Capitol Fax.com - Your Illinois News Radar

Budget woes and a ray of hope

Posted in:

Illinois
Obama

* This is an extremely short-term solution, and it’s not even that…

Illinois will borrow $1.4 billion to make payments to schools, health care providers and others who’ve been waiting months to be reimbursed by the state.

The deal, which does not need lawmakers’ approval, could be completed within weeks and potentially free up cash to pay backlogged bills by month’s end.

“Especially in this poor national economy, Illinois needs to make sure that we can pay the businesses that provide the state with the goods and services which help families in these tough times,” Gov. Rod Blagojevich said in a statement announcing the borrowing plan, which was agreed to by Comptroller Dan Hynes and Treasurer Alexi Giannoulias.

The state’s delinquency in paying billions of dollars in bills has caused havoc with budgeting at schools, hospitals and other health care providers.

The loan has to be paid back by the end of this fiscal year, so Illinois must start setting aside money right away to pay off the debt. So, some late payments will be made, but the state has billions more in unpaid bills, so most vendors won’t see relief.

The reason that this is so important is that Illinois’ social service network is mostly run by private, non-profit agencies like Catholic Charities, Lutheran Social Services, etc. If the state did all of this work “in-house” then we’d be in even worse shape because those state worker pay checks would have to be cut every two weeks. Instead, our problems are foisted off on those who can ill afford it.

* Mike Lawrence offers up some shock therapy…

Because too many politicians have chosen sweet talk over straight talk, Illinoisans overwhelmingly believe we can provide adequate K-12 funding, assure higher education accessibility to the less affluent, preserve parks and historic sites, respond comprehensively to mental illness, arrest and imprison violent offenders, combat methamphetamine, heroin and crack cocaine, keep faith with retired public employees and rehabilitate the state treasury simply by curtailing raises for legislators, firing political hacks, grounding the governor’s plane and doing some surgical snipping here and there.

But the far less soothing reality is that we could make legislators serve for free and barely ding the deficit. We could shutter five universities and close down departments that patrol our highways, guard and conserve our natural resources, serve senior citizens and veterans and protect the public health — and still not eradicate the red ink, let alone protect and invest in our children and in the roads, bridges and other infrastructure vital to economic development.

More than 90 percent of general revenue funds support education, health care, services for the needy, law enforcement and pensions.

Even while in the grip of an unemployment-escalating, insecurity-abetting economy, can we diminish or even continue to tolerate substandard resources for youngsters in any corner of Illinois and abide academic achievement gaps between whites and burgeoning minorities without ultimately yielding good jobs to other states and countries that offer better educated and trained workers?

* Admittedly tongue in cheek stories like this only feed that false perception of an easy solution…

Illinois’ license plates proudly boast we’re the Land of Lincoln. Now, we’re the Land of Obama, too. So what would happen if state leaders gave drivers the option of buying a special license plate to commemorate Barack Obama’s historic inauguration as president?

Judging by calls to Secretary of State Jesse White’s office and an examination of state records, the idea might offer a boost for the state’s cash-strapped budget.

* The new Senate President is offering up some much-needed hope for change…

John Cullerton, who takes over as president of the Illinois Senate in January, said Saturday he will make the long-delayed capital bill his “number one priority.”

Speaking at the reopening of the Irving Park Brown Line station on the North Side, Cullerton said a capital bill will bring not only improved bridges, roads and public transit, but jobs.

“The jobs situation in Illinois has been terrible,” said Cullerton (D-Chicago). “I look forward to working with the mayor and all the elected officials, bringing the governor and the speaker together, and try to get this dysfunctionality that’s been going on in Springfield over with, get this gridlock to end and get working on our problems.”

* And the Peoria Journal-Star, which endorsed a Senate President candidate backed by Rod Blagojevich and Emil Jones, demands a leadership change…

If the leaders - that the members choose, by the way - won’t lead, then it’s time to change leaders, or at least challenge them publicly.

Um, they just had an election to change leaders in the Senate. Why not wait and see what happens before ranting and raving?

* Somewhat related…

* 50 states, 50 holes

* A look at Gov. Rod Blagojevich’s wish list for infrastructure projects

* Pontiac doesn’t agree with governor’s office

* SJ-R Opinion: Make COGFA rulings binding

* SJ-R Opinion: Fix ethics law so road funds are not at risk

* Proposed driving restrictions not all fair

* Rosemont mayor returns mob-linked funds

posted by Rich Miller
Monday, Dec 8, 08 @ 10:45 am

Comments

Price of an Obama plate: $25,000.

Comment by Vote Quimby! Monday, Dec 8, 08 @ 11:05 am
While it is great politically to want universal health care, judging from the way medicare cost has risen should be a barometer of what would happen if Universal Health Care is put in place or in the Governors case Expanded. The state cannot keep up with the rising cost of medicade and to the cost of the expansion of health care for everyone will do nothing more than bankrupt this state. But Rod, being the politician he is, could care less about that, it is about helping the people.

In the mean time, the states fiscal crisis will continue to grow. When is the elected officals of this state going to realize that that the only way out of this is some sort of tax hike, (as much as I hate that) They are all afraid to tell the truth and vote for unpopular plans. But it is the right thing to do.

Comment by He Makes Ryan Look Like a Saint Monday, Dec 8, 08 @ 11:11 am
“The reason that this is so important is that Illinois’ social service network is mostly run by private, non-profit agencies like Catholic Charities, Lutheran Social Services, etc. If the state did all of this work “in-house” then we’d be in even worse shape because those state worker pay checks would have to be cut every two weeks. Instead, our problems are foisted off on those who can ill afford it.”

If it were done by state workers they would have paid for it as they went. They would not have had the option of going in debt and therefore would not have had to borrow money for that portion of the expense anyway.

Comment by Reality is Monday, Dec 8, 08 @ 11:16 am
So, let’s see, we’re a really wealthy country, the wealthiest in history, but we can’t afford to support Medicare and affordable health insurance for all citizens. So, what should we be spending our trillions on in lieu of universal health care. Invading other countries? Propping up dictators? Lavish pork projects for Congresspersons with lots of seniority? Military hardware that is obsolete when it’s built. Tax cuts for the wealthy? Lavish salaries for incompetent teachers and do-nothing civil servants?

It’s not a financial problem–the money is there. It’s a problem of priorities. And if deficits don’t matter…at least in the short term…let’s at least use the (borrowed) money well. Not just to bail out the financial industry and the Big 3.
More people will be around to drive those fuel efficient cars.

Comment by Cassandra Monday, Dec 8, 08 @ 12:09 pm
There are hundreds of social services agencies using lines of credit to simply meet payroll since state payments are coming later and later and soon with rate cuts. Those lines of credit come with the additional, non-covered costs of interests rates that must also be paid. If the state did this work in-house it would cost more since state workers are paid 25%-30%+ more for similar jobs found in community based programs. The community agencies doing this work still have to meet payroll every two weeks to keep employees and stay in busines. When banks stop honoring those lines of credit (much like what has happened at Republic - not enough revenue to cover costs) stuff will hit the fan. No margin = no mission regardless of for-profit or non-profit tax status.

Comment by zatoichi Monday, Dec 8, 08 @ 12:29 pm
Good to see Mike back writing. Where does everyone want to cut in that 90%?

Everybody in the world is in the same boat. The books were cooked, and now we have to get them back in order. My suggestion again is to up the state gas tax for capital before this deflationary cycle (hopefully) ends.

Comment by wordslinger Monday, Dec 8, 08 @ 12:33 pm
I wonder if the new prison opening up to take the place of Pontiac is on the governor’s wish list. I hear that a ceiling collapsed on one of the buildings of this unused facility, and must be repaired before the inmates arrive…

Comment by Capitol View Monday, Dec 8, 08 @ 12:48 pm
Sorry people - after years of thinking you can vote yourselves rich by having government pick up the bills, you are rediscovering that there are no free lunches.

When all the money goes towards safety nets, there is less money available to keep people from using them. We are financing our own failures.

The moment we started ensuring that health care would be covered for some, those some no longer cared about the costs they incurred. The health care providers stopped caring what they charged, and the entire system went off the rails.

We’ve been watching Western Europe and the old Soviet countries try the same things with the same results. We been watching them sink every dime into health care and social programs for almost seventy years, yet we think we can pull it off?

There are no free lunches, just poor lunches poorly served late. Time to get real!

Comment by VanillaMan Monday, Dec 8, 08 @ 4:58 pm
===The moment we started ensuring that health care would be covered for some, those some no longer cared about the costs they incurred. The health care providers stopped caring what they charged, and the entire system went off the rails.===

Written by someone who doesn’t understand Medicaid payment negotiations.

Comment by Rich Miller Monday, Dec 8, 08 @ 5:11 pm
All the money goes to safety nets? Gee, I thought some money went to defense, too.

Comment by wordslinger Monday, Dec 8, 08 @ 6:46 pm
VM, thanks, I knew there was some quick, easy analysis of what went wrong

Comment by steve schnorf Monday, Dec 8, 08 @ 7:23 pm