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* Predictably, the headlines today were all about a proposed pension change that won’t save more than a few dollars (literally) in next fiscal year’s budget, and a few vague proposals for other gubernatorial budget cuts…
* Quinn readies budget ax to chop away at deficit
* Quinn: Job cuts, pension changes possible
* Ill. gov considers 2-tiered pension system
* Budget comes with dose of ‘castor oil’
* Challenges for Gov. Quinn’s first budget
* The Pantagraph also leads with the hype, but its reporters commendably get behind the PR smoke screen to the heart of the matter…
State Sen. Donne Trotter, who is the point man on budget matters for Senate President John Cullerton, said negotiators are discussing boosting the state income tax rate to 5 percent, up from its current 3 percent.
Trotter said officials believe boosting the personal exemption for certain lower income residents could reduce the impact of higher taxes on their pocketbooks. […]
A 67 percent increase in the income tax rate would bring in an estimated $7 billion to help close the gap, meaning additional belt-tightening might have to accompany any increase.
* And those promised cuts? Maybe not so much…
Senate President John Cullerton, D-Chicago, said he’s onboard with changing the pension system but thinks government will be forced to cut only if there’s not enough support for higher taxes. He said it sounds like Quinn will be proposing an income tax increase.
“If there’s no tax increases, we will cut,” Cullerton said. […]
[Sen. Larry Bomke (R-Springfield)] said the only possibilities he sees for trimming the budget are in programs expanded in recent years.
“I honestly don’t know where he would cut,” Bomke said.
* There was also this symbolic diversion which won’t save much money, either, but will make newspaper editorial boards happy as clams…
In [House Republican Leader Tom Cross’] plan, all the current lawmakers would stay in their current plan, arguably the most individually lucrative of all the pension plans in terms of how fast members rack up a pension and the added perks.
But freshmen lawmakers and first-time statewide office holders (who are also in the General Assembly pension plan) taking office in 2011 would instead go into the state employees plan.
Democratic House Speaker Michael Madigan… currently sponsors legislation that would set up a similar system for the General Assembly’s pension plan, said spokesman Steve Brown.
* Meanwhile, in important news, S&P lowered the state’s bond rating because of the massive budget deficit and pension morass…
Citing the state’s “limited action’ in addressing its budgetary problems, Standard & Poor’s Ratings Services lowered its rating on the State of Illinois’s general obligation bonds to “AA-minus” from “AA.”
The debt-rating concern had placed the state’s so-called “GO” bonds’ double-A rating under CreditWatch review for possible downgrade in December, a move that S&P said at the time “reflects our opinion of the state’s growing budgetary shortfall,” as well as concerns about the distraction posed by the legal charges facing the state’s since-ousted governor, Rod Blagojevich.
In marking down the bond rating Tuesday, S&P took the GO bonds off of CreditWatch.
In general, a lower bond rating means the issuer - in this case the state - must pay a higher interest rate to find buyers for its debt offerings.
* And then there’s this…
[Senate GOP Leader Christine Radogno] supports Quinn’s call for a $25 billion capital construction plan but, like Quinn, opposes Cullerton’s idea to pay for it with an increase in the gasoline tax.
Radogno would rather reconsider expanded gambling - a voluntary tax, she said - or leasing the state lottery’s management.
It’s gonna take a while before this thing is soup. In the meantime, look through the smoke to the real story. Tax hikes are coming.
posted by Rich Miller
Wednesday, Mar 11, 09 @ 9:00 am
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Rod was right! It is all an evil conspiracy to raise the income tax. What a prophet…can’t wait for his book
Comment by Vote Quimby! Wednesday, Mar 11, 09 @ 9:02 am
I don’t understand how nobody has a plan that doesn’t require raising taxes…. There needs to be a lot of cutting, and a lot of consolidation… probably from everything. Oy… the ballooning budgets of the George Ryan era have come back to haunt us.
Comment by Heartless Libertarian Wednesday, Mar 11, 09 @ 9:07 am
Heartless Libertarian - What I don’t understand is why there has not been ANY media outlet, or journalist in this state even mentioning the idea of reducing spending.
Comment by Scooby4Prez Wednesday, Mar 11, 09 @ 9:12 am
Ummm … Scooby, the collection of above headlines all talk about cuts and reduced spending. What I don’t understand is why you can’t read.
Comment by Frank Booth Wednesday, Mar 11, 09 @ 9:14 am
I need an economist’s advice…. Which is worst for the state’s economy?
1. Raising taxes during a recession
2. Cutting spending during a recession
3. Letting it ride
Comment by Heartless Libertarian Wednesday, Mar 11, 09 @ 9:16 am
“Tax hikes are coming.”
So is the primary.
No tax cuts. Q.E.D.
Comment by True Observer Wednesday, Mar 11, 09 @ 9:17 am
It’s always hard to tell how much the electorate is paying attention, but the plan our Chicago-based Dems seem to be supporting involves significant tax hikes and very few cuts. So the pain really is going to concentrate on taxpayers, not on politicians, their campaign contributors, their relatives, and on Illinois’ porky state bureaucracy.
Even the Republicans seem rather quiet on this issue and apparently there aren’t very many “Blue Dog” Democrats in the Illinois statehouse.
I predict little will happen on the pensions, with Quinn hoping that just talking about it will lead Illinois’ generally passive taxpayers to believe that something has actually been done. Then he can
blame it on the unions when nothing does happen.
So what will be Quinn’s reward for keeping everything the way it by digging into middle class pocketbooks a whole lot more. A loss to Lisa Madigan in the 2010 primary. Quinn must have a penchant for self destruction.
Comment by Cassandra Wednesday, Mar 11, 09 @ 9:19 am
No one has said it yet, so allow me.
Illinois is a low tax state, and has one of the lowest ratio of state employees to population of any state.
Time we paid our fair share.
Comment by Zounds Wednesday, Mar 11, 09 @ 9:25 am
==Illinois is a low tax state==
Not when you combine the income tax with the sales tax…
Comment by Vote Quimby! Wednesday, Mar 11, 09 @ 9:30 am
Rich deserves a lot of credit for calling out the proposed pension cuts for future hires as exactly what they are: A ploy, a fig leaf, a red herring, a gimmick that won’t save the state any real money now, when we need it.
The cuts won’t do a thing to address the real pension problem, which is the state’s failure to pay what it owes for benefits earned in the past.
What they will do is hurt future retirees. The current average pension benefit for SERS retirees is so low, 14 or 1500 dollars a month, that any cut is going to very quickly cause pain in family budgets stretched thin by housing costs, food, gas, prescription drug costs etc.
When you think about it this way, it’s tough to square Quinn’s rhetoric about “tax fairness” and protecting working families from an income tax increase with his apparent desire to cut pensions for the very same working people who spend their careers serving the public.
Comment by Reality Check Wednesday, Mar 11, 09 @ 9:38 am
Heartless, it’s not completely clear, but Clinton raised taxes in the 1990’s and the economy didn’t suffer, whereas Bush II cut taxes and the economy didn’t really respond. Of course the devil’s in the details - it depends upon whose taxes are raised or cut - the middle class or the rich and the general condition of the economy when taxes are raised or cut. In today’s economy it’s a crap shoot.
Comment by Sir Reel Wednesday, Mar 11, 09 @ 9:45 am
We are witnessing political failure.
Politics only can do so much, and what we have been getting from politics has been handouts and freebies to the point where our economy collapsed. Now that we are in dire circumstances, we are seeing that these same politicians are unable to do anything else. They have utterly failed us.
Instead of providing adult leadership, they hedge, hide and try to save their political scalps. Politics is all these people know! How many of them expected to sit there until they retire, or find better public offices? What did they expect to do in office except pad their pensions and settle into perpetual personal empowerment? Naturally they are afraid of making difficult decisions, because being a leader means taking risks, and these people don’t seem willing to do either at a time when Illinois is crying out for leadership. Our General Assembly is full of full-time politicians playing as though they are royalty. They don’t want to lose their fiefdoms by being leaders during a real crisis.
They sat there and waited for Blagojevich to finally get arrested - then they bring up all his illegal administrative stunts in order to bury him. During Blagojevich’s political funeral, you couldn’t find a single Democrat willing to even put in a good word for their once-leader. How spineless are these people?
We expect these weaklings to stand up and propose spending cuts that have wrecked our state? Like Three Blind Mice, they just don’t see where they can cut. They are only used to spending money that isn’t theirs to impress people they hope will vote for them. They never expected to have to tell these same people the truth, did they? So naturally they want each of us to pay for their incompetence, maladministration, and short-sightedness. They want us, our children and our grandchildren to give them even more of our money so they don’t have to return the pretty political gifts they doled out to their connected friends over the past ten years.
Illinoians are a laughingstock to America because we have allowed these legislative wienies to remain in control over our public offices years after they have internationally demonstrated their inabilities to perform their jobs. We have taken it so far, we have only one political party in power - and they have no political opposition. Consequentially, Illinoians have no political power to remove these incompetents and losers, if we ever displayed a willingness to remove them.
They want us to recognize their failures, and pay up. They don’t want to cut back. They don’t want to lead by example. They don’t want to lead at all. During the greatest economic crisis in it’s nearly 200 year history, Illinoians have discovered that they have been abandoned by a state government full of scared, pampered, spoiled, childish politicians clinging to their personal power, unwilling to grow up and tell their well-connected friends that the Gravy Train crashed and there is no more gravy to dole out.
No new taxes until these lackeys show some spine, lead by example, make some real cuts, implement real reform and show us they deserve to stay in office another day!
Comment by VanillaMan Wednesday, Mar 11, 09 @ 9:50 am
Is Sen. Brady planning to show gubernatorial leadership and grace the citizens of Illinois with his detailed plan on how to stem the deficit without tax increases?
Now’s not the time to hide your light under a bushel. Seriously, if he would put it down on paper, it would be instructive to see what that would really entail.
Comment by wordslinger Wednesday, Mar 11, 09 @ 9:53 am
Illinois is a low tax state
Bull! You are only looking at our Income Tax. Stop pretending you are Elsie the Borden Cow, and start showing the people who are stealing your milk, your horns!
Comment by VanillaMan Wednesday, Mar 11, 09 @ 9:54 am
When comparing tax rates from state to state, you have to consider the total tax burden to compare apples to apples. So property taxes count, as do the county and municipal slices of the sales tax. When you factor those in, our tax burden is fairly hefty. Quinn might be able to make a tax hike palatable if it included a tax swap to give some relief to homeowners, but that seems unlikely given the current estimated deficit.
Comment by soccermom Wednesday, Mar 11, 09 @ 9:56 am
VanillaMan, just a month ago you had an opportunity to show everyone where YOU would find “real cuts.” You offered the same empty talk in that thread: https://capitolfax.com/2009/02/02/the-rrb-hangover/
As 47th Ward said to you then, “VM, I’m still waiting for one suggestion from you. One suggestion of a meaningful cut in spending. Just one. Where do you propose we cut? How much will that save? Feel free to add any additional savings you can offer, but until then, please spare us the anti-tax diatribes.”
You never responded. We’re still waiting.
Comment by Reality Check Wednesday, Mar 11, 09 @ 9:58 am
“Illinois is a low tax state, and has one of the lowest ratio of state employees to population of any state.”
This, of course, is also misleading as Illinois has more local government than just about any other state (and may be #1, but I’m not entirely sure about that).
Comment by Gene Parmesan Wednesday, Mar 11, 09 @ 10:00 am
start showing the people who are stealing your milk, your horns!
My prize bull usually shows his horns when someone tries to milk him:-)
Everyone’s got their limit, or breaking point. Obviously, as a state we haven’t reached it yet, or things would be more “shook up” than they are now.
Comment by Six Degrees of Separation Wednesday, Mar 11, 09 @ 10:02 am
Illinois has more local government than just about any other state
More units of local government, for sure. But most townships don’t have many, if any, full time employees. Transfer their functions to the counties or the state, and someone will need to do the work. Maybe it could be done a little more cost-efficiently by others, but at the cost of “local control”.
Comment by Six Degrees of Separation Wednesday, Mar 11, 09 @ 10:07 am
VanillaMan, just a month ago you had an opportunity to show everyone where YOU would find “real cuts.” You offered the same empty talk in that thread: https://capitolfax.com/2009/02/02/the-rrb-hangover/
Where have you been? Rich has had more than one Question of the Day regarding spending cuts. From the first posting, I have been right out there. We even witnessed many excellent posts from every political spectrum, making intelligent and insightful spending cuts, thanks to Rich’s leadership on this very issue.
I won’t play tit-for-tat games with my rebellious toddlers, so I won’t make any exceptions for you either.
Comment by VanillaMan Wednesday, Mar 11, 09 @ 10:15 am
Anybody who has or is currently working for the state, if truthful, can point out plenty of waste
in their department ,section, office or whatever. Add it all up and it is a far cry from $9 billion but that doesn’t mean it shouldn’t be done. A lot of it would be getting rid of the personnel Blago added who didn’t (and still don’t) have qualifications, job decriptions, veterans preferance, legitimate test and/or promotional test scores ect, ect. Add all their salaries and benefits and it is a tidy sum. A side benefit would be improved moral and efficiency of the professionals left in state government.
Comment by Leave a light on George Wednesday, Mar 11, 09 @ 10:16 am
===Add all their salaries and benefits and it is a tidy sum===
I think there’s a typo in your sentence. It should be t-i-N-y.
Comment by Rich Miller Wednesday, Mar 11, 09 @ 10:18 am
Well said, Reality Check! Those who are demanding cuts to programs, apparently have no clue what they are talking about. The programs that they want to cut either cannot be cut because of federal mandates, etc (health and human services) or do not amount to any real money (historic sites, arts council, parks, etc). I believe the budget is roughly 50% health and human services, 30% law enforcement and corrections, 10% administrative functions and 10% “other”? So what do you cut? The state payroll is 3 billion a year, so even if you had NO government function of any kind, it would take 3 years to make up the deficit just by laying off and cutting. THERE IS NO ALTERNATIVE TO RAISING TAXES! And, by the way, I am one of those who would rather spend money on arts than pay for people who are too lazy to go out and work. Who says that arts, museums and parks are not valid functions for tax dollars? They always have been and, as far as this taxpayer is concerned, they should always be a priority!
Comment by lincolnlover Wednesday, Mar 11, 09 @ 10:18 am
As usual, the lawmakers mess up government finances and then make the rank and file employees pay for the mistakes made by the legislature, either through some really stupid legislation (and when you read it, most if it is really stupid) or plain mismanagement. If the layoffs were of the political appointees that really do little or no work to begin with but still pull down the six figure salaries I wouldn’t have any problem with it. But, as has been noted above, Illinois has one of the smallest, if not THE smallest, ratio of state employees to population in the country. Just how do they expect state government to function without the front line employees. The answer is, of course, it can’t
Comment by Springfield Sceptic Wednesday, Mar 11, 09 @ 10:25 am
Tiny or tidy it’s still real money. Besides if we don’t show that we are serious about cleaning up the process why bother. Just continue with our current shell games and keep pouring the wood to the tax payer.
Comment by Leave a light on George Wednesday, Mar 11, 09 @ 10:26 am
And oh by the way, I support a modest income tax increase.
Comment by Leave a light on George Wednesday, Mar 11, 09 @ 10:28 am
===Just continue with our current shell games===
You have completely missed the point I’ve been trying to make for weeks here. Small, symbolic cuts ARE shell games designed to divert attention. Should they still do them? Yes. But don’t call them meaningful cuts.
Comment by Rich Miller Wednesday, Mar 11, 09 @ 10:29 am
See for yourself where Illinois compares to other states:
http://www.taxfoundation.org/research/show/452.html
Comment by Anon Wednesday, Mar 11, 09 @ 10:36 am
Here’s the cynical point of view - let’s go ahead raise the income tax and do the property tax swap - that would be great for me personally since us retired state guys don’t pay income tax on our pensions, don’t get enough anymore to itemize on our tax returns, and we would get a major tax cut by getting rid of the school portion of our property taxes, especially for people who own more than one home. Assuming a complete replacement of the school portion, this would give us retired guys hundreds of dollars per month we could invest or spend.
Realistically, nothing will provide the short term savings people are looking for, especially in the amounts needed.
Here is a serious suggestion … hire MORE state caseworkers to actually review and administer the clients. Right now, the last time I calculated this using caseworker and client numbers published in the SJ-R, each actual caseworker delivering service directly to a client has something like 20 - 25 minutes per year to review the case, meet with the client, develop a plan to move the person in a productive direction, do the referrals, do the paperwork, do the follow-up, etc., etc. Maybe if we tried actually helping these people instead of throwing a check at them we might actually move them into productive roles and cut the state’s case load. This would be a long term approach with immediate increased costs, not immediate savings, but it could pay off big in the long run, say 3 to 5 years from now.
Comment by Retired Non-Union Guy Wednesday, Mar 11, 09 @ 10:36 am
So Radogno who never missed an opportunity to bash Blago, now has some out for Blago’s ideas on how to fund a capital bill? She amuses me to no end.
Comment by Niles Township Wednesday, Mar 11, 09 @ 10:39 am
===From the first posting, I have been right out there.===
To be fair to VM, he did answer Rich’s question on cuts. If I remember correctly, Rich’s QOTD offered five areas to cut and asked us to pick one area to cut $1 billion and explain why.
Again, if my memory is correct, VM copped out and cut a billion from all five with little thought and no explanation as to the consequences of his proposed cuts, such as how many children should be in a classroom together, which medicaid patients should be denied healthcare, or how many prison inmates should be released.
So yes, VM did offer some cuts, and since nobody called him on his BS, he feels compelled to rail against tax increases. That’s his right. He has a right to be wrong.
Comment by 47th Ward Wednesday, Mar 11, 09 @ 10:49 am
Anon -
Anon - thanks for the link, but it is hard to imagine the total state tax burden decreasing the last 2 years with the recent increases in Cook and the collars. Still, it’s better to be #30 than #1 on that list.
If we are low on # of state employees, average in relative tax rate, and 9 billion in the hole, something seems to be grossly mismanaged rather than undertaxed or overemployed.
Niles - even a broken clock like Blago is right twice a day, and there’s only so many worthwhile possibilities of funding a capital bill.
Comment by Six Degrees of Separation Wednesday, Mar 11, 09 @ 10:50 am
“If we are low on # of state employees, average in relative tax rate, and 9 billion in the hole, something seems to be grossly mismanaged rather than undertaxed or overemployed.”
Part of correcting the mismanagement are cuts in personnel and programs - symbolic or not.
Comment by Leave a light on George Wednesday, Mar 11, 09 @ 11:28 am
5% income tax is a joke when you factor in sales and property taxes in this state. any raise to the income tax should require a corresponding cut in sales and property taxes. Cut the sales tax 67% and I just might buy something in Crook Co.
AND
Stop being silly and put some casinos in Chicago and some slots and video poker at midway and Ohare.
Comment by fed up Wednesday, Mar 11, 09 @ 11:44 am
===require a corresponding cut in sales and property taxes===
Um, why would they raise taxes to balance the budget and do a capital plan, but instead use that tax money to lower other taxes? Do you realize how far the income tax would have to be raised to do all that?
Also, the casino industry is floundering. The kind of upfront money we could get out of it is not gonna be nearly what it was before.
Comment by Rich Miller Wednesday, Mar 11, 09 @ 11:48 am
== Again, if my memory is correct, VM copped out and cut a billion from all five with little thought and no explanation as to the consequences of his proposed cuts, such as how many children should be in a classroom together, which medicaid patients should be denied healthcare, or how many prison inmates should be released. ==
With the kind of logic, no cuts can be made whatsoever. Everything is needed, and there is no choice but to raise taxes to cover ever growing expenses.
But I ask….what are the long term consequences of such thinking, 47th Ward? What if programs and costs can only expand, but never contract? Because if they *do* contract, there might be negative ramifications, which is unacceptable under your calculus.
I debate which is further down the path to this reality: Cook County, the City of Chicago, or the State of Illinois.
Comment by Zounds Wednesday, Mar 11, 09 @ 11:49 am
We do pay our fair share of taxes in IL but, even with the higher sales tax we’re still not taxed as high as some of the surrounding states. IL is one of the few states who does not tax retiree pensions.
It’s time to pay the piper for letting this deficit happen by re-electing officials who did not take care of the state’s business.
Comment by Hello Pot Wednesday, Mar 11, 09 @ 11:52 am
===Because if they *do* contract, there might be negative ramifications, which is unacceptable under your calculus.===
That isn’t my point. My point is that cuts have consequences, as do higher taxes. To blindly decry tax hikes, which is all VM ever does it seems, without a meaningful discussion of the impact of cuts, is folly.
I was trying to elicit some thinking from him as to specific cuts so we understand the trade-offs involved. I’m not against cuts. I’m not against smart management. I’m not supporting ever-increasing taxes.
What I support is a conversation that starts with the premise that government costs money. We want services, we need to pay for them in the fairest way possible. Illinois is facing an enormous budget deficit because we’ve increased spending and have not had the courage to raise taxes. Everybody wants to go to Heaven, but nobody wants to die.
VM says “don’t raise taxes.” There are consequences for that approach. I simply wish he’d acknowledge those consequences in his tirades.
Comment by 47th Ward Wednesday, Mar 11, 09 @ 12:08 pm
Rich the cut wouldnt have to be dollar for daollar but the sales tax is way to high. Cutting the sales tax might actually get people to buy things here. plus an income tax is much more stable than a sales tax. High property taxes have destroyed the tax base of the south suburbs and decimated the school dists. and local goverments again I am not saying dollar for dollar but it would make it more pallatable. You have to believe slots and video poke at the airports would be a win all the way around and no the start up money for casinos isnt what it would of been 5 years ago but it does bring in jobs and money both of which the state could use.
Comment by fed up Wednesday, Mar 11, 09 @ 12:15 pm
Again, if my memory is correct, VM copped out and cut a billion from all five with little thought and no explanation as to the consequences of his proposed cuts, such as how many children should be in a classroom together, which medicaid patients should be denied healthcare, or how many prison inmates should be released.
Your memory is select, but not incorrect. “Copped out”? I recognized that we needed to cut a billion from each of the categories Rich suggested, and you call that claim that is a cop-out? Remember what happened the next day? Rich asked us to now cut from the other categories! I was ahead of the curve on this, yet you want to claim I took the easy way out. The easy way out is to demand more money, and claim nothing can be cut. Because as it currently sits, reality is demanding what our political leaders and thinkers are unwilling to do - reform themselves.
You wish to paint those of us as heartless? Then do as you did; claim I gave “little thought” and “no explanation” to my earlier statements. Claim I considered no consequences of these cuts, as though I am utterly stupid.
To blindly decry tax hikes, which is all VM ever does it seems, without a meaningful discussion of the impact of cuts, is folly. Those of us who find ourselves financially strapped tending to our own needs are not blindly decrying tax hikes. We recognize what you are unwilling to recognize - taxes empower governments, and robs each of us of our economic freedoms, liberties, our lives and families.
Illinois is facing an enormous budget deficit because we’ve increased spending and have not had the courage to raise taxes. While you claim I rail against our wage-wasting governments, you rail against every taxpayer in Illinois similarly, claiming that we are ignorant boobs, too stupid, heartless, and selfish to pay a fair share of this swindling government. Our founding ancestors in this country understood what happens when you allow governments to rule over it’s citizens and abuse taxes - why have you forgotten?
It is not a lack of our wages that is causing governments to fail - it is simply in the nature of governments to waste money that is not theirs. Illinois is not just broke - it is bankrupt, and it is only through sheer Enron-style budgeting that legislators still sit haughtedly within our communities and continue to make ridiculous promises. Courage? You are not going to find much courage from our civil leaders, who do not ask us to pay for the programs they campaign as free, are you?
It doesn’t take courage to pay taxes - we are forced to pay taxes! If you do not pay your taxes, you will be punished by law! To those who wish to claim that we are honoring our Judeo Christian heritage via government spending on liberal social programs, please let me remind you that no where in the Bible does it say we should force people to serve others under penalty of law!
We don’t need a conversation about the fact that governments cost money - we all know this! Those of us pinched at the cost of daily life have recognized that the belief that taking wages from citizens to feed a bureaucracy with a mission to supply those same citizens with a service, are getting bad value from those services when compared to the dollars taken. Not only does this thinking robs citizens of their earned wealth, we have obviously discovered that governments can’t do anything anymore. Our bridges are collapsing, or dams are bursting, potholes are getting larger, yet our tax bills continue to take ever more.
Enough! You want to believe in governments, then your belief is in obviously flawed and failed institutions.
Comment by VanillaMan Wednesday, Mar 11, 09 @ 12:44 pm
I wouldn’t say the income tax isn’t more stable than the sales tax. Look at states with only income taxes–wild fluctuations.
Anyway, it’s real easy. Economically, the solution is a serious hike in the gas tax, since its not burdened with dead weight loss issues and makes up for all sorts of externalities that produce real costs. Whether that’s politically feasible or not, well that’s for someone else to argue.
Comment by Greg Wednesday, Mar 11, 09 @ 1:52 pm
darn it, I mixed up my first sentence again. Will start reading my posts before sending.
Comment by Greg Wednesday, Mar 11, 09 @ 1:54 pm
Greg,
A “serious” gas tax increase ($1?) might be a temporary solution. It would definitely provide $ocial benefits and help fund infra$tructure. Long term, it would provide about as much funding stability as a telegraph tax would provide us now, with hybrids, electric vehicles, and other alternate sources of transportation in our future.
Politically feasible? Anyone who promoted it or voted for it would have a target on their back the size of Texas - the non-driving adult population of this state is, what, 10%? Even our progressive Governor Quinn doesn’t want to touch the gas tax with a ten foot pole.
Comment by Six Degrees of Separation Wednesday, Mar 11, 09 @ 2:06 pm
Yeah, the last sentence was a joke. Alas, although it enjoys probably near-universal support among academics, I know it ain’t gonna happen.
Comment by Greg Wednesday, Mar 11, 09 @ 2:16 pm
Interesting once again to read the festering debate about balancing the budget. I’ll offer up what I’ve said in the past and see how its treated by the troops. Since we’re now in “free fall” territory, I’ll have to slightly amend my previous posts with a little “all of the above.” Okay, 1.) Raise inclome tax by 1.5% for five years with a sunset clause. 2.)freeze state budgets at two year increments with only allowing manditory cola increases in those departments where they are required by contracts. 3.)Investigate upper level management of all code agencies and purge political appointments where job descriptions don’t jive with their CV’s. 4.)Modify new employee pension & benefit system, but allow for partial expanded investment options as a way to create parity with current benfits. 5.) Cut or eliminate various entitlements not performing or duplicated. 6.) Drop zero based budgeting. 7.) De-construct CMS and allow for competitive bidding and other transparent methods for agencies to purchase goods and services. 8.) Set up a watchdog committee to provide oversight every two years in the efficiency of state service deliveries and report on findings for accolades or critiques.
Look, I’m just an average Joe, but I would hope debate can be civil and focused on solutions…these are just my opinions.
Comment by Bass Man Wednesday, Mar 11, 09 @ 2:31 pm
If Illinois’ total tax bite is big compared to other states (a debatable point), the fact remains the State needs money. Complaining that local property and sales taxes are high doesn’t solve the State’s fiscal crises.
If a big proportion of the State budget is education, but local taxes, including local property taxes for education, are high, then why is education funding such a problem? How do other states with supposedly lower local taxes deal with education?
Serious cuts require visiting the degree to which the State funds education and health care. If education and health care are “off the table” as far as cuts go, no wonder we spend more and more on education, but seem to get less and less, and health care costs skyrocket, faster than the rate of inflation. How do other states do it? For that matter, how do other countries do it?
Whatever cost-savings are achieved by cutting things like legislators’ committee chair pay are more than offset by feeding the education system and out-of-control health care cost increases.
Comment by Sir Reel Wednesday, Mar 11, 09 @ 2:31 pm
Hmmm…Gov. Quinn says no gas tax increase, Lisa Madigan can’t see an income tax increase, the gaming industry is in the tank…looks like no one can figure out a way to pay for it all.
Comment by Six Degrees of Separation Wednesday, Mar 11, 09 @ 2:58 pm
“If there’s no tax increases, we will cut,” Cullerton said. […]” Where is Cullerton’s head? We, the people, are not going to sit still for yet more taxes unless programs and pensions are cut. I really don’t care how “tidy or tiny” the savings from those cuts are–an effort has to be made. It is all just too convenient to raise taxes and not look for savings and this in a time of record unemployment.
Vanilla Man says it like it is.
Comment by Just a Citizen Wednesday, Mar 11, 09 @ 4:02 pm
We’ve been thru how many ERs, layoffs and working a day without pay during the last 10 years? This budget deficit has been coming and coming and coming. Back in the day, when there was belt-tightening, the 1st to go were the glossy magazines and the PR dept. Not anymore. We still get the glossy magazines and calendars, the director still has the same number of assistant directors, the secretary of the dept still has her chauffeur, the governor still has the same number of assistants. Meanwhile, the legislature continues to raid the state employee pension fund to balance the budget and defer payment of medicaid providers to the tune of $6 billion. What is the state going to do without an employee pension fund to raid? That’s essentially where it’s at right now.
Comment by Marianne North Wednesday, Mar 11, 09 @ 5:56 pm