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Yes, it can be done, but at a very high price

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Illinois

* House Republican Leader Jim Durkin at a press conference today…

The numbers are clear, we now have the money to balance the budget with no new taxes.

He would do that with cuts to next fiscal year’s budget based on this fiscal year’s appropriations. As Speaker Madigan told reporters this week and as I’ve been telling subscribers, the House appropriations committees are working on cuts to the budget. Those cuts are averaging about 6 percent to each agency. Again, those are not cuts of Gov. JB Pritzker’s proposed increases, those are cuts to existing FY 2019 appropriations. The Democrats described the meetings as “exercises” and “scenarios” because it’s doubtful that six percent across the board cuts will be accepted by rank and file Democrats.

* Rep. Dan Brady, the Republican spokesperson of the Higher Education Appropriations Committee, told reporters today that it can be done…

I’d just point to higher ed’s working group and what we did, and that was before yesterday’s news. What we did is we went ahead and we made the cuts in a bipartisan fashion. It can be done and we had in the higher ed working group that scenario played out and we can do it without raising taxes and that was about a six percent cut.

* From a Tribune report after this fiscal year’s budget passed last May…

State universities each will receive about 2 percent more for operations starting in July. […]

Overall, funding for public universities still lags about 8.2 percent behind what schools received in 2014-15, the last time the state approved a budget on schedule.

In other words, this idea would not only abandon Gov. Pritzker’s proposed 7.4 percent $132 million increase (including MAP grants), it would cut current appropriations by 6 percent, or $107 million, which would be $270 million below the FY 2015 appropriated level. And that would be about $2 billion below the FY 2000 appropriation, adjusted for inflation.

* Related…

* Lawmakers, university officials warn of higher ed cuts without new revenue: Barbara Wilson, executive vice president of the University of Illinois system, said further cuts in higher education funding would have a big impact on the state’s largest university. “Across the U of I system we are educating 52 percent of the students who go to public institutions in this state,” Wilson said. “So I always say, if you hurt U of I, you’re hurting a big chunk of the students and families in the state.”

posted by Rich Miller
Wednesday, May 8, 19 @ 1:27 pm

Comments

Of course Durkin and Brady want cuts and no tax increase for high income earners (not simply wealthy since it is a tax on income). That has been their mantra since go.

You can cut whatever you want, how much you want, to the point of zero funding. That is simply a math problem.

The impact of the cuts is a different issue. As a general rule, the ILGOP has demonstrated a distinct lack of concern for any outcome than the impact on corporate welfare.

Comment by JS Mill Wednesday, May 8, 19 @ 1:34 pm
With a mere 44 House members, you can claim just about anything.

Plus, pairing down things like higher education or cuts that are real cuts to programs, the 44 leftover Raunerites have no obligation to show, pen to paper, what those real budgetary looks would be.

Another opportunity to show…

Never mistake activity for achievement.

Nothing is achieved here… it’s phony activity knowing the reality of this call isn’t anything they plan to embrace.

It’s disappointing to see, as there’s no want to be responsible to being the loyal opposition, but be noisy for the sake to seem engaged.

Comment by Oswego Willy Wednesday, May 8, 19 @ 1:39 pm
–I’d just point to higher ed’s working group and what we did, and that was before yesterday’s news. What we did is we went ahead and we made the cuts in a bipartisan fashion. –

I have no problem with that, if they can make the case for the targeted cuts. That’s what legislators should be doing.

But if Downstate Illinois is going to grow and thrive, public community colleges and universities are going to be the engines.

All the crony capitalism and business handouts in the world will mean oogats if the resources aren’t there for to provide regional labor pools with post-secondary, vocational and continued learning. That commitment by the state will attract more private capital than any giveaways.

Comment by wordslinger Wednesday, May 8, 19 @ 1:42 pm
We can’t trust in limited revenue surpluses, not with our bills and debt. The Trump tax cuts are helping pile on federal debt. We can’t leave our future in the hands of the people driving up debt while telling us lower taxes will bring surplus revenue. To believe in this after all these years and failures of supply-side economics would be shame on us.

Comment by Grandson of Man Wednesday, May 8, 19 @ 1:42 pm
It’s the majority working on cuts?

Comment by Not a Billionaire Wednesday, May 8, 19 @ 1:44 pm
@Billionaire

Yep, and they’re deep…

Comment by Commonsense in Illinois Wednesday, May 8, 19 @ 1:45 pm
Okay. Wait. They are saying publicly they want to cut k-12 education?

Comment by it'smyopinion Wednesday, May 8, 19 @ 1:46 pm
I don’t see the house going along with the Senate transportation plan when everyone else gets more pain.Thanks commonsense. This is even with the windfall . Wow well we are in a deep hole.

Comment by Not a Billionaire Wednesday, May 8, 19 @ 1:48 pm
===They are saying publicly they want to cut k-12 education?===

They’re saying the rich don’t need any more taxes raised.

The rest is activity disguised as achieving somethin’-somethin’ no more taxes, we can fund thingies ridiculousness.

Comment by Oswego Willy Wednesday, May 8, 19 @ 1:48 pm
Cut 6%, add a pension question to the ballot and add pass a fair maps amendment….and pass the income tax increase. I’m good with that.

Comment by DuPage Moderate Wednesday, May 8, 19 @ 1:55 pm
This is the takeaway Durkin wants.

===The numbers are clear, we now have the money to balance the budget with no new taxes.===

The thing Durkin doesn’t need is combing thru what that all means in cuts, funding levels, or owning what dollars would go where if that were true to the math.

There’s a reason the former Raunerites blundered by calling the progressive tax a “millionaire tax”… protecting wealthy folks puts blinders on messaging failures.

===The numbers are clear, we now have the money to balance the budget with no new taxes.===

This is far more subtle, with no nuance, and no need to cite the “why”

It won’t win collar county districts back, but might get some sugar from wealthy folks.

Comment by Oswego Willy Wednesday, May 8, 19 @ 1:56 pm
Illinois should be looking at both cuts and more revenue. I would freeze any increase in discretionary spending until the bill backlog is gone and the state has enough money to continue funding the pension ramp.

Comment by Chicagonk Wednesday, May 8, 19 @ 1:59 pm
===Cut 6%, add a pension question to the ballot and add pass a fair maps amendment….and pass the income tax increase. I’m good with that.===

Oh boy…

“Cut 6%”

Ok, then you own those cuts. Wonder why no one wants to own those cuts? Durkin is already at 44… go down to 39? 35?

“add a pension question to the ballot”

Money is still owed. The obligation remains. Plus you find 71 and 36 in the GA.

“and add pass a fair maps amendment”

You could probably get 71 and 36… but I haven’t seen those 71 and 36 emerge, so…

“….and pass the income tax increase.”

It got thru the Senate, we’ll see about the House.

“I’m good with that.”

… like wishing for unicorns populating Madeupville’s perfect green pastures. I’m good with that.

Comment by Oswego Willy Wednesday, May 8, 19 @ 2:01 pm
I think we should have a graduated income tax just to be fair. If Durkin really thinks there is no need for more revenue, fine. Make the graduated income tax budget neutral.

Comment by Perrid Wednesday, May 8, 19 @ 2:04 pm
Further across-the-board cuts to higher education make no sense.

If there is no support for added revenue, then either ISU, Western, Eastern, or perhaps all three should be closed, the physical property transfered to the pension system, and sold to a private buyer.

Its a Sophie’s Choice I know, but slowly bleeding every institution is going to bring the whole system down.

I would like to hear from Rep. Brady if he has any preferences which institution(s) we shutter.

Comment by Thomas Paine Wednesday, May 8, 19 @ 2:16 pm
- Thomas Paine -

This is the same crew that was “frustrated” but a short term budget stalemate that crushed the state was “okey-dokey” in their books.

I think once this breezes thru the House, Mr. Barickman should be the Senate sponsor, close state universities, you know, because hurting the economic engine for these regions is a trademark of that time.

Comment by Oswego Willy Wednesday, May 8, 19 @ 2:25 pm
Does Durkin realize most of those state universities that would see cuts are represented by his caucus members? It’s like he essentially told them they’ll have to vote with the Democrats again on a budget to save their communities.

Comment by Michelle Flaherty Wednesday, May 8, 19 @ 2:27 pm
===It’s like he essentially told them they’ll have to vote with the Democrats again on a budget to save their communities.===

Losing RaunerBucks, maybe carrying 44 members is too expensive?

Vote to close state universities, trim it to 38 or so…

Comment by Oswego Willy Wednesday, May 8, 19 @ 2:31 pm
“The numbers are clear, we now have the money to balance the budget with no new taxes…so long as you ignore the $6.5 billion backlog and $134 billion owed to pensioners.”

-fixed it for you.

Comment by Jocko Wednesday, May 8, 19 @ 2:41 pm
Ill (yep ill) already funds higher ed at a higher amount than 45 other States

Comment by Capon Little Wednesday, May 8, 19 @ 2:41 pm
===already funds higher ed at a higher amount than 45 other States===

Pension obligation notwithstanding….

You must explain how Eastern went so long during the impasse without things like cutting the lawn on its quad…

Comment by Oswego Willy Wednesday, May 8, 19 @ 2:50 pm
With respect to Rep. Brady, the Higher Education Working Group also came up with the Aim High Program, an add on $25 million merit grant program last year (and recommended for $35 million in the Gov’s budget for 2020), that will help fund students who would have gone to college anyway. Against the backdrop of over $1 billion in cuts since 2003, starting a new program in merit aid makes zero sense, and will have little effect on stopping outmigration of students.

Of course I’m a dinosaur, I can remember when legislators, win or lose, fought hard to bring funding back to their universities.

Comment by Columbo Wednesday, May 8, 19 @ 2:52 pm
- Columbo -

Merit scholarship students are the wheelhouse students Illinois is currently losing.

It’s not that these students can’t get into a university, these students excel in a way that universities are giving scholarships to families that make too much money for grants, know student loans are awful, and getting merit scholarships are the best way to get all, most, or some of that education paid for… and Illinois universities aren’t competing for them.

Comment by Oswego Willy Wednesday, May 8, 19 @ 2:58 pm
The “across the board” cuts notion is both careless and lazy. Any legislator that proposes this as a solution shouldn’t be taken seriously.

If you’re unwilling to prioritize and justify your choices, please find another line of work.

Comment by The Doc Wednesday, May 8, 19 @ 2:59 pm
== add a pension question to the ballot ==

Please explain how any legal pension change will erase / affect the existing pension debt and ramp

Comment by RNUG Wednesday, May 8, 19 @ 2:59 pm
==add a pension question to the ballot==
If you want to change the pension for new employees, all it takes is 30 and 60. Along with an explanation as to how creating a tier 3 or 4 actually helps the pension debt. Because going to a defined contribution does nothing to the existing debt except make it worse.

As to cuts, please (anyone) explain how you can cut across the board and not end up with some of the same issues we had due to no budget. Does anyone really want to repeat the episodes where children were suffering because health insurance claims did not get paid and durable oxygen equipment was removed? That’s just one example.

Comment by thoughts matter Wednesday, May 8, 19 @ 3:38 pm
RNUG:

A legal pension change will be legal when or if the constitution is amended. How about we tie a continued pension payment to state residency? Or, how about we just reduce them? Or, change the constitution to state a person can only collect one pension? Or better yet, how about you can only count time served for pension benefits for one pension per year?

A Constitutional Amendment can do a lot of things. The pension takers on here are absolutely giddy and supportive of the will and vote of the people over taxing the rich. Let’s see what the people say about pensions. My bet, they won’t like the result.

Comment by DuPage Moderate Wednesday, May 8, 19 @ 3:41 pm
The cuts to higher education have been happening for years and then pain is being felt.

Since 2003, the number of students enrolled at state Universities has dropped from 201,118 to 163,786.

Only UIUC and UIC have increased enrollment during that time. EVERY other state university has seen a decline:

1. UIUC and UIC have over 50% of all undergrads in public schools… they are the only 2 public schools to have grown in the last 15

2. SIUE has both lost students and passed SIUC

3. SIUE and ISU are the only two schools outside of UIUC and UIC that have lost less than 30% of their student body since 2003

Comment by Former State Worker Wednesday, May 8, 19 @ 3:46 pm
Dupage: “add a pension question to the ballot”

Please review the provisions of the Illinois State Pension Tier 2.

Also review the Social Security offset reductions to some public employees’ benefits.

Then tell how any Illinois pension change would be legal, possible, fair, or reduce the debt.

Comment by Enviro Wednesday, May 8, 19 @ 3:49 pm
==A Constitutional Amendment can do a lot of things. ==

A constitutional amendment can’t go back and change the past no matter how much those of you in the anti-pension crowd want it to.

Comment by Demoralized Wednesday, May 8, 19 @ 3:51 pm
==How about we tie a continued pension payment to state residency?==

That’s not even a serious comment.

==Or, how about we just reduce them? ==

Can’t do that. Try again.

Comment by Anonymous Wednesday, May 8, 19 @ 3:53 pm
===Since 2003, the number of students enrolled at state Universities has dropped from 201,118 to 163,786.

Only UIUC and UIC have increased enrollment during that time. EVERY other state university has seen a decline:

1. UIUC and UIC have over 50% of all undergrads in public schools… they are the only 2 public schools to have grown in the last 15

2. SIUE has both lost students and passed SIUC

3. SIUE and ISU are the only two schools outside of UIUC and UIC that have lost less than 30% of their student body since 2003===

Illinois only trails New Jersey in college outward migration.

Merit scholarships and funding the educational functions fully at universities here might be a strong start to stop both trends.

If you want to close a state university, first show me where Governor Pritzker agrees and 60 House and 30 Senate members will help him do so…

Comment by Oswego Willy Wednesday, May 8, 19 @ 3:53 pm
DuPage, you might be surprised yourself. Rauner even mentioned the reluctance of the general public to change retirement benefits as in taxing retirement income and specifically a CA to amend the pension language. I know that sounds crazy to some of the anti state employee folks. I was surprised when I read it. I should look for a link for further proof, but some will never give up on beating the pension issue.

Comment by Just A Dude Wednesday, May 8, 19 @ 3:56 pm
== A legal pension change will be legal when or if the constitution is amended. … ==

The pension clause currently states the pension is a contract. Unless you are planning to negate state and federal contract protection, arbitrarily changing existing contracts (pensions) is illegal.

So I again ask, how will you legally eliminate the existing pension debt?

Comment by RNUG Wednesday, May 8, 19 @ 4:01 pm
“I’d just point to higher ed’s working group and what we did, and that was before yesterday’s news. What we did is we went ahead and we made the cuts in a bipartisan fashion. It can be done and we had in the higher ed working group that scenario played out and we can do it without raising taxes and that was about a six percent cut.”

Would love to see the details of that ’scenario’ and the list of legislators who supported it.

Comment by Nonbeleiver Wednesday, May 8, 19 @ 4:06 pm
@2:16 ==If there is no support for added revenue, then either ISU, Western, Eastern, or perhaps all three should be closed, the physical property transfered to the pension system, and sold to a private buyer.==

I hope this is not a serious proposal. Could this be reason for starving our universities for the past few years? That is such a terrible idea.

Comment by Enviro Wednesday, May 8, 19 @ 4:12 pm
In 2015 $164 million of the $357.2 million in MAP grants went to private institutions.

Any support to eliminate money for MAP grants to private schools and use the money to fund public universities?

I doubt it as the private institutions have a lot of pull with both political parties. But I would love the idea to be given some serious discussion.

Comment by Nonbeleiver Wednesday, May 8, 19 @ 4:31 pm
==Ill (yep ill) already funds higher ed at a higher amount than 45 other States ==

Per capita? I think not. Look up the stats, we are near the bottom.

Comment by Pot calling kettle Wednesday, May 8, 19 @ 4:31 pm
==I hope this is not a serious proposal. Could this be reason for starving our universities for the past few years? That is such a terrible idea. ==

Welcome to Raunerland. Gov. Rauner wanted to close EIU, WIU, and Chicago State. (And, maybe NEIU.) Starving them was part of the plan. It was not exactly a secret. Also, think about how Rauner makes money as a businessman: buy something, downsize (or close it), and sell the assets. It would seem to be a mindset.

Ironically, EIU and WIU are both in solidly R areas.

Comment by Pot calling kettle Wednesday, May 8, 19 @ 4:36 pm
–A legal pension change will be legal when or if the constitution is amended. How about we tie a continued pension payment to state residency? Or, how about we just reduce them? Or, change the constitution to state a person can only collect one pension? Or better yet, how about you can only count time served for pension benefits for one pension per year?–

See Article 1, Section 10, U.S. Constitution.

Then, let’s see your totally legal state constitutional amendment language.

Comment by wordslinger Wednesday, May 8, 19 @ 4:41 pm
Regarding the health of our state economy. A proven driver is higher ed. Invest in higher ed, and the dividends will come in the form of immigration of people and employers. The universities perform research which produces new ideas and products; all of higher ed produces an educated workforce. These are the keys to startups and expanding businesses.

I would add that “It’s not rocket science,” but sometimes it actually is.

Comment by Pot calling kettle Wednesday, May 8, 19 @ 4:41 pm
==A proven driver is higher ed. Invest in higher ed==

We do already. It’s called SURS.

==Per capita? I think not. Look up the stats, we are near the bottom.==

According to this, we’re third in higher ed funding per student with the all-important footnote:

“Between 2006-07 and 2016-17, total inflation-adjusted per-student state and local funding for higher education…increased by 56% in Illinois (where much of the funding went to under-funded pensions).”

If the universities want more money for “operations”, tell them to restructure their pensions, because that’s where all their increases in funding are going.

https://trends.collegeboard.org/college-pricing/figures-tables/state-local-funding-student-1000-personal-income-state-2016-17#Key%20Points

Comment by City Zen Wednesday, May 8, 19 @ 5:16 pm
WIU or EIU should be closed. There is no need for both in a state that is losing population and aging at a brisk rate.

Comment by Anonymous Wednesday, May 8, 19 @ 5:24 pm
===WIU or EIU should be closed.===

Narrator: They won’t be closed.

Comment by Oswego Willy Wednesday, May 8, 19 @ 5:27 pm
==We do already. It’s called SURS===

Your pony needs a second trick. This one is getting old.

===If the universities want more money for “operations”, tell them to restructure their pensions,==

How exactly? I know you’ve been paying attention for the last couple of years, so you can recite the reasons why this is not possible just as well as I.

Comment by Jibba Wednesday, May 8, 19 @ 8:33 pm
=1. UIUC and UIC have over 50% of all undergrads in public schools… =

No, Community colleges have the majority of undergrad students in Illinois. It isn’t really close.

Comment by G'Kar Wednesday, May 8, 19 @ 11:46 pm