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* I asked Voices for Illinois Children’s Emily Miller to take a look at the Republicans’ new approp bill. Her response…
Hi Rich,
Voices’ Fiscal Policy Center has taken a look at the spending proposals contained in HB2990 HA2 [the House Democrats’ approp bill] and SB3418 [the GOP proposal] to determine whether either are viable options to immediately relieve the built up pressure on the social service and higher education systems.
Each plan is flawed because neither raises any revenue, and both rely on additional GRF spending when we’re already running large GRF deficits.
The appropriations made in HB2990 HA2 come from both special funds, which have current available cash balances, and GRF. While GRF appropriations mean providers can get in line to get paid, the delay on those payments will be substantial because of the large and growing backlog.
SB3418 appropriations come with an additional barrier in that they are payable only upon the passage of a pension reform bill. As in HB2990 HA2, additional GRF appropriations without revenue mean we increase the deficit and add to the backlog.
So where do we go from here? The introduction of both these bills indicates that house and senate members on both sides of the aisle understand there is a crisis. Both bills also include funding from special funds, so it’s clear everyone understands there is money currently sitting in special funds.
In FY15 it was politically palatable for lawmakers and Governor Rauner to sweep and borrow from special funds to support critical services. If it was deemed reasonable to use those funds in FY15 to keep systems from crashing, perhaps there could be agreement that it would be wise to look at special fund balances to prevent total destruction of the social service and higher education infrastructure.
Of course, the daily destruction from this budget crisis started a few months back and will continue until there is a plan including sustainable revenue to fund FY16, FY17 and beyond. On an emergency basis, though, lawmakers should look at using balances as special funds to keep systems alive while they debate bigger tax and policy reform issues.
* She then texted me this…
It’s important to add that sweeps can be done in a responsible way. Obviously the consequences of sweeps have to be examined before the sweeps are made. But they can be useful to keep entire systems from dying.
posted by Rich Miller
Friday, Apr 8, 16 @ 11:06 am
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Right on.
Comment by Cassandra Friday, Apr 8, 16 @ 11:09 am
Dear Ms. Miller,
(…and I use Ms. Miller here to show the complete respect for you, I have and in all you do, setting the bar high for all in your field…)
What makes you so incredibly important, especially in the “right now” in this mess, is that your consistency to your mission and finding the avenues to help all is a credit to your integrity and passion, only rivaled by your intelligence and acumen.
I can’t get enough from your interpretations. Thank you.
Great work.
OW
Comment by Oswego Willy Friday, Apr 8, 16 @ 11:22 am
If we all agree that there is extra money in those individual accounts, which raise money from specific constituencies for specific purposes, doesn’t that mean we also agree that those funds all have fees that are too high?
Comment by Just Me Friday, Apr 8, 16 @ 11:26 am
Nicely done and on point by someone who clearly understands neither ’side’ is any more virtuous than the other here.
Nor are either of the principal figures at the heart of this impasse doing much of anything to mutually compromise and move the ball forward. They insist on empty gestures while the public suffers. Thank you for smartly seeing through both parties, EM and VfC.
Comment by No Use For A Name Friday, Apr 8, 16 @ 11:31 am
- No Use For A Name -
@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate. - Ron Sandack, 9/28/15
You’re welcome.
Comment by Oswego Willy Friday, Apr 8, 16 @ 11:34 am
It’s not hard to find flaws in partisan plans developed more to cover their political flanks than to come up with workable solutions. It’s dizzying trying to keep track of all the deficit spending that will be funded by sweeps and future savings.
=== It’s important to add that sweeps can be done in a responsible way. ===
It would be even better if we did the budget in a responsible way. Unfortunately, that’s not being done for the overall budget and obviously it’s not being done for the fund sweeps.
A responsible way for the whole budget would be to increase revenues AND reduce expenditures. Neither side is prepared to do the responsible thing because of the politics of maintaining or achieving power.
The responsible way of dealing with the special funds issue is to determine whether the money collected for the special fund is commensurate with the cost of the accompanying mandate. If too much is being collected, then the fee/tax should be reduced accordingly or the law changed to redirect the expected excess to the GRF. Better yet, reanalyze whether the mandate is necessary. This brings us more transparency than the last minute sweeps that create problems here and there.
Comment by Norseman Friday, Apr 8, 16 @ 11:37 am
-Each plan is flawed because neither raises any revenue-
And that is exactly why nothing will happen until Jan of 2017. In an election year no one is going to be willing to raise taxes. So Rauners hijack plan has 100% backfired and will result in the eventual storming of the plane and the political an economic death of most.
Comment by Honeybear Friday, Apr 8, 16 @ 11:46 am
“And that is exactly why nothing will happen until Jan of 2017″
More likely November 2018 when a real governor is elected.
Comment by Markus Friday, Apr 8, 16 @ 12:09 pm
The GA needs to keep passing budgets and sending them to Rauner. Remind people who owns the mess every time Rauner vetoes. I’d do it at least once a month.
Comment by Ratso Rizzo Friday, Apr 8, 16 @ 12:14 pm
Marcus- thanks. Let me restate. Nothing will happen till Jan 2017 if the Dems are able to get a true supermajority and can govern around Rauner. Until then the practice of sweeping and misappropriating funds will just create more damage downstream in the short and long term
Comment by Honeybear Friday, Apr 8, 16 @ 12:17 pm
=== If we all agree that there is extra money in those individual accounts, which raise money from specific constituencies for specific purposes, doesn’t that mean we also agree that those funds all have fees that are too high? ===
No. Asked and answered.
At this point, any sweeps will be a temporary expedient to alleviate some of the human suffering caused by Gov. Rauner’s extremist ideology.
Comment by olddog Friday, Apr 8, 16 @ 12:31 pm
‘The GA needs to keep passing budgets and sending them to Rauner.’
Passing even one balanced budget in accordance with Section 8 would engender good will and trust from the public (Rauner introducing a balance budget would do the same).
Passing additional unbalanced budgets - after the state’s prior two budgets under Democrats were unbalanced - would just be a reminder the GA is a large part of this problem.
Comment by No Use For A Name Friday, Apr 8, 16 @ 12:31 pm
Honeybear,
If the Democrats do get a governing supermajority in November, I don’t see why they would bail the Governor out of his mess by overriding a veto of higher taxes. He and the Republicans will relentlessly campaign on the tax increase supported only by the Democratic Party.
Comment by Jay Dee Friday, Apr 8, 16 @ 12:32 pm
== The GA needs to keep passing budgets and sending them to Rauner. Remind people who owns the mess every time Rauner vetoes. I’d do it at least once a month. ==
What is this going to accomplish? More ammo for mailers? How about both sides get off their high horses and work towards a solution? Illinois needs help now. It does not need politicians stalling just for political posturing for the next election.
Comment by SKI Friday, Apr 8, 16 @ 12:37 pm
===I don’t see why they would bail the Governor out of his mess by overriding a veto of higher taxes. He and the Republicans will relentlessly campaign on the tax increase supported only by the Democratic Party.===
1,000% correct.
Rauner is begging for the Democrats to vote for more revenue, then hope his veto gets overriden, to have Rauner barnstorm the state…
“I told you, #TaxHikeMike is at it again… ”
The Dems are in no hurry to help, why should they? It’s the gamble, but then again, Rauner refuses to fund Higher Ed, Social Services, and the list goes on and on…
Rauner wants to decimate unions, and if Higher Ed gets decimated, if Social Service groups disappear, “one less” to pay for Rauner.
Yep, structured roll calls for an agreed to budget, signed clean is the only answer, but Rauner is untrustworthy…
Comment by Oswego Willy Friday, Apr 8, 16 @ 12:38 pm
There will be no talk of tax increase till Jan of 2017 when I new GA is in place. Taxes must be increased to stop the eminent death and destruction of our state systems that at that point will have been ravaging our state for 2 years. There will not be much left. By that point even our taxe base will be so diminished that raising taxes will be a bandaid fix. Sorry to be so pessimistic but I think people have no idea how bad it is.
Comment by Honeybear Friday, Apr 8, 16 @ 12:41 pm
Why worry about keeping your seat when you have no ability to act?
A bipartisan tax increase is the only way forward. Vote yes and if you are later voted out, so what.
Comment by Last Bull Moose Friday, Apr 8, 16 @ 12:42 pm
Oswego Willy,
Even as this post concerns similar shortcomings in bills by both parties, such a myopic retort focuses strictly on one party. Thanks for demonstrating again what is so broken in Illinos politics.
Comment by No Use For A Name Friday, Apr 8, 16 @ 12:43 pm
===…such a myopic retort focuses strictly on one party. Thanks for demonstrating again what is so broken in Illinos politics.===
LOL!
Maybe you should tell that to Ron Sandack who tweeted it.
I can’t help that Ron Sandack feels…
@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate. - Ron Sandack, 9/28/15
lol… Maybe you should call him?
Comment by Oswego Willy Friday, Apr 8, 16 @ 12:46 pm
psst OW dont feed the trolls….
Comment by Ghost Friday, Apr 8, 16 @ 12:49 pm
===What is this going to accomplish? More ammo for mailers? How about both sides get off their high horses and work towards a solution? Illinois needs help now. It does not need politicians stalling just for political posturing for the next election.===
Well said.
If anything, the month away from voting to hurt themselves, the GOP should realize what a favor it was and work to get structured roll calls.
Comment by Oswego Willy Friday, Apr 8, 16 @ 12:51 pm
–Why worry about keeping your seat when you have no ability to act?–
I don’t get it either, but there’s always been plenty willing to hang around, cash their checks and wait to be told what they think.
Half a dozen House GOP members with a lick of independence could run the show right now. How they let that opportunity pass is beyond me.
Comment by wordslinger Friday, Apr 8, 16 @ 12:52 pm
- Ghost -
Yeah, my bad, no doubt, but the Sandack tweet is so delicious to keep out there as a reminder to the mindset of “acceptable Rauner leverage”.
Sorry for taking liberty,
OW
Comment by Oswego Willy Friday, Apr 8, 16 @ 12:54 pm
===How they let that opportunity pass is beyond me. ===
$20 million.
Comment by Rich Miller Friday, Apr 8, 16 @ 12:55 pm
–$20 million.–
I have hopes that the warmth of the post-primary season will be conducive to backbone growth.
Comment by Anonymous Friday, Apr 8, 16 @ 1:15 pm
No Use For A Name - @ 12:31 pm.
Hello No Name, Where is the governor’s balanced budget?
Comment by Mama Friday, Apr 8, 16 @ 1:16 pm
Emily Miller - you provided us with an analysis that everyone can understand.
This statement says it all, “Each plan is flawed because neither raises any revenue, and both rely on additional GRF spending when we’re already running large GRF deficits.”
Comment by Mama Friday, Apr 8, 16 @ 1:25 pm
I don’t know, I love it when you poke a troll with the sharp Sandack stick. It’s half the fun of the blog.
Comment by Honeybear Friday, Apr 8, 16 @ 1:25 pm
“Obviously the consequences of sweeps have to be examined before the sweeps are made.”
I agree with you, but I don’t see that happening because it all make people mad that their fund is being swept.
Comment by Mama Friday, Apr 8, 16 @ 1:27 pm
“The Dems are in no hurry to help, why should they?”
OW, Why? Because the state’s life-support has started to go belly up.
Comment by Mama Friday, Apr 8, 16 @ 1:32 pm
Sorry, the amount I quoted is the total in the general funds. The education assistance fund currently has $274,115,172.59. It has been growing on a daily basis.
Comment by isityouDB? Friday, Apr 8, 16 @ 1:36 pm
Nothing left to do but sue, sue, sue
http://www.sj-r.com/news/20160407/illinois-ordered-to-provide-in-home-care-to-1200-children?rssfeed=true
Hey, downstate taxpayers who voted for Rauner, we Chicagoans hope you enjoy paying out all of these premiums to large Chicago law firms, on top of the late fees on unpaid bills that will eventually accrue to big Chicago banks.
You could have simply given a portion of your tax dollars to the needy people in your own district, but you’re giving so much more.
Comment by crazybleedingheart Friday, Apr 8, 16 @ 1:42 pm
My earlier, longer post was held for moderation I think. Is there a word limit on comments?
Comment by isityouDB? Friday, Apr 8, 16 @ 1:44 pm
===Why? Because the state’s life-support has started to go belly up.===
Oh, you’re right. The governing demands this. The politics, including the Sandack tweet and the continual “if you aren’t with Rauner, than you are for the ’status quo’… ” which is utterly ridiculous when Rauner can’t get 60 and 30 or all 67 GOP members all in on his proposal.
When Rauner stops with the “… including structural reform” (See: unions, busting) and looks to get structured roll calls for examples Rich laid out so beautifully as a map, then I can understand why Dems won’t budge, why Labor is square in the Democrats’ corner, and why running against Trump-Rauner or Cruz-Rauner will benefit Dems.
Rauner doesn’t mind losing money for ideology, and doesn’t mind losing seats in the short term if Labor can be decinated in the long term.
Think on this…
If the “Map” situation isn’t resolved and Rauner wins a 2nd term, Rauner signs the Map, no matter who has the GA.
You think this budget stalemate is bad?
Yikes.
Comment by Oswego Willy Friday, Apr 8, 16 @ 1:47 pm
But here’s my question OW. If an AFSCME strike happens in late April-early May, (factoring that the ILRB meeting Tues will declare impasse) thus set the clock for unrest, Do you think Lisa Madigan will pop her non payment nuke before a strike, during, or after? Thus she makes sure scabs and exempt folk aren’t getting a paycheck either. AND with all the unrest and the state shutting down, will the DEMS buckle or will Rauner. Or will Ragnarok, the final battle, as in the myth destroy all.
See I’m seeing all this maneuvering as final positioning for the great battle. I don’t think it really has a chance. This student asks the great ones for comments.
Comment by Honeybear Friday, Apr 8, 16 @ 2:47 pm
Sorry Strike would happen Mid May-Early June. 30 day warning.
Comment by Honeybear Friday, Apr 8, 16 @ 2:49 pm
Alas, discussions about raising revenue rarely include a discussion of who will pay. Since Illinois is, one could say, cursed with a flat income tax, the middle class will bear the brunt
of any income tax increase and the wealthy will
sail on comparatively unscathed because the increase will be such a tiny fraction of their income. Should we ignore all that, help the rich, and sock it to the middle class. I suppose some here think so. I’d like to see some fund sweeping and cutting at least, since our political masters are so obsessed with protecting their wealthiest constituents. And let me be clear-again-I’m talking about our political masters of both parties.
Comment by Cassandra Friday, Apr 8, 16 @ 2:59 pm
- Honeybear -
Thanks for the kind words, I can understand the politics at play, and even the timing(s) of the multiple moving parts and flow charts, but, honestly, the legal system and rulings to coincide with rulings by the ILRB and a judge hearing the AG, yikes, those are asks better seen with miles behind all of us.
The politics is “simple”.
If the AG were to win, Rauner will claim he’s for the state workers at the very same time the ILRB might be ruling against Labor.
Crazy, eh?
If it were me, ‘tween us, LOL…
I’d hope for an ILRB ruling first, let Rauner rail on organized Labor, good solid anti-Labor quotes then let the hypocrisy of “being there” for state workers look like the farce it is.
You need Rauner to feel empowered, and vocal. Once the state work force, again, is reminded about Rauner, and if the AG wins, even calling in the National Guard will exacerbate things so badly, a passive work stoppage by AFSCME will be very effective as Rauner attacks AFSCME, tries to “work for” state workers, and commands an occupying army running his agencies.
Could be a tenable outcome if ILRB rules first and Rauner feels empowered, but how the courts go, you never know when a ruling will come early, way late, or something becomes apparently appealable and a stay is granted, for better… or worse.
Hope that helps, but that the political, not even in the ball park of the legal timetable at play.
Thanks again, keep at it,
OW
Comment by Oswego Willy Friday, Apr 8, 16 @ 3:07 pm
Thanks for the insightful answer. I have to admit though that we won’t be able to be in organization mode till July as you suggested. Orders were just issued hours ago. Direct action is immanent. I’m concerned about throwing Rauner red meat but we’ve got to put the pressure on for HB 580. Oh, and I forgot to throw HB580 into the calcs. My God, I’ve got to go buy some felt and do a flannograph with all the variables!
Comment by Honeybear Friday, Apr 8, 16 @ 3:48 pm
I obviously didn’t factor in HB580 either…
It’s just too “far out” with factors to get a true honest handle.
Those are my best guesses. Literally guesses, lol
Comment by Oswego Willy Friday, Apr 8, 16 @ 4:07 pm
Oswego Willy,
The 2013 quote in which you admit you are just doing ‘a bit’ here is much preferable.
Comment by No Use For A Name Friday, Apr 8, 16 @ 4:28 pm
- No Use For A Name -
What does that even mean? lol
Trolling me won’t help your weak arguments.
Honest.
Comment by Oswego Willy Friday, Apr 8, 16 @ 4:33 pm
This? LOL
===- Oswego Willy - Monday, Dec 23, 13 @ 1:29 pm===
Thanks - Cincinnatus - for lobbing that grenade. lol.
No one pays me to be here. It’s a “bit”. Geez, lol.===
Read the Post, what - Cininnatus - said, why it’s funny and why you are clueless.
I fed you, have a good weekend.
Comment by Oswego Willy Friday, Apr 8, 16 @ 4:43 pm