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* This timeline may be overly ambitious, but it’s good to see he’s setting a deadline for himself…
In office less than a week, Gov. Patrick Quinn is setting April 3 as his goal to enact a long-delayed capital bill to fund Illinois road projects and other improvements.
“It will give us a target to shoot at and keep an urgent approach,” he said after a 50-minute meeting Tuesday in Washington, D.C., with members of Congress from Illinois. […]
The April 3 date marks the start of a two-week Easter recess for the Illinois General Assembly. A capital bill was expected to be a high priority for the new governor, but not as urgent as ethics reform and the state’s $4-billion deficit.
“We will (pass a capital bill),” said Mr. Quinn, adding that after consulting with legislators, he will present details on the bill to the public on March 18 when he unveils next year’s state budget. He declined to say how big the bill would be or whether it would be financed with tax increases, increased borrowing or a combination of the two.
It will be “pretty big,” he said. “The more we can get, the better.”
* Paying for a “pretty big” capital plan will not be easy, however. There’s no question that we need the plan, but funding it will be excruciatingly unpopular with a recesssion-weary populace…
House Speaker Michael Madigan will support a proposal to raise the existing 19-cent-per-gallon motor fuel tax to 27 cents—a boost that could raise $500 million a year to fund bond payments on a $5.9 billion transportation repair plan, a Madigan spokesman said.
Senate President John Cullerton also told the Chicago Tribune’s editorial board that increased motor fuel taxes and higher vehicle fees should be considered “on the table” for what he called an Illinois “stimulus” package that would fund school construction as well as road and transit projects.
A spokesman for Gov. Pat Quinn said the governor is “keeping all options open as he works to get a clear idea of the state’s finances.” […]
Illinois’ current motor fuel tax rate has been unchanged since 1990.
* The Daily Herald, in typical newspaper style, editorializes that leaders need to make tough choices on the budget, but never suggests a single major choice…
Accountability means our legislators will have to make some hard choices about where to cut state spending. And Quinn needs to show the leadership needed to make those hard choices.
Blah, blah, blah. Step up or shut up.
* Meanwhile, Quinn is showing a surprisingly deft touch so far…
As he sat down in Durbin’s leadership office in the Capitol, Quinn gave his cell phone number to members of the [state’s congressional] delegation, saying, “In the past, I know it was hard for you to reach the governor.”
* And some folksy common sense…
In marked contrast to the style of his predecessor, Illinois Gov. Pat Quinn took a United Airlines flight to the nation’s capital to discuss the effects of an economic stimulus plan.
Quinn, who took over last week following the impeachment and removal of Rod Blagojevich from office, flew coach rather than take the state plane, which Blagojevich had an affinity for.
* Also, Levi Moore takes a look at how Quinn might change Illinois government….
Quinn’s challenge is actually an opportunity for the Chicago Tech Community to help itself. Quinn created the Illinois Reform Commission. The commission is asking the public for suggestions as to how to clean-up Illinois government. Suggestions I have heard, include:
* Invalidating existing IT service and other technology-related Master Contracts;
* Pre-qualifying IT companies from a technical capability perspective;
* Creating an easily monitored web-site to preview procurement opportunities and review projects that are being implemented; and
* Overhauling the entire Illinois procurement system.
* And Democratic legislative leaders try to get out in front of the ethics issue…
Leaders in the General Assembly are forming a committee to consider tighter ethics laws.
Senate President John Cullerton and House Speaker Michael Madigan say they’re filing a resolution to create a 16-member commission. […]
But the pair did not endorse more stringent rules on current practices, such as limits on campaign contributions, perhaps the top priority for government-reform groups. Illinois has no limit on the amount of money someone may donate to a politician. […]
The two leaders also directed their lawyers to meet with Gov. Pat Quinn’s new ethics commission to discuss legislation that could require disclosure of investigative reports of government corruption. They also would consider stronger lobbyist “revolving-door” laws and greater protection for whistleblowers.
* Related…
* Top Illinois lawmakers to push ethics reform
* Good-government reformers aim to seize the moment with campaign finance proposal
* Iowa seeks citizen input on state budget
* Go get the Medicaid money: a message to Gov. Quinn
* Update on State Budget Gaps: FY 2009 & FY 2010
* 4-H program faces budget problems
* DNR director hears cries of cronyism
* Attendance down 13 percent at Ill. historic sites
* New governor to take a methodical approach
* Quinn flies ‘economy class’ for trip to D.C.
* State’s new top dog has a watchdog history
* Gov. Quinn meets with Obama, lawmakers in D.C.
* Quinn meets with Obama at White House
* Rockford hopes Alpine patch job will hold
* Officials: Write Quinn letters to help save Pontiac prison
* Letter-writing effort planned to keep prison open
posted by Rich Miller
Wednesday, Feb 4, 09 @ 10:22 am
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The best solution would appear to be to have the State enacta property that of $0,10 cents per $100 Equalized Assessed Value on all taxable property in the State for the purpose of funding a Bond Issue to bring current the shortfall in Pension contributions and up to a like amount for funding transportation infrastructure — roads bridges, etc.
Debt service levies go away after the bonds are retired.
It would be in no snse a permanent tax such as have been proposed for sales, income taxes and Madigan’s newest blessing, the increase in the motor fuel tax.
The lack of attention paid by Illinois voters as the legislatures and the Governors connived not to do their constitutional duties does have some cost.
Comment by Truthful James Wednesday, Feb 4, 09 @ 10:33 am
If they do pass a fuel tax increase they should make it temporary (2 years) and they should put a stipulation that if the average gas price goes back over $3.00 per gallon the additional tax is recinded?
Comment by Phineas J. Whoopee Wednesday, Feb 4, 09 @ 10:43 am
Re: article on closing Pontiac prison — Governor Quinn is in a brutally tough position, that is made no easier by a difficult economic climate. If it makes economic sense for the state to close Pontiac prison he’s going to have to bite the bullet and say no to the powers that want to keep it open.
Unfortunately, Quinn wants to be liked by all, including AFSCME, an organization that has never sen a tax hike that it didn’t like. People already pay far too much in taxes, and keeping open a prison to pacify the union is an irresponsible waste of OUR tax dollars. Sometimes a Governor has to say “no.” However, Quinn has given no indication that he is willing to make the difficult decisions that are needed in these tough economic times.
Comment by Cynic Wednesday, Feb 4, 09 @ 10:47 am
“However, Quinn has given no indication that he is willing to make the difficult decisions that are needed in these tough economic times.”
Please, it’s been five whole days since he’s been governor. I know the honeymoon question was yesterday, but c’mon.
Comment by 47th Ward Wednesday, Feb 4, 09 @ 10:51 am
So we’ll get a capital bill, but pushing it all off on indirect taxation is brutal on a lot of people who can ill afford it. There are so many things about this state’s tax system that brutalize people who already make very little. The income tax personal exemption has never been indexed to inflation, so even the $2,001st dollar is taxed. The income tax rate itself is the lowest in the Midwest, making Illinois into something of a tax haven for the rich (by the time you’re making 200K or more that skin-flint personal exemption doesn’t matter so much). The sales tax nails goods, hurting retailers and hurting people who buy basic essentials, yet doesn’t touch services such as $200 haircuts. Schools, with no revenue from income taxes like they’d have in other states, kill people on fixed-incomes with massive property taxes.
And Madigan wants to raise the gas tax, another indirect tax that disproportionately hits the poor. I’m all in favor of boosting the price of fuel — but only if these other taxes are dealt with first.
Comment by Angry Chicagoan Wednesday, Feb 4, 09 @ 10:55 am
===they should make it temporary (2 years) ===
Absolutely impossible. You can’t pay the bonds off in two years.
Try again.
Comment by Rich Miller Wednesday, Feb 4, 09 @ 10:55 am
=== Madigan wants to raise the gas tax, another indirect tax ===
Actually, it’s a lot more direct than you’re making it out to be. You use the roads, you buy fuel, you pay the tax.
Comment by Rich Miller Wednesday, Feb 4, 09 @ 10:57 am
Illinois could start selling land.It’s a win-win situation for Pat Quinn.Land sales would provide immediate cash up front and new land on the tax rolls.But,this being Illinois don’t expect this.
Comment by Steve Wednesday, Feb 4, 09 @ 10:57 am
===Illinois could start selling land.===
The state has billions of dollars in vacant land that we can sell easily in this market?
Please.
Comment by Rich Miller Wednesday, Feb 4, 09 @ 10:59 am
Illinois government handing out pensions and benefits worth multi-million $s to their campaigners, and these Democrats are going to kick struggling Illinois families whne they are down with higher unavoidable taxes and fees that disproportionately hurt the poor and working class?
“There’s no question that we need the (capital spending) plan”
I believe there is a question there, but even more important than whether we NEED this is whether struggling families can AFFORD to have more of their hard earned money taken from them.
Comment by TaxMeMore Wednesday, Feb 4, 09 @ 11:01 am
===People already pay far too much in taxes===
Sure, except for the fact that Illinois residents have one of the bottom five tax obligations in the country, when all taxes are factored in.
Illinois also has one of the lowest spending levels, and one of the lowest state workers per cap, in the country.
Further, economists are arguing (http://tinyurl.com/avzyeq)that it is better to raise taxes at the state level than cut program.
Comment by dave Wednesday, Feb 4, 09 @ 11:02 am
I’m sure there’s some money there.The state of Illinois building,alone,on La Salle Street could raise some money.It’s better than nothing.Especially,since Illinois have a rather high tax reputation.The issue is pensions that aren’t fully funded.Madigan and gang can never raise taxes enough to pay off these liabilities.Land sales raise cash and get land on the tax rolls.
Comment by Steve Wednesday, Feb 4, 09 @ 11:06 am
===The state of Illinois building,alone,on La Salle Street could raise some money.===
The last time this was looked at, the consensus was that the Thompson Center would have to be sold as a tear-down. Commercial real estate market is plummeting, so you’re gonna add more to the market and hurt those business that are already struggling?
Also, where do you put the employees once you’ve taken away their office?
Simple solutions are almost always neither.
Comment by Rich Miller Wednesday, Feb 4, 09 @ 11:10 am
Cynic, I have yet to see any indication that closing Pontiac would make any economic sense even in terms of saving the state money. The prison itself as an institution may be 130 + years old but the facilities are nowhere near that old, and appear to be in reasonably good condition. The outrage over Rod’s decision to close it was in large part due to the fact that it appeared to make no economic sense, and seemed to be purely a political revenge move.
Comment by Secret Square Wednesday, Feb 4, 09 @ 11:10 am
If I were Quinn I wouldn’t want to be the one to wear the hat for passing a permanent fuel tax less than a year away from the time fuel prices were at $4.50 a gallon. So if the tax has to be permanent, then at least have some type of rescind trigger based on the cost of fuel. If that is unworkable then forget a capitol plan and hope the feds send the money via stimulus.
Comment by Phineas J. Whoopee Wednesday, Feb 4, 09 @ 11:10 am
Solutions.The state of Illinois has too many employees.If the private sector can handle cut backs so can the state of Illinois.Especially,since it’s a state that’s growing slower than the national average.With the nation’s largest underfunded pension program-the status quo isn’t working.Can Illinois continue to fund “gilt-edged pensions”?
http://www.forbes.com/forbes/2009/0216/078.html
Comment by Steve Wednesday, Feb 4, 09 @ 11:14 am
===The state of Illinois has too many employees.===
Fact, Illinois is 50th in the nation in per capita state employee headcount - and was so even before we lost thousands of employees during the last early retirement program.
Cut where you want, but keep the facts in mind.
Comment by Rich Miller Wednesday, Feb 4, 09 @ 11:17 am
==The state of Illinois has too many employees.==
Huh? The state of Illinois has one of, if not THE, lowest levels of state workers in the country.
Comment by dave Wednesday, Feb 4, 09 @ 11:18 am
I applaud Quinn on his capital bill agenda, but the timing of it seems a bit odd, considering IL is in line to receive a boatload of cash from the feds, including a nice chunk to avoid cuts at the state and local levels.
An increase in the motor fuel tax is a good idea, but again, the timing of it appears somewhat curious considering the economic climate. There should also be a real focus on modernizing and expanding mass transit with the revenue so more folks have the option of riding a train or bus as opposed to driving.
Comment by The Doc Wednesday, Feb 4, 09 @ 11:23 am
Rich:
I’m aware of that fact but still government can always cut jobs.Government is a greedy monopoly.Anyway,the pension problem isn’t going away today or next year.We in the private sector are asked to give more money to prop up a generous pension plan most of us don’t get.Yes,I know pensions can’t be cut because of the Illinois state constitution and federal contract law.But,something has to done.New hires will have to be put on a 401(A) plan.
Comment by Steve Wednesday, Feb 4, 09 @ 11:25 am
And Democratic leaders try to get out in front of ethics issues…
Isn’t the tense of the verb in this sentence incorrect?
Too little too late…enablers, beneficiaries all, in the state with the loosest campaign finance laws in the nation…why fix it if it aint broke…works for them…oh yeah, the career pols want to get re-elected…
Comment by Anonymous45 Wednesday, Feb 4, 09 @ 11:40 am
Given the economic situation the country is in a 42% tax increase is absolutely the wrong way to go. Sure it is a tax on those that use the fuel but it will be spread to everyone when you consider that much of the goods we purchase are delived by trucks. Would they really be talking about this if gas proces were back up where they were a short time ago? Rich - where would a 27 cent tax place us as a state compared to everyone else?
Comment by Fed-up Wednesday, Feb 4, 09 @ 11:41 am
The appropriations process is abysmal. It is a joke and a waste of taxpayer money. We HAVE to purchase equipment and supplies through a designated vendor. And they typically order it from places we can’t and mark it up 20-30%, just for being a registered small business vendor… what a rediculous waste of money we don’t have…
Comment by 618er Wednesday, Feb 4, 09 @ 11:46 am
Dave -
“…Further, economists are arguing (http://tinyurl.com/avzyeq)that it is better to raise taxes at the state level than cut program….”
The cited article comes from Keynesian economists who parse the argument as if cuts in state spending would be a reduction in transfer payments to low income people. This and many other holes in their arguments makes it less than convincing.
The Keynesians ignore what makes this recession different than 1929-1940.
What we have today (or did until most recently) is a significant level of household (consumer) dis-savings which in the first instance is installment loans including credit cards We have as well huge paper losses in housing which turn into real dis-savings upon foreclosure. The psychology of the home owner is that this loss is real even without selling.
Now the Keynsians want households to use 100% of their fragile income on consumption, even going further in debt. The households have voted no and are currently lowering their consumer dis-savings and/or actually saving.
What the households are supposed to buy is a horse of a different color since their tax plans are anti- domestic Industry.
What has to happen in the household sector is that a sense of equilibrium must return. That sense will take into account the volatility of the employment market and the desired level of savings. A turn in the housing market would help, but that is not going to occur until the equilibrium between qualified buyers and houses for sale appears.
The same thing exists in the financial sector where a new equilibrium has yet to be reached. It hasn’t helped that the Bernanke/Paulson and Geithner when he was President of the New York Fed screwed up badly.
If you are interested you might look at the latter’s testimony about the Fed loans and sharing the risk of the JP Morgan/Chase purchase of Bear Stearns. Country bankers could have done much better at evaluating the portfolio. which limited the JPM/C losses to 1 Billion but have on the books cost the Fed something north of 6 Billion..
Of course paulson and his deputy Kashcari (pronounced “Cash and Carry” as soon as the Congress gave them 815 Billion without strinbgs with which to purchase “Toxic Assets” turned around and invented other ways to spend it - -without Congress oversight and without putting in the necessary management and financial controls in the entities who got the dough.
And many other sad stories
It can be seen that recovery must be a two stage process and we have not reached the quilibrium points in the first stage.
Let us hope that Pat Quinn manages the stimulus money the State gets better than the Feds have managed recovery to date.
Comment by Truthful James Wednesday, Feb 4, 09 @ 12:23 pm
The State of Illinois Building is a white elephant. You wouldn’t get anything for it.
The Daily Herald editorial is absurd.
The gas tax is coming.
Comment by wordslinger Wednesday, Feb 4, 09 @ 12:38 pm
618er - If I remember correctly, the reason that agencies must use a small/minority/female/disabled-owned business to make small purchases was due to an executive order signed by Blago. Agenices were required to obtain a waiver if there wasn’t a company that could fulfill that service. This would be interesting “low-hanging fruit” for Quinn to pick.
Comment by The KQ Wednesday, Feb 4, 09 @ 12:54 pm
The KQ
You are correct, and I believe it is a rediculuous waste of money. There are many silly policies put in place by/through CMS. Bill Black asked in the house impeachment hearing why DOT was paying rent to CMS for a building they bought and paid for years ago. Well I ask this. Why do all the agencies under CMS’ domain of computer control, have to pay $90 a month for a 3 year lease for what is essentially a $300 computer? Yes that’s $3240 over a 3 year period for $300 computer. Pick any agency that that CMS “manages” computers for and do the math. Our EUC (desktop support) guys say there are about 40,000 users in the illinois computer network, I doubt they all have computers but if half do, that would rough out to over $58,000,000 just wasted a year on computers…
Comment by 618er Wednesday, Feb 4, 09 @ 1:18 pm
Secret Square — If closing Pontiac doesn’t make economic sense, it shouldn’t be done. Blago lacks any real credibility and so does AFSCME. Since they were the ones chirping loudest about the closing (Blago pro, AFSCME con, natch) Quinn needs to review the numbers very closely. Unfortunately he doesn’t have time on his side, given the State’s financial situation.
47th Ward — I’m not anti-Quinn. I actually have a favorable impression of him. However, he hasn’t suggested cuts in spending whatsoever. Furthermore, though he’s only be in office a short while, he’s had quite a while to prepare for it. You don’t really think that Quinn expected the Senate to led Rod off the hook, do you?
Comment by Cynic Wednesday, Feb 4, 09 @ 1:21 pm
===However, he hasn’t suggested cuts in spending whatsoever.===
He has been in office for less than a week. He has a budget address in March.
Take a breath.
Comment by Rich Miller Wednesday, Feb 4, 09 @ 1:23 pm
{The Daily Herald, in typical newspaper style, editorializes that leaders need to make tough choices on the budget, but never suggests a single major choice.
Blah, blah, blah. Step up or shut up.}
The Daily Herald does a pretty good job of covering state government all things considered and this seems a little unduly harsh.
I realize that CAPFAX is not a newspaper, but you cover state government better than any publication in the state. I’d be interested in reading your 10 point economic plan for the state right now, rather than just dismissing the ideas of others.
What expenses would you cut and what revenues would you raise, and how would you raise them?
Comment by Quinn T. Sential Wednesday, Feb 4, 09 @ 2:38 pm
Rich - As I said, I like the guy. But I highly doubt that AFSCME would give him a standing ovation if he told Henry Bayer that state employees needed to feel some pain too.
Comment by Cynic Wednesday, Feb 4, 09 @ 2:39 pm
Cynic, like they haven’t been feeling pain for the last six years?
Comment by HearMeRoar Wednesday, Feb 4, 09 @ 3:05 pm
I repeat my original comment. It is the only way we can be assured that the tax goes away after the debt is paid.
———
The best solution would appear to be to have the State enact a property that of $0,10 cents per $100 Equalized Assessed Value on all taxable property in the State for the purpose of funding a Bond Issue to bring current the shortfall in Pension contributions and up to a like amount for funding transportation infrastructure — roads bridges, etc.
Debt service levies go away after the bonds are retired.
It would be in no sense a permanent tax such as have been proposed for sales, income taxes and Madigan’s newest blessing, the increase in the motor fuel tax.
The lack of attention paid by Illinois voters as the legislatures and the Governors connived not to do their constitutional duties does have some cost
Comment by Truthful James Wednesday, Feb 4, 09 @ 3:47 pm
“This would be interesting “low-hanging fruit” for Quinn to pick.”
Ain’t. Gonna. Happen.
Comment by Arthur Andersen Wednesday, Feb 4, 09 @ 4:18 pm
Another verry interesting development concerning Pontiac… the author of the IIRA study claiming a $4 million savings to the state would be realized by closing Pontiac and moving the inmates to Thomson now says that figure was inaccurate… it would be more like a $16 million or more LOSS to the state. He claims DOC didn’t give him all the information he needed…. gee, I wonder why?
http://www.pantagraph.com/articles/2009/02/04/news/doc498a0931714d3099266959.txt
Comment by Bookworm Wednesday, Feb 4, 09 @ 7:31 pm
As a Republican, I think Quinn should be given the chance to do what he can do to bring the concept of fiscal sanity to members of both political parties down in Springfield. Unfortunately for Mr. Quinn, he is going to to be forced to suggest the unpopular decisions for the people such as raising taxes. Pat Quinn is a good guy who (in his past political career) always chose to straddle a fence rather than make unpopular political decisions that might negatively impact his chance of getting re-elected. The state’s deplorable fiscal condition is not going to allow Pat to avoid taking a stand anymore.
Pat is going to have to raise the state income tax, raise the state gasoline tax, and do whatever else it takes to restore our state’s fiscal health. This is surely going to cost Quinn his chance of being elected Governor. Lisa will be the benefactor of Pat finally being forced to take a stance on Illinois economic policy. We all know where that got Richard Olgilvy when he was Governor. At least, Pat Quinn will be able to go out of politics as a man of integrity just as Olgilvy did.
Comment by Beowulf Thursday, Feb 5, 09 @ 8:12 am