revenue bill without GOP votes and assurances from the governor.
There is zero incentive for the Dems to do anything but what the legislative process requires, within the politics and governing in the Caucus Principles.
Comment by Oswego Willy Monday, Feb 23, 15 @ 12:54 pm
And at 5% income tax Will, we would be second highest, correct?
Comment by anon Monday, Feb 23, 15 @ 12:55 pm
Vanilla - Thanks for a genuine LOL. “Beclown” is the perfect word for Rauner’so behavior.
Comment by Joe Biden Was Here Monday, Feb 23, 15 @ 12:57 pm
@
RNUG - Monday, Feb 23, 15 @ 12:20 pm:
=Doesn’t matter what pension benefits you are talking about. The pension is an individual, not group, right and the unions can’t waive each person’s INDIVIDUAL RIGHT to their pension … and so far the IL SC has said you CAN’T CHANGE the terms of the pension contract except to better it for the employee / retiree and that INCLUDES YET TO BE EARNED benefits. You may not like it or agree with it, but that is the current state of the law in Illinois.=
If the house had passed the union negotiated pension bill that passed the senate, and Quinn signed it, then at that moment the union would have negotiated away constitutionally protected benefits. If that bill had passed, I am not sure what the state of the law would be now. RNUG I understand what you are saying, but my point is we saw an example (not hypothetical) where a pension bill passed one chamber that the union negotiated. We also had a pension law passed that was law until the courts overturned it. I think you are correct on the law, but what I am saying is what I think may happen. Current employees may wish to give up some pension benefits in exchange for current job benefits. Now if he union is smart, they will use the ISC rulings and say pensions are now off the table period because they are protected and refuse to allow them as a part of the negotiations. I am saying what I believe Rauner is trying to do. He is going to play hard ball with this contract.
RNUG, no disagreement from me on what you have correctly described as the state of the pension law. I think Rauner is convinced he can negotiate some changes in pensions in exchange for something else of value.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 12:58 pm
At 5% we were right in the middle. The list is at the old 5% rate. At 3.75 we are lower than everyone except Missouri. But as I wrote, that figure doesn’t include Mo’s personal property tax, just the real estate taxes.
Comment by Will Monday, Feb 23, 15 @ 12:58 pm
jazzy @ 10:33 and RetiredStateEmployee @ 11
Rauner has no aspirations to be a public servant. He doesn’t understand the meaning of either the word public OR servant. He is the face of the Wizards of Oz, using him to pull the strings behind the big curtain to make sure no matter what happens here in the budget, they do NOT pay one more cent (from their multi-millions). Those who can pay will not. Those who can’t will have to. Doesn’t that make us all feel good?
Comment by AnonymousOne Monday, Feb 23, 15 @ 1:00 pm
Got ya, I wasn’t looking at your info correctly. And what figure did you use for sales tax in IL?
Comment by anon Monday, Feb 23, 15 @ 1:01 pm
The gist of it is, even if we raised the state income tax to say, 4.5%, we would still be lower than all our neighbors. The argument that raising the income tax would drive people out of state to lower tax states might be somewhat true, but they are going to have to keep driving that u-haul until they get past all our neighbors.
Comment by Will Monday, Feb 23, 15 @ 1:03 pm
@- RNUG - Monday, Feb 23, 15 @ 12:41 pm:
=and that language will be there because the court isn’t going to take the blame for 40 years of misspending by the other two branches.=
Just to follow up on your point about what the ISC will likely do. I agree totally, and I also think they will not want to take the blame for not having ordered the legislature to make their required payments. The ISC has given plenty of leeway to the other branches of government by not ordering payments, but they will not allow the state to use that lack of payments to diminish the pensions or the rule of law.
Comment by facts are stubborn things Monday, Feb 23, 15 @ 1:03 pm
6.25% None of the figures include local sales taxes. Just the state tax.
Comment by Will Monday, Feb 23, 15 @ 1:04 pm
Mr/Ms walker
“Let’s be fair here. About 75% of Rauner’s budget changes consist of legitimate, if controversial, proposals.”
Let’s be really fair. 2/3rds of the cuts are mostly imaginary — $2.2 billion pensions, $1.5 billion Medicaid and $700 million employee health care…all require changes in law and like victories in the state courts.
The legislature has battled to make more modest changes in each area.
Comment by Anonin' Monday, Feb 23, 15 @ 1:10 pm
What Mongo said in the last paragraph.
Though the revenue would be a relative drop in the bucket in the context of our fiscal trouble, we can look at Colorado and see the success of marijuana legalization. That state is pulling in tax revenue and seeing economic growth. Legalization can benefit society by not incarcerating users and freeing law enforcement and courts to deal with more serious matters. We can kill several birds with one stoner–I mean stone.
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/12/colorados-legal-weed-market-700-million-in-sales-last-year-1-billion-by-2016/?tid=sm_fb
Unleash.The.Industry.
Comment by Grandson of Man Monday, Feb 23, 15 @ 1:25 pm
On a side not madigans millionare tax is doing it the hard way, since it meeds a constitutional ammendment. How about just remove all the tax breaks, deductions and credits for millionares. You get the desired reveneue, keep the flat tax, and can do it all legislatively just by removing all the current giveaways
Comment by Ghost Monday, Feb 23, 15 @ 1:25 pm
==What about selling some state assets to help pay down debt, . . . Wildlife Prairie Park in Peoria==
Saxman, the state gave up ownership of WPP to a private foundation in 2012.
Comment by G'Kar Monday, Feb 23, 15 @ 1:31 pm
Pass the millionaire tax amendment in the GA.
Then to fill the gap until the amendment is approved, pass a temporary income tax increase that expires automatically when the amendment is approved by voters.
Quite an incentive to most to approve the amendment.
Comment by east central Monday, Feb 23, 15 @ 1:41 pm
I think this budget is intended to send the following message to IL residents: “Be careful what you wish for, you might get it, and this is what it will cost you.” I suspect its also primarily meant to provide eventual justification for a tax increase — “hey, at least we tried to cut spending first.”
Comment by Secret Square Monday, Feb 23, 15 @ 1:46 pm
Illinois has historically had a lower state income tax than our neighbors but we make up for it by having the second highest property tax (behind only NJ). The key metric is total tax burden (state and local). Tax freedom day wasApril 23rd last year trailing only CT, NY, NJ and Wyoming. On the corporate side we are higher than only Delaware, Iowa and New Hampshire. Don’t listen to the tax and spend liberals who say we don’t pay enough tax.
Comment by Iron Duke Monday, Feb 23, 15 @ 1:59 pm
==Rauner has been digging himself a hole faster than a deranged badger in horse manure. The crap is flying sky high and no one is enjoying the smell either.==
Bravo, VMan, Bravo!
If this were certain corners of the internet, I’d have to say you won the internet today.
Comment by jerry 101 Monday, Feb 23, 15 @ 2:05 pm
Iron Duke-
Illinois had the sixth highest property tax rate in the country in 2014.
Comment by Will Monday, Feb 23, 15 @ 2:06 pm
Maybe we shouldn’t be comparing ourselves to Wisconsin or Iowa or Indiana. Since we are the 3rd most populous state, maybe we need to be comparing ourselves to #1 and #2. Don’t we have issues more comparable to those states than Indiana?
Comment by AnonymousOne Monday, Feb 23, 15 @ 2:10 pm
===Since we are the 3rd most populous state, maybe we need to be comparing ourselves to #1 and #2.===
We are the 5th largest state in America. Hit the search key.
Further, Illinois has the 3rd largest city in America and is an agricultural leader.
Comment by Oswego Willy Monday, Feb 23, 15 @ 2:13 pm
Good and important commentary from VanillaMan. The gov could have won over some doubters by approaching the budget problems with some serious specifics and a message that this will be a long process that needs to based on solid facts rather than camopaign-speak that is easily dismissed. Instead, he has managed to lose supporters after only a short time. The state needs wisdom and this behiavior betrays lack of it.
Comment by Mister M Monday, Feb 23, 15 @ 2:16 pm
California, Texas, Florida, New York, Illinois, Pennsylvania, Ohio, Georgia, NC and Michigan are the biggest states in 2014. We have 4 percent of the countries population vs CA at 12%, TX at 8.5% and Fl and NY at 6%.
Of that group NY, CA, PA have a higher state and local tax burden LY. The others are all lower.
I think the corporate tax rate is a bigger problem. You might not leave over a tax increase but your employer might.
Comment by Iron Duke Monday, Feb 23, 15 @ 2:21 pm
Iron Duke-
After looking at all these comparative rates it’s apparent to me that unless your state has a revenue stream that brings money into the state (oil, tourism, etc, lookin at you Texas and Florida) everyone pays about the same overall. It’s just a matter of whether your state is going to squeeze you at work, at home or at the store.
Comment by Will Monday, Feb 23, 15 @ 2:26 pm
Every 20 years the voters of this state are posed the question of holding a new constitutional convention and twice they have rejection the referendum.
If the corporations were so dead set against the current constitutional ratio for personal/corporate income tax rate limits, I would think they would have bombarded the unsuspecting electorate with a clarion call for a new constitutional convention.
Maybe I was paying too much attention to the Super Bowl bound Bears both times. Maybe I missed it.
But I think the main reason — especially four years ago — that no such effort was unleashed is because the business community knows that a sleeping dog needs to get his 18 hours a day.
Comment by Wallinger Dickus Monday, Feb 23, 15 @ 2:31 pm
“Since we are the 3rd most populous state, maybe we need to be comparing ourselves to #1 and #2″
I think we need to be comparing ourselves to those states most similar in population, environment and economy. CA, TX, and FL are way more populous and too dissimilar to us in climate and economy. NY is significantly bigger than us right now, but that could change in the future if they continue to stagnate/drop. GA and NC are gaining on us in population, but again, dissimilar economy and climate. MI used to be comparable to us in population but it’s been dropping for the last decade or so. That leaves OH and PA as the states most “like us” in those aspects.
Comment by Secret Square Monday, Feb 23, 15 @ 2:43 pm
New York is higher than us - #1 in nation as you would expect
They are running ads trying to attract businesses with. Ariois tax breaks etc.
We are 13 overall lower than WI and MN and PA but higher than IA, MO, KY, IN, MI and OH
The scary thing is it is still not enough to pay the bills these guys have racked up. I bet if we had the highest tax burden of any state it would not be enough to clean up this mess.
The best argument for term limits is the Illinois budget mess
Comment by Iron Duke Monday, Feb 23, 15 @ 2:44 pm
Our General Assembly, through its non-action, has created the environment which resulted in Rauner winning the election. I say we invite Governor Dayton of Minnesota to address the GA on what they could achieve if they weren’t so paralyzed by the fear of taking a vote that might result in not being elected (but which would fix state finances).
Comment by illinoised Monday, Feb 23, 15 @ 3:04 pm
===The best argument for term limits is the Illinois budget mess===
We have Term Limits, they’re called elections.
You’re welcome.
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:08 pm
Meh.
From the Tax Foundation:
“Illinois’s state and local income tax collections per person were $874 in 2011 which ranked 25th lowest nationally.”
“Illinois ranks 31st in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Wisconsin, 43rd, Iowa, 40th, Missouri, 16th, Kentucky, 27th, and Indiana, 10th.”
Comment by Juvenal Monday, Feb 23, 15 @ 3:11 pm
=== I say we invite Governor Dayton of Minnesota to address the GA…===
How about we have Governor Rauner work with the GA and the 4 Tops and the Governor solve the problem.
Geez, Louise, Minnesota ain’t Illinois. Our problems, advantages, disadvantages, and strengths are different, let alone the politics, and political party make up are different.
This isn’t Sophmore year dorm room.
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:14 pm
Term limits are extremely popular on both sides of the aisle
The insiders hate the idea for obvious reasons
Having the State run by the same guy for 40 years says it all
Comment by Iron Duke Monday, Feb 23, 15 @ 3:16 pm
@iron:
Taxes are one of many reasons that influence business decisions.
Repetition of talking points don’t make them any more true or relevant.
Comment by Jack Stephens Monday, Feb 23, 15 @ 3:20 pm
===Having the State run by the same guy for 40 years says it all===
In 40 years we have had Governors…
Walker, Thompson, Edgar, Ryan, Blagojevich, Quinn and now Rauner.
Same Guy?
Dope.
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:21 pm
You think the Governor runs the State Willy?
Tell that to Pat Quinn. The most powerful Man in Springfield is Madigan. Everyone knows that. Is your real name Willy Madigan?
Comment by Iron Duke Monday, Feb 23, 15 @ 3:26 pm
In comparison, New York’s public employee pension system is also fully funded.
Comment by A Jack Monday, Feb 23, 15 @ 3:26 pm
===The most powerful Man in Springfield is Madigan. Everyone knows that.===
Another “victim” heard from.
Madigan is Speaker. He controls 1 chamber of 1/3 of State Government. Being a “victim” here isn’t very becoming.
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:28 pm
- Iron Duke -,
They have extra “Fire Madigan” tee shirts if that makes you feel better.
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:30 pm
He controls the Dem money, Willy - that’s all he needs to control. Give me a break
Comment by Kodachrome Monday, Feb 23, 15 @ 3:31 pm
Madigan controls 1/2 of 1/3 of State Government.
- Joe Isuzu
I suppose being in charge of the Democratic Party means nothing. I am not a victim but you are exposing your self as a defender of a very unpopular politician.
Comment by Iron Duke Monday, Feb 23, 15 @ 3:32 pm
===He controls the Dem money, Willy - that’s all he needs to control.===
What does that mean?
Cullerton controls his Caucus’ money…
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:32 pm
What about selling some state assets to help pay down debt, i.e., that white elephant called the State of Illinois Center in Chicago, Wildlife Prairie Park in Peoria (which IDNR didn’t want to begin with) and that notorious third airport at Peotone.
If we’re gonna have a fire sale, why not start with stuff that is really valuable. JRTC might fetch a pretty penny, but it would have to be replaced with something. The other 2 properties you mention wouldn’t fill 1% of the budget hole. It would take something big, like a $15 billion lease of the Tollway system to a private investor, to make a big difference.
Comment by Six Degrees of Separation Monday, Feb 23, 15 @ 3:34 pm
If we go back to just November 20, 2014 the Chicago Tribune stated Governor Rauner “believed the law (SB 1), which curbs annual cost-of-living increases for current retirees and delays the retirement age for many current public workers, will end up being found unconstitutional by the state’s highest court. So it’s bizarre he is trying to bank these savings which likely will never exist. (See http://www.chicagotribune.com/news/local/politics/ct-illinois-legislature-rauner-met-1121-20141120-story.html#page=1 )
Comment by Rod Monday, Feb 23, 15 @ 3:34 pm
===I suppose being in charge of the Democratic Party means nothing.===
Let’s see. The all powerful MJM, personally, lost 2 of 3 contested statewide races and lost 2 congressional seats too.
Personally.
Pretty embarrassing how you reall don’t know that the Speaker is a crutch, an excuse, not a way to win races against him.
===I am not a victim===
Claiming Madigan runs “everything”, yeah, you’re playibg the victim.
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:36 pm
It means he runs the party in the state, by any definition you want to use. Your slip is showing . . . . .
Comment by Kodachrome Monday, Feb 23, 15 @ 3:37 pm
Good column.
Comment by logic not emotion Monday, Feb 23, 15 @ 3:38 pm
====It means he runs the party in the state, by any definition you want to use.===
Then he must’ve done a bad job losing both the governor’s race and treasurer’s race and 2 congressional seats.
It takes more energy to blame someone than to do what you need to do.
===Your slip is showing . . . . .===
You may need to clarify…lol
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:40 pm
It has been an odd start for Rauner. Was this really the game plan, two years in the making?
Or was there no game plan at all?
The anti-union stuff was straight out of Scott Walker, who also didn’t didn’t campaign on those issues beforer the general election.
The difference is, Walker had the reactionary Fitzgerald boys out of Chicago running the legislature, and their old man, the former Chicacgo cop, running the state troopers and knocking on doors at midnight to round up opposition legislators.
Moscow on the Isthmus.
How did Rauner ever figure that would play in Illinois, when even groups like the chamber, the manufacturers and fhe GOP caucuses weren’t on board?
Then the budget proposal.
Woof. Like the dog ate my homework.
After two years of big talk, how do you even put that fiction out there?
For what purpose? It’s not even a starting point.
Comment by Wordslinger Monday, Feb 23, 15 @ 3:41 pm
== JRTC might fetch a pretty penny ==
No one would want that white elephant. At the time it was built, it was the kind of boondoggle that only a government entity would erect.
Comment by RNUG Monday, Feb 23, 15 @ 3:42 pm
- Rod -
In the same article, Rauner also said “My preference is probably to wait until the Supreme Court rules …”
Not exactly consistent in his words and actions.
Comment by RNUG Monday, Feb 23, 15 @ 3:46 pm
I think Mike Madigan has done a great job these past 40 years said no one.
Comment by Iron Duke Monday, Feb 23, 15 @ 3:48 pm
- Iron Duke -
MJM is solely responsible? Yeah, um ok.
Who else is responsible, “No one”? LOL
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:50 pm
He held onto what he needed to hold onto - 60 and 30. The State economy pushed enough people to get rid of one party rule . . . . which has only existed for about one month to date. Most of the peeps on this site are sophisticated enough to know how the machine works in this state, especially Chicago, and the way money controls it, I don’t see how anyone would be opposed to term limits to counter machine politics
Comment by Kodachrome Monday, Feb 23, 15 @ 3:50 pm
== Or was there no game plan at all? ==
- word - I’m beginning to think the game plan was something like: okay, if we win, we bring in some people from other states where the far right wing won, just turn them lose to do the same stuff here, and everything will be fine as long as I’m gone to a national office. If it falls apart after I’m gone, it’s all Evelyn’s fault for not staying the course.
Comment by RNUG Monday, Feb 23, 15 @ 3:52 pm
A reminder, the State of Illinois doesn’t get any of the real estate tax money. It all stays in the taxing districts listed on you property tax bill.
Sure one can compare Illinois’ various property tax rates to those of areas in other states. But that isn’t State government money we are comparing.
Comment by Joe M Monday, Feb 23, 15 @ 3:52 pm
RNUG -
Lol! I think we should have SDOS step into one of the JRTC restrooms - that would be enough to turn off ANY potential buyers!
Comment by Kodachrome Monday, Feb 23, 15 @ 3:52 pm
@Stones and anyone else who thinks AFSCME can bargain pension benefits.
It seems lately every time I read this blog in regards to pension reform, someone suggests AFSCME or BVR will bargain for pension reform. It will not and cannot happen, not for current benefits, not for future benefits, not for any pension benefit for any state employee, and here’s why.
Most importantly, Pension benefits are part of the Illinois Compiled Statutes. Any changes must be passed by the GA, and signed into law by the governor. They cannot be bargained.
Secondly not all state employees are in a union. AFSCME cannot bargain away their rights.
Third, AFSCME is not the only union that has a contract with the state. There are teacher’s unions, Nurses, Teamsters, SEIU, Police and others. I read an article recently that said there are 28 unions that have contracts with the state. AFSCME certainly cannot bargain away their constitutionally protected pension benefits.
Comment by KurtInSpringfield Monday, Feb 23, 15 @ 3:53 pm
“JRTC might fetch a pretty penny” He-Who-Must-Not-Be-Named suggested that too and was laughed out of the room.
Comment by Skeptic Monday, Feb 23, 15 @ 3:55 pm
===I’m beginning to think the game plan was something like: okay, if we win, we bring in some people from other states where the far right wing won, just turn them lose to do the same stuff here, and everything will be fine as long as I’m gone to a national office. If it falls apart after I’m gone, it’s all Evelyn’s fault for not staying the course.===
This might nit be TOO far off, given the bi-polar governing and campaign personalities we keep seeing, and Rauner’s continual campaign mode…
I also think…it’s harder than even HE thought…
Comment by Oswego Willy Monday, Feb 23, 15 @ 3:56 pm
The JRTC footprint might be valuable, but the building is a dog.
Its going to take a while, and a lot of money to correct that mistake. It took 30 years to get something on Block 37 after they tore down the old Greyhound Station.
That Greyhound Station was a funky place. Diverse and eclectic, I think you’d call it now.
What was the name of the old C&W bar, with the Sundowners as the house band? Trippy.
I was there often enough, there must be some reason I don’t remember the name.
North Loop was way different back then.
Comment by Wordslinger Monday, Feb 23, 15 @ 3:59 pm
Budgetary magic beans, Rich Miller? We’ll have to agree to disagree on Governor Rauner’s approach to staving off financial ruin for the State? We get it, though. You’re not a fan. Thankfully, Governor Rauner did not take on this monumental challeged to make friends.
Comment by Anonymous Monday, Feb 23, 15 @ 4:03 pm
===We’ll have to agree to disagree===
I will agree to no such thing. Magic beans are magic beans and this budget has a ton of them.
Comment by Rich Miller Monday, Feb 23, 15 @ 4:05 pm
=== Thankfully, Governor Rauner did not take on this monumental challeged to make friends.===
Raunerbots;
This is NOT Sophmore dorm room.
Numbers are real. Budgets are real. Choices are real. Funding or de-funding is real. Being governor, and the role, rules, responsibilities, political realities, vote counting, horse tradin’, and agendas dicussed, dissected, and analyzed comes with the gig.
It. Ain’t. Personal…
Comment by Oswego Willy Monday, Feb 23, 15 @ 4:13 pm
“He controls the Dem money, Willy - that’s all he needs to control.”
And you don’t think he could do that outside of government?
Jeez louise, at least this way he has to face the voters every 2 years. More to the point, so does his caucus. With term limits, he would have been doing his thing for the last 25 years with absolutely no democratic buy-in.
Comment by Arsenal Monday, Feb 23, 15 @ 4:15 pm
“JRTC might fetch a pretty penny” He-Who-Must-Not-Be-Named suggested that too and was laughed out of the room.
Well, we are having a fire sale, and looking for suckers…I mean, potential buyers…here, LOL…and the average selling price for the 16 buildings sold in the Loop last year was about $250 million, according to Jones Lang LaSalle. My point was that, even IF you could off the building for more than you expected, where are you going to put a few thousand dislocated state workers who need new office space?
Comment by Six Degrees of Separation Monday, Feb 23, 15 @ 4:16 pm
“there are 28 unions that have contracts with the state. AFSCME certainly cannot bargain away their constitutionally protected pension benefits.”
True, but whatever else AFSCME agrees to in its contract generally sets a pattern for the other unions to follow. And while AFSCME can’t negotiate wages/salaries for non-union employees, whatever it agrees to with regard to health insurance premiums will likely end up being adopted by CMS as policy for all employees, union or not.
Comment by Secret Square Monday, Feb 23, 15 @ 4:17 pm
The dissonance between this and his campaign “budget blueprint” are enough to credibly argue that no one did homework before getting elected.
The pension reduction is, indeed, magic beans. Two cases are on point in the matter.
1. In Feldt - The State sought to reduce judges pension by changing the formula to the average salary in their last year, rather than the salary at the time of retirement, thus reducing the pension (both earned and yet to be earned). Supremes struck it down. Rauner’s pension proposal changes the formula to the average earnings as of July 1, 2015 (effective date) - not the time of retirement (current formula).
2. In Peters, the Supremes rules that any changes to length of service and salary (in the formula) changes the pension - thus the State could not directly change the formula to reduce the weight of either factor.
Kraus both clarified the holding in Peters and concluded that the Pension Clause “prohibits legislative action which directly diminishes the benefits to be received by those who became members of the pension system prior to the enactment of the legislation, though they are not yet eligible to retire.”
The latter is the benchmark cases that is referenced that benefits cannot be reduced once employed, even though the employee has not yet retired.
Rauner proposes to reduce earned benefits (achieving his $25 billion reduction in unfunded liability) as well as benefits going forward.
Of course, if the ILSC rules in favor of State use of police power remanding to the lower court - that opens the door to more legislative attempts, even if SB1 is found at the circuit court level to be an over exercise of police power.
Comment by archimedes Monday, Feb 23, 15 @ 4:22 pm
Word “Double R Bar”
Comment by steve schnorf Monday, Feb 23, 15 @ 4:23 pm
Also, Wildlife Prairie Park already has been sold (to the Forest Park Foundation in 2013).
Comment by Secret Square Monday, Feb 23, 15 @ 4:24 pm
I realize benefits such as Health Care are negotiated by AFSCME and are accepted by the other Unions. I was specifically talking about Pension Benefits. Some commenters believe BVR is setting a stage for bargaining pension benefits. As a state statute with constitutional protection, They cannot be bargained, period.
Comment by KurtInSpringfield Monday, Feb 23, 15 @ 4:25 pm
Oswego Willy, didn’t you know that Michael Madigan kills men by the hundreds, and that he consumes the Republicans with fireballs from his eyes, and bolts of lightning from his {backside}?
Comment by jerry 101 Monday, Feb 23, 15 @ 4:25 pm
jerry 101,
Maybe Zeus gave BVR some magical items, a helmet, sword, and shield, to protect him. lol
Comment by KurtInSpringfield Monday, Feb 23, 15 @ 4:30 pm
- jerry 101 -,
I thought that was Michael R. Madigan…I get confused.
Victims need a straw man(?)
Comment by Oswego Willy Monday, Feb 23, 15 @ 4:31 pm
“Maybe Zeus gave BVR some magical items” Roll for damage?
Comment by Skeptic Monday, Feb 23, 15 @ 4:34 pm
== We’ll have to agree to disagree on Governor Rauner’s approach to staving off financial ruin for the State? ==
So you are ok fake budgets. I guess that means you’ve support all of the prior budgets that did the same sort of thing. Either math isn’t your strong suit or you are just a Raunerbot. Neither is good.
Comment by Demoralized Monday, Feb 23, 15 @ 4:54 pm
“The JRTC footprint might be valuable, but the building is a dog.”
Could not agree more, but it would be something to divest. However, selling off or leasing state assets was a big deal early on in the Blago administration. All sorts of appointee types were looking to score points by coming up with impractical plans, and pushing them, that just ate up all sorts of time, yielding essentially nothing. Just sayin’.
One thing might be to get the Tollway to reimbuse the state proper for acquired land and planning for roadways (such as I355) that became tollways.
Comment by Mister M Monday, Feb 23, 15 @ 5:03 pm
Hmmm…one of the Sundowners used to live a few doors down from me when I was a kid. I think they started out as a barbershop quartet and then became a band with instruments.
Comment by Six Degrees of Separation Monday, Feb 23, 15 @ 5:05 pm
++Unleash.The.Industry. ++ At what cost to the health of the people of IL.? IL does not need more drug addicts.
Comment by Mama Monday, Feb 23, 15 @ 5:11 pm
Schnorf, thanks, that’s it.
Sadly, good and honest dive bars are few and far between in that neck of the woods these days. Such is progress.
And fhe Sundowners as the house band, to boot? I feel sorry for those who have no idea what I’m talking about.
Comment by Wordslinger Monday, Feb 23, 15 @ 5:20 pm
Willy the posts are all about Rauner on the job one month and what a terrible job he is doingand nothing critical about anyone else.
I guess that must be true
Comment by Iron Duke Monday, Feb 23, 15 @ 5:27 pm
How long before expanding legalized gambling saves us?
Comment by Yellow Dog Democrat Monday, Feb 23, 15 @ 5:31 pm
- Iron Duke -
Then why bring up “Mike Madigan, term limits, and that MJM is responsible for all the ills in the past 40 years.”
All are Raunerbot points leading nowhere.
Congrats!
Comment by Oswego Willy Monday, Feb 23, 15 @ 5:36 pm
Word - Block 37 was not the old Greyhound station (that was at the NE corner of Clark / Randolph). AZ sold and then leased back it’s government buildings a few years ago.
Comment by Midway Gardens Monday, Feb 23, 15 @ 5:45 pm
That’s right Willy don’t bite the hand that feeds you
Comment by Iron Duke Monday, Feb 23, 15 @ 5:58 pm
- Iron Duke -,
Did all the Rauberbots get raises? lol.
So I don’t expect you bite that hand that feeds you…
Comment by Oswego Willy Monday, Feb 23, 15 @ 6:02 pm
For the Left:
Permanently raise Income Tax to 5%
Legalize Marijuana
For the Middle:
Expand Gamblin (preferably with sports gaming involved)
For the Right:
Freeze Property Taxes
Tort Reform
Workers Comp Reform
Comment by Generation X Monday, Feb 23, 15 @ 6:23 pm
Is it possible that all Rauner is doing here is offering a budget he knows is a fantasy, while waiting for the Ill. Sup. court to rule. When all the bills come due, he blames the unions for everything; the tax increases and the program cuts and tries to ride it out. A lot of people will believe him.
Comment by Saint Crispin Monday, Feb 23, 15 @ 6:24 pm
Generation X is right on. I would take all 3
Comment by Shoedoctor Monday, Feb 23, 15 @ 6:24 pm
This is NOT the dorm rooms;
===Expand Gamblin (preferably with sports gaming involved)===
You can get 60 and 30 to expand, and then add making book on sports to boot? Here? You must be new.
And…
===Freeze Property Taxes===
How? Please explain…
Comment by Oswego Willy Monday, Feb 23, 15 @ 6:35 pm
I have a feeling a lot of businesses (particularly those that don’t pay a lot in income taxes) would trade higher or a graduated income tax if it meant fully funding education. You provide more State money for education, you lessen reliance on property taxes. That’s the best way to reduce property taxes and a good way to attract businesses.
Comment by MyTwoCents Monday, Feb 23, 15 @ 7:45 pm
===Jeez louise, at least this way he has to face the voters every 2 years. More to the point, so does his caucus. With term limits, he would have been doing his thing for the last 25 years with absolutely no democratic buy-in.===
- Arsenal -, well said.
Every 2 years, there is that opportunity. Beibg outside, there would be no chance for voters at all.
Comment by Oswego Willy Monday, Feb 23, 15 @ 8:29 pm
Oh and by the way, I left the dorm rooms long ago
Comment by Generation X Monday, Feb 23, 15 @ 8:33 pm
Gen X how do you freeze property taxes?
Comment by foster brooks Tuesday, Feb 24, 15 @ 6:30 am
Voodoo economics are compounded with fuzzy math
Comment by Anonymous Tuesday, Feb 24, 15 @ 8:30 am
Give me a break . I don’t think by going in a 401K is going to solve anything it is only going to make it worst but Governor Rauner has millions and so he must know something. He may see the light at the end of the tunnel.
Comment by NO SENSE Tuesday, Feb 24, 15 @ 8:38 am
Just raise the state income tax back to 5%(or 6%) and increase the minimum wage to $15/hour.
There, problem solved!
Comment by anon Tuesday, Feb 24, 15 @ 9:00 am