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Unclear on the concept

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Illinois

One of McHenry County’s state senators is half of a partnership that has developed and released a proposed balanced Illinois budget that doesn’t raise taxes.

Calling Republican Sen. Dan McConchie’s plan a long shot at ending an almost two-year budget impasse is an understatement. Besides the ongoing stalemate between Republican Gov. Bruce Rauner and Democratic House Speaker Michael Madigan, the Democratic Party holds a Senate supermajority, and all eyes have been on a proposed but apparently stalled “grand bargain” that couples some reforms with massive tax increases.

But McConchie’s proposal, he told the Northwest Herald Editorial Board on Thursday, does what other budget proposals have not by proving that the state budget can be balanced without asking taxpayers for more.

“To date, we’ve said only, ‘We need more of your money.’ We can now say, ‘Here’s what it looks like to live within our means, and let’s have a conversation about this,’ ” said McConchie, R-Hawthorn Woods.

Except, his package of bills hasn’t yet been introduced. So far, it’s just a press release. And a press release doesn’t mean that he “has developed and released a proposed balanced Illinois budget that doesn’t raise taxes.”

posted by Rich Miller
Wednesday, Apr 19, 17 @ 10:15 am

Comments

Is this the “Taxpayer Bargain”? Sure, dump all the pensions on the locals and then don’t let them raise taxes to make the payments. Brilliant

Comment by JohnnyPyleDriver Wednesday, Apr 19, 17 @ 10:16 am
Do not let the facts get in the way of a good press pop. Gosh Rich you are so demanding.

Comment by DuPage Bard Wednesday, Apr 19, 17 @ 10:26 am
Can’t wait to see the magic beans they’re using for this plan.

Comment by Norseman Wednesday, Apr 19, 17 @ 10:31 am
Unfortunately, for every Quad-Cities editorial board that finally gets it, there’s a suburban “political reporter” rewriting press releases who doesn’t.

Comment by Michelle Flaherty Wednesday, Apr 19, 17 @ 10:32 am
Last week, my local weekly, throw away free paper printed details of this “Bargain” thanks to Sen McCarter.

More details are here -
http://theshoppersweekly.com/politics/gop-senators-unveil-taxpayer-bargain/

Comment by illini Wednesday, Apr 19, 17 @ 10:34 am
The Herald is telling its readers something exists when they have no evidence that it does.

Lazy, complicit or both?

Comment by wordslinger Wednesday, Apr 19, 17 @ 10:46 am
Tip of the hat to Illini for the link.

So, if I understand this impossible dream of a cluster of a “not yet a bill” they will shift annual pension costs to schools over 5 years (not the 5x larger debt payment) and shift education funding to the state?

That is what it says. Oh, and lest we forget the old cost savings (not really) of mandate relief.

What is not to like? Probably reality.

What the “not yet a bill” likely does is partially offset the increased cost of pension cost shift with a potential (believe it when I see it) increase in state funding (the check is in the mail) along with a permanent property tax freeze that hurts the one reliable source of revenue for schools and local government.

I say let’s do it.

The public will be surprised by the real outcomes which will be a fiscal disaster.

Comment by JS Mill Wednesday, Apr 19, 17 @ 10:46 am
After looking at the article referenced by illini, this looks similar to Quinn’s old DoomsDay stuff. Didn’t IPI just do the same all cuts thing a couple of weeks ago? After extensive research (and a couple of beers), my committee recommended a basic 15% cut to all cost centers. That’ll work.

Comment by zatoichi Wednesday, Apr 19, 17 @ 10:51 am
“Eat what you want and don’t lose any weight!” Same substance as the late night infomercials.

Comment by Rogue Roni Wednesday, Apr 19, 17 @ 10:56 am
McCarter embracing and giving new life on the GOP side to Madigan’s pension cost shift is the most surprising bipartisan thing I’ve ever seen.

Comment by Michelle Flaherty Wednesday, Apr 19, 17 @ 10:56 am
OMG you reveal “TB” has not been introduced? How rude. Like that is important? Certainly not to the NW Herald…maybe we should start a countdown clock on when the McMagoos will slap this on the Sec of Senate’s inbox

Comment by Annonin' Wednesday, Apr 19, 17 @ 11:00 am
A plan that doesn’t raise taxes! Since we’re doing so well at 3%, why not eliminate that 3% and give everyone tax relief? Unburden the taxpayer. Should do just fine.

Comment by AnonymousOne Wednesday, Apr 19, 17 @ 11:03 am
==Unfortunately, for every Quad-Cities editorial board that finally gets it, there’s a suburban “political reporter” rewriting press releases who doesn’t.==

I wish that were the case, but from what I’ve seen there appear to be at least 10 press release rewriters for every editorial board that gets it

Comment by AC Wednesday, Apr 19, 17 @ 11:12 am
I think they left out a little: “a partnership that has developed and [press] released [a claim that they have developed] a proposed balanced Illinois budget that doesn’t raise taxes [but we can’t really see this “budget” yet to check it out.”

Comment by titan Wednesday, Apr 19, 17 @ 12:06 pm
== Can’t wait to see the magic beans they’re using for this plan. ==

This one is using the pot at the end of the rainbow.

Comment by RNUG Wednesday, Apr 19, 17 @ 12:14 pm
Straightforward question for McChonchie - does this include fund sweeps? If so, which funds and how much?

Comment by Smitty Irving Wednesday, Apr 19, 17 @ 1:15 pm
Using the link, let’s take this apart bit by bit.

== There are spending reductions of 10 percent at state agencies. Universities will be asked to reduce spending by 5 percent ==

Especially with the State agencies, where are you going to get another 10% after the multiple year cuts under Quinn? And will those cuts lose any Federal matching funds?

As to the university cuts, aren’t the universities part of the education system whose funds you pledged to protect? Or do you just intend to protect K-12 funding?

== retailers will see a reduction in the discount rate for sales tax collections from 1.75 percent to one percent. ==

Isn’t that, in effect, a hidden tax hike on businesses, especially small businesses?

== Governor must negotiate changes to employee group health care and AFSCME contract wages ==

In other words, the Governor’s version of the AFSCME contract has to be part of the deal and everybody gets screwed on the health insurance.

== Borrow $7 billion and reform Prompt Pay Act – Pay off past due bills and reform Prompt Payment Act to Federal level. Could realize savings of $500 million by eliminate late charges. ==

With an estimated $12B backlog (not necessarily including what is held in the agencies), the borrowing seems a bit short. And where is the money to make the bond payments coming from?

== Any revenue increase over projected revenue is distributed as follows: 25% to education 25% for roads & bridges, 10% towards pension legacy costs and 40% to payoff unpaid bills. ==

Read that again. Pension legacy costs must not be considered unpaid bills since they get the smallest portion of any new revenue. And is this new revenue what they are counting on for the backlog bond payments?

== The ‘Taxpayer Bargain’ budget includes modernizing the state’s public pension systems ==

== Moves new state employees to a modern, hybrid pension plan. (President Cullerton’s legislation) ==

Still waiting for someone to explain how a new Tier 3 / 401K is cheaper. This is going to cost more, not less.

== Public pension cost shift to schools, universities and local governments in exchange for financial relief from unfunded state mandates. ==

Helps the State budget but dumps the current pension cost on the local districts. This will actually take money away from classroom eduction unless the State matches the cost they are shifting, or the local districts cut back on their offerings; I assume this is the mandate relief.

== Refinancing current pension bonds – interest savings ($600 million) goes to paying off old bills ==

If they can save the money, fine … but notice again the distinction between past bills and pension debt; they want to use the money to pay off bills. One more kick the can action.

I’m not going to address the specific program cuts identified; you can read them on your own.

I will add that there are parts of this plan with merit, but I don’t think it is a total solution … and it doesn’t even a revenue grab in it.

Comment by RNUG Wednesday, Apr 19, 17 @ 1:27 pm
===With an estimated $12B backlog (not necessarily including what is held in the agencies), the borrowing seems a bit short. ===

If you can get that down to about $4-5 billion, you can have 30-day payment cycles again.

Comment by Rich Miller Wednesday, Apr 19, 17 @ 1:59 pm
===Except, his package of bills hasn’t yet been introduced. So far, it’s just a press release.===

For me, this is everything right there with this. “This” and…

“Never mistake activity for achievement” - John Wooden.

Press releases never have bill hearings. Capiche?

Comment by Oswego Willy Wednesday, Apr 19, 17 @ 3:00 pm
Thank you RNUG. I did not have the time to highlight this “Bargain” as you have.

Well done - and thanks for pointing out some of the most egregious shortcomings.

I’m certain my Sen McCarter is very proud of his plan and can simply not understand why everyone is not jumping on board!

Comment by illini Wednesday, Apr 19, 17 @ 3:22 pm