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* From the Illinois Republican Party…
Chicago Tribune: Welcome to the new Illinois. Same as the old Illinois. Except 32 percent pricier.
Madigan’s Tax-Hike, No-Reform Budget is “Business as usual”
“Mike Madigan’s tax hike is just the latest example of the corrupt political system that Governor Rauner is working to change. The people did not want this tax hike, but the career politicians and special interests did. Taxpayers wanted reforms to grow the economy, lower property taxes, and fix our political system through term limits. Thanks to Mike Madigan and his allies, all we’re getting is more of the same.” – Illinois Republican Party Spokesman Steven Yaffe
The Chicago Tribune Editorial board slammed Mike Madigan and his allies last night after Madigan forced through a 32% permanent income tax hike without reform:
Finalizing a 32 percent income tax hike, the Illinois House on Thursday approved a budget for the fiscal year that began July 1. Illinois taxpayers will begin paying a 4.95 percent individual income rate, up from 3.75 percent, retroactive to July 1.
What are taxpayers getting for sending another $5 billion to Springfield?
Business as usual.
You might think that Democratic legislators — for 14 years the primary architects of a financial fiasco that has created enormous taxpayer debts — would acquiesce on pro-growth economic reforms that our neighboring states have adopted.
You might think the majority party would listen to large and small business owners about the urgent need for more reasonable workers’ compensation insurance costs.
You might think Democrats would have advanced another pension reform bill or created a lower-cost, defined contribution plan for new employees, or attempted to change the Illinois Constitution’s crushing pension obligation language.
You might think they would have been alarmed at the exodus of residents escaping to states with lower taxes, far fewer debt obligations and less dysfunction.
You might think Democrats would have agreed to a property tax freeze.
And on every count, you’d be wrong.
…this budget, like those Democrats advanced for the past two decades, also spends taxpayer money on untested, unproven programs. It includes money for pork projects. It includes money for a clouted downstate shooting complex. It includes money for state fairs, fisheries, diversity programs, agriculture studies, and $330,500 above Rauner’s requested amount for Choose Chicago, the city’s public-private economic development arm that doesn’t make its spending public.
What the budget agreement doesn’t do is adopt the sensible, pro-growth reforms Rauner championed as a candidate and during his 2 1/2 years in office. No meaningful workers’ comp changes. No property tax freeze. No major downsizing of the state’s 7,000 units of government. No votes — that’s all Rauner requested — on redistricting reform or term limits to rebuild trust in government.
And while Democratic sponsors said the spending plan should start paying down a backlog of bills and reduce costs in the pension system, rating agencies that monitor state finances weren’t convinced. Moody’s Investors Service cited the state’s crippling debt — again, taxpayers’ crippling debt — as reason to potentially drop Illinois’ bond rating to junk.
…They passed a massive tax hike without addressing their addictive spending that is the root of the debt problem, and they did not adopt pro-growth reforms to get Illinois’ economy humming.
Taxpayers, we wish we could say the additional income you’ll fork over will be the tourniquet that saves Illinois’ failing government and flailing economy.
We can’t say that. The money, we’re afraid, will merely chase debt that, despite this revenue, keeps rising.
A 32 percent tax hike should have been directly linked to a major overhaul of the way Springfield does business.
…Welcome to the new Illinois. Same as the old Illinois. Except 32 percent pricier.
posted by Rich Miller
Friday, Jul 7, 17 @ 9:33 am
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Am I the only one who thinks its dangerous for the crew that promised to “shake up Springfield” to highlight their own failure on that score?
Comment by Arsenal Friday, Jul 7, 17 @ 9:35 am
Reforms would have been nice. It’s up to the voters now.
Comment by Rocky Rosi Friday, Jul 7, 17 @ 9:36 am
===You might think Democrats would have agreed to a property tax freeze.===
Well, when you have a four year property tax freeze on the table that doesn’t get one republican vote, who is to blame that the democrats didn’t pass it?
Comment by Ducky LaMoore Friday, Jul 7, 17 @ 9:37 am
What BS, yes taxes are 1.2% higher and we now can support human services, universities and begin to pay vendors. Does the Trib know how many jobs have been lost as a result of no budget for 3 years?
Comment by independant Friday, Jul 7, 17 @ 9:38 am
=The money will merely chase debt which keeps on rising==
So it’s the fiscally responsible thing to do to not pay down debt and allow to keep rising?
What?
Comment by AnonymousOne Friday, Jul 7, 17 @ 9:39 am
I have to agree with Arsenal. I wouldn’t go with the “Rauner tried to shake up Springfield but failed; he got beat” line.
If the guy can’t do what he said he would, why send him back in 2018? To lose some more?
Comment by illini97 Friday, Jul 7, 17 @ 9:40 am
tl;dr- The last two years of unprecedented destruction accomplished absolutely nothing.
– MrJM
Comment by @MisterJayEm Friday, Jul 7, 17 @ 9:41 am
===Am I the only one who thinks its dangerous for the crew that promised to “shake up Springfield” to highlight their own failure on that score?===
I thought the very same thing when I read the Trib’s Edit Board take…
“Let’s take a look how Bruce Rauner failed on every campaign promise since 2013″
Very helpful to a campaign willing to point out…
…”Rauner has no signed budgets in 3 years, no reforms, a tax increase, and possible junk bond ratings.”
The Trib Edit Board is celebrating the Rauner Failings?
Comment by Oswego Willy Friday, Jul 7, 17 @ 9:42 am
As a conservative republican (at least historically) this strikes me as disingenuous at best and irresponsible at worst.
If it wasn’t transparent that the Governor has purchased the Republican party in Illinois, I’d advocate some change in messaging and tone. Sadly, we will have to wait until the election.
Comment by RhetoricPolice Friday, Jul 7, 17 @ 9:42 am
The last 2 years of unprecedented destruction accomplished soaring debt beyond anyone’s imagination and pain for many ILlinois citizens who depended on services that were cut.
Sound like a great plan?
Comment by AnonymousOne Friday, Jul 7, 17 @ 9:43 am
“The Trib Edit Board is celebrating the Rauner Failings?”
The Tribune Editorial Board is nothing if not intellectually incoherent.
– MrJM
Comment by @MisterJayEm Friday, Jul 7, 17 @ 9:43 am
It is definitely up to the voters now. And this lefty is voting for his Republican representative who voted for the tax increase. I’m going to try to get my liberal/progressive/Dem friends to do so as well. He did the right thing.
Comment by Lefty Lefty Friday, Jul 7, 17 @ 9:46 am
===- independant - Friday, Jul 7, 17 @ 9:38 am:
What BS, yes taxes are 1.2% higher and we now can support human services, universities and begin to pay vendors. ===
I will try paying the State just 1.2% more in taxes on my next return and see if the State is okay with that.
Comment by Shemp Friday, Jul 7, 17 @ 9:47 am
“You might think that Democratic legislators — for 14 years the primary architects of a financial fiasco that has created enormous taxpayer debts — would acquiesce on pro-growth economic reforms that our neighboring states have adopted.”
The Tribune believes the”Pro-growth” reforms that didn’t work in New Jersey, Louisiana, Michigan, Wisconsin or Kansas will somehow “grow” Illinois.
The only thing Illinois needs to adopt from neighboring states are a progressive income tax and get Illinois companies to pay their fair share of taxes.
Comment by Chicago 20 Friday, Jul 7, 17 @ 9:47 am
Oh, and also, the failure cost $10 billion in additional bill backlog, one million Illinoisans were impacted by loss of or reduction of services and thousands of jobs were cut at providers, many never to return.
And in the end he got…what he would have gotten in July 2015.
If this is Rauner, I don’t him anywhere near Springfield after 2018.
Comment by illini97 Friday, Jul 7, 17 @ 9:47 am
Whoopsie, the ILGOP cut out a few lines from the Trib editorial. Happy to help by sharing:
“A 32 percent tax hike should have been directly linked to a major overhaul of the way Springfield does business. That was the intent of the original Senate negotiations on a grand bargain, which this page supported.
**But Rauner, unfortunately, collapsed those talks.**
Many Democrats saw an escape route and took it. Trust evaporated. True compromise didn’t happen. Instead, a tax hike that makes Illinois even more unappealing for employers and other citizens.”
Comment by LakeviewJ Friday, Jul 7, 17 @ 9:49 am
No mention of the photo of Republican Steve Andersson being thanked by Mike Madigan on the front page of the Chicago Tribune.
That is worthy of photo for which you request comments.
Comment by Anonymous Friday, Jul 7, 17 @ 9:54 am
The Republicans could have had more say in the final outcome, but the Governor’s insistence on Democratic capitulation prevented that from happening.
While no one likes a tax increase, no one likes a leader who can’t lead, either. I wouldn’t count Rauner out in the next election because he has shown that he is a master of propaganda, but he is in a much weaker position than he was in the last election which he won by only a small margin.
Comment by Pelonski Friday, Jul 7, 17 @ 9:56 am
One good thing about this whole mess is that we can laugh at anyone who talks about supply-side (tax cuts) as being a fix to anything. We just a public experiment of 2 years of a 25% tax cut, and no change in spending/budget for that whole time. Look at the results- an extra $10B in debt and industry fleeing the state in droves.
Comment by dlapine Friday, Jul 7, 17 @ 9:57 am
This tax level doesn’t even support our present spending level.
What are these Republicans going to do when we have to raise the level to 7-8% in the coming years as the pension ramp really starts to escalate?
The math is undeniable, and if they thought it was a brave vote to not even restore the tax rate to the old level they are in for a surprise when the real hike comes not long from now.
Illinois needs to hike taxes every year just to meet prior commitments, and any talk of new spending (Investment) should be eliminated in Springfield.
Comment by Anon Friday, Jul 7, 17 @ 9:57 am
- We’reNo50 -
I guess all the road construction workers and projects being held up by no budget wouldn’t have effected you or the state either?
Oh-Kay.
Comment by Oswego Willy Friday, Jul 7, 17 @ 9:58 am
Try as he/they might, I’m thinking the hit won’t stick. but, that said, it would be smart of the Dems to figure our some reform proposals and move them along. worker’s comp might be a good place to start.
Comment by Amalia Friday, Jul 7, 17 @ 9:58 am
*Thank you, IL Dems and 15 “Republicans”, for funding the squatters of Illinois. The working class thanks you for lowering our paychecks even more. Here would have been the better solution: Get rid of all welfare programs and link cards, and make these leeches gain employment like we are all forced to do. I personally don’t care if the state is broke because it doesn’t give me any free handouts.*
The number of inaccuracies in this comment is staggering.
Comment by Montrose Friday, Jul 7, 17 @ 9:59 am
=defined contribution plan for new employees-
I believe this was included in the budget.
Comment by Enviro Friday, Jul 7, 17 @ 9:59 am
I wonder if the ILGOP sought the input and edits from the members of their own caucus who made this deal possible. Hmmm, somehow I think not
Comment by JohnnyPyleDriver Friday, Jul 7, 17 @ 10:00 am
$3 Billion in spending cuts. Pretty soon we’ll be talking about real money.
Comment by SAP Friday, Jul 7, 17 @ 10:01 am
==This tax level doesn’t even support our present spending level.==
Link?
Comment by JohnnyPyleDriver Friday, Jul 7, 17 @ 10:01 am
Do the Rs have an alternative to Rauner next time around? What has the “non-partisan” election format in Chicago done to the visibility and viability of non-machine candidates from the area?
Comment by MrMarty Friday, Jul 7, 17 @ 10:03 am
Montrose - “The number of inaccuracies in this comment is staggering.”
I know, right? I almost commented myself but I decided it must be a troll or someone living in an alternate reality.
Comment by RhetoricPolice Friday, Jul 7, 17 @ 10:05 am
Waaahhhh….. waaahhhh…… more taxes. Grow up. They’re still lower than they are in most other states.
Comment by Anon Friday, Jul 7, 17 @ 10:06 am
Rauner’s had 2.5 years to improve the efficiency in his administration and cut costs. But he just hasn’t spent the time to try to do that because he just can’t stop campaigning and start governing. I don’t think he knows how to govern; he’s spent his career breaking things and selling off the pieces as well as profiting off the very pension systems he derides.
His agency heads came before budget committees with no proposals for cuts; they are either incompetent or playing games. Either is cause for dismissal.
Rauner accuses Dem’s of taxing and spending. Rauner just spends and doesn’t pay; not the kind of shakeup I was looking for.
Comment by Markus Friday, Jul 7, 17 @ 10:11 am
===I personally don’t care if the state is broke because it doesn’t give me any free handouts.===
Ah. Socialism is the answer then. If the impoverished, mentally handicapped, injured workers, and addicts can get government help, then why not me! Everything free for everyone!
Comment by Ducky LaMoore Friday, Jul 7, 17 @ 10:13 am
Rauner fought the good fight. Madigan has to much entrenched power to lose this fight. Very sad for Illinois and its future. Madigan has driven this state into near bankruptcy.
Comment by Concerned citizen Friday, Jul 7, 17 @ 10:14 am
And Zero effort to fix the pension issue . Now that will require a big tax increase or better yet , if only all workers in the state were in public pensions the system would eat itself
Comment by Simple taxpayer Friday, Jul 7, 17 @ 10:16 am
Chicago 20 - you can add Oklahoma to that list as well …
Comment by stateandlake Friday, Jul 7, 17 @ 10:18 am
===And Zero effort to fix the pension issue . Now that will require a big tax increase or better yet , if only all workers in the state were in public pensions the system would eat itself===
Name a Rauner or other proposal that hasn’t already been declared unconstitutional? I would be happy to support a solution, if someone actually had a legit one.
Comment by Ducky LaMoore Friday, Jul 7, 17 @ 10:19 am
The Cullerton consideration model
Rauner does not have a proposal, in the spirit of bipartisanship he is supporting the Senate Democrats plan being stonewalled by the Speaker
Comment by Lucky Pierre Friday, Jul 7, 17 @ 10:22 am
Were no 50-
Got anyone with epilepsy. Autism, developmental disabilities, severe long term medical issues in your circle of friends? Maybe senior citizens who get reduced electricity or power costs, or reduced license plate fees, or free state id cards? Maybe Meals on Wheels, attend a senior center? Outlived their money in a nursing home? Kids that go to school or like to visit the library? Know a poor college student that is getting financial aid to attend classes? The list of what you call handouts includes all that.
Comment by Thoughts Matter Friday, Jul 7, 17 @ 10:23 am
Concerned Citizen @10:14am
=Rauner fought the good fight.= The fight for “what” is the question.
The fight to hire useless high-dollar consultants?
The fight for incurring the highest interests rates by ignoring debt?
The fight to bring us costly patronage real estate lease deals?
The fight to create high-dollar state positions with no job duties?
The fight to reward AT&T and Exelon for sticking it to ratepayers?
With the exception of the last, none remotely has Madigan’s fingerprints on it.
Comment by Deadbeat Conservative Friday, Jul 7, 17 @ 10:24 am
===Rauner does not have a proposal…===
You can cut and paste this often…
Agency cuts?
“Rauner does not have a proposal”
Revenue baselines?
“Rauner does not have a proposal”
Turnaround Agenda facts and figures in a PowerPoint?
“Rauner does not have a proposal”
Oh boy.
Comment by Oswego Willy Friday, Jul 7, 17 @ 10:25 am
Lefty lefty
While I agree that the brave 10 (or so) should be praised for finally doing the right thing, where have they been in the last 2 years? I find them almost equally complicit in running up the debt to $15B, voting lockstep with Rauner. I would vote against them on that basis alone.
Comment by Jibba Friday, Jul 7, 17 @ 10:27 am
=== I would vote against them on that basis alone. ===
Take a breath.
Comment by Rich Miller Friday, Jul 7, 17 @ 10:29 am
“What are taxpayers getting for sending another $5 billion to Springfield?
Business as usual.”
I, for one, am happy with that. Business as usual means colleges and universities are funded, the social services are funded, schools open on time, and road construction will continue.
“You might think the majority party would listen to large and small business owners about the urgent need for more reasonable workers’ compensation insurance costs.”
Many of these business owners are now happy that the money they have been owed by the state may finally get paid. Changes in WC are not very useful if they’ve been driven out of business by deadbeat state.
Comment by G'Kar Friday, Jul 7, 17 @ 10:32 am
The troncs have a long history of chronic deadbeatism as a business model.
They robbed their workers’ ESOP, hid from creditors in bankruptcy for years, then made them all settle for pennies on the dollar.
But it remains shocking that powerful elements of the Iliinois GOP are willing to promote such sleazy business practices.
It aint Midwestern and it ain’t conservative.
Comment by wordslinger Friday, Jul 7, 17 @ 10:32 am
===…where have they been in the last 2 years? I find them almost equally complicit in running up the debt to $15B, voting lockstep with Rauner. I would vote against them on that basis alone.===
(Sigh)
Did you forget the $20 million and “no &$@#% problems” Rauner put on the “GOP” GA?
I haven’t.
The reason they ARE the “Brave 15″ to get us to yesterday and “The Perfect 10″ who sealed the deal.
They should be applauded and backed. I have their backs, even the 5 that weren’t on yesterday. “Why?”? Without the “Brave 15″, well, “The Perfect 10″ never could’ve gotten Illinois a budget.
If you forget the “GOP” Raunerites were/are hostages too, then truly grasping why these House members are Brave and Perfect may be lost on you.
I couldn’t be more with them.
Comment by Oswego Willy Friday, Jul 7, 17 @ 10:33 am
What a bunch of nonsense, the kind of gibberish you get from people who don’t know what they’re doing.
Rauner is to blame as much as any Democrat. His refusal to say what he would cut, even as he kept spending at historical highs, made a tax increase inevitable. Another silly press release can’t cover up the fact Rauner isn’t a leader.
Comment by just sayin' Friday, Jul 7, 17 @ 10:39 am
The biggest losers with this budget are the working people of Illinois. It’s worse for those in Crook County with soaring property taxes and potentially new beverage taxes. All compliments of the Democratic Party.
Comment by We'reNo50 Friday, Jul 7, 17 @ 10:41 am
Jibba makes a fair point. If both parties had been willing to engage in a little more “adulting” two years ago, what passed yesterday could just as well have passed then, and we could have spent the past two years working on the other reforms (which still need doing, although probably not in ways either Rauner or Madigan are going to be entirely happy with) instead of watching the state circle the drain. The tax surcharge should never have been allowed to expire in the first place without a corresponding reduction in spending. And I certainly hope that no one in Springfield thinks that they’ve finished the job at this point–a job that has only gotten bigger during two years of dithering.
Comment by CEA Friday, Jul 7, 17 @ 10:43 am
Since this budget crisis brought Illinois to the edge of the abyss, one wonders why Madigan and Cullerton did nothing more than stop gaps with their majorities for the previous two fiscal years when the Democrats had more votes in the legislature?
Comment by Sigh Friday, Jul 7, 17 @ 10:51 am
Quoting myself: “the brave 10 (or so) should be praised for finally doing the right thing”…I give them props for doing so. And I hear you about the powerful forces against them.
I know we’re all basking in the relief of having a budget, but I just don’t agree that one brave vote (even weighed against $20M and a vindictive party leader) leads to permanent support. My point was that the totality of their performance (perhaps including the upcoming months, when additional brave votes will be needed) should be the deciding factor. I don’t think that’s too rabid.
Comment by Jibba Friday, Jul 7, 17 @ 10:51 am
===but I just don’t agree that one brave vote (even weighed against $20M and a vindictive party leader) leads to permanent support.===
That vote broke the stalemate.
Would you feel better had the vote failed?
This is how Labor got Rauner when “they” felt Quinn “didn’t do enough”
Teaching lessons rarely work out as they intend.
Comment by Oswego Willy Friday, Jul 7, 17 @ 10:55 am
The brave 15 and perfect 10 reinforced my point that no political party represents the working poor and middle classes. They, like Rauner and Madigan, only care about wielding power and reelection.
Comment by Blue dog dem Friday, Jul 7, 17 @ 10:55 am
CEA
And in fairness, people in Dem-led districts should consider the totality of their rep’s performance, including influence on them by Madigan, who is certainly not blameless in this situation, even if he was not the main hostage taker.
Comment by Jibba Friday, Jul 7, 17 @ 10:55 am
Too bad we didn’t have any brave Democratic House Legislators who would have worked for reforms and ended this mess before it started. Two and half years later some are now talking that maybe it will take reforms to solve the problems they created.
Comment by Arock Friday, Jul 7, 17 @ 10:56 am
===The brave 15 and perfect 10 reinforced my point that no political party represents the working poor and middle classes. They, like Rauner and Madigan, only care about wielding power and reelection===
Yeah, um, the 15 overall are worried that doing the right thing will cost them reelection.
Your premise isn’t even close to what the reality shows here.
Comment by Oswego Willy Friday, Jul 7, 17 @ 10:57 am
Typical rhetoric from a party unwilling to compromise to solve problems. Rauner’s “my way or the highway” approach from the beginning has wrought so much destruction that it will be years to repair, if that. The victims of the impasse need to keep reminding folks of the damage. If not, they’ll be victimized for an additional 4 years.
Comment by Norseman Friday, Jul 7, 17 @ 10:58 am
—or attempted to change the Illinois Constitution’s crushing pension obligation language.—
This x100. Forget about pensions already owed - they did nothing to untie the hands of future legislators (generations?)).
10 legislators of one party were willing to risk the blowback of their special interests. And one of the few who does on the other side gets nothing but mocking and contempt.
Comment by lake county democrat Friday, Jul 7, 17 @ 11:00 am
Local property tax and term limits,unreal reform, just because it feels good, doesn’t mean it’s good for you
Comment by Rabid Friday, Jul 7, 17 @ 11:14 am
OW. Keep up the status quo. I instead, would rather attempt to change things to protect the working poor and middle classes. Go ahead with your dribble about governors own. Or how great Edgar was. People living in erroneous policies from two decades ago wont do a darn thing to help those trying to work themselves into a better place.
Comment by Blue dog dem Friday, Jul 7, 17 @ 11:19 am
Rauner’s “my way or the highway approach”
On the biggest issue Illinois faces- pensions
He supported Senator Cullerton’s bill
Don’t let the facts get in the way of your false narrative Norseman
Comment by Lucky Pierre Friday, Jul 7, 17 @ 11:19 am
By the way, is ‘the right thing’ mean raising taxes on the working poor and middle classes. Please answer the question.
Comment by Blue dog dem Friday, Jul 7, 17 @ 11:21 am
==Don’t let the facts get in the way of your false narrative Norseman==
His administration flat-out said he got 90% of what he wanted in SB1 and was going to veto it anyway.
Comment by Arsenal Friday, Jul 7, 17 @ 11:22 am
===Keep up the status quo===
No. Your utter ignorance here…
The status quo was 2 1/2 years, no budget, social services closing, state universities risking the loss of their accredidation.
That was the status quo.
=… is ‘the right thing’ mean raising taxes on the working poor and middle classes===
You should ask Rauner.
Rauner ran up $15 billion in bills.
Doing the right thing is paying the bills.
Rauner ran up the bills, so why aren’t you upset with him, lol
Comment by Oswego Willy Friday, Jul 7, 17 @ 11:26 am
LP, you mean the facts that under Rauner we have a $15 billion debt; the state’s credit rating went down to the brink of junk status; the credit rating for 5 public universities are in junk status; hundreds of folks working for nonprofits have lost their jobs; …
The damage is clear and incontrovertible. Them the facts. We need leaders who can work with everyone to deliver solutions, not spoiled rich guys who want to have it their way and end up with nothing.
Comment by Norseman Friday, Jul 7, 17 @ 11:35 am
How many downgrades under Governor Quinn? The Speaker couldn’t work with him either even though they were in the same party
Compromise with Senator Cullerton on the pension bill Mr Speaker
Comment by Lucky Pierre Friday, Jul 7, 17 @ 11:44 am
===How many downgrades under Governor Quinn?===
If you want Pat Quinn to own the downgrades like Mike Schimpf said, then if Illinois goes to Junk status, Rauner is “Gov. Junk”
Don’t worry, I’ll remind you of your logic.
Comment by Oswego Willy Friday, Jul 7, 17 @ 11:48 am
We need leaders who can work with everyone to deliver solutions
What are the Speaker’s solutions beyond raising taxes? Zip
Comment by Lucky Pierre Friday, Jul 7, 17 @ 11:49 am
LP- “On the biggest issue Illinois faces- pensions”
While that might have been true before Rauner took office, he became the driving force behind creating at the close of FY 2017, $9 billion per year of negative cash flow. The immediate crisis of that magnitude of red ink continuing through the remainder of Rauner’s term overtook the future pension obligations as the biggest issue Illinois faced. Thankfully 15 of the GOP caucus understood that and abandoned Rauner’s ideological crusade to stem the flow of red ink that immediately threatened the State’s financial viability.
Comment by Markus Friday, Jul 7, 17 @ 11:52 am
“What are the Speaker’s solutions beyond raising taxes?” At least that has a definable result. You and your ideas? We’re still waiting for you to provide any sort of evidence that it actually works. Until you do, you’re just blowing smoke.
Comment by Skeptic Friday, Jul 7, 17 @ 12:06 pm
What is the biggest driver of the red ink for the state, Chicago and CPS? Not to mention countless other local governments.
Increased pension contributions that are just paying interest on the unfunded liability
Moody’s is finally calling this out and is the canary in the coal mine.
Comment by Lucky Pierre Friday, Jul 7, 17 @ 12:08 pm
Anyone who refers to this responsible tax increase as 32% identifies themself immeadiately as a hyper-partisan. Sensationalism for effect is their intent.
They look silly when readers realize the real increase is is creeping from 3.75 pennies to 4.95 pennies…
Comment by UnionMan Friday, Jul 7, 17 @ 12:13 pm
Rauner failed to enact the reforms he campaigned upon by the methods he used to enact them.
He blew up his own Turnaround Agenda by throwing it into the back seat at first test, and chose to put his budget stalemate in the front seat instead. Rauner went from Honeymoon governor, to Ebenezer Scrooge and defeated himself.
Rauner wanted to famously shake us up, but by allowing the income tax to be cut, Rauner failed to recognize that Illinois was quacking before his Inaugural. Worse, Rauner didn’t cause this instability - but famously begged for it to occur.
Consequently, Illinois began shaking and Rauner blindly allowed it to shake apart, right down to Junk Bond ratings. This fiscal disaster had to end before reforms could be sold. Bruce thought that crisis meant an automatic sale.
The collapsing budget stalemate robbed ILGOP of the opportunity of selling citizens on new ideas. Instead ILGOP had to endure a governor too daft of government to see the dangers he put ILGOP in.
Rauner lost any governing credibility. He couldn’t sell a lighter to a pyro today. By failing to stabilize Illinois, Rauner never had a chance. Worse, he saw the catastrophe and suffering as a good opportunity.
Rauner would be the guy selling cemetery plots to families with loved ones in hospitals. He was an awful governor, and incredibly damaging to everyone.
Comment by VanillaMan Friday, Jul 7, 17 @ 12:15 pm
Moody’s is the true hero in this entire episode.
They and the other rating agencies will finally force fiscal discipline on Illinois that even Mike won’t be able to maneuver around politically like he used to.
Comment by Anon Friday, Jul 7, 17 @ 12:15 pm
What is the biggest contributor to Gross State Product? Chicago.
Comment by Markus Friday, Jul 7, 17 @ 12:16 pm
== And Zero effort to fix the pension issue . ==
L
Not true.
They made a path to create a DC Tier 3 for new employees.
The made a path for Tier 2 to voluntarily switch to Tier 3 once it gets created.
I believe they set up a voluntary (and limited participation) path to rebate a portion of Tier 1 contributions in exchange for agreeing to Tier 2 AAI provisions.
Those are consideration choices … voluntary ones, so they are legal.
So yes, some pension reform got done. Legal reform. But probably not what some people want, which is illegal negation of the pensions and the associated pension debt.
Now it sounds like Rauner doesn’t know how to get the individual pension systems to set up the DC plan and switch offerings. I used to thing the Governor had some smarts. Given his Sergeant Schultz know nothin’ do nothin’ routine, I’m beginning to wonder.
Comment by RNUG Friday, Jul 7, 17 @ 12:42 pm
UnionMan—
1.2 ÷ 3.75 = 0.32
Comment by Hal Friday, Jul 7, 17 @ 12:44 pm
==Zero effort to fix pension issue=
What exactly would fixing it be? I think for some, the only fix would be to stop them all dead. Zero dollars to retirees, keep their contributions and distribute amongst all the “taxpayers” (haha). Public pension contributors who are also taxpayers don’t get their tax dollars back though. Yay. Free money.
The fix is paying back what was not deposited to the pension funds all these years. That is the fix. Buck up.
Comment by AnonymousOne Friday, Jul 7, 17 @ 12:52 pm
RNUG
See Moody’s -their perception is zero pension reforms to change the trajectory of the state.
Their perception will be reality for Illinois when we try to borrow money
Comment by Lucky Pierre Friday, Jul 7, 17 @ 1:06 pm
==We need leaders who can work with everyone to deliver solutions==
Yes we do. And we only had 2 - Cullerton and Radogno. And we also had the House members who rose up and took control of the situation. We’ve had two people who have refused to work with each other for 2 1/2 years - the Governor and Speaker Madigan. And that still hasn’t changed.
Comment by Demoralized Friday, Jul 7, 17 @ 1:12 pm
LP:
Pension reform has passed - twice. Just because it isn’t what you want doesn’t mean it’s not reform. A consideration model that only offers two choices with both choices resulting in a reduced pension isn’t going to pass muster. Why any of them are wasting time on it I have no idea. Take a freaking win and move on. But again, if it’s not 100% it’s not good enough.
Comment by Demoralized Friday, Jul 7, 17 @ 1:14 pm
So what happens if Moodys downgrades to Junk despite the budget? Who gets the blame then? Rauner for veto or Congress for not adjusting the structural line?
Haven’t gotten a single good answer on this.
Comment by DownstateKid Friday, Jul 7, 17 @ 1:18 pm
===Congress===
(Face palm)
Comment by Oswego Willy Friday, Jul 7, 17 @ 1:19 pm
Hal, you missed the point.
Comment by UnionMan Friday, Jul 7, 17 @ 1:41 pm
Sorry, UnionMan…
I assure you that my math isn’t even remotely partisan.
Can you explain the point?
Comment by Hal Friday, Jul 7, 17 @ 1:50 pm
Hal: If your total tax bill went from $0.01 to $0.02 it’d be a 100% difference. That’s the point.
Comment by Skeptic Friday, Jul 7, 17 @ 2:01 pm
Or another point of view: since 2011, a temporary tax cut of 25% followed by a reduced, but permanent tax cut of 1%.
Comment by Hieronymus Friday, Jul 7, 17 @ 2:13 pm
Ow. Feeble answer to a simple question.
Comment by Blue dog dem Friday, Jul 7, 17 @ 2:18 pm
Thanks for clearing that up, Skeptic.
I haven’t had this much fun since the hogs ate my baby sister.
Comment by Hal Friday, Jul 7, 17 @ 2:22 pm
The “tax rate” went up by 32%.
The effect is that you have 1.2% more coming off your gross.
Comment by 37B Friday, Jul 7, 17 @ 2:25 pm
” since the hogs ate my baby sister. ” Yours too? What are the odds?
Comment by Skeptic Friday, Jul 7, 17 @ 2:31 pm
Demoralized my opinion is just that my opinion
Moody’s opinion is what matters and they don’t think the “pension reform” is a freaking win to move on from
Comment by Lucky Pierre Friday, Jul 7, 17 @ 2:33 pm
–What is the biggest driver of the red ink for the state, Chicago and CPS? Not to mention countless other local governments. –
Want to show your work on that one?
I get the impression your are unfamiliar with the basic components of the state budget.
Comment by wordslinger Friday, Jul 7, 17 @ 3:11 pm
===I get the impression your are unfamiliar with the basic components of the state budget.===
LOL
Understatement of the week.
Comment by Rich Miller Friday, Jul 7, 17 @ 3:12 pm
== See Moody’s -their perception is zero pension reforms to change the trajectory of the state. ==
I read Moody’s. They’re just like the Governor:
they can’t always get what they want.
Comment by RNUG Friday, Jul 7, 17 @ 3:14 pm