Capitol Fax.com - Your Illinois News Radar

Tribune, Daily Herald give Senate deal some breathing room

Posted in:

Illinois

In a perhaps unprecedented move, Senate President John Cullerton and Republican Leader Christine Radogno will present to their members a proposal that’s like a Jenga game — remove one cube and the whole thing collapses. […]

Without analyzing each Jenga cube, we’re on board with the idea of nudging the fragile tower forward. We agree with Radogno’s description of this proposal — at this point in Springfield, it’s this something vs. everyone else’s nothing. Waiting for a more critical development, a more perfect policy package, a less painful strategy, hotter pressure from bond markets or constituents, would only continue the status quo.

Is a “do something” strategy the ideal way to proceed? Not even close. There are 100 reasons senators could collapse the Jenga tower. Perhaps most difficult to swallow will be the proposed tax hikes, which include an increase in the personal income tax from 3.75 to roughly 5 percent, along with a new state tax on sweetened beverages. Those proposals could change; the tax hike bill, along with many of the others, is not the final product. […]

But we agree with Radogno that at this point, given this sorry state, what she and Cullerton are doing is something vs. nothing. If passed in the Senate, it will put pressure on Madigan’s House and on Gov. Bruce Rauner to react.

The most interesting part of that editorial was in its description of our current environment as the “status quo.” The Trib has formerly relegated that phrase to the decades before Gov. Rauner was elected. So, is that an admission that we’re now in a whole other realm? We’ll see.

The editorial also concluded with the admonition that it was waiting to see all the bills before issuing its final opinion. So, things could change.

* The Daily Herald’s editorial board issued a very similar opinion…

As to the grand deal itself, we can say this: We appreciate the political courage Cullerton and Radogno are displaying in putting the state’s interests above their own, risking the political fallout from special interests and partisans.

We are not ready, at least not yet, to sign onto the entire proposed 13-point proposal that would include a significant increase in the state income tax and an expansion of legalized gambling. We do, however, agree without reservation with many aspects of the plan — a property tax freeze, the leadership term limits, workers’ compensation reform.

And it is clear that Illinois is not going to solve its significant problems and rebuild its reputation, is not going to stop the exodus of families and businesses fleeing the state, unless our two parties work seriously together in a spirit of cooperation and compromise.

No matter anyone’s positions on the proposed grand deal, the two Senate leaders deserve everyone’s thanks for their willingness to put themselves on the line.

* But the Northwest Herald is having nothing of it…

We’ve got to hand it to Senate leaders; they don’t discriminate. Their proposal is equally bad for middle class wage earners and business owners.

“The Senate budget proposal is an absolute disaster,” Rep. David McSweeney, R-Barrington Hills, said. “Raising the income tax rate by 32 percent, or even up to 40 percent, would crush taxpayers.

“We need to cut spending, not raises taxes. This would be the final nail in the coffin of the state of Illinois. … We lost 115,000 people [to outmigration] last year. This will drive even more people out of the state. …”

We urge state senators, including Sen. Pam Althoff, R-McHenry, and Sen. Karen McConnaughay, R-St. Charles, to reject this plan.

* And the Sun-Times doesn’t want radical changes in the workers’ compensation insurance component…

One way to cut costs without further reducing worker benefits would be to give the Illinois Department of Insurance the authority to ensure workers’ comp insurance companies aren’t getting excessive profits. That’s a safeguard that already exists in many other states.

Setting workers’ comp benefits at a reasonable level can help Illinois’ economic competitiveness. But Illinois shouldn’t expect to have lower workers’ comp costs than its neighbors. Part of the formula for calculating workers’ comp premiums is the total amount of employer payrolls. Because Illinois has higher average incomes than adjoining states, it can’t expect its workers’ comp rates to be lower.

Cullerton and Radogno are pushing for a bipartisan solution to a political impasse that has forced Illinois to stagger along without an annual budget for more than a year and a half. We support that effort. We also trust they can get the job done while preserving a fair workers’ comp system.

* Related…

* Phil Kadner: Small ray of hope for fairer school funding in Illinois

posted by Rich Miller
Monday, Jan 23, 17 @ 9:45 am

Comments

So McSweeney says we shouldn’t raise taxes, we should cut spending. Of course he neglects to say cut what?

McSweeney and his ilk have had 2 years, and more, to lay out their plan, but we only get generalizations.

Cullerton and Radagno have stuck their necks way out. At least the naysayers should stick theirs out a little.

Comment by Sir Reel Monday, Jan 23, 17 @ 9:55 am
“…they don’t discriminate. Their proposal is equally bad for middle class wage earners and business owners.”

Confirming the Northwest Herald doesn’t care about poor people, who by the way, pay taxes too.

McSweeny is another guy I’d love to put in charge of $32 billion lump sum. Cut all that “waste, fraud and abuse” and then run statewide, Dave.

Comment by Telly Monday, Jan 23, 17 @ 9:55 am
To all those critical of this very welcome work in the Senate, I say I look forward to seeing your alternatives.

Comment by Ron Burgundy Monday, Jan 23, 17 @ 9:59 am
===McSweeny is another guy I’d love to put in charge of $32 billion lump sum. Cut all that “waste, fraud and abuse” and then run statewide, Dave===

No, unless this is snark, the lump sum premise is not a budget and leaves vulnerable not only the citizens of the state, but the agencies that have specifically required missions that also have fluid budgets that, by unintended circumstances, won’t be fulfilled and could lead to federal issues of funding failing, let alone the human costs that many see as “collateral damage”

To even sound thoughtful to the idea, 6,217 MOUs would be required, so why not its do the budget?

It’s foolish to ponder, and Quinn proved that foolishness in reality.

Comment by Oswego Willy Monday, Jan 23, 17 @ 10:01 am
…”would crush taxpayers…” with the lowest state income tax rate of any of the contiguous states. Get real. Taxes are the bill we pay for roads, cops, teachers. Ideology and “alternative facts” over reality, for this crowd.

Comment by Ray del Camino Monday, Jan 23, 17 @ 10:06 am
The average household income in McSweeney’s district is $188K, meaning their rates would go up $2800. That’s far from “crushing”, especially considering Bruce is currently running $11 Billion in the red.

Comment by Jocko Monday, Jan 23, 17 @ 10:16 am
== Their proposal is equally bad for middle class wage earners and business owners. ==

Isn’t the definition of a good compromise that nobody is happy with the deal?

Comment by RNUG Monday, Jan 23, 17 @ 10:18 am
>We appreciate the political courage Cullerton and Radogno are displaying in putting the state’s interests above their own, risking the political fallout from special interests and partisans.

I heartily second the sentiment. As far as the final package goes, the only thing I think is for certain is that there will be something in there for everybody to hate. That’s leadership and it is refreshing to see.

Comment by Earnest Monday, Jan 23, 17 @ 10:18 am
Raunerites are going to torpedo the deal I m afraid. If they don’t they will have destroyed the state for nothing. Yet they are facing the same facts as in Paradise Lost. “round he throws his baleful eyes that witness’d huge affliction and dismay mixed with obdurate pride and steadfast hate. ” Rauner led his people to “dismal situation waste and wild”. His pride, his hubris in the TA, his steadfast hate of labor led him to rebel against the very concept of governing. And look where we all are.

Comment by Honeybear Monday, Jan 23, 17 @ 10:19 am
If the Senate plan moves the discussion closer to 30 and 60, then it should continue. Indeed, it may be the only game in town.

Comment by Anonymous Monday, Jan 23, 17 @ 10:23 am
I have no problem with an increased income tax rate. The problem with SB1-13 (SB1 is a shell bill that will cost plenty once the real bill is revealed) is it requires much higher income taxes than 4.9 % or vastly greater cuts or as always a combo of both.

Here lies the problem.

Comment by Rod Monday, Jan 23, 17 @ 10:27 am
Notice to all Democrats and progressives. Need i remind you that your party no longer cares about the working poor and middle classes.

Comment by Blue dog dem Monday, Jan 23, 17 @ 10:37 am
===…”would crush taxpayers…” with the lowest state income tax rate of any of the contiguous states. Get real. Taxes are the bill we pay for roads, cops, teachers. Ideology and “alternative facts” over reality, for this crowd.===

Oh, I forgot that we only pay income tax…

Tax burdens as of April 2016 (https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494/):

Wisconsin - 10.32%
Illinois - 10.19%
Indiana - 9.18%
Iowa - 9.15%
Kentucky - 8.70%
Missouri - 7.90%

Comment by WheatonWillie Monday, Jan 23, 17 @ 10:37 am
===We lost 115,000 people [to outmigration] last year.===
Well if you are going to save $6 billion through cuts instead of raising taxes that means you would be cutting jobs. If the average wage was $52,000, guess what? You would need to cut 115,000 jobs somewhere. Not exactly going to help the economy with that many more people scanning the help wanted ads.

Comment by Been There Monday, Jan 23, 17 @ 10:39 am
- WheatonWillie -

(I’m always fascinated by all the “Willie” commenters, since I can’t remember that many “Willie” kids growing up, but I digress… )

If you’re saying the tax burden is “too high”, and there is a $2.3 billion deficit that requires to be plugged.

“Get off my lawn” isnt filling that hole, so… “Willie”… how do you think that needs to go?

Show your work, and skip “waste, fraud, and abuse…”

Comment by Oswego Willy Monday, Jan 23, 17 @ 10:58 am
“…they don’t discriminate. Their proposal is equally bad for middle class wage earners and business owners.”

If there was a plan (a real, balanced revenues to expenditures type plan) that most people liked, it would have been done long ago. The problem is a starting point of owing a lot of money, and going forward with a high volume of people wanting to get stuff, and a dearth of people wanting to pay for the back bill or new stuff.

Comment by titan Monday, Jan 23, 17 @ 11:06 am
So using the BigBrain cipher tool the Shaw Media Group edit in McHenry offers a clue on how confusing this all is. Guessin’ we can expect IPI outlets (Shaw in that cabal) to trash this effort.
HMMM

Comment by Annonin' Monday, Jan 23, 17 @ 11:23 am
So, to get to $6 billion in cuts, eliminate: Dept on Aging, Ag, DCFS, DCEO, DNR, DJJ, Human Rights, DoL, DPH, State Police, Arts Council, EPA, Law Enforcement Training Bd, SWIDA, ISP Merit Bd, State Fire Marshall, CSU, EIU, GSU, NEIU, NIU, WIU, IMSA, then cut $2 billion from HFS/DHS that will result in loss of at least another $2 billion in federal dollars. That should get you around $6 billion GRF/other state funds. Probably some losses in Fed funds in all those departments too DCEO has lots of fed match dollars. This is why no one will show you a real plan that is only cuts in spending.

Comment by 100 miles west Monday, Jan 23, 17 @ 11:26 am
Willy,

Why so defensive? All I did was post the tax burdens of Illinois and the surrounding states.

Fact of the matter is, Illinois IS a highly taxed state. That is a fact. When you add everything up, do you really need to question why people feel nickel and dimed especially in Chicago and Cook? Chicago is almost literally the municipality referred to in the Beatles “Taxman.”

The whole purpose of my post was to illustrate the fact that you can’t look at the income tax in a vacuum. Raising the income tax a point or a point and a half simply adds to the tax burden here. Full stop.

I don’t have the answer to this mess and I don’t claim to. I can’t say the same for you, though. In reading all of your posts, you seem to have all the answers all the time. Maybe you should run for office.

Comment by WheatonWillie Monday, Jan 23, 17 @ 11:40 am
- WheatonWillie -

I’m not defensive, I just know passive trolling.

Also, you admit your drive-by is fueled by your inadequacy to find an answer you admit you don’t know, and then decide to make it about me.

And you wondered why I began my comment mocking you? lol

Comment by Oswego Willy Monday, Jan 23, 17 @ 11:55 am
Just spent a bunch of time looking at sites that claim to calculate total tax burden and their methodology. While they look at state level income and sales taxes, a lot of them ignore local sales and income taxes. Most of them do include local property taxes.

Found that Forbes seems to be one of the best in including everything. Their total tax burden calculations for 2016 with an income of $50,000 range from 12.7% down to 6.5%. Illnois is 5th at 11%. But we aren’t that much of an outlier since 28 states (not including Illinois) are between 9% and 11%. And let’s be honest here, if you live outside Cook and the collars, your total rate will be lower.

Comment by Anonymous Monday, Jan 23, 17 @ 12:30 pm
Anonymous @ 12:30 was I

Comment by RNUG Monday, Jan 23, 17 @ 12:47 pm
=== We lost 115,000 people last year ===

That’s despite the biggest tax cut in state history when most of the temporary tax hike expired.

Comment by Anon Monday, Jan 23, 17 @ 12:59 pm
So, according to the Tribune, “no budget” is the status quo, and merely proposing a budget is a bold, disruptive, outside-the-box act.

We’re officially in Bizarro Illinois.

Comment by tobias846 Monday, Jan 23, 17 @ 4:43 pm