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* At first glance, when the Pew Center on the States gives Illinois a grade of “C” in its governance, one can’t help but ask: “Just a C?” But there may be some grade inflation afoot, since we’re tied for 48th overall with six other states…
“We respect the Pew Center’s commitment to this project, but unfortunately, the Pew Center chose to focus on politics instead of fiscal facts,” said Kelley Quinn, a spokeswoman for the governor’s budget office.
* It’s true, there is a lot of focus on politics in the analysis, but the grading itself is mostly based on performance. See for yourself here.
And there were a couple of bright spots in Pew’s analysis…
Fortunately for citizens, some positive change is occurring underneath the radar. In the past few years, the governor has required agencies to report more performance information. And some of the yardsticks now used, such as the percentage of ex-offenders who avoid going back to prison, are measuring solid outcomes.
* But politics and governance are completely intertwined, so Pew’s analysis is spot on…
But before those plans bear fruit — before any significant fiscal improvement can take place, for that matter — the administration and the legislature need to restore a working relationship. Many things hang in the balance, such as the $25 billion capital program for roads, bridges, schools, higher education and economic development.
* Meanwhile, Harold Hendersen links to this analysis of state-sponsored “economic stimulus” plans that involve tax cuts…
* Diminished state funding for services (or increased taxes). States, unlike the federal government, must balance their budgets. Therefore, for every dollar a state spends on new tax cuts, it must cut state spending (or raise other state taxes) by a dollar. That means less money for important services such as education, health care, transportation, and public safety — more specifically, less money for teacher and police salaries, road maintenance, and payments to doctors and hospitals.
* No net benefit to the economy. People who receive a state tax cut will have a bit more money to spend, but the teachers, construction workers, and health-care workers who lose their jobs or contracts with the state as a result of cutbacks in services will have much less to spend.
* Harold comments…
I find this mode of argument — that tax cuts can do good in some circumstances and not others — far more persuasive than arguments from those who assume that tax cuts, or tax increases, are always the answer.
Thoughts on all of this?
posted by Rich Miller
Wednesday, Mar 5, 08 @ 9:47 am
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The grade should be an “F”.
Comment by Crimefighter Wednesday, Mar 5, 08 @ 9:52 am
The “C” stands for Corruption!
Comment by Flounder Wednesday, Mar 5, 08 @ 10:00 am
It’s nice that the Pew Center has money to burn telling us things we already know. Illinois government isn’t functioning smoothly. Wow! Stop the presses. I’d not read that anywhere else, ever.
I personally love the fact that essentially every media outlet in Illinois has spent the last couple years detailing the total disaster that state government’s become. Lo and behold, the Pew Center slaps a letter grade on the dysfuction and TAH DAH!, that there’s a brand new story. I’m stunned that Illinois media outlets bothered to devote space and time to a story that essential boils down to: Hey look, someone else thinks we suck too.
How about the Pew folks contact me when they broker a truce between the governor and speaker, or negotiate a good-faith capital bill.
Comment by Michelle Flaherty Wednesday, Mar 5, 08 @ 10:04 am
I read it. The grade is definately too high in comparison with other states given that grade.
We scored very poorly on future income, so it is highly likely that we will be graded lower in the very near future.
Comment by VanillaMan Wednesday, Mar 5, 08 @ 10:05 am
Harold’s right. I’m warming to the idea of a Con-Con that would address the whole state and local tax package. It’s been the gorilla in the room for a long time now.
Comment by wordslinger Wednesday, Mar 5, 08 @ 10:26 am
I think an D may be closer to the truth. Looks like it was graded on a curve…….
Comment by leigh Wednesday, Mar 5, 08 @ 10:26 am
Crimefighter is correct. The folks at the Pew Center must be nuts not to give this state an “F.”
Comment by fedup dem Wednesday, Mar 5, 08 @ 10:33 am
Well, if the grading is on a curve, Illinois should get an “F,” and deservedly so.
Comment by Snidely Whiplash Wednesday, Mar 5, 08 @ 10:59 am
But wait…
Governments don’t have to balance their budgets.
Illinois….any budget balancing here is purely smoke and mirrors.
The US–we’ve financed a 600 billion dollar (so far) war on loans via supplemental appropriations.
Smoke and mirrors again.
Who says we have to balance anything?
Comment by Cassandra Wednesday, Mar 5, 08 @ 11:10 am
If we got a grade this high, we must have bought it.
Comment by Enemy of the State Wednesday, Mar 5, 08 @ 11:12 am
Amen Harold,
Taxes, unpleasant as they are, are needed and increases can, in the long run (when WISELY used), increase everyone’s standard of living. To those who subscribe to the theory that you can “starve” bad spending by constantly cutting taxes, I ask the question, when has this ever worked?
Besides, how logical is it that “Cut taxes” is always the answer to every question?
Comment by anon Wednesday, Mar 5, 08 @ 11:29 am
“unfortunately, the Pew Center chose to focus on politics instead of fiscal facts,” said Kelley Quinn.” Unfortunate? Really? It would have been MUCH lower if the state paid their bills on time and the fiscal situation was reviewed in that light. Sorry, Kelley, but the gov should be grateful it was graded on that criteria.
Comment by What can I say? Wednesday, Mar 5, 08 @ 11:56 am
Check out every other state surrounding Illinois. All B-plus.
This place is the absolute pits. Just a couple more years and I’m outta here.
Comment by Anonymous Wednesday, Mar 5, 08 @ 11:59 am
From the paction I thought we were going to dicssu the Gov’s con law grade and compare it to his judgment on what is legal and illegal
Comment by Ghost Wednesday, Mar 5, 08 @ 12:09 pm
They are being beyond generous with a C and has already been point, most states do not balance their budget they hide by smoke and mirrors and accounting tricks. None of these economic stimulus plans at the state or federal level are going to have the least bit of impact on the economy.
Comment by RMW Stanford Wednesday, Mar 5, 08 @ 12:55 pm
Liberal educators and politicians have ruined the Illinois school system. Too much analysis leads to paralysis. If you appropriately empower students, you do not have to worry about controling them. Student rebellion is due to feelings of powerlessness. Liberals spend too much time attempting to control every aspect of students’ lives. Parents are losing faith in the school’s ability to teach children in a safe environment. Illinois grade should be an “F.”
Comment by Patriot Wednesday, Mar 5, 08 @ 1:24 pm
The federal government can cut taxes and just borrow more money - raise the federal deficit. Illinois is supposed to balance its budget, so cutting taxes as an economic stimulus doesn’t make sense at the state level. It doesn’t make much sense at the federal level either, since whatever increased tax revenues are attributable to increased economic activity due to a tax cut, aren’t enough to replace the taxes cut. So, at both the state and federal levels, tax cuts to stimulate the economy are all about feel-good and not sound economic policy.
Comment by Sir Reel Wednesday, Mar 5, 08 @ 1:30 pm
Anon 11:29,
The point is that money, in and of itself, is not the solution to the State’s poor management problem, because they GOT to that point by mismanaging overtaxation in the first place. People (well, reasonable people, anyway) aren’t opposed to reasonable and necessary taxes; they’re opposed to unreasonable and unnecessary taxes. That said, the argument is that, if we ELIMINATE those unnecessary areas of spending for which we’ve already been OVERtaxed, that may eliminate the need for additional taxation or, at least, a reduction in the amount of new tax income required.
You seem to be saying, “Let them keep the graft, and we’ll pay even MORE taxes on their promise that they won’t misuse THAT money, too.” Well, I wouldn’t hold my breath on that one … they may just find you, mummified and with puffy, purple cheeks, on an archaological dig in a few thousand years. My decedents might pay a few bucks to see that display.
Comment by Snidely Whiplash Wednesday, Mar 5, 08 @ 1:47 pm
Uhm … that should’ve been “descendents.”
Comment by Snidely Whiplash Wednesday, Mar 5, 08 @ 1:48 pm
SW, by any objective measure, Illinois doesn’t “overtax”.
I don’t have much confidence in these surveys comparing across state lines. Having participated in a lot of them, I find they are most often unable to distinguish among the varying definitions from state to state (eg, Do you have a “rainy day fund”? How much money is in it? What was your year end General Fund balance?) It also matters who responds to the survey. In many cases, OMB and the Comptroller’s Office would answer the same financial question very differently.
The comparisons can get close to meaningless.
Comment by steve schnorf Wednesday, Mar 5, 08 @ 2:07 pm
“The Blagojevich administration said the report missed the mark by not reflecting progress made in recent years, such as reducing government employee headcount and improving the budget deficit and overall efficiency” (Ryan Keith AP)
Blago n Co. just don’t get it. He’s cut budgets to beyond the bare-bone in many agencies/depts, slashed as the actual day in day out front line to the point it is hardly functional, equipment is being parked and not repaired (*try doing your job without the supplies) and then one can scan the headlines: there’s always Hynes telling us the daily state of the state, or then the $40 million , oops maybe not for Cole Hall, the newest one on giving $1m away accidently of course, expand this program, expand that program, 22 minute “I’m so lonesome I could cry”, blah blah blah, hey, but the Pew Center should have focused on headcounts, budget deficit improvement and efficiency.
Comment by Princeville Wednesday, Mar 5, 08 @ 2:09 pm
I believe that OMB filled out the survey - so the information given to the Pew Foundation is automatically suspect. Agencies were left out of the preparation so the Gov’s office could “control the message” - which is code for limit the truth…
Comment by Steve Schnorf is SOOOOO Right Wednesday, Mar 5, 08 @ 7:11 pm
Tax cuts, tax cuts, blah, blah, blah.
When are people going to realize that speeding up the capital bill is a stimulus plan in and of itself? In fact, increase the amount for capital improvements.
Not only will the money ACTUALLY get spent, but it will result in true investment in what the state really needs (and besides the money that is spent, fixing this infrastructure will result in even more long term economic benefit).
Comment by Lets Get Serious Thursday, Mar 6, 08 @ 1:04 am
Michelle: you do realize that the Pew Center on the States was looking at all fifty states, right?
Comment by PCC Thursday, Mar 13, 08 @ 11:23 am