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Senate passes pension note plan

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Illinois

* 7:43 pm - The Senate has just approved the $3.5 billion borrowing plan to fund the pension systems. The House has already passed the bill as well as the rest of the budget bills.

The Senate is now moving very fast and will wrap up soon.

* 7:55 pm- Senate President Cullerton said he wants to convene in January to address the issue of raising more revenue.

posted by Rich Miller
Wednesday, Jul 15, 09 @ 7:46 pm

Comments

SB1216 Passed as well. Everyone gets paid. State workers rejoice!

Comment by How Ironic Wednesday, Jul 15, 09 @ 7:50 pm
Is the gov going to sign this budget so we can be paid?

Comment by thunder1 Wednesday, Jul 15, 09 @ 7:52 pm
Thanks for the update. Great work as usual!

Comment by Anonymous Wednesday, Jul 15, 09 @ 7:52 pm
thunder1:

These bills are agreed bills. He will be signing them fairly quickly. It is my understanding that the Comptroller has payroll ready to go whenever it is signed.

Comment by RJW Wednesday, Jul 15, 09 @ 7:53 pm
Before we all pat ourselves on the back, realize that we’ve built AT LEAST a $10B structural deficit into next years budget and that assumes this one is balanced (and it doesn’t appear to be).

Comment by John Bambenek Wednesday, Jul 15, 09 @ 7:54 pm
I am grateful that the state won’t be reaching into my pocket for the rest of 2009, a year of huge economic recession. I am grateful that I will be able to keep all, not just part, of my Obama stimulus tax cuts.

But I’m still not clear on the size of the deficit or the size of the “cuts” Quinn says he will make. I can count. 11.6 minus 3.2 is not 0.
So, was Quinn exaggerating? What was the deficit?
What will be cuts be, if any. Or were those exaggerated too. Maybe he’ll have time to explain all this now. I hope so. Otherwise I, and I imagine a lot of other taxpayers, will be very skeptical when he starts up again in January.

Comment by Cassandra Wednesday, Jul 15, 09 @ 8:03 pm
Just touched down back in Chicago, and have been unable to follow along, and I am trying get caught up.

One quick question comes to mind with respect to vendors doing business with the state however. If my initial read on this is correct, by January we will be lucky to have finally paid off all of the vendors bills from the LAST FISCAL YEAR, and will likely have paid virtually no vendor bills from the CURRENT FISCAL year at that point, and most if not all vendor bills at that point will be at best on a 180 payment cycle; is that correct?

Also; if that is indeed the case, why would any vendor not just cut their losses now, and walk, rather than run the risk of not getting paid at all, because at this point in time there is insufficient from which they might be paid.

I would not want to be a lender extending credit to any vendors with substantive receivables from the State of Illinois right now. The Land of Lincoln is not in the least bit creditworthy!

Comment by Quinn T. Sential Wednesday, Jul 15, 09 @ 8:15 pm
Cassandra - super - so proud we can leave your pocket alone - to hell with our future -

Comment by collar observer Wednesday, Jul 15, 09 @ 8:15 pm
so then i am assuming a 6 month budget was passed? so we get to go through this insanity all over again just after Christmas! Wonder how that’s going to impact the economy when people are afraid to spend because they might get laid off…

Comment by inthemiddle Wednesday, Jul 15, 09 @ 8:20 pm
Does the governor still have power to choose how the 86% funding to social services is appropriated? My programs were completely eliminated with the 50% budget, so I’m wondering where this leaves us.

Comment by Central IL Wednesday, Jul 15, 09 @ 8:23 pm
They will be able to fix this next January because they did so well this last January. Not. As voters we need to hold these people responsible for their actions or more to the point in action.

Comment by Yea Right Wednesday, Jul 15, 09 @ 8:24 pm
viva la Sausage Machine! Some fat, some gristle, a bit of nourishment, and the butcher let us put in on the tab!

Comment by jake Wednesday, Jul 15, 09 @ 8:25 pm
So they managed to trim deficit $7.7B or so. Last I saw, estimate was $9B budget deficit. So still unbalanced.

Of course, that depends on who you ask.

Comment by John Bambenek Wednesday, Jul 15, 09 @ 8:27 pm
Will there still be 2,800 employees laid off?

Comment by You Go Boy Wednesday, Jul 15, 09 @ 8:27 pm
So Bill Brady and Matt Murphy voted against the budget but then vote in favor of the budget implementation?

These guys are profiles in courage - the same guys that voted to take millions in pork projects in the capital bill but wouldn’t vote for the bond revenue. Intellectual dishonesty at its finest.

Comment by profiles in courage Wednesday, Jul 15, 09 @ 8:30 pm
Well, actually, I was thinking that if additional revenues are needed, Quinn and his Blago budgeteers could start looking at some new sources of revenue. California is seriously (or at least, more seriously than in the past) looking at legalizing and taxing marijuana sales. Taxing the income of middle class wage earners heavily is not the only way to raise revenue, but it is probably the eaiest. And Quinn and our legislators are all about doing things the easy way. Proscrastination is always easy while you’re procrastinating.

Comment by Cassandra Wednesday, Jul 15, 09 @ 8:37 pm
So, where does this leave social service agencies and the help for the people that need it the most?

Comment by Confused in the Middle of Ill Wednesday, Jul 15, 09 @ 8:39 pm
Did they pass the budget, been gone haven’t been keeping up.

Comment by Me Wednesday, Jul 15, 09 @ 8:42 pm
Did everyone who voted against the budget bill vote FOR the implementation? I have a bet they did.

Comment by Curious George Wednesday, Jul 15, 09 @ 8:44 pm
Illinois Senate Republicans: Senator Radogno’s Capitol Connection Newsletter is on its way to your inbox. http://shrinkster.com/17rj

Comment by Anonymous Coward Wednesday, Jul 15, 09 @ 8:45 pm
Roger Eddy: All budget bills passed both house & senate. Gov. Quinn will sign tonight.

Comment by Anonymous Coward Wednesday, Jul 15, 09 @ 8:46 pm
Whoopie thanks

Comment by Me Wednesday, Jul 15, 09 @ 8:47 pm
It calls for around 2,500 layoffs, 12 furlow days. I heard on the rail today DHS alone is targeted for over 700 layoffs.

Wonder how the Sangamon County folks feel about smaller govt now?

Comment by Wow Wednesday, Jul 15, 09 @ 9:00 pm
Rich, any video of pressers from the tops? You’ve really mastered the technology - I really appreciate them, Thanks!

Comment by A Citizen Wednesday, Jul 15, 09 @ 9:01 pm
What happened to professional and artistic contracts?

Comment by Kiko Wednesday, Jul 15, 09 @ 9:04 pm
I listened to the Senate action on the budget. I really liked the way whomever was presiding (I didn’t catch who it was) handled things. Bam bam bam, things were done. Too bad it wasn’t that easy two months ago.

I have to say that I am impressed with Leader Radagno. I listened to her lay out the facts and say that everyone was in this together. It made me wonder why she isn’t running for a statewide office again.

Am I the only one who finds Sen. Brady to be annoying and a bit pompous? He droned on and on about not liking the bill. We get it, move on. Dillard was better with his credit card quip. So far, Brady isn’t fairing well with me for the primary.

Comment by jwscott72 Wednesday, Jul 15, 09 @ 9:05 pm
Brady simply doesn;t get it. You win by courting the middle. Hey, maybe he’ll run again in 2014!? Next please…

Comment by El Conquistador Wednesday, Jul 15, 09 @ 9:09 pm
Not sure why the Republicans are not taking advantaage of the 3/5 vote now, is January they are irrelivant again. How soon they forget that until June 1st they did not exist.

Comment by Yea Right Wednesday, Jul 15, 09 @ 9:16 pm
Woo, hoo! We don’t have to pay more taxes.

Of course when the bill does come due, it will be compounded by interest. Over the past couple of years, a lot of people have been learning the true cost of living on the credit card; when will the taxpayers of Illinois learn that a bill put off just grows and grows.

Cassandra: sooner or later you will be paying more taxes, tonight’s “solution” ensures that you will pay more. And a tax on the weed you have been smoking won’t be enough.

Comment by Pot calling kettle Wednesday, Jul 15, 09 @ 9:18 pm
dillard did not vote for the bimp. said it had some good and some bad but that overall it would lead the state into more debt.

Comment by profiles Wednesday, Jul 15, 09 @ 9:20 pm
melissahahn: Gov. Quinn says he’ll sign the budget bills as soon as he gets them (good news). Then it’ll be time to decide layoffs (bad news).

Comment by Anonymous Coward Wednesday, Jul 15, 09 @ 9:25 pm
@Pot calling Kettle
You tell her!!

Comment by state employee Wednesday, Jul 15, 09 @ 9:26 pm
Thanks for your hard work, Rich. I’m a state employee that counts on you for timely information. I appreciate your overtime.

Comment by Discreetly speaking Wednesday, Jul 15, 09 @ 9:26 pm
Gov. Quinn now has a formidable lead in the early voting for the Major Disappointment of the Year Award….

I guess he didn’t spend his six years as Lt. Governor actually getting prepared to be Governor.

Comment by DuPage Dave Wednesday, Jul 15, 09 @ 10:14 pm
It’s the people of Illinois who lost tonight. We’re not going to be taking care of the people who can’t take care of themselves. How pathetic that hardly anyone can make that leap to see what this half-baked budget will lead to. No incumbents will be getting my vote. They didn’t do their job.

Comment by Paticakes Wednesday, Jul 15, 09 @ 10:52 pm
I just realized this has been all my fault. This is the first time this year I blew off going down to Springfield while they are in session. If I only would have done it sooner, everything would have been settled in early May. Sorry to cause all the grief to those affected.

Comment by Been There Wednesday, Jul 15, 09 @ 11:00 pm
No income tax increase for now. What’s fascinating is no one is taking credit for that, as far as I can tell.

We live in interesting times.

Comment by wordslinger Wednesday, Jul 15, 09 @ 11:07 pm
===What’s fascinating is no one is taking credit for that, as far as I can tell.===
I think both the Dems and GOP miscalculated what overtime would mean to them. Madigan and Cullerton were still trying to get a pulse on Quinn, which obviously turned out to be a tough job. They wanted to share the blame if there was pain with an income tax hike but Cross didn’t bite. Or maybe Madigan really didn’t want a tax hike at all. Who knows? I am just glad they are out of town for awhile but I do feel sorry for those layed off and the agencies and non-profits that have suffered.
I will have to be down at the fairs for a few days for each but at least the side show won’t be in town at the same time like last year. The next few months should be interesting since it will be really be the first time that Quinn will get to govern, look at the agencies, travel the state as the chief executive without dealing with the General Assembly.
But back to your original statement about taking credit. I think they are all trying to duck from taking any blame from this mess. Taking credit might backfire and it points to your caucus.

Comment by Been There Thursday, Jul 16, 09 @ 12:03 am
Oh, “heart to heart converstions”. Not sure I’ve ever heard negotiations with the unions quite called that.

Thanks for the videos and all the hard work Mike and Rich. Much appreciated.

Comment by Cindy Lou Thursday, Jul 16, 09 @ 12:14 am
There seems to be a rather strange provision in the BIMP bill that doesn’t make sense. Since I’m not a pension or budgeting expert maybe someone can explain it.

Most agencies, including mine, have an annual line item in their budget each year for the State’s portion of its employees’ pension contributions. If I’m reading the BIMP correctly, it says that item will NOT be in the budget this year for any agencies whose employees are paid from the GRF. There seems to have been a similar provision in place in FY04.

Why is that? I thought the five-year bond issue was taking care of the pension payment for this year. Why skip pension payments only for employees paid out of GRF?

Comment by Bookworm Thursday, Jul 16, 09 @ 6:40 am
Bookworm, good question. If the language is more or less like FY2004, it’s in place to assure that the funds receive their certifed amount-and no more. Back in FY2004, the “State contribution” was almost completely funded with proceeds of the 2003 Pension Bond issue. There were plenty of folks around back then who were worried that someday the pension systems might get more than the certified amount, so language was inserted to “fix” that.

In FY2003 and 04, I don’t recall written guidance, but I think what happened then was the reverse of what is happening now; the Fed oversight agencies weren’t keen on paying debt service on old IOUs, so as Filan saw that pay window closing, he had to come up with a different program. Lots more under the surface, but this is the essential stuff.

Comment by Arthur Andersen Thursday, Jul 16, 09 @ 7:22 am
AA, thanks. It seems awfully strange to me, though, that anyone would be “worried that someday the pension systems might get MORE than the certified amount” given the depth of the hole they are in.

Comment by Bookworm Thursday, Jul 16, 09 @ 7:43 am