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* The AP explains the deficit…
A deficit of $11.5 billion would amount to $917 for every man, woman and child in the state. That’s roughly the same amount that Illinois schools get from the state.
If officials wanted to tax their way out of the hole, they would have to double the income tax. If they wanted to cut spending, eliminating the Transportation Department, the Environmental Protection Agency and the child-welfare department would just about do it.
Like families trying to pay bills and save for college, state government has seen its costs climb steadily. Medicaid costs ballooned as health care grew more expensive and more people turned to the state for care. Employee salary and health costs rose, and the law required bigger and bigger contributions to retirement funds. In addition, officials approved new programs, such as the health care expansions championed by former Gov. Rod Blagojevich.
At the same time, the state gets most of its money from taxing income and sales. That means less money is available in a recession, when incomes drop and people cut back on shopping.
And has an anti-taxer suggest a solution…
John Tillman, chairman of the Illinois Policy Institute, argues there is no reason the entire deficit must be erased at once. What can’t be handled through spending cuts can be rolled over to future years until the economy improves, he said.
That was done before (by Jim Edgar, especially) and will undoubtedly be done again. But you can’t do that with the entire $11.5 billion. It’s just too much. California is a case in point…
Some hints of what may be coming, for other states as well as Illinois, lie in the experience of California. California, like Illinois once a bellwether state, but now solidly in the Democratic camp, thumped residents solidly with taxes. Sales tax up. Income tax up, too. Vehicle license fees doubled. Child care deductions cut.
On the other side of the equasion, California cut $15 billion in costs, more than half coming from education. The state cut two holidays and forced employees into one unpaid day a month.
As serious as all that sounds, it wasn’t enough. It made up only two-thirds of the hole — or about as much as the voters could choke down.
The other one-third of California’s budget hole was patched with borrowing.
What about rolling back Rod Blagojevich’s Medicaid expansions, including All Kids? Progress Illinois takes a whack at that…
The former governor’s FamilyCare expansion may have been reckless from a constitutional standpoint, but there’s no evidence that it’s weighing down the budget significantly. Only about 4,000 additional families managed to enroll under the expanded guidelines, which translates to less than $20 million per year.
* And how big of a bite will the tax hike take? The Trib explains…
…families of four earning about $56,000 a year or less would get an income tax cut or at least pay no tax increase because of the higher personal exemption he also was proposing. […]
Quinn is considering raising the state’s personal income tax rate, to 4.5 percent from 3 percent. Quinn aides have said the standard exemption may rise from $2,000 to as much as $6,000. Such a plan would mean families of four with a $75,000 income would pay $285 more in taxes and a family earning $100,000 would pay an extra $660 to the state, based on gross income and absent any other credits or deductions.
* The Tribune editorial board takes the populist route…
Many are the reasons why the State of Illinois’ accumulating deficits could total some $11 billion by the summer of 2010. But taxpayers shouldn’t feel guilty. For two decades, they’ve been increasing their payments to Springfield at roughly double the rate of inflation.
Perhaps, but if you look at taxes collected since 2002 and factor in the revenue crash currently predicted by the governor, it’s almost flat. So, the Trib is being disengenuous. Also, the income tax has not been raised in 20 years. And then there’s this…
Illinois’ total state and local tax and fee burden as a percentage of personal income is among the lowest of all states, according to 2006 data collected by the Federation of Tax Administrators and distributed by CTBA
And this…
Illinois now has one of the country’s more regressive tax systems. It’s time to shift the burden to those who can pay more. Quinn looks headed in that direction, saying Friday his plan includes a tax cut for lower income workers.
But without giving the governor an opportunity to explain any of his proposed budget cuts, the Trib lays into him…
We expected his teaser remarks in advance of his budget address this Wednesday to be odes to economizing: calls for higher benefit contributions from employees, moving Medicaid patients to managed care and other bold tactics for modernizing practices that are grounded in two prior centuries.
But then, with our optimism stoked and our pompoms at the ready, we heard about … the prisons, the teachers and the tax hike
What the Trib fails to understand is that, most likely, the governor is trying to assuage the interest groups before he lowers the boom on the cuts…
Quinn will try to cut $850 million from programs financed through the state’s general fund, the all-purpose checking account that pays for most state services. How Quinn will do that was not answered
$850 million may not seem like a lot in comparison to an $11.5 billion deficit, and it isn’t. But, as we’ve found here and as explained above, unless you want to cut aid to schools or throw people off Medicaid, there’s not a whole lot you can do.
* Good point…
Adding to the political intrigue is how helpful [House Speaker Michael Madigan] will be in ushering the tax hike through the legislature. The increase undoubtedly could be used by Madigan’s daughter, Atty. Gen. Lisa Madigan, against Quinn should the two face off next year in the Democratic primary for governor.
* Meanwhile, I told subscribers about this plan last week…
You may pay more for license plates as a way to improve state roads and bridges.
Exactly what’s under consideration will be revealed Wednesday when Gov. Pat Quinn unveils his budget proposal for the fiscal year that begins July 1.
On Friday, chief of staff Jerry Stermer acknowledged the state was considering fees to bring in more money. […]
Illinois charges a set $78 fee annually for license plate registration renewal. The fee was increased by $30 in 1999 to help pay for a statewide construction plan. The Illinois Secretary of State’s office said increasing the $78 fee by $10 would produce $90 million in additional revenue.
* Related…
* CTBA: To Counter the Current Recession, Illinois State Government Should Maintain or Enhance Spending—Even if it Means Progressive Tax Increases—Rather Than Cut its Budget
* Mike Lawrence: Put the governor in charge of education
* Quinn faces $11.5 billion budget question
* To fix fiscal crisis, Quinn must go for broke
* Quinn tax hike: Gov. Pat Quinn to detail tax increase
* Deficit, recession challenge Gov. Quinn
* Budget deficit, recession challenge gov
* Gauging political price of tax plan
* Syverson: Budget cuts should come first
* Most local lawmakers say raising state taxes is not an option
* Suburban lawmakers talk taxes, sacred cows
* Sen. Dick Durbin: Gov. Pat Quinn ‘has no choice’ but to raise state income tax: Quinn has ‘no choice,’ he says; Daley not ready to approve or condemn
* Sen. Dick Durbin: Gov. Pat Quinn ‘has no choice’ but to raise state income tax
* Illinois budget: Plenty of problems, few solutions
* What’s the tax plan?
* Quinn parades $26 bil. state construction plan
* PJStar: Road program’s only problem is paying for it
posted by Rich Miller
Monday, Mar 16, 09 @ 10:46 am
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it is ironic that the failure of a Blago initiative to catch on (All Kids) actually helps the budget.
Comment by Six Degrees of Separation Monday, Mar 16, 09 @ 10:49 am
Is it true there are agencies that do not use general fund tax money to operate? The Illinois Department of Financial and Professional Regulation only uses fees charged to the industries they regulate to operate? Are there anymore? This would have an impact on how much there is to cut.
Comment by Trying to Understand Monday, Mar 16, 09 @ 10:59 am
You have to hand it to the Tribune editorial board for expertise when it proclaims the solution to Illinois’ budget woes is “cut, cut, cut.” The paper is expert in cutting and as a result has wrecked if not a great newspaper at least somewhat relevant. All this does is lend backing to the demagogues in the Republican caucus and Friends of Lisa.
Comment by The Fox Monday, Mar 16, 09 @ 11:01 am
I agree that we should wait for the governor’s budget plan on Wednesday before critizing him or the plan itself.
In fact, he should have kept his mouth shut up until now. Comments about how it’s really tax reform and how low and middle class families making a max of $60,000 ( I assume federal adjusted gross) will gain or stay neutral does great disservice to families making $61,000 to, say, $100,000, who are also struggling. And most are struggling without the lifetime job security, cheap defined benefit pensions and primo health care state employees, including Quinn himself, enjoy. Quinn has been living in the public employee bubble too long. $100k is not the good life. Obama, I would point out, caps the middle class at $250k a year for tax increase purposes. And he has way smarter people working for him than Quinn does.
Anyway, we middle class schmucks should be watching who else gets to bear the pain. Will the corporate income tax be raised to the max possible in tandem with the individual rate. What about those corporate tax loopholes. Will all those tasty no bid contracts to favored Democratic supporters get a second look. No, not a look, a cut. Will the pension system for new state employees get revised.
If we get a sure thing tax increase for $60k and up families and promises for everything else (pension changes require negotiations with the every greedy-and munificent to politicians-state employee unions…it’s time to start the revolution. The real middle class should not have to pay up for decades of Republican and, yes, Democratic corruption and greed.
Comment by Cassandra Monday, Mar 16, 09 @ 11:06 am
Quinn is about 3 billion short on cuts. If you look at the last budget signed by George Ryan at about $50 billion and increase 2.5% each year, which is a lot, we should still be under $60 billion. Depending on which budget you look at that means we need to cut 2 to 5 billion off of last years budget.
850 million is a token to the ignorant electorate, not a real attempt to get things under control.
One thing on my mind is who is the wealty. Guv Quinn says taxes should be based on the ability to pay. Perhaps a good QOTD would be where should the line be drawn for who is taxed and who isn’t based on combined family income. Both our president and our Governor want to tax the rich, but nobody can tell me who that is. It it me? Is it you?
Comment by the Patriot Monday, Mar 16, 09 @ 11:12 am
I think EVERYONE should be hit. Sales tax increase can fix the problem and would also target everyone. Plus we get the people traveling through the state.
Raising the Plate fees will bring 90 million bucks which equates to how many miles of roads? 90?
Comment by He Makes Ryan Look Like a Saint Monday, Mar 16, 09 @ 11:16 am
I am not opposed to a tax hike, but === “the income tax has not been raised in 20 years” === is a horrible argument. That syllogism means State should increase taxes perpetually, every x number of years, until taxes reach 100%.
I reject that we should be raising taxes just because time has passed. Taxes rates should look at many factors basically balancing the burden with the need. In Illinois we need to conmsider increasing the burden on those with higher incomes, so that the State can meet its needs. After years of gutting, there isnt mcuh left to the state except the spending that it needs. n fact, in many areas we need to increase headcount as we are being penny wise pound foolish wth use of overtime and outside contracts which cost us more then hiring people.
Comment by Ghost Monday, Mar 16, 09 @ 11:28 am
Why do I feel a need to defend those of us unwilling to see our taxes increase? Why am I reading comments that accuse those of us unable or unwilling to pay more in taxes as GOP or Lisa Madigan rubes? Since when is paying taxes a good thing? Do you feel smarter or wealthier than other bloggers by pretending that you don’t mind?
Look at today’s Illlinois government and tell my why you are willing to pay more for this? You pro-taxers appear unbelievably naive as though giving up more of your wages will somehow improve this crappy state government.
Like Emanual famously said, you don’t let a crisis go to waste. Our Illinois trough-feeders are over a barrel but still expect you to bail them out. You don’t feed them until you get concessions from them first. Then demand more.
Are you people willing to refinance an Edsel that barely starts, drives and usually lets you down when you need it most? Our governments are no Ferraris - they are leaky rust-buckets that should be junked and replaced. You don’t expect to get a higher bill for such shoddy service.
We will not see an improvement in this government until it is forced to recognize reality and reforms itself. Like the morbidly obese, Illinois state government will not go on a diet as long as citizens are willing to sacrifice their own diets in order to feed it’s wasteful ways.
Not a dime more until they lead by example.
After they demonstrate a willingness to remove their political friends and lobbyists from our wallets, make real cuts and sacrifices for all - then they can ask for more money to help cover their expenses.
These people have proven themselves unworthy of credit or additional money.
Comment by VanillaMan Monday, Mar 16, 09 @ 11:33 am
Agree with Ghost on the income tax argument. Check the revenue history over the last twenty years. Income taxes go up almost every year, along with income, which is how it should be.
Comment by Truth Monday, Mar 16, 09 @ 11:35 am
Raising the Plate fees will bring 90 million bucks which equates to how many miles of roads? 90?
$90 million is less than 10% of IDOT’s annual budget.
Comment by Six Degrees of Separation Monday, Mar 16, 09 @ 11:37 am
The real definition of “rich” is anyone that makes more than you. A corollary to this: a recession is when your neighbor is unemployed, a depression is when you are unemployed.
Comment by Philosopher Monday, Mar 16, 09 @ 11:51 am
The legislature is hearing from we poor taxpayers, and bottom line, we’re nowhere near sold on the need for a tax increase. You can spout the deficit numbers forever (and even cutbacks), but it’s just not selling out here.
Just something to consider that would come across to all us poor taxpayers as an honest effort would be for Governor Quinn and the legislature to go back and look at every single thing initiated by his predecessor (appointments, executive orders, legislative initiatives, etc.) and literally reverse all of it. Now, obviously this isn’t going to work for bond issues, or legislative initiatives to comply with federal laws, but we need to see some serious evidence that state government is going to clean up the financial mess other than just attempting to raid our pockets all over again.
Today - we’re not convinced.
Comment by Judgment Day Is On The Way Monday, Mar 16, 09 @ 12:00 pm
===we’re nowhere near sold===
How about you just speak for yourself unless you have hard polling data to back up your claims. Thanks.
I’m not denying that there’s opposition to the tax hikes, by the way, but what makes you so special that you can speak for everyone else?
Speak for yourself.
Comment by Rich Miller Monday, Mar 16, 09 @ 12:07 pm
I think Quinn’s missing a trick by taking a gas tax increase for capital construction off the table. Plate and license fees are just as regressive.
We’ve been on a bender in this state and country where we’ve thought we could get something for nothing; zero money down mortgages because real estate would always go up; putting our retirement “savings” in the stock market because it would always go up; credit card abuse.
Sometimes you get what you pay for. You drive, you want good, safe, roads and bridges, then cough off a couple extra bucks when you fill up.
Comment by wordslinger Monday, Mar 16, 09 @ 12:10 pm
No hard polling data, just talking to average everyday people.
But put me on the “No” side until I see a real effort to show that the State of Illinois is serious about using the money coming from increased tax wisely. Hasn’t happened yet, but I’m waiting.
Comment by Judgment Day Is On The Way Monday, Mar 16, 09 @ 12:16 pm
There are two areas where the State could cut the budget and have very little affect on the services that the taxpayers receive. Both of these involve agencies that do not provide direct services to the general populace. both are agencies that waste money and are largely ineffective. they are the Capital Development Board and Central Management Services. the CDB oversees stae projects that are above the $10,000 limit. I have seen many instances where there is waste in this agency. For example: There is a standard privy building that the state uses in areas where there is no sewer. A general contractor could build the building for at most $12,000 - $15,000. However, if you have one of these constructed by CDB, not only do you have the siting agencies engineer involved you have at least one CDB engineer involved AND the engineer from the construction company, and that one privy will cost $25,000+. That is one privy. Take that example and imagine what cost overruns are occurring all across the state.
CMS is no better. Gov Blago vastly increased this agencies power in a goal to streamline state government. All it did was increase the workload of all agencies. Agencies used to be able to buy what they needed and contract for services on their own. Which meant that a lot of smaller businesses were involved, the wealth was spread around and agencies got what they needed quicker. Now each agency has to check the endless lists of contracts to see if an item is on contract with CMS if it is three forms of paperwork have to be filled out requesting permission to buy that item. Then it is ordered through the CMS contract and the sites wait for the itme to arrive. A lot of the contracts lapse because the were not renewed in time. So what should take one day drags on for weeks. Each agency used to have it’s own computer people that answeree questions and repaired the computers from that agency. All of those people have been moved into CMS, and each agency is charged by CMS for the work that those people do for the agency. All state vehicles are owned by CMS, even though the cost of the vehicles comes out of the agencies’ budget. Agencies cannot make any repairs on those vehicles that would cost over $50.00. Each agency pays CMS an annual fee per vehicle and they can only be repaired at a CMS facility or a facility chosen by CMS. A percentage is added to the cost of any repairs no mattter where they are made and that percentage goes to CMS. So in essence each agency pays CMS for the right to have CMS work on their vehicles, even though they can’t take them anywhere else, Then they pay the cost of repairs, and then a kickback to CMs on top of the repair costs. Labor rates for CMS are at $92.00 an hour in spite of the fact that the mechanic is probably only getting $20.00/hour. CMS is making money on every single repair in two separate charges plus the annual fee for being able to take the vehicle to CMS.
These two agencies cost all the other agencies, and ultimately the taxpayer, money just to exist. Both should be looked at for areas to cut.
Comment by Irish Monday, Mar 16, 09 @ 12:23 pm
Paragraph breaks, dude. Thanks.
Comment by Rich Miller Monday, Mar 16, 09 @ 12:24 pm
If you don’t want to pay more taxes, I am sure all of the no new taxes people will be satisfied with no roads, schools, fire, police, etc. We will be a third world country in no time. While we (the US) has wasted trillions of dollars on two wars for the the last 6+ years, China, India and others are improving their infrastructure. Check out the new rail station in Germany. Even the Europeans are probably ahead of us. Reduced government has only gotten us less safe food, financial collapse due to the lack of regulators, a crumbling transportation infrastructure (do I need to go on???) We have to decide what government is good for and what it isn’t; not just that all government is bad.
Comment by Retired State Employee Monday, Mar 16, 09 @ 12:28 pm
Irish CMS is worse then that.
CMS has final say over many aspects of agnecy operations, from computer services to hiing disputes to labor issues. BUT CMS could car less what impact their decisions have on the agencies.
PLUS CMS overbills agencies for the service of giving them bad help and poor decisionmaking. Most agencies are forced to pay CMS slush money form their budgets for things like way overpriced computer support an internet service etc. CMS has no reason to be cost comptetive for theise services or to actually help the agnecies.
CMS needs to be paired donw o elimnated. BTW Blago spent millions not just on increasing the size of CMS, but in private consulting contracts.
CMS either need to be accountable to the agencies it serves, or disbanded/paired down (both wuld be nice).
Comment by Ghost Monday, Mar 16, 09 @ 12:33 pm
Does anyone else remember the story during the GRT battle about Tribune Co. not paying any state corporate income taxes? I have my intern looking online now, but any help would be appreciated.
Comment by Rich Miller Monday, Mar 16, 09 @ 12:37 pm
…Obama, I would point out, caps the middle class at $250k a year for tax increase purposes. And he has way smarter people working for him than Quinn does.
Cassandra, you seem not to realize that Illinois has a flat tax rate while federal tax rates are progressively scaled. There’s only so much you can do in Illinois to make a flat tax progressively fair.
Comment by Budget Watcher Monday, Mar 16, 09 @ 12:39 pm
An income tax hike and/or a sales tax increase are both permanent additions to the landscape. For politicians they are the gift that keeps on giving.
After this crisis has passed the increased rate will leave a revenue pool into which the legislators will happily dive and splash about.
Further, as the economy recovers, these taxes will yield still more revenue for the legislators and the governor — regardless of party — to spend, impress the people and ease re-election.
These are “undisciplined taxes.” They cover all the projects and earmarks without regard to the burden they create.
Illinois has used this form of taxation to fund long lived local and regional capital projects out of current revenue.
The time has come to stop the charade. Do we have a huge deficit because of overspending? Damn straight. Have our pension funds been shorted? You bet.
What needs to happen for infrastructure overspending is to finance these out using a state property tax supported bond issue, Everybody pays for the sins of Ryan, Blago, Philip, Jones, Daniels, Madigan and the rest. Make it visible.
Property tax is a disciplined tax. When the bonds funding the project are retired it goes away.
Comment by Truthful James Monday, Mar 16, 09 @ 12:40 pm
I’m not opposed to an income tax increase. A progressive state income tax would be preferable to a 4.5% flat rate, but I don’t question the need to raise more revenue. It’s a responsible way to get some fiscal order in this house, and Blagojevich’s childish games were as corrosive as any this side of California’s Prop 13 in screwing up the state’s business.
(I retract that. Jim Gilmore’s games in Virginia were pretty irresponsible as well.)
Combining this with the HR24 thread, what if all donations to state candidates were uncapped but came with a 200% state tax? (Including taxes on “in kind” contributions like using Blair Hull’s airplane.) Illinois could run a surplus within six months!
Comment by Boone Logan Square Monday, Mar 16, 09 @ 12:48 pm
Quinn’s people are right to point out that there’s some people who will get a tax cut under the plan because of the increase in the personal exemption. But since the benefit is derived from the personal exemption increase it is proportionally more beneficial to larger families. The break even point for a family of four is a little less than $60,000, but for a single person the break even point is less than $15,000. Tell Snow White to remember to take those dwarfs as depenedents. It’s looking pretty good to be Papa Smurf right about now.
Comment by Scooby Monday, Mar 16, 09 @ 12:50 pm
CMS is a joke. Our rent at our IDOT building was 80,000 a month, but when CMS took over “managing” our rental agreement it climbed to 140,000.
Idot used to own all of our maintenance yards, CMS came along, now they own them (no payment to IDOT), and we are paying CMS “rent” for buildings we once owned. All this is is money laundering from the road fund to the general fund to pay for other state programs with money meant for roads. And people wonder why IDOT doesn’t have much money to repair potholes.
Comment by IDOT Guy Monday, Mar 16, 09 @ 12:51 pm
“The break even point for a family of four is a little less than $60,000, but for a single person the break even point is less than $15,000.”
You do realize that the federal poverty level is based on family size, right? So if you are not going to tax any income below poverty, you have to take into account family size.
That federal exemptions, and eligibility for pretty much every government program is based on family size as well?
Why? Because family size helps us take into account cost, where income alone does not.
Make sure Alexi understands that as well before he uses your frame as a talking point.
Comment by George Monday, Mar 16, 09 @ 12:55 pm
I have to disagree with all these legislators who say “We cannot cut our way out of a deficit like this”. They need to add “and have me keep my job” to the end of it. Of course you can cut your way out of this. Nobody wants to take the time or effort or heat to do it.
It’s simple, go through each and every appropriation item in the state and ask one “question”, “Is this ABSOLUTELY necessary in light of the State’s fiscal position?” I believe you will find an amazing amount of stuff that is unnecessary. I believe entire agencies, councils, boards, commissions and authorities would completely disappear. Look at the agency’s mission and each line item and see if there are any “words” like, “promotion”, “awareness”, “outreach”, “explore”, etc. and pay particular attention to them as you filter them through the “question.”
I’m not saying these agencies are not ABSOLUTELY necessary, but let’s look at their mission and each line item and see how many of the “words” they contain….
$7M for Government Forecasting and Accountability?
$3M for Legislative Reference Bureau?
$1.5M for Architect of the Capitol?
$650M Aging?
$280M Employment Security?
$12M Human Rights? A board and a commission, what about an authority and a council?
$1M Illinois Power Agency?
$45M Military Affairs? To manage the guard and act as a liaison, really, $45M.
$120M for Veterans’ Affairs?
$16M Art Council? Wow.
$30M Historic Preservation?
$6M Violence Prevention?
$3M Southwestern Development?
I haven’t even touched DECO…Grants to existing Procurement Centers to Expand Participation in the Government Contract Process and to Increase the Opportunities for Purchasing Outsourcing Among Illinois Suppliers.. $20m? Is that really absolutely necessary?
Sure, this list might not meet the current deficit, but put the “question” to every line item and it will exceed the deficit. Then we can revisit what we’d like to have.
But alas, this will not happen. Instead, they will raise taxes. They claim the State’s expenses are increasing just like everyone else’s. The problem with that statement is that it is a zero sum game. The State’s “revenue” is it’s people’s expense. So increasing any reoccurring “revenue” decreases the people’s balance sheet. I say cut the ABSOLUTELY unnecessary stuff then let’s talk.
Comment by Cut It Monday, Mar 16, 09 @ 1:17 pm
Cut It, when you get to $11.5 billion, come back.
Comment by Rich Miller Monday, Mar 16, 09 @ 1:22 pm
I get tired of tax proponents arguing that since Illinois is a “low tax” state and that the income tax has not been raised in 20 years, it follows that a tax hike is justified. Being a “low tax” state is a good thing, and a reason to keep it that way! The income tax percentages need NEVER be raised: the way to increase tax revenues from it is to keep the Illinois economy humming and incomes rising. But those in charge of the state have done the opposite! Quinn deserves to be dead meat politically if he proposes such an increase.
Comment by Legaleagle Monday, Mar 16, 09 @ 1:26 pm
“Nobody wants to take the time or effort or heat to do it.”
Comment by Cut It Monday, Mar 16, 09 @ 1:29 pm
Including me because as you know it would be DOA.
Comment by Cut It Monday, Mar 16, 09 @ 1:32 pm
You’ve got about a billion in cuts there, many of them hugely politically unpopular. Only $10.5 billion to go. Put up or shutup.
Comment by Rich Miller Monday, Mar 16, 09 @ 1:32 pm
Also, the income tax has not been raised in 20 years. Rich how often should we raise the tax and then how long before we get to 100% of our income.
AND Cut It, when you get to $11.5 billion, come back
How about the state open up the books and show that this deficit is real. Quinn keeps making Populist decicions that are costing the state millions like keeping pontiac prison open.
Comment by fed up Monday, Mar 16, 09 @ 1:38 pm
interesting that the tribune editorial board knows so much about running government—but when those wordsmiths try to spell pon poms they can’t handle it,
Comment by publius Monday, Mar 16, 09 @ 1:39 pm
Great, let’s keep putting the burden on those who don’t use state services to pay for those who use and abuse them.
Lop off these pensions and tax eaters and then come talk to me about “paying more.”
Comment by DePage Moderate Monday, Mar 16, 09 @ 1:40 pm
The 11.5 billion is how many years? 2.5? So whatever is cut can be mulitplyed by 2.5.
Plus there would be out year savings in pensions with less positions. Why don’t we do a recent trick and bond those future saving and pay down this year’s deficit.
You are making my point with the unpopular statement. My point is that we can cut our way out, we just won’t. We only expand and rarely contract. Even this year when we will cut some stuff, we will expand more due to the tax increase. Once the deficit is reduced or removed will we contract the tax increase? I think not.
Comment by Cut It Monday, Mar 16, 09 @ 1:42 pm
DePage Moderate (must be Old French), how in the world can the taxman even find you if you’re so self-sufficient?
If you don’t use any state services, you must be trapping critters and living in a van down by the river. How’d you get online, anyway?
There’s a political subculture in this state that thinks you can eliminate government and taxes, just so long as you have conceal and carry. I think Mr. Locke called it a State of Nature.
Comment by wordslinger Monday, Mar 16, 09 @ 1:48 pm
$11.5 billion is next year’s deficit “Cut it”.
Comment by George Monday, Mar 16, 09 @ 1:48 pm
“- DePage Moderate - Monday, Mar 16, 09 @ 1:40 pm:
Great, let’s keep putting the burden on those who don’t use state services to pay for those who use and abuse them.”
So, let’s see…
- you don’t drive on the state’s roads or highways (DuPage has a lot of them)
- your kids all go to private school (you go…)
- all your neighbors go to private school
- You don’t interact with anyone who didn’t go to private school
- You don’t benefit at all from having an educated and literate population around you
- You pay for your own civilian police force
- and fire department
- and own hazmat and terrorist response unit
- You don’t have any relative who is in a nursing home or is disabled
- Or is a senior on Medicare Part D (state wrap-around program)
- You don’t plan on long-term care one day
- You go around immunizing everyone you meet lest they transit some contagious disease to you
And that’s just education, public safety and healthcare - which make up about 80% of the state’s budget
I am sure I could go on for a long time.
Comment by George Monday, Mar 16, 09 @ 1:56 pm
Let’s stop this canard about Illinois being a low tax state.
Look at what we do to businesses — personal Property Replacement Tax, Unemployment tax Workman’s Compensation Tax — in addition to the highest utility taxes around and the corporate income tax.
These are the taxes that affect job creation instate and job movement out of state. Job creation and job retention are what the personal income - -and thus tax collections are all about.
This is true for expansion of small business and large business alike.
I can recall when Blago announced that we were in the running for a new Honda plant. We were never close to the short list.
Comment by Truthful James Monday, Mar 16, 09 @ 2:00 pm
Stop the presses –
The Tax hike will be accompanied by a property tax drop as the State funds a lot of the local education. The last will be not enforceable, so that school districts will be able to slip the their own personnel contracts back in.
The governor will call this a “tax swap” Ralph Martire strikes again!! It is no swap it is a tax increase. coming are way. It will be us swapping Nicole Kidman for Marjorie Main — no offense to the long passed away gravel voiced comic actress.
Comment by Truthful James Monday, Mar 16, 09 @ 2:11 pm
George, “next year’s” deficit of 11.5 is holdover from fy 08, this fy and fy10.
Comment by Cut It Monday, Mar 16, 09 @ 2:14 pm
Cut it - To over simplify, there are two version of political will. One is where our elected officials have the will to make “unpopular” cuts, such as your suggestion to eliminate the Department of Human Rights. The other is where our elected officials have the will to raise taxes, fees, etc. to ensure that we do not have eliminate the Department of Human Rights.
I think when we look at why we have a government in the first place, that the political will should be used for the latter, not the former.
Comment by montrose Monday, Mar 16, 09 @ 2:18 pm
- you don’t drive on the state’s roads or highways (DuPage has a lot of them)
[HARDLY ENOUGH TO JUSTIFY THE ADDITIONAL TAXATION TO PAY PENSIONS]
- your kids all go to private school (you go…)
[NOPE, BUT MY LOCAL PROPERTY TAXES TAKE CARE OF MOST OF THAT BURDEN - MINUS THE PENSIONS THAT CANNOT LOSE MONEY]
- all your neighbors go to private school
{NOPE. BUT THEY PAY PROPERTY TAXES]
- You don’t interact with anyone who didn’t go to private school
[FALLACY]
- You don’t benefit at all from having an educated and literate population around you
[THAT’S A RIDICULOUS STATEMENT WITHOUT ANY FACTUAL BASIS. HOW MUCH IS ENOUGH TO KEEP THROWING AT PEOPLE WHO CANNOT FUND THEIR OWN SCHOOLS? HOW MUCH OF A HIT SHOULD THE “EARNERS” TAKE TO SUPPORT THE NON-EARNERS? I THINK ENOUGH IS ENOUGH]
- You pay for your own civilian police force
- and fire department
[YES]
- and own hazmat and terrorist response unit
- You don’t have any relative who is in a nursing home or is disabled
[NOPE. THEY WILL BE ABLE TO PAY FOR THEIR OWN CARE AND THEY PAY FOR INSURANCE, AS DO I]
- Or is a senior on Medicare Part D (state wrap-around program)
[NOPE, AGAIN, THEY PAY FOR THEIR OWN CARE]
- You don’t plan on long-term care one day
[NOPE, THE MONEY WON’T BE AVAILABLE AND I SAVE MY MONEY]
- You go around immunizing everyone you meet lest they transit some contagious disease to you.
[AGAIN, A LOCAL SERVICE THAT SHOULD BE DONE LOCALLY].
Comment by DuPage Moderate Monday, Mar 16, 09 @ 2:24 pm
To all you CMS bashers - count me in your camp.
Comment by Leave a light on George Monday, Mar 16, 09 @ 2:25 pm
Again, find me state services that cannot and should not be handled locally that have an iota of benefit to me and my neighbors that supports the amount of money I pay and I’ll happily contribute more.
Even though, I guess the better question is: Where the hell are our representatives…the people who are supposed to be representing us?
I’m sure they too are busy trying to cow-tow to the Unions so they can ensure reelection.
Comment by DuPage Moderate Monday, Mar 16, 09 @ 2:28 pm
Cut It, I think that was a good start. It sounds like CMS is potentially a rich source for finding other savings. I’m not an all or nothing person, and unlike Mr. Stroger, I believe elected officials should cut as much as they can before deciding how much to increase taxes.
If working collectively, I bet Rich’s bloggers could suggest a pretty significant Cap Fax Deficit Reduction Opportunity Program (DROP). But I’d like to let Quinn have a crack at it first.
Comment by KeepSmiling Monday, Mar 16, 09 @ 2:37 pm
D. Moderate (thanks for not SHOUTING the last posting, it’s really not necessary andmakes it hard to read)–uh, who do you think helps subsidize or provide grants for all your local services?
Comment by Princess Monday, Mar 16, 09 @ 2:39 pm
DuPage Moderate:
Well, ok, I’ll bite.
Prisons?
–> Should the state run prisons, or should each “locality” have its own jail system (I know it does, but talking about enough facilities to handle the number of prisoners Illinois handles).
No state police/troopers?
–> Just the local sheriff and/or municipal police force? So, if the local police are trying to solve a violent crime, each local jurisdiction should have its own DNA lab? Posse Comitatus, eh?
Insurance regulation? Nursing regulations? (etc)?
–> So, each “localilty” should be in charge of licensing its own nurses, running its own audits on national insurance companies assuring they are solvent?
Illinois guard?
–> Each town to have its own “militia” to train on the village green and prepare to help in cases of flooding, riots, etc?
… I’ll stop there. The point is, there is such a thing as “economies of scale”. If you are looking to save $, at some point it makes absolutely no sense to continue to duplicate efforts in each “locality”.
Not to say I am taking a position on your more general point that you dont like increased taxes… but the idea that nothing can be done better on a state level than the local level is simply ludicrous.
Comment by Mike Anon Monday, Mar 16, 09 @ 2:46 pm
DuPage Moderate, if you think that a tax hike vote will guarantee reelection, you’re insane.
Comment by Rich Miller Monday, Mar 16, 09 @ 2:58 pm
Mike Anon:
The services you list are all noble State services that deserve some level or reasonable State funding and State support. Licensing, militia, some level of regulation, education funding (if property tax funding mechanisms were altered), prisons, etc. all should be funded to serve their main purpose.
However, none of the essential elements of these programs are being altered, to the benefit of the taxpayers as a whole in the last few budgets or this budget.
For too long we’ve sold our collective souls to the special interests and unions for large voting blocks of support at the large detriment of the hard working Illinois taxpayer. State government has made more and more promises and bloated up bigger and bigger in order to be everything to everyone. Well, that everyone means those who are looking for state handouts, jobs, etc.. The average working and paying citizen without a pension or a state job sees little by way of state impact….yet continues to get bombarded by the state for more funds and little to nothing in return. And in my opinion, the latest raid of the pocketbook of the “earners” in this state is again, the State saying “give me more and don’t worry about what you get, because you are doing just fine.”
It’s gross. Unfortunately, that’s now the politics of our State and Country. Again, where are our representatives?
Comment by DuPage Moderate Monday, Mar 16, 09 @ 2:59 pm
Dupage Moderate:
Touche.
Generally agreed with your point of view. My only point was that it really is not feasible for every small town to attempt to determine if that new pharmacist is qualified, or who he or she says he is, etc. And even if it was feasible, it doesnt really save tax dollars to duplicate so many efforts without coordination.
Comment by Mike Anon Monday, Mar 16, 09 @ 3:03 pm
Let’s move along. This is getting ridiculous. This ain’t a college dorm. This blog is about real politics.
Again, move along.
Comment by Rich Miller Monday, Mar 16, 09 @ 3:04 pm
I don’t know what I don’t know (Rumsfeldian), but I’ve been following these CMS complaints for some time.
Here’s what I gather from the complaints: Agencies are charged by CMS for services. The agencies believe in many cases they could get those services for less.
So what’s the allegation? CMS is incompetent and can’t negotiate the lower prices agencies could (I assume the concept is that centralized purchasing brings savings of scale)? Or CMS is corrupt and giving out overpriced sweetheart deals? Is there another possibility?
Comment by wordslinger Monday, Mar 16, 09 @ 3:12 pm
Dorm guys vote too!
Comment by Mike Anon Monday, Mar 16, 09 @ 3:12 pm
Yep. But I don’t like them commenting here.
Comment by Rich Miller Monday, Mar 16, 09 @ 3:12 pm
At the risk of overstaying my welcome, t commend the following 17 page paper prepared by the Tooling and Manufacturing Association. Please disregard the source and go straight to the paper itself. Yes it was written with a POV but it deserves your attention, because it extends the budget problem which is a symptom of the necessity for across the board reform.
“Manufacturing a Budget Recovery: A Guide to Reinventing the Illinois State Budget.”
http://www.unitedrepublican.com/wp-content/uploads/2009/03/tma-report.pdf
Your having read it intelligent discussion can follow.
Comment by Truthful James Monday, Mar 16, 09 @ 3:27 pm
Dorm guys? Interesting Rich.
I guess if you don’t agree with the liberal agenda in the State it is just dorm room politics.
Funny though, my bet is if we actually had some leaders in our State to espouse “dorm room” politics we could actually start having governance with some accountability and without representative servitude to the whims of big labor, Daley, Stroger, Jones, etc.
I’ll leave my “dorm room” politics now and let you get back to the higher level politics that is always discussed on this site.
Comment by DuPage Moderate Monday, Mar 16, 09 @ 3:28 pm
===I guess if you don’t agree with the liberal agenda in the State it is just dorm room politics.===
And I guess if you don’t like someone criticizing your lack of substantive, reality-based discourse, you claim they’re a liberal or something.
The idea for this blog is to try to keep conversations on a professional level. Your plan to essentially abolish state government makes zero sense considering a long tradition of federalism in this country. It also has zero chance of passage no matter who is running the state, except, perhaps, if you were dictator.
Those discussions accomplish nothing except applying more saliva to one’s thumbs.
So, again, move along.
Comment by Rich Miller Monday, Mar 16, 09 @ 3:36 pm
“representative servitude to the whims of big labor, Daley, Stroger, Jones, etc.”
Oh, don’t worry, they also have servitude to the vast majority of people in this state who like that the state funds roads, education, healthcare for children, seniors and those with disabilities, and other things like that.
Comment by George Monday, Mar 16, 09 @ 3:40 pm
Word the problem goes like this: To provide money for CMS, and to make it look justified on paper, much of the equipment, buildings and services the State agencies had were trasnfered to CMS. CMS then charges those agnecies for the equipment or bldg use, and in theory provides the help and support. The problem, the cost of those services is substantially higher then it would cost the agnecies if they did the work themselves, owned the property themselves, or bid the work out on contract. ALso, CMS instead of providing help and supports takes the approach of we are not going to do anything for you, leave us alone. Think of CMS as a slum landlord who takes the money but does as little as possible, and only then with an attitude.
An example of this system is agencies paying somthing like 60 per computer per month to CMS for e-mail and internet etc. paying rent but not able to get repairs or minor bldg work etc.
In the context of the private sector. Imagine you hired IBM to handle all IT functions, and gave them the equipment yuou had already purchased. In exchange IBM can charge you whatever they want, and can never be fired regardless of comptecy or quality of service. You can not withold payments, and IBM decides whats best for you regardless of how it effects your business. Same context with bldgs and other services.
Comment by Ghost Monday, Mar 16, 09 @ 3:43 pm
This seems to be what is going on out there -
1.)There is not enough political fat in the budget to remove. Every dime is being protected by some voter group and legislator capable of making a stink if threatened.
2.)Leaders and potential candidates are trying to cover their political future by any anti-tax blowback if taxes are increased.
3.)Legislative leaders are trying to determine how much they can tax us before their political lives are threatened.
4.)The scuttlebutt out there right now is that we must raise taxes, but no one wants to do it, so that if this trial balloon gets violently flamed, no one will be harmed.
5.)Everyone is waiting for Quinn to appear with a target on his back to fire upon. Until Quinn pops his head up first, no one is willing to do so. How his budget is received by voters will determine the mix of cuts and taxes. The less the blowback against Quinn, the higher the taxes will become.
6.)It is in our best interest to nix all tax increases because doing otherwise will cost us more in the long run. If voters threaten effectively, it will scare the GA into making more sacrifices among their sacred cows and further shake up a lazy group of tax hogs. These people have not made any political sacrifices to their constituency groups or lobbyist friends, and would prefer to spread a tax hike equally among themselves, so that they are not targeted individually. Like herd animals, our legislators are all shoving one another to the outside where voter anger will be felt. The longer voters force the GA to sort out the losers within the legislature, the better it is for all of us.
Our legislators will only cut under extreme political duress. It is in our best interest to force them into this duress throughout the budget process to get the most out of our budget. Like obese kids, we have to force these fatties to exercise in order for all of us to have longer lives.
So stop the “low-tax” crap. That is what these spineless jellyfish are hoping will be said so that they will have enough political cover to hide their bloated bellies.
They wanted these jobs - let’s see them sweat for those votes this time!
Comment by VanillaMan Monday, Mar 16, 09 @ 3:47 pm
–“representative servitude to the whims of big labor, Daley, Stroger, Jones, etc.”==
Dude, I think it’s quite clear that for a few years we are all going to be working to mitigate the whims and recklessness of the raging Liberals at AIG, Citibank, Lehman, etc., not to mention the tax and borrow Bush Administration and GOP Congress.
Comment by wordslinger Monday, Mar 16, 09 @ 3:50 pm
Back to the substantive discussion…
Here’s my best shot at explaining the state’s current deficit. This could be off, considering I don’t have the inside data. But I can provide a quick summary with rough estimates.
FY2009
Started $2 billion in the hole
$2-$3 billion additional tax revenue shortfall due to economic downturn
That’s $4-$5 billion that, if it doesn’t get paid (and it won’t without money), will just accrue via the payment cycle (which will be at about 12 months minimum) to FY2010.
So, FY2010 starts out $4-$5 billion in the hole.
* Add $700 million - $1 billion for medical inflation due to costs(actually less %-wise than normal health insurance market)
* Add $1.2 billion increase in pension payments due
* Add that $2 billion the base budget is still in excess (without cuts to those items)
* Plus the $3 billion revenue shortfall that still is not projected to pick back up
So that puts your FY2010 budget at $11.2 - $12.2 billion in the hole. You can’t do anything about the FY2009 deficit, since it is too late in the year.
Plus, your little “pet project” cuts, as Rich liked to call them, will likely be cut anyway to cover that $2 billion hole in the base budget.
Some of those figures may be off - that’s just my off-the-top-of-my-head calculations.
Comment by George Monday, Mar 16, 09 @ 3:52 pm
===If voters threaten effectively, it will scare the GA into making more sacrifices among their sacred cows===
No. More likely, based on past experience, is that they’ll do the easy and irresponsible thing.
Comment by Rich Miller Monday, Mar 16, 09 @ 3:53 pm
George,
Great post. I think it helps people to understand what is really meant by the $11.5 billion number.
It is also clear that the “pet projects” cut doesn’t get you near where you need to be. So what do you cut? Assuming zero tax increase. You could push out some pain by borrowing but you are just hoping that the economy getting healthier will let you catch up to those bills.
So cuts? Do you cut the whole Medicaid program? Half of it? Like it or not there will be parts of our healthcare system in Illinois that would collapse if you take that much money out. Hospitals, nursing homes, and other providers will go out of business. So more jobs are lost, unemployment rises, personal income tax revenues decrease, and sales taxes decline. Not to mention the fact that cutting $1 in Medicaid spending only saves 40 cents right now in State revenues. So cutting the entire Medicaid program only gets you about half way to closing the gap.
And education? Cut half of state funding for schools? Property taxes can’t cover that hole for local school districts so what then?
How about we protect Medicaid and education? Then that means COMPLETELY cutting every other service funded by state general revenue and you rpobably still have a problem.
Don’t get me wrong. I don’t like the idea of paying more taxes and I think IL gov’t could be more efficient and focused but you must realize how significant cuts must be if this is all done with cuts and how cuts alone will have a negative economic impact.
That’s part of the problem with the debate. People use rhetoric, emotions, and half-truths which leads to wrong conclusions and bad policy. Nothing gets better.
Comment by Hoping For Rational Thought Monday, Mar 16, 09 @ 4:10 pm
Here’s the political problems:
A) There isn’t enough “Rod” stuff to cut out.
- You could cut out his FamilyCare expansion (to 400%), but as Progress Illinois mentioned, that only gets you $20 million.
- You could roll back All Kids eligibility to where it was before - about 100,000-125,000 enrollees cut off - but those kids are so cheap to cover, plus you lose the premiums they are paying, and you only save about $60 million. All Kids succeeded by not only covering newly eligible, but previously eligible kids who weren’t enrolled (another 150,000 who were previously eligible), so you would have to roll back eligibility even more to get rid of all “Rod’s kids.”
- You could roll back education funding to where it was in 2003 (about $2 billion less annually), but legislators take as much credit for that increase as Rod did, so that is unlikely.
- Patronage hires? You get rid of the 100 and its only $6 million in savings. A whopping 1,000 firings gets you only $60 million, if you can find that many new hires since 2003.
B) The easiest way to get a few billion in savings this year is to skip a pension payment altogether, and just owe it to the pension system like it does the rest of that $40 billion or $60 billion. That’s our only vehicle for “deficit spending” like the federal government does. I just can’t see how anyone does it after railing against that issue for the past several years.
C) Quinn’s Tax Reform only nets you $2.x billion (plus several hundred million from the increase in the corporate rate) toward next year’s budget deficit, so there is going to be some hope there that the economy rebounds enough to at least make next year’s tax revenues are near-flat instead of $3 billion down.
D) They are going to have to make “Rod-style” cuts to the base budget - and get rid of that $2 billion hole in the base budget that has been there (as we have been told) since last summer. The $850 million just won’t cut it.
Comment by George Monday, Mar 16, 09 @ 4:12 pm
Pretty good snapshot, George
Comment by steve schnorf Monday, Mar 16, 09 @ 4:12 pm
Here is what I think -
Quinn, as the Governor, is going to wear the jacket for the tax hikes.
In return, the General Assembly *should* own up and wear the jacket for the $2 billion in excess spending they did last summer, when every projection except for their imaginary made-up one showed that there would be $2 billion less money available that they said. They should be required to make that $2 billion in cuts, since that would account for $4 billion of the $11.5 billion deficit.
Just my 2 cents.
Comment by George Monday, Mar 16, 09 @ 4:15 pm
Seven years ago the GA couldn’t cut (at his request) $1B from Governor Ryan’s budget. Instead he made the cuts by veto, and the Senate Republicans upheld the vetoes. Some part of what we face here is what happens when all of state government is run by one party.
But that’s far from the whole problem. I can flat-a__ guarantee you that the R’s, if offered the opportunity, couldn’t propose a balanced 2010 budget with no tax increases in it.
The spending everyone complains about doesn’t just appear in the budget by osmosis. It has a constituency, frequently a large one, that put it there and wants it kept there.
A classic example is the earlier silly comment by some one suggesting that the Department on Aging could be abolished, and Veteran’s Affairs. Right! Find a sponsor, big shot, and good luck. Answers that aren’t doable aren’t answers.
Comment by steve schnorf Monday, Mar 16, 09 @ 4:26 pm
=== Answers that aren’t doable aren’t answers.===
Which is exactly why I cut off that silly thread.
Comment by Rich Miller Monday, Mar 16, 09 @ 4:34 pm
George, RRB claimed he cut most of that $2B already.
Comment by Rich Miller Monday, Mar 16, 09 @ 4:41 pm
True, True.
A not insignificant amount got restored, I believe. Don’t remember how much.
Plus, he didn’t cut all of the deficit. I believe there was a several hundred million dollar discrepancy between what he said was the deficit and what he outlined in cuts.
He also “slowed down” spending, supposedly. I would assume that is still going on under Quinn, but would be worth checking.
Comment by George Monday, Mar 16, 09 @ 4:44 pm
Rich - RRB made a lot of claims based on his own delusional reality so in the real world they are worthless.
George - you rock.
Comment by Hoping For Rational Thought Monday, Mar 16, 09 @ 4:48 pm
I think short term borrowing, with debt retirement in subsequent years will also be part of the overall plan. The state has to borrow significantly, maybe $1 billion (give or take) in order to leverage the enhanced federal Medicaid matching rate. This has to happen soon. Like they did recently with the hospital assessment, they may decide to go borrow from some of the big special state funds, but when you’re talking about that much, I’d expect they’ll have to borrow from the funds, not raid them.
If they establish essentially revolving credit lines, they can leverage about $1.2 billion in federal Medicaid stimulus next year along with maybe $500 million this year. Not bad. Plus, you’ve got much better Medicaid payment cycles, which is certainly a big plus.
The income & corporate tax increasees might yield around $3.2 billion.
Assuming pension reform for new hires and then skipping the state contribution for 15 months…maybe $3.5 billion
Assume cuts of $850 million, athough those have a way of shrinking thru session.
We’re close to getting there…I almost forgot $500 million in fund sweeps. And the education stimulus $$$ too.
Now we’re really close to closing up the deficit.
Comment by Budget Watcher Monday, Mar 16, 09 @ 6:07 pm
Now we’re really close to closing up the deficit.
And only $26 billion in capital program financing to go!
Comment by Six Degrees of Separation Monday, Mar 16, 09 @ 6:11 pm
Many of the comments are like woodpeckers making holes here and here in the financial tree that is the Gross State product of the State of Illinois.
The problem is that few of the solutions are devoted to growing the tree rather than gumming up sawdust to patch here and there.
The solution to the State’s problems lie well beyond the fiscal fixes. They involve structural State reform in how it does business. The Governor is ideally placed to do just that if he would only take advantage. He has a lifelong history of representing reform. If he now morphs into the standard political beast we will not be able to distinguish him from the other political beasts.
He has prepared himself during his political life to do this. Or have we been watching a myth,
Illinois needs more than triage. It needs a leader who the people believe is fighting for them.
Comment by Truthful James Monday, Mar 16, 09 @ 6:22 pm
You can cut it. It’s all there line by line. No one will do it. There are too many white elephants. Everyone buys the hype that it’s too big to cut. Here is just a 15 minute glance at the Comptroller’s website. Why aren’t we questioning the need for these at this time?
$1M - The High Technology School-to-Work Act
$1.7M - Expanding International Markets for Illinois Business.
$4.5M - Grants for companies relocating
$20M - Renewable Energy Resources Program
$28M - AMTRAK
$15M - DES Benefit Information System redefinement? How long does the redefinement take? Further than the Comptroller shows records on the website.
$37M - Reduced Fares for RTA Service Boards
$7M - Literacy Programs
$1.7M - Chicago Public Library
$7M - Executive Inspector General. Seriously? 7mil? over 60 position?
$1.5M Bikeways program
$25M - Coal Technology Development Assistance
$4M Upward mobility
$2M Natural Areas Assessment
$36M Education technology
$46M Travel U of I
$2M To encourage County Fairs
$12M Reimbursement for wireless carriers
$1M To prevent Bullying. Really? One mil. to stop bullies?
These are just the lines and don’t include salaries or fringes that would be eliminated as well. Plus the pension savings in the future. Is this really the time for these things?
Comment by Cut It Monday, Mar 16, 09 @ 6:48 pm
Uh, there was a lawsuit filed over the AllKids expansion and Blagojevich lost. This was last April. Adults are not eligible for AllKids if their income exceeds 133% of the FPL.
Comment by Marianne North Monday, Mar 16, 09 @ 7:18 pm
Cut It -
I am sure many of those are where they will come up with the 850 million in cuts.
But it is laughable to claim you could find 11.5 billion of that. Not because it is not politically feasible (it isn’t), but because we all know there isn’t 11.5 billion of that in the budget. The biggest budget expenses are the big grant programs.
That’s education - 6 or 7 billion
Healthcare - 12 billion
Coming up with 1-2 billion in cuts is easy. Heck, even Blagojevich did that!
It is that other 9 billion that is hard.
Comment by Right Monday, Mar 16, 09 @ 7:34 pm
Cut it
Cut them all (you might actually find sponsors and votes for cutting some of those you listed), but other than symbolism it adds up to nothing, and some of what you list is non-GRF. And, come up with say, 400 more and you are really cooking.
Comment by steve schnorf Monday, Mar 16, 09 @ 7:34 pm
Cut It, you should get to work on this with Sen. Brady.
He said weeks ago that he could eliminate the deficit without tax increases. But he’s apparently had some trouble getting his plan down on paper.
The best part is, since he’s in the GA, he could introduce an all-cut plan in the form of a bill. And I guarantee you it would get a prompt vote.
Give him a call. I’m sure he’ll be all over it.
Comment by wordslinger Monday, Mar 16, 09 @ 7:35 pm
$20 million here, and $20 million there, Rich, and soon you’re talking about real money. An awful lot of this stuff—like Rodney’s healthcare fantasies—has to be chopped. We’re broke and can’t afford it.
Comment by enrico depressario Monday, Mar 16, 09 @ 8:18 pm
OK. it’s late enough no one will read this but:
1. Many voters recognize the need to get the state solvent and are reluctantly willing to accept a tax increase. A jump to 4.5% is too much, especially from an unelected governor. A temporary two year 1% surtax would be an easier sell. And no mixing it up with talk of reform and fundamental fairness — that’s just smoke and mirrors so we can’t tell what’s happening. Save the reform for 2011 and just take care of the immediate problem.
2. As always it’s easy to bash public employees. The state needs to fund its pension obligations. If you don’t think so, look up the word obligation.
3. Illinois may be neither a very high or low tax state, but we get less for our tax dollars than anywhere I’ve ever been familiar with. I suspect the reason is all the insider dealings for leases and contracts that have been going on since before I was born. The Tollway Authority was a scandal in the 1950’s and hasn’t gotten any better.
I’d move to Oregon but their income tax is 8% and you can’t even pump your own gas.
Comment by Excessively rabid Monday, Mar 16, 09 @ 9:18 pm
Steve? “Adds up to nothing”? That was 15 minutes from a citizen browsing around. I guarentee that if someone knew what all this stuff was and filtered it through the “question”, a third of the 30 Billion GRF budget would disappear.
Why does everyone focus on the big stuff? Sure, they can be quick fixes but the root of the problem is the “Bully Prevention” crap. Take the stuff I listed above and the larger stuff I listed above that and stuff I didn’t even look at and drag it out 20 years in the past and cut it all. Where would we be? Leave it out and project 20 years in the future. How much savings total? There is so much crap impacted on the bowels of this state it will take an autopsy to figure it out.
Here’s my guess on what the State will do in the new budget. $700-900 Mil in mostly “cut-backs” not eliminations, but cut-backs. $2-3 Billion in new tax “revenue”. The State will be adding positions, not decreasing. The economy will rebound in 2-3 years. The “cut-back” programs will begin expanding, the number of employees will continue creeping up and the Bully Prevention program will be at $3M. In 7 years people will be saying “You can cut your way out of a deficit like this. We haven’t had a tax increase for 7 years.”
Comment by Cut It Monday, Mar 16, 09 @ 9:22 pm
Cut It - you can quit with the fantasy.
“Right” and “George” are right - the vast majority of the budget is roads, healthcare, education and public safety. And don’t forget the grants to locals.
Your little bully prevention cuts are exactly the kind of thing that is already slated to be cut. Your cuts simply don’t add up to that much because they can’t -
Out of the $29 billion in General Funds in the state budget this fiscal year:
$11 billion went to education (k-12 and higher ed)
$8.6 billion went to healthcare (state funds, not including federal match)
$6 billion went to human services
And $1.5 billion went to public safety
Of the rest, only $1 billion went to government services.
So, you are spending almost $27 billion of your $29 billion on the categories above.
If you have to cut $11.5 billion from that total, you are not going to get anywhere cutting legislative add ons and small projects like your bully programs. You have to cut education, healthcare, human services, or public safety.
Comment by JohnR Monday, Mar 16, 09 @ 10:04 pm
Additionally, “Cut It”, most of the super-duper $1 billion you cut comes from 2 areas:
1) $650 million from the Department on Aging
2) $280 from the Department of Employment Security
First, let’s take the $650 million from the Department on Aging. Do you know where the vast majority of that $650 million goes (its actually $570 million in state general funds)?
$500 million of that is for home and community based care. That is home support services for seniors who get medical or other services in their home by nurses, etc., instead of having to check into a long term care facility. If you cut that money, those seniors are still going to need help, but instead will have to move into a long term care facility in order to get it - which costs the state three times as much to provide. This program was actually instituted to save the state money (and help seniors be more independent).
So, by cutting $500 million, you actually increased the deficit by $1 billion. Good job, you are on a roll!
Second, you are cutting $280 million from the Department of Employment Security? Congrats! That gets you absolutely no savings against the deficit. Most of that $280 million (90%) is unemployment insurance. That isn’t general funds, and doesn’t count as part of the deficit. That is unemployment insurance collected from employers and given out to the newly unemployed. Tough luck.
Please. Next time you want to talk about this stuff, do your homework first. Especially if you are going to be so snide.
Because by my count, you just increased the deficit by $1 billion.
Comment by JohnR Monday, Mar 16, 09 @ 10:16 pm
OK, for those of us who are convinced that we cannot tax our way out of a deficit, that we cannot afford to drive away businesses, etc. how about we try this: shut down state government — everything but police, prisons and courts — for two years, cut all taxes in half, and wait for new businesses to start knocking on our door in droves and bringing new jobs with them. Voila, all our economic problems solved, full employment, no more need for education funding or healthcare because everyone will be rich and live happily ever after. Think that will happen? Has anything like this ever been tried elsewhere, and how did it work?
Comment by Secret Square Tuesday, Mar 17, 09 @ 9:03 am