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* Tribune…
As Republican Gov. Bruce Rauner tries to win approval for a state budget with severe spending cuts, Senate Democrats have emerged as the loudest opponents, holding news conferences and committee hearings to denounce the governor’s proposals as “unworkable” and “unconscionable.”
The latest front in that effort unfolded Monday, when lawmakers grilled Rauner’s newly appointed social services chief at a Chicago hearing packed with low-income parents, people with disabilities and senior citizens who said they rely on the services that Rauner plans to cut back.
One by one, the Democratic senators questioned Gregory Bassi, acting secretary of the Department of Human Services, which under Rauner’s proposed budget would lose an estimated $424 million come July 1.
“When you decide to cut a program (or) you decide to reduce funding, it’s one thing when you see it on paper,” Sen. Michael Hastings, D-Tinley Park, said as he capped off a tense back-and-forth with Bassi. “But when you look behind you and you come to the suburbs and you see what it’s like on the ground, you may think differently about these cuts.”
There is indeed, quite a bit of tension between Cullerton and Rauner behind the scenes.
* But that’s not the only tension. Check out this angle from the organization run by the governor’s wife…
Ireta Gasner, assistant director of Illinois policy for the Ounce of Prevention Fund, said Rauner’s budget “includes harmful and short-sighted changes.”
Ouch.
More…
“The Early Intervention Toddlers program will continue to receive funding, but eligibility will be adjusted to prioritize the most vulnerable children.” [said a spokesperson for Gov. Rauner] […]
Gasner argued Monday the cuts to Early Intervention would affect 10,000 children — more than half of those in the program.
“And yet, these are the very children who actually can benefit the most when they get these services early,” Gasner said.
* GOP pushback…
State Sen. Matt Murphy (R-Palatine) took the opportunity to blast former Democratic Gov. Pat Quinn for spending “all of the money that the legislature appropriated before he left office,” adding that Quinn “spent a year’s worth of money the General Assembly gave him for child care in half the year.”
He stressed that Rauner has been working to resolve [the childcare program’s] funding shortfall, noting that, “To be perfectly clear, everybody in this room understands why this problem hasn’t been solved yet is because the Senate Democratic Caucus wants to leverage this issue and push this debt into next year — and they’re using you as political pawns in the process.”
“Somebody’s got to speak the truth in this room,” Murphy said, prompting the audience to boo him.
* Official SDem response to Murphy…
“it’s unfortunate that the senator chose to use today as an opportunity to score more political points”.
* Sen. Steans chose a lighter approach…
After the hearing, Appropriations Committee Chairwoman state Sen. Heather Steans (D-Chicago) told reporters that it would likely be very difficult for Rauner’s budget, as proposed, to garner enough votes in both the House and Senate for passage.
Rauner’s fiscal blueprint, she said, does not “demonstrate that level of compassion that I know the governor has expressed concern about, and I suspect we’ll also want to try to achieve. I do think there is going to have to be a lot of working together to try to get to a budget that’s more reasonable.” […]
“I’m hoping that we’re actually going to have a fiscal year ‘15 fix … this week to actually look at so we can actually start having conversations about next year’s budget,” the senator said. “Right now, we’re really in the phase of meeting with every agency director to understand the consequences of the proposed budget. We haven’t even started those negotiations until we really finish the current fiscal year.”
* Let’s hope Sen. McConnaughay is prescient…
State Sen. Karen McConnaughay (R-Saint Charles) said Rauner inherited a tough financial situation, and cuts of some kind will be needed.
“At the end of the day we all care about the people that we represent, and want to make sure that the people who need our help the most are the ones that we prioritize, so I’m optimistic. A difficult process, for sure; but I’m optimistic that we’re going to come together, and come up with some solutions,” she said.
Discuss.
posted by Rich Miller
Tuesday, Mar 17, 15 @ 10:45 am
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The tax cut ought to be cut as well.
Comment by Dan Johnson Tuesday, Mar 17, 15 @ 10:55 am
Ironically Murphy’s comment did exactly what he accused the Dems of doing — using the 2015 funding gap as leverage at a hearing that was supposed to focus on the 2016 budget.
Comment by walker Tuesday, Mar 17, 15 @ 10:58 am
Why does Murphy pretend that the GA passed a real budget last May, with a “year’s worth of money” for anything?
Doesn’t that step on his previous messages about an unbalanced budget? Does he just get so wound up with faux outrage that he doesn’t know what he’s saying?
He’s a guy who could use an acting class. His chronic victim bit is weak.
Comment by Wordslinger Tuesday, Mar 17, 15 @ 10:59 am
=== “A difficult process, for sure; but I’m optimistic that we’re going to come together, and come up with some solutions.” ===
Does that mean Republicans will support a revenue increase? Or is their definition of “coming together” slashing $6B?
Comment by anon Tuesday, Mar 17, 15 @ 11:01 am
==quite a bit of tension between Cullerton and Rauner behind the scenes==
How far we have drifted from Rauner and Madigan saying a deal was only ==days away==. Oh, those were the days.
Comment by Formerly Known As... Tuesday, Mar 17, 15 @ 11:03 am
Sling, you’re a bit prejudicial in awarding “victim” status today. The entire Senate Democratic Caucus is a huge Drama class. Not criticizing who you’re “including”, but pointing out a glaring opportunity in who you’re “excluding” with your judgment. What Murphy may be incorrectly identifying is the budget the others passed with a straight face; and now they’re playing the “victim”. Plenty of the V word to go around here.
Comment by A guy Tuesday, Mar 17, 15 @ 11:04 am
==it’s unfortunate that the senator chose to use today as an opportunity to score more political points==
LOL. Send that to every Dem and Rep who was in the room yesterday while you are at it.
Comment by Formerly Known As... Tuesday, Mar 17, 15 @ 11:04 am
This is getting interesting. Which one blinks first?
Comment by dupage dan Tuesday, Mar 17, 15 @ 11:05 am
Good for Cullerton. Keep Rauner in check.
There’s a lot of folks across the state that feel this way, I suspect.
Comment by Frenchie Mendoza Tuesday, Mar 17, 15 @ 11:05 am
===There is indeed, quite a bit of tension between Cullerton and Rauner behind the scenes.===
The SGOP Caucus, they will pay the price that needs to be paid to get Cullerton on board.
Comment by Oswego Willy Tuesday, Mar 17, 15 @ 11:05 am
Could somebody poll R voters to see their views on a smoothed-out tax cut over Rauner’s term (kind of like President Preckwinkle lowered the sales tax in four .25 increments over her first term)?
I suspect Republican voters wouldn’t revolt at getting to the full tax cut over four years (e.g., FY15 is 4.75%, FY16 is 4.5% FY17 is 4.25% and FY18 is 3.75%. It’s just my gut, though. I’d love to learn how Republican primary voters would react to that in a poll.
Comment by Dan Johnson Tuesday, Mar 17, 15 @ 11:05 am
It appears that, so far, Senate Dems aren’t feeling the populist uprising that is key to Rauner’s “reach over their heads” strategy.
Comment by Arsenal Tuesday, Mar 17, 15 @ 11:09 am
C’mon Murphy, you’ve pretended to be a budget guru for years. Quinn is gone, time for you to shine.
Oh right, in reality you’re an empty suit buffoon.
Comment by Anonymous Tuesday, Mar 17, 15 @ 11:10 am
We could just keep squeezing the turnip?
It is extremely difficult to wean people off programs that benefit their particular group. Grandstanding will take place, a crying child in the background or an old lady waiting in line for a handout.
Where does the money come from in a severely overspent, special interest legislature from both sides, over these many years? Hard cuts to social programs that can least defend themselves, or hard cuts from those of us doing just fine? Cuts, and spending slashes, along with taxes is the only way…or we can try and blame it on State Workers and take their pensions.
Folks, there is no easy way out. We all got burned by those elected to serve us. Likely they are living large off our dime. Anyone look at their retirement packages and perks?
Comment by Sunshine Tuesday, Mar 17, 15 @ 11:17 am
==Send that to every Dem and Rep who was in the room yesterday while you are at it.==
Absolutely correct. Everyone in the building has earned their share of the blame for this mess — proportion it according to how long they have been in their seat.
Then get over it and start looking for a REAL (rather than political) solution.
Comment by Out Here In The Middle Tuesday, Mar 17, 15 @ 11:19 am
I used to think that Sen. Murphy had the potential to be a genuine leader who would appeal to people on both sides of the aisle but he’s really just evolved into another partisan hack. Disappointing.
Comment by slow down Tuesday, Mar 17, 15 @ 11:22 am
Gosh, Sunshine, I am so darn sick of those self-interested parents who run around having children with developmental disabilities without first having had the foresight to put a million bucks in the bank to cover such eventualities. Why should I have to chip in a few bucks to cover early intervention to help their kids get on track for a healthy childhood and productive adult careers?
I mean, what did kids with disabilities and their parents ever do for me? I mean, yeah, I benefited from a state-funded scholarship at a state university, after attending public elementary and high schoosl. And yeah, I drive on state-funded highways to get to and from work every day. And yeah, the state police is out there on those highways trying to keep me safe from idiot drivers. And yeah, my kids went to public schools and got tremendous educations. Stuff like that.
But I don’t see why that should put me on the hook to help parents whose kids were not born healthy and thriving like mine. Next time, plan ahead, you wastrel parents. And don’t come to me asking for 20 or 30 dollars a year to help a bunch of children I don’t even know.
Jerks.
Comment by Soccermom Tuesday, Mar 17, 15 @ 11:25 am
==Send that to every Dem and Rep who was in the room yesterday while you are at it.==
And don’t forget the people who consistently voted these people into office. Everyone is to blame.
There is no magic bullet. The cuts have to come. Beat up on Rauner regularly, but the cuts still have to come. Call it guts, call it inexperience, call it whatever you want but I am encouraged these discussions are finally happening. No one wants to hurt “the children.”
Comment by allknowingmasterofracoondom Tuesday, Mar 17, 15 @ 11:26 am
The new governor has been telling us for months that the budget is busted. He got a reprieve from the GA to hold off on a budget address in order to find bipartisan solutions. Governor Rauner didn’t do that. He threw himself into presenting a budget that no one believed he knew very much about, or tried to find any solutions. Instead of being bipartisan, Rauner went off his nut, attacking and demonizing those he said caused the problems he faced.
He hasn’t really governed since his inauguration. He hasn’t really shown an understanding of his new public career. He hasn’t demonstrated a grasp of reality when presenting his unworkable budget.
Consequently, we have a governor without credibility or political support. ILGOP will let him walk off a fiscal cliff and bring Illinois to a stop. It is as though they imagine their political future exists without him causing them damage. Rauner seemed to have turned himself into a Rod Blagojevich-like political pariah that his own party ignores.
It will keep getting uglier. The shaking of Springfield will commence until the guy doing the shaking figures out that he is only irritating everyone.
Get irritated. The sooner we are, the sooner this governor figures out something.
Comment by VanillaMan Tuesday, Mar 17, 15 @ 11:28 am
==Then get over it and start looking for a REAL (rather than political) solution==
As @walker says in another post: Amen to that. This is on all of them.
Comment by Formerly Known As... Tuesday, Mar 17, 15 @ 11:28 am
Let us be the first to nominate Mutt Murphy as the Cing of Clueless…We know it is tough to understand but turning IL into Scabistan just because injured workers are denied health….cities cannot pay cops with savings from prevailing wage….kids don’t get smarter if their schools are in the scabland zones
Comment by anonin' Tuesday, Mar 17, 15 @ 11:31 am
It’s laughable the way people seem to think that this is the first time that difficult cuts are being proposed. This has been going on for years now. Further cuts doesn’t solve the larger mess, it just devastates our state’s most vulnerable citizens and depresses our economy.
Comment by slow down Tuesday, Mar 17, 15 @ 11:33 am
“everyone in the building has earned their share of the blame for this mess- proportion to how long they have been in their seat”
That really boils it down pretty well to what the problem is.
If they don’t have the money to fund these agencies like last year I would love to hear where the Senate Dems want to cut with specifics.
Crickets.
Comment by Iron Duke Tuesday, Mar 17, 15 @ 11:34 am
“It’s laughable the way people seem to think that this is the first time that difficult cuts are being proposed.”
Yeah. Go ahead and ask a few downstate communities why they hated Pat Quinn so much. It ain’t because he kept a state facility open.
Comment by Arsenal Tuesday, Mar 17, 15 @ 11:36 am
Similar to this scenario———Husband and wife are meeting with a bankruptcy attorney and a credit consolidation counselor, trying to figure a way out of deep debt they are facing. As they are looking at ways to make finances work, the husband(dem in this story) loudly protests there is no way he is turning in his $70K SUV, condo in Florida, golf membership at the local country club. As a matter of fact, he has just booked a 2 week vacation in Maui.
His wife(the R here) tries to explain to the husband that his over the top spedning the last 12 years has them on the brink of bankruptcy, and they HAVE to cut and cut a LOT. The husband goes into the garage screaming, as he grabs the clubs, hops in the SUV and heads to the country club.
Comment by anon Tuesday, Mar 17, 15 @ 11:37 am
Ok Murph, I think it is fair to criticize Quinn for signing the sham budget that the General Assembly passed. But on child care, what was he supposed to do? He chose not to kick thousands of kids out of the program. But Rauner has had two months to deal with it, he has known it’s a problem since at least November. He could have frozen intake and removed kids from the program, but he has refused to do so, even though he is the one with the “mandate”.
Comment by Juice Tuesday, Mar 17, 15 @ 11:38 am
“Similar to this scenario”
Not really. I haven’t seen a single Dem outright refuse cuts the way Representative Durkin refused revenue yesterday. In fact, Dems voted FOR an awful lot of cuts over the last six years.
Comment by Arsenal Tuesday, Mar 17, 15 @ 11:41 am
Guy, youre as confused as Murphy is as to what he’s outraged about.
Before, it was an unbalanced budget that appropriated more than expected revenues. Now, it’s spending a “years worth of money in half a year.”
Only one of those claims can be — and is — correct. You can’t hold and be outraged by both.
Comment by Wordslinger Tuesday, Mar 17, 15 @ 11:43 am
I don’t care who is or isn’t the governor and who is or isn’t in the majority, there is no way any one person should get absolute control of money from any/all funds. That’s a train wreck just waiting to happen. Murphy: the guy who whined because they wanted to make “ask your boss for a raise today” a resolution. waaaaa!!
They better all get their #@&* together and get something done–or go home!
Comment by Minnow Tuesday, Mar 17, 15 @ 11:44 am
I haven’t seen evidence that a modest income tax increase has harmed a state or an economy. An income tax increase has helped two states, Minnesota and California.
On the other hand, there is ample evidence that austerity-only or a budget greatly tilted toward cuts and tax reductions hurts state budgets and may even spill over to the economy. Kansas and Wisconsin are two states that fit this description.
It’s one thing to say we don’t want to pay higher taxes because we want to keep more of our money or don’t want to give it to others, but it’s another to couch tax cuts in bogus economic theories.
I hope this can ease fears about a modest tax increase. As we can see with the threat of cuts, raising the income tax would really help stop some of the cuts that would have real consequences.
Comment by Grandson of Man Tuesday, Mar 17, 15 @ 11:44 am
===Folks, there is no easy way out. We all got burned by those elected to serve us.===
I agree that there is no easy way out if you look at the problem only as a political one. However, there are multiple solutions to the problem if you look at the problem from a mathematical point of view, none of which are politically easy.
I disagree with that notion that everyone ‘got burned’. Those in pension plans appear to have read the Illinois constitution. I forecast a win for them in the Illinois Supreme Court. That makes them winners and leaves only everyone else as the losers. The big question in my mind is who among the losers will be ‘burned’ the most.
Comment by Anonymous Tuesday, Mar 17, 15 @ 11:46 am
“Crickets.”
The information is out there. Just because you don’t know it doesn’t mean it doesn’t exist.
Comment by Arsenal Tuesday, Mar 17, 15 @ 11:49 am
Of course! Child Care Assistance and Early Intervention programs are exactly like a country club membership or a vacation in Maui!!1!
How have I been so blind?!?
– MrJM
Comment by MrJM Tuesday, Mar 17, 15 @ 11:50 am
I agree about the tax increase in Minnesota. I travel there for work and the economy is thriving. I don’t agree about California, they have been losing companies and middle class taxpayers for a while. Illinois’s economy got a lot worse after the tax increase. Wisconsin has been out performing us too
Hard to say what is the right thing to do but I would start by listening to businesses about what they need to invest in Illinois and hire our people. Our unemployment rate is far too high and we are losing to many people to other states
Comment by Iron Duke Tuesday, Mar 17, 15 @ 11:52 am
Is there any hope of serious discussion of taxation of recreational marijuana? It seems it would bring in quite a bit of money.
Comment by Anon Tuesday, Mar 17, 15 @ 11:59 am
“California, they have been losing companies”
http://www.bloombergview.com/articles/2015-03-12/best-state-for-business-yes-california
Comment by Arsenal Tuesday, Mar 17, 15 @ 12:01 pm
- Illinois’s economy got a lot worse after the tax increase. -
Care you cite that? Or do you need someone to explain what a citation is?
Comment by Anonymous Tuesday, Mar 17, 15 @ 12:06 pm
== I’d love to learn how Republican primary voters would react to that (gradually phasing out the 5%) in a poll.==
If they apply the same standard they did to the Quinncome tax hike, then the GOP would see it as a huge 27% tax hike to go from 3.75% to 4.75% in the first year.
Comment by anon Tuesday, Mar 17, 15 @ 12:15 pm
==But I don’t see why that should put me on the hook to help parents whose kids were not born healthy and thriving like mine. Next time, plan ahead, you wastrel parents. And don’t come to me asking for 20 or 30 dollars a year to help a bunch of children I don’t even know.
Jerks. ==
Who’s the Jerk? It’s what you call living in a society where a government should try to serve all of it’s people in many different ways.
Comment by forwhatitsworth Tuesday, Mar 17, 15 @ 12:15 pm
MrJM—-Maybe focus on the “reckless spending” phrase a little more.
Comment by anon Tuesday, Mar 17, 15 @ 12:18 pm
Wisconsin’s GDP has grown by $20 billion since 2011, while Illinois GDP has only grown by about $50 billion. So in Iron Duke’s world, they are obviously kicking out butts.
Comment by Juice Tuesday, Mar 17, 15 @ 12:19 pm
=It’s what you call living in a society where a government should try to serve all of it’s people in many different ways.=
As long as YOUR needs are met by the gov, you’re good.Got it.
Comment by Politix Tuesday, Mar 17, 15 @ 12:24 pm
And forwhatitsworth, I am 99.99999% certain that Soccermon was being sarcastic. Or she’s having a really bad day.
Comment by Juice Tuesday, Mar 17, 15 @ 12:29 pm
Could it be that Sen. Murphy and other conservatives might have been better at math, more empathetic, and less inclined to manipulate basic truths if they had received EI services as young children? There is something really wrong with their fake-Christian ethic. Makes me sick.
It is not the fiscal brilliance that the GOP claims to possess, it is the lies about WHAT IS THE TRUE END of their ruthless means…. Just own it, and say you are greedy and don’t care about anyone but your own gut and personal comforts.
And, as stated above yet a little different here, wealthy people that pay low taxes are not job creators. This is well proven in current economic writings. Low taxes for wealthy people does nothing more than promote the already exponentially growing disparity between haves and have nots. Maybe we can disenfranchise and dis-incentivize an entire generation…Lead on GOP!
Comment by cdog Tuesday, Mar 17, 15 @ 12:31 pm
When more people leave the state in a year than a born here. Sounds like this kind of give and take is what’s needed. It’s time to roll up our sleeves
and start to change things.
Comment by mokenavince Tuesday, Mar 17, 15 @ 12:34 pm
cdog, what are “low taxes?”
Comment by anon Tuesday, Mar 17, 15 @ 12:41 pm
Juice, Soccermom has been having plenty of bad days lately, but never so bad that I haven’t been able to thank G-d that I have a job, a roof over my head, food on my table, and the inestimable blessing of healthy children. Put those together, and I am in the world’s 1 percent, on my worst day.
Thanks.
Comment by Soccermom Tuesday, Mar 17, 15 @ 12:42 pm
==would see it as a huge 27% tax hike to go from 3.75% to 4.75% in the first year==
In addition, the 3.75% tax is still a permanent increase over the 3.00% people were paying before the 2011 hike.
3.75% may or may not be enough, but it is an increase and leaves the state with more revenue than if the entire increase reverted to the prior level.
Comment by Formerly Known As... Tuesday, Mar 17, 15 @ 12:55 pm
@FKA
“3.75% may or may not be enough, but it is an increase and leaves the state with more revenue than if the entire increase reverted to the prior level.”
Tell that to the fire department, when they come to put out the fire at your home.
“No, use the little hose. It certainly won’t provide enough to do the job, but I guess I should be thankful you’re not using the watering can.”
Comment by How Ironic Tuesday, Mar 17, 15 @ 12:59 pm
A 25% increase FKA, which is pretty doggone big!
Comment by anon Tuesday, Mar 17, 15 @ 1:00 pm
Ok How Ironic, now the fire department can’t show up because our state income taxes are ONLY 25% higher than they were in late 2010???
Wow, try some decaf!
Comment by anon Tuesday, Mar 17, 15 @ 1:03 pm
@Anon,
“because our state income taxes are ONLY 25% higher”
Percentages are relative, and a 25% hike in income taxes relative to our current rate is low.
3.75% to 5% is still lower than surrounding states, and I don’t have a problem with it.
As a taxpayer, I use plenty of resources (roads, schools, libraries, parks etc). I don’t have a problem paying for it.
Comment by How Ironic Tuesday, Mar 17, 15 @ 1:11 pm
===There is no magic bullet. The cuts have to come. Beat up on Rauner regularly, but the cuts still have to come. Call it guts, call it inexperience, call it whatever you want but I am encouraged these discussions are finally happening. No one wants to hurt “the children.”===
The cuts have come. Where have you been? Further and drastic cuts are now needed because Rauner wanted no extension passed. No revenue enhancements will be considered, and you’re going to kick 10,000 out of EI “because no revenue enhancements will be considered”.
Who’s going to sponsor his budget bills? And, where are they by the way?
Comment by PublicServant Tuesday, Mar 17, 15 @ 1:16 pm
So are you sending in more than 3.75% How Ironic?
Comment by anon Tuesday, Mar 17, 15 @ 1:17 pm
@How Ironic - if the fire department does not find their 25% budget increase helpful, they can always give it back.
Comment by Formerly Known As... Tuesday, Mar 17, 15 @ 1:20 pm
No, PS, even if the full 5% was restored there would still have to be significant cuts, just a smaller number.
Comment by steve schnorf Tuesday, Mar 17, 15 @ 1:21 pm
@anon
I mean “low taxes for wealthy people” in the sense that constantly trying to drive down tax rates, tea party style, does nothing but improve the wealthy person’s balance sheet. The 99% are just being fooled.
Profit, and the inevitable equity, that just sits in accounts, and is not spent into the economy has ZERO impact on job growth, or the economy. Pick your metaphor–Poker? Monopoly? Once the money is off the table, the game is over.
Taxing, with good governance
, is the best way to REDISTRIBUTE, and keep the game of capitalism going. I don’t think that rampant disparity historically has a good ending.
Comment by cdog Tuesday, Mar 17, 15 @ 1:36 pm
cdog, the wealthy pay plenty of taxes, and I mean plenty. Do you not think Rauner pays a large boatload of taxes to this state???
Comment by anon Tuesday, Mar 17, 15 @ 1:48 pm
This discussion will go a lot better once everyone realizes that BOTH cuts and revenue will be needed. So long as people continue to dig their heals in and demand that only one of those two be done, it will continue to be ugly.
Comment by Demoralized Tuesday, Mar 17, 15 @ 1:55 pm
= Who’s going to sponsor his budget bills? And, where are they by the way? =
I believe Leaders Durkin and Radogno sponsored the Governor’s budget bills in their respective chambers. It’s not unusual for the Governor’s budget bills not to be assigned to the appropriation committees, since the final budget tends to be done in an omnibus bill or a series of bills for each major spending category (e.g. human services, public safety, higher ed).
Comment by cover Tuesday, Mar 17, 15 @ 2:06 pm
@Anon:
“So are you sending in more than 3.75% How Ironic?”
Seeing as I live in California, I’m paying substantially more than 3.75%. And I might add, business is booming in CA.
Any other questions?
Comment by How Ironic Tuesday, Mar 17, 15 @ 2:07 pm
@Anon:
“Do you not think Rauner pays a large boatload of taxes to this state???”
No, I don’t. However, it’s hard to know how much he actually paid because he won’t release his tax records. That combined with his Cayman accounts, one really doesn’t have a clue how much he paid.
But I bet he didn’t utilize Cayman accounts to pay ‘more’ taxes. Do you?
Comment by How Ironic Tuesday, Mar 17, 15 @ 2:09 pm
===No, PS, even if the full 5% was restored there would still have to be significant cuts, just a smaller number.===
Sorry that I wasn’t clear Steve. What I meant by my statement is that there already have been significant cuts made under a Democratic administration, not that additional cuts would not have to be considered. But to take a position of opposing any and all revenue enhancements when the alternative are the drastic cuts being proposed in a budget proposal that, even after the proposed cuts, is still 3 billion out of balance is not an alternative that will ever be considered by the legislature, much less passed. Revenue enhancements will have to be on the table, as well as prudent cuts. Until that happens, there really are no chances for compromise.
Comment by PublicServant Tuesday, Mar 17, 15 @ 2:34 pm
“Illinois’s economy got a lot worse after the tax increase.”
In 2013-2014, Illinois had the largest average one-year drop in the unemployment rate, of all the states.
“I would start by listening to businesses about what they need to invest in Illinois and hire our people.”
We should also read the Site Selection articles in which the Chicago metro area was number one in corporate expansion for the second year in a row. Business interests cite diversity, infrastructure and education as among the reasons corporations want to locate here.
We need not fear a modest income tax increase. The upside would far outweigh the downside, in that we would spare our most vulnerable residents of bearing a disproportionate burden of our fiscal problems, better ability to pay our debts, better credit ratings, more investment in middle class government jobs, etc.
Comment by Grandson of Man Tuesday, Mar 17, 15 @ 2:36 pm
Instead of cutting all universities and colleges by 31 percent, wouldn’t it make more sense to just close the 1/3 of colleges that are the poorest performing?
Comment by Juvenal Tuesday, Mar 17, 15 @ 2:44 pm
How Ironic—-Pretty ironic you have such a keen interest in IL politics. I don’t give a rip about CA and their huge pension issues and welfare state.
You do know that places like the Caymans have agreements with the US to share financial info, don’t you???
Comment by anon Tuesday, Mar 17, 15 @ 2:49 pm
Grandson, how much of that unemployment drop was the result of people dropping out of the labor force? Look it up and report back to us—it may be a surprise to you!
Comment by anon Tuesday, Mar 17, 15 @ 2:51 pm
@Anon:
Seeing as I spent time in Il Gov, working for the people I still have my interest in Il.
And yes, I did pay the 5%, and thought it should have been 6%.
And you should look to CA an MN, where taxes went up. Corporate hiring is up, unemployment is down and services are functioning. Backlog of bills are down, ratings are up.
Amazing how it works. But you can keep telling yourself you can cut yourself out of the hole. Problem is, it’s not going to work. You’re going to need more revenue.
Comment by How Ironic Tuesday, Mar 17, 15 @ 3:04 pm
What is the current backlog of unpaid bills in CA Ironic? How much is your pension obligation?
Why just 6%? If raising income taxes spurs job growth, why not 7-8%? Whay not have a minimum wage of $15/hour in Chicago?
Comment by anon Tuesday, Mar 17, 15 @ 3:10 pm
We’re mostly just flailing at each other.
The numbers say pretty clearly that we need both additional spending cuts, and additional tax revenues, (from what Rauner has proposed so far), to balance.
Let’s just start with that general understanding, ignore previous ideological stances, and work from there.
Comment by walker Tuesday, Mar 17, 15 @ 3:24 pm
@Anon,
Give it a rest. If you want to live in a deluded world where tax cuts win move to Kansas. Tell me how that’s working out.
5-6% doesn’t solve Illinois’ revenue needs, there will still need to be cuts. I’m not advocating higher taxation ‘for fun’.
The Gov provides services, and they need to be paid. The pension is a constitutionally mandated program, that needs to be funded.
And what’s the minimum wage got to do with this? I think you have your tea party talking points confused today.
Comment by How Ironic Tuesday, Mar 17, 15 @ 3:26 pm
Nice strawman and I particularly like that you didn’t, or couldn’t, answer my questions about CA.
CA has high taxation and you talk about how great the state is doing. I never advocated high taxation for “fun.” You said it should be 6% in IL, why stop there?
Some substance my friend, since you have government experience.
Comment by anon Tuesday, Mar 17, 15 @ 3:37 pm
walker and How Ironic, I agree with you.
“people dropping out of the labor force”
Illinois recently had the same labor participation rate as Texas and a higher rate than Indiana and the national average. How can Indiana and Texas be the holy job creators yet have the same or worse labor participation rates than Illinois?
Comment by Grandson of Man Tuesday, Mar 17, 15 @ 3:40 pm
the unemployment rate in Texas is roughly 4.4% and they added about 400k jobs in 2014. IL added roughly 100k jobs in 2014.
The labor participation rate nationally is 62.8%, the lowest since the Jimmy Carter years of the late 70’s.
Comment by anon Tuesday, Mar 17, 15 @ 3:58 pm
@Anon,
1. In 2011 CA faced a 25.5 Billion shortfall, this year a 4.5 Billion surplus. The others, not sure as I’m not in state gov here.
2. One doesn’t need to raise the tax rate to an unreasonable rate. MN’s top marginal rate is 9.85%, and the economy is humming along. Unemployment has dropped.
CA’s top marginal rate is ~10%, Unemployment has been falling steadily since 2010, now at 7% (lower than FL and NY).
IL doesn’t need a rate that high. I’m not against trimming budgets. 6% would be as high as IL needs.
But for you, or many others crying in your beer about 3.75 to 5%….please.
And your experience besides armchair whining?
Comment by How Ironic Tuesday, Mar 17, 15 @ 3:58 pm
We need revenue and cuts. But California combined their tax increase with broader cuts than Illinois did at that time.
California 2011 ==Brown proposed cutting the take-home pay of unionized state employees in six bargaining units by between 8 percent and 10 percent. The units account for more than a third of the state’s general fund payroll.
In addition, the budget proposal includes $1.7 billion in cuts to the state’s health program and $1.5 billion in spending reductions for its welfare-to-work program. Big cuts are also slated for programs for the disabled, including the mentally retarded and autistic.==
California 2012 ==California Governor Jerry Brown on Monday unveiled a revised state budget plan that calls for new cuts to healthcare for the poor and elderly and reduced work hours for state employees as part of an effort to close a $15.7 billion budget gap. Under Brown’s new budget plan, spending cuts would hit the state’s health-care program for low-income Californians and the elderly, reducing in-home support services and other medical programs. It would also slash the state’s CalWORKS welfare program by nearly $1 billion. Additionally, state employee compensation would be reduced by 5 percent by cutting work hours.==
Comment by Formerly Known As... Tuesday, Mar 17, 15 @ 4:05 pm
California’s top rate is 13.3% but their property taxes are extremely low. Our property taxes are the second highest. Taxing property instead of income is very unfair.
So is comparing apples and oranges
Comment by Iron Duke Tuesday, Mar 17, 15 @ 4:08 pm
My experience would top sitting in a cubicle Ironic.
So, does MN have an unreasonable upper rate of 9.85%? You say the economy is humming along. If a person makes $50K in MN, how much state income tax do they pay?
Comment by anon Tuesday, Mar 17, 15 @ 4:10 pm
@FKA
“But California combined their tax increase with broader cuts than Illinois did at that time.”
Keep in mind that the deficit CA was in, is just a couple of billion shy of IL’s total GRF budget.
The cuts needed to be greater, and the tax increase needed to be higher.
Oddly though, my house is 2x more expensive in CA, but my property tax is 33% less than back in IL.
Comment by How Ironic Tuesday, Mar 17, 15 @ 4:16 pm
Thanks to the recent posters, divulging info about CA that How Ironic conveniently “forgot.”
Figures.
Comment by anon Tuesday, Mar 17, 15 @ 4:38 pm
++- Soccermom - Tuesday, Mar 17, 15 @ 11:25 am: ++ Your comments are always informative and a joy to read. You out did yourself today. May you have a blessed day.
Comment by Mama Tuesday, Mar 17, 15 @ 4:54 pm
@ Anon:
“So, does MN have an unreasonable upper rate of 9.85%? ”
No, it doesn’t appear so.
“Thanks to the recent posters, divulging info about CA that How Ironic conveniently “forgot.”
I didn’t forget anything. I said I didn’t know.
But you seem to be some sort of armchair expert. What exactly are your qualifications?
You seem to think that taxation is unnecessary, and that higher taxation only drives business away.
If so, you’re a rube. Business goes where opportunity exists. Illinois has good infrastructure, good roads, airports and rail, along with major (US) inland ports.
A business that relies heavily (IE - CAT) on all of those things isn’t going to relocate to WI because the marginal tax rate is lower.
Similarly, cutting marginal tax rates doesn’t result in a rush to hire workers. If a company is staffed appropriately, a cut in income tax rates simply won’t result in new hires.
But whatever. You’re the expert here. School us Anon. Tell us how Illinois is going to cut itself out of this hole.
You might let King Rauner know your secrets as well. Because he’s got a one trick pony, and he’s beating it to death. But not solving a thing.
Comment by How Ironic Tuesday, Mar 17, 15 @ 4:58 pm
- anon - Tuesday, Mar 17, 15 @ 4:10 pm:
==If a person makes $50K in MN, how much state income tax do they pay?==
the tax rate in MN for income of $50,000 is 7.05%
Comment by Enviro Tuesday, Mar 17, 15 @ 6:21 pm
Anon,
FYI: Labor participation is lower because “baby boomers” are retiring.
In fact, I’m expecting a severe labor shortage at some point soon.
Comment by Ace Wednesday, Mar 18, 15 @ 7:05 am
And Ace, if you look up reports, the older people are staying in the workforce and the group of 18-30 are the ones who arent working. Look ‘er up!
Comment by anon Wednesday, Mar 18, 15 @ 7:36 am
anon:
You’re partially right. But the fact is that the baby boom bubble is at retirement age and they are leaving the workforce.
Also, I have zero idea what the point of any of your comments is. Do you have a point or are you just arguing for arguments sake?
Also, the unemployment argument you made is the standard talking point used to dismiss any drop in the unemployment rate. Y’all really need to get a new argument because that one is pretty old and no longer explains the issue no matter how hard you want it to.
Comment by Demoralized Wednesday, Mar 18, 15 @ 8:50 am
Demoralized, that is a you problem. Sorry you can’t follow the comments and the responses.
And, I am more than partially right, look it up. We had this argument about 6 months ago and plenty of people dispelled the notion that the biggest factor in the low labor participation rate was due to baby boomers.
Comment by anon Wednesday, Mar 18, 15 @ 9:17 am