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Phantom savings?

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Illinois

Among the more than $820 million in budget cuts being threatened by Gov. Bruce Rauner is one that would delay the opening of a new nursing home for veterans.

But, records and budget documents show the $70.2 million project wasn’t expected to be opened for more than a year anyway, raising questions about what exactly would be saved. […]

Lyndsey Walters, spokeswoman for the Illinois Capital Development Board, which is overseeing construction of the 200-bed home, said the opening would be delayed six months until Jan. 1, 2017, saving $4 million.

Rauner’s original budget plan, however, shows no evidence of the facility opening before July 1, 2016, which is in the next fiscal year and, thus, not affected by the current budget battle. There are no line items in the state’s proposed operating budget showing earmarks to pay for furnishings or for the hiring of additional workers. […]

Ryan Yantis, spokesman for the Illinois Department of Veterans Affairs, said the $4 million in savings are “startup costs.”

Startup costs that weren’t in the budget to begin with? OK.

Unsurprisingly, this facility is in a Democratic legislative district.

posted by Rich Miller
Tuesday, Jun 23, 15 @ 9:22 am

Comments

Math is math is math…

Phantom math is just as phony as budgets, by both sides.

Maybe Lyndsey needs another hot dog with ketchup?

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 9:26 am
Yes. Phantom savings, meets phantom leadership.

Comment by VanillaMan Tuesday, Jun 23, 15 @ 9:27 am
In general, delaying money to another fiscal year in not exactly a “savings” If these are “start-up” costs, then they will still be costs when the project does start up. Then what will the call that money that year. The opposite of “savings” I guess.

Comment by Joe M Tuesday, Jun 23, 15 @ 9:32 am
That’s funny, OW. I had forgotten about that incident.

Comment by Honeybear Tuesday, Jun 23, 15 @ 9:32 am
There are more “phantom savings” in the Gov’s threatened budget cuts, like the proposed $16M (40%) cut to Amtrak for state supported service. That cut does not help the overall budget one bit since the Amtrak support does not come from the General Revenue Fund, instead it comes from a dedicated transportation fund used for transportation purposes. My guess is the Gov’s proposed cuts are full of other “phantom savings”.

Comment by Ubecha Tuesday, Jun 23, 15 @ 9:42 am
Somewhere a wheelchair bound graphic artist is smiling.

Comment by Tommydanger Tuesday, Jun 23, 15 @ 9:46 am
This is why I always tell people that being a spokesperson is a more difficult job than people think. They often are left out of the decision making process but then get defend stuff like this.

Willy - good catch and very humorous, but my kids like ketchup on their hot dogs. Please advise.

Comment by Team Sleep Tuesday, Jun 23, 15 @ 9:49 am
- Team Sleep -,

Don’t force the issue, kids come around.

What helps to break the ketchup/hot dog trap is taking your child to Superdog, Gene’s and Jude’s, and other Vienna Beef establisments and let them try a delicious Chicago-style dog, in it’s perfect presentation.

Vienna has a Hall of Fame dog stands list to choose from.

This is a successful treatment. (Hat tip to - Honeybear - finding the Easter Egg)

To the Post,

Also, Rauner Crew, messaging, please have your spokespeople refrain from making others in a similar Rilke look less informed. It’s not a good way to run a railroad

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 9:57 am
Yeah - not too many good hot dog joints in central and southern Illinois. Oh well. The best ones are full-fledged, encased links from the local butcher that get cooked on the grill.

Comment by Team Sleep Tuesday, Jun 23, 15 @ 9:58 am
After you take the presumed “fraud, waste, and abuse” out in lines labeled “efficiency and operating savings”, and take out “non-essential savings” by your own standards, and take more distributive revenue from localities, and have no more revenue to sweep from dedicated uses, and take fake savings on things that don’t hit the GRF anyway, and are still $Billions short — what’s a Governor to do?

This whole “We don’t have a revenue problem, we have a spending problem” position has been shown false by Rauner’s own difficult choices.

Arithmetic reigns supreme.

Comment by walker Tuesday, Jun 23, 15 @ 10:04 am
This keeps up we’ll be in the phantom black in no time.

Comment by Wordslinger Tuesday, Jun 23, 15 @ 10:13 am
Not sure what the $4M includes, but on a project of $70M, there are soft costs of architecture, engineering, bidding and contracting, possible land/easement acquisition that could add up to that amount.

Comment by A guy Tuesday, Jun 23, 15 @ 10:15 am
I wonder how much push-back is going to happen in Republican legislative districts once a Dem is back in the Governor’s office. I doubt there will be a lot of “forgiving and forgetting” for those that were bought and paid for.

Comment by CharlieKratos Tuesday, Jun 23, 15 @ 10:21 am
Guy, those costs are bonded. No savings would be generated for years.

Comment by me too Tuesday, Jun 23, 15 @ 10:22 am
I guess the first question I have is why this isn’t funded Federally by the VA rather than Illinois taxpayers. Why didn’t Durbin use his clout to “bring home the bacon” on this one? Wasn’t Tammy Duckworth also a bigshot at the VA? Seems like our Dem senatorial delegation is quite content to run up huge deficits and skyrocketing fed taxes….to send money to other states. Doesn’t Illinois have one of the worst balance of payment deficits with the feds?

Or is this just one more case of Illinois Dems wanting the hiring and contracting under their patronage control instead of the feds civil service protections, and not having to bid per Federal guidelines? Wasn’t that a big issue with the Lincoln Library?

Comment by Arizona Bob Tuesday, Jun 23, 15 @ 10:27 am
===why this isn’t funded Federally by the VA rather than Illinois taxpayers===

It mostly is. The cut might actually put that funding in jeopardy.

Comment by Rich Miller Tuesday, Jun 23, 15 @ 10:28 am
===… but on a project of $70M, there are soft costs of architecture, engineering, bidding and contracting, possible land/easement acquisition that could add up to that amount.===

I guess that’s the “waste, fraud, and… whatever”?

That $70 million, phantom as it is, will be helpful in that $3 billion hole the Rauner Cuts are trying to “fix”…

… except for the “thingy” Rich has in the post, it being phantom and all.

- Team Sleep -, I wish you well, ketchup is a fad most will get over. Just give the “mustard, relish, onion” option when the time is right….

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 10:33 am
This must be an Arduin recommendation. Not having seen much from her, I’ve always considered her to be a phantom.

Comment by Norseman Tuesday, Jun 23, 15 @ 10:39 am
===me too - Tuesday, Jun 23, 15 @ 10:22 am:

Guy, those costs are bonded. No savings would be generated for years.===

I’m not disputing or arguing with you, but are you sure?

Comment by A guy Tuesday, Jun 23, 15 @ 10:48 am
My impression of the announced cuts were that they were strategic to democrats in districts that could swing Republican. If a politically vulnerable Democrat refuses to work cooperatively with a Republican Governor, then the Democrat may find that the Governor may close facilities and eliminate programs in the Democrat’s district. This is leadership. This is Bruce Rauner leveraging hostile parties in a crisis to bring about a satisfactory resolution, like he did with many of his private equity companies in the past.

Comment by Muscular Tuesday, Jun 23, 15 @ 10:55 am
AZ -There are both state & federal veterans facilities in Illinois. 4 state facities current in operation, Chicago will be the 5th. Feds do provide reimbursement, after completion of construction, of a portion of the construction cost. Start up costs are probably limited salaries for basic operations and non-building equipment.

Comment by In the Sticks Tuesday, Jun 23, 15 @ 11:07 am
- Muscular -,

So the Rauner Cuts are punishment to voters for not voting one way, hmm.

===This is Bruce Rauner leveraging hostile parties in a crisis to bring about a satisfactory resolution, like he did with many of his private equity companies in the past.===

Funny thing is, Rauner never faced voters for Rauner’s owned decisions… so there’s that.

Governing isn’t like the private sector, and thinking it is, is ignorant to the functions of governing.

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 11:13 am
Also, - Muscular -

Two instances that you may not like, but Rauner is going to do;

Rauner is going to sign a tax increase, and all 67 bought GOP GA members WILL be green…

… and when Rauner’s ILGO PAC starts funding, heavily, “Democrat” candidates.

Your head will spin.

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 11:16 am
Wonderin’ why TeamBungle and the politicians they control never check before blurtin’ out these bungles? Could it be they are locked into one of those “Fire, Aim, Ready” moments
OMG

Comment by Anonin' Tuesday, Jun 23, 15 @ 11:25 am
=Gene’s and Jude’s=

With respect- I always take my dogs to the car where I apply ample ketchup. AND mustard. That is how a dog is enjoyed best.

BTW- This may be a more enjoyable debate than any of the political “issues”!

Comment by JS Mill Tuesday, Jun 23, 15 @ 11:33 am
It’s great leadership to punish veterans in a Democratic district until Gov. Rauner gets his way. According to Muscular, it’s laudable, really.

Comment by Tournaround Agenda Tuesday, Jun 23, 15 @ 11:37 am
- Anonin’ - where IS that decoder ring…

Ketchup on a dog is a “mortal sin” not a “cardinal sin”, which is why Gene’s and Jude’s don’t “provide” ketchup, but the Mcdonald’s next for sells packets ala carte, so enjoy your Gene’s and Jude’s.

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 11:38 am
OW, another case of déjà vu all over again.

Phantom savings all over the map. Like freezing the purchase of new cop cars next year even though they are funded by a surcharge on traffic tickets, not GRF.

Comment by Arthur Andersen Tuesday, Jun 23, 15 @ 11:53 am
===This is Bruce Rauner leveraging hostile parties in a crisis to bring about a satisfactory resolution, like he did with many of his private equity companies in the past.===

You mean those nursing home deaths his private equity companies were linked to? Those satisfactory resolutions?

Comment by Name Withheld Tuesday, Jun 23, 15 @ 12:20 pm
Rauner’s budget proposal/solutions seem to be smoke and mirrors. If you’re up to the job then you never should have run for office. The Governors office is more that just a part time fantasy for the rich and powerful. Get serious will ya. A lot of people are affected by your decisions. Jeez.

Comment by Ginhouse Tommy Tuesday, Jun 23, 15 @ 12:36 pm
=which is why Gene’s and Jude’s don’t “provide” ketchup=

It is hurtful to me that the place with the best dog around won’t even let ketchup in the door! A mortal sin, in my book.

Comment by JS Mill Tuesday, Jun 23, 15 @ 12:53 pm
- JS Mill -, lol.

Nothing like their dogs, no matter how prepared.

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 1:07 pm
From the Federal VA regarding State Veteran’s Homes: VA participates in two grant-in-aid programs for States. VA may participate in up to 65 percent of the cost of construction or acquisition of State nursing homes or domiciliaries or for renovations to existing State homes. VA also provides per diem payments to States for the care of eligible veterans in State homes.

The closest State Veteran’s home to Chicago is Manteno, so there has been a great deal of interest in a Chicago location.

Comment by Groundhog Day Tuesday, Jun 23, 15 @ 1:13 pm
=With respect- I always take my dogs to the car where I apply ample ketchup. AND mustard. That is how a dog is enjoyed best.=

People who put ketchup on hot dogs, cannibals, and dumpster divers.

Three unforgiveable culinary sins, IN ORDER OF VILENESS!

Comment by Arizona Bob Tuesday, Jun 23, 15 @ 2:40 pm
Guy, design and construction are always paid for by bond funds on VA projects. Few agencies can fund their own projects. VA isn’t one if them.

Comment by Me too Tuesday, Jun 23, 15 @ 2:52 pm
“This is Bruce Rauner leveraging hostile parties in a crisis” More like using constituents as pawns, but whatever.

Comment by Skeptic Tuesday, Jun 23, 15 @ 3:40 pm
Shouldn’t it be “Sham” savings? Another dollar in the sham jar.

Comment by Anonymous Tuesday, Jun 23, 15 @ 3:42 pm
If I get a choice, I’ll have my dog with sauerkraut and hot mustard.

Otherwise, I’ll take it with relish, onion and mustard.

Comment by RNUG Tuesday, Jun 23, 15 @ 9:29 pm
- RNUG -,

Your stock continues to rise and rise.

Comment by Oswego Willy Tuesday, Jun 23, 15 @ 9:38 pm