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8 crucial points to remember about the impasse

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Illinois

* Voices for Illinois Children…

The legislative session is over, and Illinois is about to enter its second year without a budget. Where does all of this leave the state?

Voices for Illinois Children’s Fiscal Policy Center offers eight takeaways to put matters in perspective and lead the way to a solution that gets Illinois back to making the public investments needed for the state to flourish.

1) Illinois is Dismantling the Foundations of a Prosperous, Compassionate State. As the Fiscal Policy Center has chronicled, the lack of a fully-funded state budget is causing our higher education system to fall apart, service providers to shut down, and our safety net to collapse.

2) Public Safety is Jeopardized. At a time when Illinois needs a coordinated, public health-centered approach to violence that plagues many communities, we are going in the opposite direction, cutting mental health and substance abuse treatment, after-school opportunities for youth, and programs like Redeploy that rehabilitate youth in their communities.

3) Lack of Resources Drives This Crisis. The real problem is Illinois doesn’t have the money it takes to meet public needs. After last year’s 25-percent tax cut, Illinois needs more than $7 billion in new revenue a year to return to the level of services of the 2015 fiscal year — the last year with a full budget.

4) Delay In Raising Revenue Means More Debt. Illinois is racking up debt even with deep cuts in spending, because the state must still pay for a variety of things mandated under state and federal law. Every day lawmakers and Governor Rauner fail to agree on raising critically needed revenue, Illinois’ finances worsen.

5) Debt = Less Investment in Future. Increasing the state’s backlog of unpaid bills not only means unfair payment delays to people providing goods and services. It also restricts what Illinois can do in the future. Debt must be repaid using future revenue, taking resources away from schools, transportation, public safety, and other building blocks of broad prosperity.

6) Without More Revenue, Increases to Public School Funding Crowds Out Other Investments. Without new revenue, the large proposed increases to public school funding mean that Illinois will further increase its debt and be forced to cut a range of services for children and families that support children’s healthy growth and development. We cannot continue to pit education against human services — children and families need both to succeed.

7) Short-Term “Emergency” Budget is Not a Solution. At best, a six-month emergency budget to get elected officials past the November elections only slows the deterioration of our higher education system and our social safety net. Much of any emergency six-month budget would likely just fill existing holes and would not sustain critical services into next fiscal year.

8) Governor Rauner Has Bill on His Desk that is Part of His Desired Six-Month Budget. The legislature passed by large bipartisan majorities Senate Bill 2038 to provide urgently needed funds to service providers owed $700 million by the state. The money sits in state accounts, unable to be spent until Governor Rauner signs the legislation he received nearly three weeks ago. More than 220 organizations, including Voices, have urged him to sign this bill.

To avoid further damage to our state, lawmakers and Governor Rauner must come together to enact a fully funded budget that raises billions of dollars in new revenue to support critical services and public investment in Illinois’ future. Anything else falls far short of strengthening our state.

posted by Rich Miller
Wednesday, Jun 8, 16 @ 9:31 am

Comments

A clear and understandable overview of the consequences for the hostages in the impasse. Voices for Illinois Children +1

Comment by AC Wednesday, Jun 8, 16 @ 9:37 am
He is going to sign it right? Why isn’t he signing it?

Comment by burbanite Wednesday, Jun 8, 16 @ 9:38 am
One takeaway from the 8 takeaways: A tax increase is not a concession, it’s a necessity.

Comment by Skeptic Wednesday, Jun 8, 16 @ 9:40 am
–Governor Rauner Has Bill on His Desk that is Part of His Desired Six-Month Budget. The legislature passed by large bipartisan majorities Senate Bill 2038 to provide urgently needed funds to service providers owed $700 million by the state. The money sits in state accounts, unable to be spent until Governor Rauner signs the legislation he received nearly three weeks ago. More than 220 organizations, including Voices, have urged him to sign this bill.–

There are words, and there are actions.

Actions reveal the truth.

And the truth is, Gov. Rauner is committed to squeezing the beast and throwing these folks out of work and putting their organizations out of business.

Comment by wordslinger Wednesday, Jun 8, 16 @ 9:40 am
Good concise list on impact of Rauner’s impasse. Doesn’t change anything, but it’s a nice list.

Comment by Norseman Wednesday, Jun 8, 16 @ 9:41 am
Nothing ground breaking in these points, per usual.

Comment by Jackie Wednesday, Jun 8, 16 @ 9:42 am
– Illinois Gov. Bruce Rauner says he expects crime will spike “at some point” because the state budget impasse is leading to cutbacks of a juvenile offender program.
Rauner told reporters Monday that data don’t show any increase in crime since several counties have been forced to close Redeploy Illinois. But he says “it will.”–

He just needs more time.

http://www.sj-r.com/news/20160607/rauner-crime-to-spike-at-some-point-due-to-budget-impasse?rssfeed=true

Comment by wordslinger Wednesday, Jun 8, 16 @ 9:44 am
Rauner can continue to sit on SB2038 until the 60 day mark, and it then goes into effect on its own, without his signature. Or Rauner vetoes it, and once again places Republicans in the position to use their buttons. Kind of a reverse trick that he did to them on the K-12 FY 16 funding last year. He’s in “gotcha” mode and he’s reveling in it. The GA is going to have to realize they have to have their own Go Around to get around his “you’ll never win” agenda.

Comment by Anon221 Wednesday, Jun 8, 16 @ 9:49 am
– Illinois Gov. Bruce Rauner says he expects crime will spike “at some point” because the state budget impasse is leading to cutbacks of a juvenile offender program.
Rauner told reporters Monday that data don’t show any increase in crime since several counties have been forced to close Redeploy Illinois. But he says “it will.”–

=He just needs more time.= That must be the “short-term pain” he is asking the state to endure.

Comment by Qui Tam Wednesday, Jun 8, 16 @ 9:49 am
Concise and to the point. So clear that even Sandack can understand it. ( Well, maybe not) Too bad it won’t be printed in the media so all can see.

Comment by Big Joe Wednesday, Jun 8, 16 @ 9:51 am
“lawmakers and Governor Rauner must come together to enact a fully funded budget that raises billions of dollars in new revenue to support critical services and public investment in Illinois’ future.”

I understand there is no way we can cut our way out of this financial crisis. The State needs billions in more revenue. However, my crystal ball does not show any new revenue being enacted until after the general election.

Comment by Mama Wednesday, Jun 8, 16 @ 9:51 am
Rich, can you have this article posted in all the news outlets you write for?

Comment by Mama Wednesday, Jun 8, 16 @ 9:54 am
I can’t praise that list enough. Exactly.
I would just add this one.

9) The State workforce is collapsing. The longer the impasse goes, the less resources agencies have to do their jobs. The resulting work pileup, job frustration, in inability to change the situation is rapidly degrading the state workforce. Senior workers are retiring. A frightening percentage of state workers are looking for other jobs. (survey idea Rich) Many senior staff are leaving for other positions. Lower end workers are fatigued. The constant barrage of attacks from Rauner are taking their toll. Unlike the poll just conducted State workers absolutely know who is attacking them and who is not. State worker medical bills are not being paid forcing workers to have to pay many visits or services up front. Thus workers are just having to “live with” tooth ache, old glasses. Others including me are getting collection calls all the time from medical providers going after the customer because the state has not paid.

UPSHOT: Even with a budget and all the funding in the world.

The state will not function without a functioning workforce.

State work is in many many cases very complex. It cannot be outsources in most instances.

Comment by Honeybear Wednesday, Jun 8, 16 @ 9:55 am
Here’s the problem: many people don’t view things like public education , in Chicago , as an investment.

Comment by Steve Wednesday, Jun 8, 16 @ 9:55 am
November 2016 provides an opportunity to replace a few Republicans/Raunerites but unfortunately the crisis will continue until November 2018 when Governor Rauner is sent packing with the lowest approval rating and fewest accomplishments of any governor in Illinois history.

Comment by Markus Wednesday, Jun 8, 16 @ 9:57 am
- Anon221 - Wednesday, Jun 8, 16 @ 9:49 am:
…”He’s in “gotcha” mode and he’s reveling in it. The GA is going to have to realize they have to have their own Go Around to get around his “you’ll never win” agenda.”

Anon221, Do you think the Republicans in the House and Senate have the guts to go around Rauner to save the state of IL?

Comment by Mama Wednesday, Jun 8, 16 @ 10:00 am
How about:

9) The Governor and Republican legislative leaders presented bills that fully fund schools, social services, and the agencies for the remainder of the calendar year. They require no new revenue and are fully paid for. Furthermore, they are not attached to any stipulation to first pass reform items from the Governor’s Turnaround Agenda. Speaker Madigan said “No,” to these bills. They’ll never see the floor.

Comment by Jack Kemp Wednesday, Jun 8, 16 @ 10:07 am
Honeybear, people like Rauner do not care if the people you take care of in your state job - are taken care of. He thinks everyone should take care of themselves.

When someone asked Rauner about educating children with disabilities or children with no or limited English language - “Rauner replied, they are not my problem!”
Honeybear, that statement says it all!

Comment by Mama Wednesday, Jun 8, 16 @ 10:09 am
We need a full budget so desperately that we’re apparently not going to get. The ploy to hold out for reforms that will supposedly save a state that is circling down the drain is doing so much more harm than good–for those whose ulterior motives are not to either win or crash the state.

We can’t hold out any longer. I hope very much–again–that there are enough elected officials who are honest about what is possible and who pursue this vigorously.

In the meantime, in this age of crisis politics, we may have to pass a stopgap budget just to get us through the election.

Comment by Grandson of Man Wednesday, Jun 8, 16 @ 10:09 am
I should have said the State of IL calendar year…

Comment by Mama Wednesday, Jun 8, 16 @ 10:17 am
@Jack Kemp @ 10:07-

“Pay no attention to the man behind the curtain!”

Very funny, prove it.

Comment by Markus Wednesday, Jun 8, 16 @ 10:19 am
==Debt = Less Investment in Future==

Bingo.

The Billions of dollars being spent on debt service for the pension obligation bonds, for example, would come in handy right about now. Learn from those mistakes and stop repeating them as this state has done so often for decades.

Comment by Formerly Known As... Wednesday, Jun 8, 16 @ 10:21 am
Prove it? Uh. Is that a joke?

Comment by Jack Kemp Wednesday, Jun 8, 16 @ 10:22 am
Very true that we can’t cut our way out of this mess, but we can’t tax our way out either. One thing governments have proven time and time again is that if you give them money, they will find a way to spend it all — and paying down debt is never a priority.

Comment by Ron Burgundy Wednesday, Jun 8, 16 @ 10:22 am
“We cannot continue to pit education against human services — children and families need both to succeed.”

Rich, you are right, the whole child needs a safe place to sleep, food to eat, medical care to survive, etc.. Its hard to educate a child who is sick, hurt, scared and hungry.

Comment by Mama Wednesday, Jun 8, 16 @ 10:23 am
So “Voices” wants to tax the people of Illinois without any limit, NEVER suggests a single way to better spend available revenues or provide better, more efficient service to the people of Illinois, refuses to seriously study the budget to find ways to fund those human services that are good value and are much needed by the most needy in the state. They NEVER criticize public union strikes that hurt “the children”, nor complain when public unions demand more than the communities they “serve” can afford.

When will they be honest and rename themselves “voices for Illinois public unions”?

Comment by Illinois Bob Wednesday, Jun 8, 16 @ 10:26 am
To points 4 and 5: Railing about how pension debt consumes too much revenue has not proven to be an effective strategery. Doubling down by letting additional debt pile up is not a plan.

Comment by SAP Wednesday, Jun 8, 16 @ 10:26 am
The first 6 items embody the “opportunity” that Rauner envisioned on the campaign trail. Remember, “crisis creates opportunity”. Those items, and all of the people that they harm are collateral damage that is being used to create “leverage”. Deplorable.

Comment by out of touch Wednesday, Jun 8, 16 @ 10:29 am
What will happen to people if the state does not pay its healthcare providers for FY16 or FY17?

Unitedhealthcare Advantage Insurance Company stated they have not received any money from the state of IL since July 1, 2015, but they still have hope the state will do the right thing. Will they do the right thing before June 30, 2016? This is not a /S!

Comment by Mama Wednesday, Jun 8, 16 @ 10:30 am
@Honeybear

Sorry for putting your troll food here, but where exactly are all these “former” state workers you claim are leaving finding jobs? Illinois has the worst unemployment in the nation. Jobs “better” than what they’ve got on the state payroll are few and far between, especially in Springfield.

There just aren’t a lot of jobs out there for people who’ve done clerical work for the state for years, or who provide counseling. There just aren’t many private sector jobs out there for “social services”. I believe IDOT still punishes those in engineering who go to work for consulting firms by not letting them work on IDOT projects for years.

Early pension would seem to be about the only option for them…

Comment by Illinois Bob Wednesday, Jun 8, 16 @ 10:39 am
A tax increase may be a necessity but which taxes will be raised and who will pay.

The default option still appears to be a significant increase in the state’s flat income tax on individuals, meaning the heaviest burden of the increase will fall on the state’s middle class. For over a decade, middle class income has been stagnant, and has even gone down some, nationally. Never mind. There are some ideas percolating to make the state tax system less burdensome and regressive but it’s not at all clear that any of those ideas will be implemented. More specifically, it’s not even clear that there will be a property tax freeze to offset the income tax increase or that Rauner’s talk of a service tax will be more than talk.

So waiting and sending a large bill to the working/ middle classes after the November election may end up being the easy button for our political masters.

Not sure our rather inattentive voter population is fully aware of that.

Comment by Cassandra Wednesday, Jun 8, 16 @ 10:43 am
==children with disabilities==

Illinois has been one of the worst states for the disabled for too many years. Like United Cerebral Palsy’s last report says

=All States still have room for improvement, but some States have consistently remained at the bottom since 2007, including Arkansas(#49), Illinois(#47), Mississippi(#51) and Texas(#50)=

Comment by Formerly Known As... Wednesday, Jun 8, 16 @ 10:46 am
“fully paid for” is the joke unless you consider “magic beans” as currency and “robbing Peter to pay Paul” as “no new revenue”

Comment by Markus Wednesday, Jun 8, 16 @ 10:50 am
== Very true that we can’t cut our way out of this mess, but we can’t tax our way out either. One thing governments have proven time and time again is that if you give them money, they will find a way to spend it all — and paying down debt is never a priority. ==

In the past, I have suggested new taxes have specificly designated purposes, that they be temporary in nature, and that they specifically can not be used to backfill (like lottery / education) but must be net additional payments to their specific purposes, and they sunset once that purpose is achieved. THAT is how you stop new spending / wasting of new tax revenues.

The numbers I’m going to just throw out are off the top of my head and a starting point for discussion, not Gospel. Let IDOR and the other budgeting people do a unbiased analysis and come up with more refined numbers.

How about a 1.5% increase in the flat income tax for paying off the $110B pension debt and a 0.25% increase for paying off the $6B - $17B (pick the estimate you like) backlog of bills down to current (defined as 90 days or less).

I’m guessing the bill backlog tax will be around about 5 - 7 years and the pension tax 15 - 20 years. Considering some of this mess took 40+ years to create, that wouldn’t be too bad a time line.

Comment by RNUG Wednesday, Jun 8, 16 @ 10:50 am
RNUG +1

COFGA estimates a 1% increase generates about $4.1B per year in additional revenue. See 3yr Budget Forecast

Comment by Markus Wednesday, Jun 8, 16 @ 11:02 am
Mama- which would be worse, having the guts or being gutless???

Comment by Anon221 Wednesday, Jun 8, 16 @ 11:11 am
Flat tax = bigger chunk of working class paycheck than a wealthy person’s paycheck.

This isn’t the 1% vs. public worker unions, this is the 1% and working class vs. unions and the poor (with a “kids/schools” overlay). That’s why it’s so friggin difficult to come up with a plan to support without getting rid of the flat tax.

My question: what revenue sources are there that pass state constitutional muster but affect the wealthy more than than working class? I know this is a drop in the bucket, but one thing I’ve suggested is Chicago should convert Northerly Island back to a business-based airport or sell it - your average Chicagoan never or hardly uses it, definitely not when the alternative is such a meaningful bite out of their paycehcks.

Comment by lake county democrat Wednesday, Jun 8, 16 @ 11:28 am
I have the impression that the general public isn’t too happy with public pension expenditures, especially since pensions are disappearing in the private sector. A designated tax for public pensions might be a political loser.

Comment by Cassandra Wednesday, Jun 8, 16 @ 11:35 am
=When will they be honest and rename themselves “voices for Illinois public unions”?=

Please explain.
Do you think this means that the Governor is winning or losing in his stated stratagem to pit social services against unions?

Comment by Qui Tam Wednesday, Jun 8, 16 @ 11:41 am
RNUG @ 10:50am had excellent suggestion to get us out of this financial malaise. Have those extra taxes dedicated to paying down the pension debt as well as our huge backlog of debt.

Comment by Anonymous Wednesday, Jun 8, 16 @ 11:47 am
In my book, knowing what needs to be done, but being gutless to do it is worse!

Comment by Mama Wednesday, Jun 8, 16 @ 12:10 pm
== Jack Kemp - Wednesday, Jun 8, 16 @ 10:07 am:
How about:
9) The Governor and Republican legislative leaders presented bills that fully fund schools, social services, and the agencies for the remainder of the calendar year. They require no new revenue and are fully paid for. Furthermore, they are not attached to any stipulation to first pass reform items from the Governor’s Turnaround Agenda. Speaker Madigan said “No,” to these bills.==

Dear Jack, the Governor introduced his 1,000 page stopgap budget bill at the very last minute. All new bills have to go thru 3 readings on 3 different days. If his bill would have been presented 3 days or a week sooner, it could have gone thru the 3 readings required by law. Both Cullerton and Madigan told the governor there was not enough time to pass it before the legal deadline. Geesh!!!

Comment by Mama Wednesday, Jun 8, 16 @ 12:20 pm
== A designated tax for public pensions might be a political loser. ==

The IL SC has ruled the pensions MUST be paid, no choice. What the politics is doesn’t matter. All that matters is the math and finding a way to pay it.

Comment by RNUG Wednesday, Jun 8, 16 @ 12:37 pm
so how long until somone offers Emily double her pay to hire her away…. State Farm nudge nudge

Comment by Ghost Wednesday, Jun 8, 16 @ 1:03 pm
Illinois Bob, you are correct about the jobs but only at the clerical, lower level positions. They are stuck. The professional group, of which I consider myself still have options in the private sector, some out of state, MO for instance right next door to me. Others are going back to former careers. Several General Counsels I know are about to go back to their old firms. The jobs for the higher quality folks are out there. I’m sure those landing spots aren’t dependent on state contracts. I know of several going to big financial houses in Chicago. Their knowledge of state government will be useful when this is over. Some are getting out now to wait out their “revolving door” time. This is my calling so I’m not getting out but I could always go back to chaplaincy. I saw two positions just the other day. And yes, we have the nations worst unemployment but a lot depends on where you live and what your skills are.

Regardless, people are trying to get off this sinking ship before September if possible and by July 1 ideally. I do wish one of the data wizards would find the stats on the current number in the workforce as opposed to Jan 2015. From my vantage point Bob, people are getting out. That’s just not good. We need to retain the best people we can. I know that’s not your opinion. You want the lowest cost worker above all. And that’s probably what is going to happen.

Comment by Honeybear Wednesday, Jun 8, 16 @ 1:34 pm
Mama- could not agree more! Wonder if the 7 ( at least those up for reelection are going to learn that lesson. I hope so!

Comment by Anon221 Wednesday, Jun 8, 16 @ 1:39 pm
@honeybear

=We need to retain the best people we can. I know that’s not your opinion. You want the lowest cost worker above all. And that’s probably what is going to happen.=

You’ve got me wrong, honeybear. It’s not just cost that’s my concern, it’s VALUE for the cost.

For example, if a teacher can educate 30 students at better outcomes than another that can only educate 15 students, I have no problem paying the more productive and better quality teacher about double the pay.

What I DO have a problem with is paying a senior faculty member double the pay of a more effective teacher with the same student and class load, regardless of experience and graduate work.

Unfortunately that’s what public unionism in education has foisted upon us.

Comment by Illinois Bob Wednesday, Jun 8, 16 @ 4:28 pm
Well, actually, politics do matter. Even if Rauner were to drop his agenda fully, he and legislators would still be looking for the least politically risky way to raise revenue. We’re going to raise your taxes to fund the pensions and here’s by how much doesn’t seem like a winner. Better to leave it vague. Most folks, I’d guess, don’t get that the pensions are protected by the constitution. Or they don’t believe it, judging by the number of unconstitutional proposals we regularly see even on this blog.

Comment by Cassandra Wednesday, Jun 8, 16 @ 5:03 pm
-Cassandra-

My long response must have got lost.

Short version: someone needs to tell the public the truth. We’ve wasted years trying to wish the pension debt away instead of paying it.

Comment by RNUG Wednesday, Jun 8, 16 @ 11:29 pm