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* Amanda Vinicky at WTTW…
“We collect about $750 million a month in sales taxes to the state. You might be thinking there’s all those folks out there who are buying everything off the shelves at the grocery store and that’s true but the state does not levy a sales tax on food purchases. So we’re seeing a decline in a lot of the types of sales the state does have a sales tax on and food is going through the roof in some cases and we’re not seeing that,” said state Rep. Tom Demmer, R-Dixon. […]
“Our expense are going to be up a lot as we struggle to help our health care system, and be sure that hospitals and doctors have the resources they need as we try to help our school districts and our colleges and universities, transit, make sure meals are delivered to seniors at home and they’re cared for, get medical assistance. All that’s going to cost money,” said House Majority Leader Greg Harris, D-Chicago. “It’s going to be a tough year to figure all that out.” […]
They’re in preliminary talks about options, including a holdover six-month budget, so they can reevaluate the situation once the outbreak has run its course.
But it’s still not clear when lawmakers can return. One of my two questions for Gov. Pritzker yesterday was how much the state has spent on its COVID-19 response. Gov. Cuomo said this week that his state has spent $1 billion. The governor did not directly answer, saying he was more focused on getting things done.
* Back to Amanda’s story…
The governor’s stay-at-home order expires April 7, and could be renewed, but if – and [Sen. Dale Righter, R-Mattoon] stressed the “if” – downstate Illinois continues to see only sparse cases, he said Pritkzer should consider relieving those regions from certain executive mandates.
“Many downstate areas, you’re just not seeing the surge,” Righter said. “Should hospitals be allowed to go back to doing certain select – or maybe with a cap – to doing elective procedures, to allow them to start bringing in revenue. If we don’t the taxpayers are going to pay more money to bail those hospitals out later. I think we need to have a serious conversation about that. Consult the public health experts, but remember that the economic shutdown that we are experiencing right now, that’s been government mandated, comes with a price as well.”
* On to Jim Dey…
If the state has less revenue, it obviously has less money to pay its bills. That means unpaid bills now standing around $7.6 billion will increase, as will the costs of interest the state pays.
The state has, foolishly, set the interest rates it pays at 9 percent and 12 percent, depending on the bill. At those sky-high rates, interest payments represent hundreds of millions of dollars a year and are, the report states, a “threat to the state because any money needed to pay late payment penalties is money that cannot be used for other purposes.”
Maybe it’s foolish, but without those high interest rates on overdue bills a whole more vendors would’ve cut Illinois off during the impasse and during the lead-up to the 2011 income tax hike hike.
posted by Rich Miller
Friday, Mar 27, 20 @ 9:49 am
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The bill backlog is going to go up right now regardless of money available. The Comptroller has directed that only essential payments be sent to them for processing. So many agencies will be seeing bills piling up right now.
Comment by Demoralized Friday, Mar 27, 20 @ 9:57 am
Dale Righter is asking for a time bomb for his community. https://www.npr.org/2020/03/13/814917520/rural-towns-insulated-from-coronavirus-now-may-take-a-harder-hit-later
Comment by Precinct Captain Friday, Mar 27, 20 @ 9:59 am
That’s the whole point Senator Righter. Geesh.
Comment by Anon Friday, Mar 27, 20 @ 10:04 am
Quoting here: “The governor’s stay-at-home order expires April 7, and could be renewed, but if – and [Sen. Dale Righter, R-Mattoon] stressed the “if” – downstate Illinois continues to see only sparse cases, he said Pritkzer should consider relieving those regions from certain executive mandates”
I would not recommend lifting the stay at home order for the rest of our State. To me, the fact that the spread is slow and sporadic across the rest of Illinois, means that the Stay-at-Home order is working. If we loosen things up, I fear that we will end up seeing more cases. Remember, there is no vaccine, and there will likely not be one for at least another year. The R_0 for this virus is 2.5 or so, and so far there is no data showing any mutations that would make this virus less aggressive.
Comment by Tomacci Friday, Mar 27, 20 @ 10:06 am
To the Post,
The idea of commerce, how can a “safe” area know that people rolling thru their towns are also from “safe” areas?
It’s a though Mr. Righter is willing to put out most vulnerable or most susceptible in harms way to sell stuff.
Is that the trade-off?
“You may be a carrier, I may then carry it to someone I live or care for or might not even know… but will you buy something?”
Hmm.
Comment by Oswego Willy Friday, Mar 27, 20 @ 10:09 am
=== … and [Sen. Dale Righter, R-Mattoon] stressed the “if” – downstate Illinois continues to see only sparse cases, he said Pritkzer should consider relieving those regions from certain executive mandates. ===
One of the many quandaries facing decision makers. Rural areas have some natural social distancing advantages and won’t see the numbers that come from urban areas. But they also have disadvantages with respect to medical care. Once a spread occurs, I suspect the death rate would be greater given the lower level of medical services. The other thing is that their economy is not isolated from the rest of the world. Their supplies come from urban areas. I don’t have the answers, but the decisions to be made have life altering implications. Sen. Righter is smart, hopefully he understands the conundrum decisionmakers are facing. It’s the health of his people that will be affected if the spigot is opened too early.
Comment by Norseman Friday, Mar 27, 20 @ 10:13 am
If people can walk in space and in pressure suits under the sea, legislators can figure out how to vote safely.
When we have the testing capability, we may be able to treat different areas differently. Today, we are too ignorant to act.
If there is no Federal revenue assistance, we may be looking at a depression era budget. That would include a pension holiday and possibly a cut to education.
Development of a worst case budget might be used to get bipartisan support for federal action. As we have discussed before, state expenditures are a big part of the downstate economy.
Comment by Last Bull Moose Friday, Mar 27, 20 @ 10:17 am
==Sen. Righter is smart, ==
Are you sure about that?
Comment by don the legend Friday, Mar 27, 20 @ 10:20 am
== Dale Righter is asking for a time bomb for his community==
Captain, that’s true to a certain extent - but - like Professor Pekosz says in your linked article, whether it’s two weeks or 6 weeks or 6 months from now, most of us are going to be exposed to this at some point until a vaccine is developed and distributed nationwide. Until that happens, I don’t think there are any perfect answers to the question of when and how to return small towns and rural areas back to normal. Health experts say these things come back in waves over time, the best we can do is to try our utmost to keep hospitals from being overwhelmed as this virus trickles through society.
Comment by Lester Holt’s Mustache Friday, Mar 27, 20 @ 10:24 am
The State should change the interest rate it pays on past due bills and tie it to the Prime rate plus or minus. As it stands now the 9 and 12% rates are more like credit card rates, and should be more equitably set at ‘line of credit’ rates.
Comment by the Edge Friday, Mar 27, 20 @ 10:24 am
Following is a good read from the Washington Post:
https://wapo.st/3bxP1XA
Comment by Norseman Friday, Mar 27, 20 @ 10:32 am
It is amazing how little Jim Dey remembers. The high interest rates were designed to get government to pay bills quickly and not play the “float” The idea idea was bipartisan. Wake Dey up please
Comment by Annonin Friday, Mar 27, 20 @ 10:38 am
==downstate Illinois continues to see only sparse cases, he said==
You sure about that, Dr. Righter? Why dont you (and DJT) test people first.
Comment by Jocko Friday, Mar 27, 20 @ 10:43 am
What may be critical is “if” COVID-19 cases are low to permit farmers to plant their crops when it is optimal, and not wait until June or July.
Comment by bogey golfer Friday, Mar 27, 20 @ 10:55 am
If downstate regions are experiencing sparse cases, I would hope that it’s because downstate people are taking this seriously, doing their part and would continue to do so because they realize many of their communities are often older and tend to lack comprehensive medical facilities, both of which are problematic should this pandemic get a solid group in their respective rural communities.
Comment by Michelle Flaherty Friday, Mar 27, 20 @ 11:53 am
The only reason Dale is not seeing this in his district yet, which is where I live, is that people are not being tested. My county says the health department now has tests. Yet when I have begged them over and over to test one of my critical employees who is showing every symptom, I have been repeatedly told no. Their tests are only for jails and their employees, though the statements they make to local papers implies they’re available to all. And yet the health department still brags about how we have no cases here. Disgusting. It’s going to hit hard.
Comment by Still Waiting Friday, Mar 27, 20 @ 12:05 pm
Bogey….”permit” them ? There’s nothing to prohibit them now as they are considered essential. Even if they weren’t, how risky is a lone guy in a tractor.
Comment by WFH Friday, Mar 27, 20 @ 12:11 pm
Many downstate counties are hardly testing at all. Is that because doctors aren’t hearing from anyone with symptoms or are they telling people that they aren’t sick enough to meet the high requirements to get tested? For example, Macon County only reports testing 15 people out of a population around 100,000. Neighboring Sangamon County has tested 389 people. Now Sangamon County just received the numbers from private testing and Macon County says they don’t have those numbers, but still, the difference is puzzling. Yes, Sangamon County has a population of approximately 196,000, but still, that doesn’t explain the vast difference in testing. I fear that too many downstate communities have a false sense of confidence.
Comment by adult Friday, Mar 27, 20 @ 12:24 pm
The high interest rate was set to create a new business opportunity for law makers, their friends, and families.
Those owed money from the state often sell their receivable to an intermediary (who is connected to them by CMS), the intermediary, owned and controlled by former lawmakers and state employees, pays the debt but keeps the 12% interest.
Comment by Merica Friday, Mar 27, 20 @ 12:55 pm
Merica
Welcome to Illinois.
Back.
Comment by Back to the Future Friday, Mar 27, 20 @ 1:43 pm