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* UPDATED x1 * CTBA: Almost one of every five spending dollars isn’t funded by governor’s budget

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* The Center for Tax and Budget Accountability took a look at yesterday’s budget address. Here’s some of what they found…

The speech broke little new ground, and repeated some long debunked myths. CTBA is combing through the details of the proposed budget, and will be providing more in-depth analysis over the next few days and weeks. […]

The first is that the Governor has proposed a budget with a $4.57 billion deficit — at a time when the state is projected to begin the next fiscal year with as much as $13.5 billion in unpaid bills. Even discounting that backlog, nearly $1 of every $5 the Governor proposes to spend on General Fund services is not paid for. […]

One of the most glaring inaccuracies in the speech was that Illinois has the nation’s fifth largest state and local tax burden. This ranking comes from a Tax Foundation report that includes taxes paid to other states. If you look only at taxes actually collected by governments in Illinois, then our state ranked just 27th in state and local tax burden as a percentage of income in 2014 — slightly below the median. And 2014 was before the phase-down of the temporary income tax increase; if our income tax had been what it is now, CTBA estimates Illinois would have ranked 37th, tied with Idaho and Texas. […]

The Governor’s demand for a permanent property tax freeze is not sound fiscal policy either. Freezing the main revenue source for local governments and public education will cause severe strain in communities across the state. Indeed, such an initiative would make it virtually impossible for communities to maintain adequate levels of such basic services as police and fire protection. This is an especially questionable proposal now, given that recent state law imposed a significant increase in pension funding requirements on local governments that will continue to grow over the next two decades. [Emphasis added.]

*** UPDATE *** The Senate Democrats have posted their own analysis of the governor’s budget plan. Click here to read it.

posted by Rich Miller
Thursday, Feb 16, 17 @ 11:58 am

Comments

Yes, what Ralph said. Agree 100%.

Comment by Chicago Cynic Thursday, Feb 16, 17 @ 12:04 pm
That any “conservative” could claim Rauner as a fellow conservative is beyond the pale with the content of this summary.

Comment by don the legend Thursday, Feb 16, 17 @ 12:13 pm
Fake Budget.. where is Sean Spieser when we need him

Comment by Wow Thursday, Feb 16, 17 @ 12:14 pm
If they would have listened to Ralph 13 years ago, we wouldn’t be in the shape we are now.

Comment by JS Mill Thursday, Feb 16, 17 @ 12:22 pm
Seems like a report that Dems could hang a few good messages from.

Comment by My New Handle Thursday, Feb 16, 17 @ 12:26 pm
Do we get a side of phoney baloney with Bruce Rauner’s snake oil?

Comment by Precinct Captain Thursday, Feb 16, 17 @ 12:29 pm
===Seems like a report that Dems could hang a few good messages from.===

And those messages have the added benefit of actually realistically describing the relative tax burden here in Illinois.

Comment by PublicServant Thursday, Feb 16, 17 @ 12:30 pm
===nearly $1 of every $5 the Governor proposes to spend on General Fund services is not paid for===

He’s workin’ hard on that grand bargain stuff to take care of that though…while he sits on the sidelines. Real superstar, he is.

Comment by Anonymous Thursday, Feb 16, 17 @ 12:33 pm
the only way to responsibly limit local property tax levels is to have the State fund education at 50% or more, as the Constitution implies.

Comment by c Thursday, Feb 16, 17 @ 12:34 pm
“The problem is not with the rate of government spending. The problem is that our revenue system is outdated and creates a permanent structural deficit. Until we address the revenue side of the fiscal ledger, Illinois will not be able to cut or grow its way out of the deficit.”

⸨⸨mic drop⸩⸩

– MrJM

Comment by @MisterJayEm Thursday, Feb 16, 17 @ 12:34 pm
One of the biggest reasons I was not a fan of Rauners was his being more interested in spending than Madigan. Please use his budget proposal and this article as proof. Too bad there is no fiscal republican to try and run against him. David vs Goliath would get traction.

Comment by Echo The Bunnyman Thursday, Feb 16, 17 @ 12:43 pm
It isn’t hard to see why someone with nine homes would want a permanent freeze on property taxes.

Comment by Enviro Thursday, Feb 16, 17 @ 12:45 pm
Is there any way we can package our unpaid bills as derivatives and sell them on the open market? /s

Comment by Ducky LaMoore Thursday, Feb 16, 17 @ 12:54 pm
The Tax Foundation report (from 2012) where Rauner gets his #5 ranking is here:

https://taxfoundation.org/state-local-tax-burden-rankings-fy-2012

But Martire’s numbers are wrong as well. If you remove “taxes paid to other states” as he suggested, Illinois still ranks 5th in taxes paid to own state based on income per capita. And for “Taxes Paid to Own State per Capita”, Illinois ranks 7th highest.

Martire is correct that these numbers reflect the expired tax rate, so Illinois is undoubtedly lower. And this report is using 5 year old old numbers. But it seems the true answer is somewhere in between.

Comment by City Zen Thursday, Feb 16, 17 @ 1:03 pm
Ducky, unpaid bills are being sold already. Sweet business for the clout heavy, as they buy lowland get paid with lots of extra juice.

Comment by wordslinger Thursday, Feb 16, 17 @ 1:05 pm
The median household income in this state is $60,000. The proposed 5.25% income tax means an *extra* $900 out of that budget. So no, I don’t think you can take government spending out of the equation. Given the state’s constitution mandate of flat income tax rates, if you’re going to put balancing the budget on the backs of the middle class don’t you need to make equally painful cuts on the spending side? I don’t see that in the grand bargain.

Comment by lake county democrat Thursday, Feb 16, 17 @ 1:06 pm
Lake county democrat… there are no cuts. Just more spending. Us folks know cuts and revenue is needed. This governor is many things. A fiscal conservative is not one.

Comment by Echo The Bunnyman Thursday, Feb 16, 17 @ 1:20 pm
But Echo, wasn’t it you who sang “Spare us the Cutter”? (Sorry, couldn’t resist!)

Comment by lake county democrat Thursday, Feb 16, 17 @ 1:23 pm
No. I sang Bring IN the cutter… fixed that. Ha

Comment by Echo The Bunnyman Thursday, Feb 16, 17 @ 1:38 pm
Social and economic justice through data driven policy……I wonder what that means?

Comment by blue dog dem Thursday, Feb 16, 17 @ 1:39 pm
The CTBA’s statement about the inaccuracy of the oft-repeated claim that IL has the nation’s fifth highest state/local tax burden caught my attention. Following the link to the Tax Foundation’s 2012 report proved very interesting and demonstrated the importance of understanding what is being measured and how.

An example directly from the TF’s report shows how tax burden was calculated: “When Illinois and Massachusetts residents own second homes in nearby Wisconsin or Maine, respectively, local governments in Wisconsin and Maine will tally those property tax collections, but we [i.e., the TF] shift those payments back to the states of the taxpayers.” The TF assigns these taxes not to where they are paid (WI or ME) but to the states where the payees reside (IL or MA). The same technique is applied to tax payments included in the price of goods produced in one state but sold to consumers residing in other states.

This methodology may be useful for economists studying the interstate flow of tax dollars, but it is highly misleading when applied to the tax policies of individual states. In the case of IL, it has warped the public debate on the role tax revenues may have in addressing the State’s lamentable financial condition.

Comment by Flapdoodle Thursday, Feb 16, 17 @ 1:56 pm
All who think they are not taxed enough raise your hand.

Comment by Blue dog dem Thursday, Feb 16, 17 @ 2:30 pm
BDD — simple is as simple does

Comment by Flapdoodle Thursday, Feb 16, 17 @ 2:37 pm
Yes. I am a simpleton. Also been called a deplorable. But most proud of the label ‘fiscal conservative’. Let me guess about you…..realist? Progressive(that one always makes me laugh)? Liberal? Public servant?

Comment by blue dog dem Thursday, Feb 16, 17 @ 2:47 pm
*Raises hand*

Comment by Precinct Captain Thursday, Feb 16, 17 @ 3:07 pm
–Yes. I am a simpleton. Also been called a deplorable. But most proud of the label ‘fiscal conservative’–

You’re also your favorite subject here. Doesn’t matter the topic at hand, Ol Blue (as he calls himself) finds a way to talk about himself.

Comment by wordslinger Thursday, Feb 16, 17 @ 3:17 pm
Just did my taxes. Made a little more than last year. Goin’ to get back 100 more dollars than last year (I got back 27 last year). So droppin’ the tax rate did not really benefit me and raisin’ it did not hurt me.

And just think what would have happened with that tax increase stayin’ around and followin’ a fiscally conservative strategy (payin’ bills).

The backlog would be gone.

Governors own it. Rauner owns it.

Comment by Dr X Thursday, Feb 16, 17 @ 4:20 pm
BDD — “Let me guess about you . . . ” Not really a matter for guessing, is it?

But in any case, I like to think of myself as . . . a citizen.

Comment by Flapdoodle Thursday, Feb 16, 17 @ 4:39 pm
@City Zen

I think Martire is right and you are wrong.

“Tax Burden” isn’t measured as a per capita raw dollar amount, but as a percentage of income.

If I pay $2000 in taxes and you pay $5000 in takes, but I make $20,000 a year and you make $500,000 a year, I have the higher tax burden.

Illinois’ per capital taxes are higher because illinois median income is higher than most states.

Comment by Yellow Dog Democrat Thursday, Feb 16, 17 @ 5:22 pm
=== I’m a fiscal conservative. ===

Does that still mean paying one’s bills and not going into debt for operating expenses?

Comment by Anon Thursday, Feb 16, 17 @ 8:30 pm
Yup. Thats what makes Rauner a free spending, typical politician.

Comment by Blue dog dem Thursday, Feb 16, 17 @ 8:31 pm