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A complete disaster

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* It’s nice that the Bloomington Pantagraph is all concerned about the state budget, but read today’s editorial, entitled “Demand action on state budget now, not later,” and tell me what’s missing

Putting off addressing the state’s financial problems - like putting off paying the state’s bills - will only make matters worse.

While the governor and lawmakers fiddle, Illinoisans are getting burned.

How many businesses and social service agencies will have gone further in debt, laid off workers, ended programs and closed entirely before Gov. Pat Quinn and lawmakers get around to addressing the problem? […]

If re-election is all the politicians in Springfield care about, the voters need to make clear that their votes on Feb. 2 will be based on who showed the most leadership, offered real solutions and made tough choices. Tell elected officials to act now or risk being lame ducks as of Feb. 3.

Lots of huffing and puffing, but they never propose an actual solution. It’s easy to deride politicians for being weaklings, but if you won’t come out and say those two naughty words “Tax hike” or “Huge cuts” yourself, then you’re even weaker than they are.

* Perhaps the Pantagraph understands how angry people are and just doesn’t want to provoke them. Phil Kadner has probably the best column I’ve seen this year about the anger out there. I’m gonna excerpt way more than I should because I want to make sure you read this

It was a spontaneous taxpayer rebellion by ordinary people fed up with the “crooks in Springfield.”

Thousands of motorists crowded into offices run by the Illinois secretary of state last week to renew their driver’s licenses before the price was hiked from $10 to $30 on Monday.

Many waited for nearly two hours on Friday at the driver’s license facility in Orland Park’s Village Hall, but at least half of the folks I interviewed said they weren’t motivated by the need to save money in a difficult economy.

“I would rather hand her 20 bucks than give it to the people who keep stealing the money down in Springfield,” said Jeremy Frederickson, pointing to a woman seated nearby whom he had never met before.

Frederickson, 31, of Tinley Park, is unemployed and said he simply objects to the idea of giving the state more money.

Jim Marmalejo, of Frankfort, echoed that sentiment.

An iron worker whose job site was shut down for the day due to rain, Marmalejo was wearing a Harley Davidson jacket.

When I found out his license wasn’t due to be renewed until February, I said a man who could afford a Harley should be able to spend an extra $20 to renew his driver’s license.

“I just didn’t want them ripping me off for $20,” he said.

“I’m sick of them dipping into my pockets and spending my money, whoever they are.”

He later made it clear that “they” referred to elected leaders.

“My property taxes just doubled and my property values went down,” he continued. “It’s just ridiculous how they keep hitting the taxpayers again and again.”

Gov. Pat Quinn, who still hopes to pass an income tax hike to plug a $12 billion state budget hole, might want to listen to the anger of these taxpayers.

These people weren’t some tea party protesters organized by conservative Republicans through an Internet site.

They each decided independently to spend a good chunk of their day sitting in a crowded driver’s license facility rather than hand the state another $20.

Keep in mind that licenses are renewed every five years. So, we’re talking an increase of $4 a year. Yet, they stood in line for hours to beat the fee hike.

* Meanwhile, the budget situation just gets worse and worse

Gov. Pat Quinn’s office warned Wednesday that state government now faces an additional $900 million budget deficit, largely because rising unemployment has eaten away at income tax revenues.

In an interview with The Associated Press, Quinn budget director David Vaught said the new budget hole increases the pressure for officials to raise taxes early next year. Until then, he said, Quinn will cut spending further and seek legislative permission to borrow money set aside in special government funds.

This year’s budget was put together with the assumption that income tax revenue would be about the same as last year, around $10.2 billion. But the latest projections now show revenues falling by $850 million, Vaught said.

Oy.

There are some signs of “green shoots” on unemployment, but budgetary recovery is still a long way away.

* Yet, you’d never know there was any trouble by the way they just “solved” the MAP grant dilemma

Lawmakers emerging from a meeting with Gov. Pat Quinn say they agreed to appropriate an extra $200 million for the Monetary Award Program. But they said they haven’t figured out where to get the money.

The solution can basically be summed as: Spend the cash, we’ll pay for it later.

As I told subscribers yesterday, there is a kinda/sorta revenue source for much of the shortfall, but I’m not sure it can be classfied as “real.”

posted by Rich Miller
Thursday, Oct 15, 09 @ 9:04 am

Comments

  1. Either cut the programs that Blago added that had no funding or raise taxes to pay for them. The GA allowed
    This to happen, it is way past time to deal with it.

    Comment by Tax Payer not Eater Thursday, Oct 15, 09 @ 9:21 am

  2. One thing Kadner’s piece highlights that folks working on these issues often forget is that regular people do not separate out where the tax/fee is coming from - city, county, state, feds. It all combines in frustration with all elected officials, regardless of their individual role in a given tax or fee. If we want to raise the revenue needed to fix our structural deficit, we need figure out ways to address this reality.

    Comment by montrose Thursday, Oct 15, 09 @ 9:28 am

  3. T.h.e. s.l.o.w. m.o.v.i.n.g. t.r.a.i.n. w.r.e.c.k..

    Oy is right.

    Comment by dupage dan Thursday, Oct 15, 09 @ 9:28 am

  4. David Vaught, Ostro’s replacement as Quinn’s budget director, barely had gotten his coat off in his new office before he started calling for an income tax increase. He didn’t even pretend to cut anything specific, look for waste, review a few exceptionally porky and unncessary contracts (there are lots of those) nor did he mention layoffs.

    And now Quinn and the legislators are happily spending another $200 million without getting too specific about where it will come from.

    Obviously, the fix is in. We’re all supposed to
    fall into line nicely after the primaries to top up the Democratic trough for the next few years.

    Comment by cassandra Thursday, Oct 15, 09 @ 9:29 am

  5. Green Shoots - I had to look it up, so I’m assuming I’m not the only one.

    Comment by Scooby Thursday, Oct 15, 09 @ 9:30 am

  6. I wonder if we had a more fiscally conservative governor I wonder if the state would be in a different situation today. My model for not being very fiscally conservative is our dear old Ousted governor who didn’t mind spending money the state didn’t have on programs that may put him in the news.

    Comment by Levois Thursday, Oct 15, 09 @ 9:32 am

  7. ++David Vaught, Ostro’s replacement as Quinn’s budget director, barely had gotten his coat off in his new office before he started calling for an income tax increase. He didn’t even pretend to cut anything specific, look for waste, review a few exceptionally porky and unncessary contracts (there are lots of those) nor did he mention layoffs.++

    Cassandra - A conservative estimate has the FY11 budget hole at $12 billion. Let’s just be honest about the fact that we cannot cut our way out of a structural problem.

    Comment by montrose Thursday, Oct 15, 09 @ 9:39 am

  8. I really liked Kadner’s article and this did a nice job of highlighting the average person’s money management skills:

    “Joan DeLuca, of Tinley Park, took a day off work because in this ‘economy you want to save every place that you can.’”

    Even if Ms. DeLuca made minimum wage, she would certainly lose more than the $20 fee increase. I understand that many people showed up out of principle and this fee is certainly regressive, but these people would be better off writing a letter or starting a petition.

    Comment by The Intern Thursday, Oct 15, 09 @ 9:44 am

  9. The MAP grant issue shows that our political leaders won’t face the budget issue until there is a catastrophic failure. This is exactly the type of program that has to be cut if they aren’t going to raise revenue.

    Comment by Pelon Thursday, Oct 15, 09 @ 9:44 am

  10. I suspect the MAP problem was a Quinn gimmick to barnstorm the state and act like a hero.

    If you’re putting off vendors for months on billions of bills, how much more does it extend the payment cycle to smoke-and-mirrors another $200 million?

    The revenues keep getting worse. More printing-press fed stimulus would probably tank the stock market (the only good thing going right now; must be that $1.6 billion in taxpayer funded AIG bonus money).

    In addition to taxes and layoffs, does anyone believe K-12, Human Services and Medicaid eligibility can escape next year?

    A hard rain’s a gonna fall.

    Comment by wordslinger Thursday, Oct 15, 09 @ 9:53 am

  11. So if the State consitution syas we have to have a balanced budget, what is the penalty if we in fact do not have a balanced budget? especially if you have the GA and the Gov working together to engage in deficit spending.

    Comment by Ghost Thursday, Oct 15, 09 @ 9:57 am

  12. Intern “Even if Ms. DeLuca made minimum wage, she would certainly lose more than the $20 fee increase. I understand that many people showed up out of principle and this fee is certainly regressive, but these people would be better off writing a letter or starting a petition”. –

    Why assume ‘take day off’ meant silly enough to lose day pay to squeal over $20 rather than having used time coming off aka vacation? Maybe person felt using vacation to make the statement was worth the day spent.

    ahhhh, the old comfy jeans are back. I’m sure not for long, but truth told, I’d read ‘Miller’s Post-it Notes’ hand written and posted if it was the only way to get up to date and clear political news. The new site was pretty cool and worked fairly well even on my dark age dial up if it was 3 am. Looking forward to the new new site.

    Comment by Cindy Lou Thursday, Oct 15, 09 @ 10:06 am

  13. Ghost, budget = plan, not actual.

    The constitution says we must plan to provide enough revenues for expenditures. It does not say we cannot deviate from the plan (for example, if revenues are less than projected).

    Amendment anyone?

    Comment by Balance Thursday, Oct 15, 09 @ 10:08 am

  14. A regressive fee is the $20 that the State of Illinois has charged for a state ID for quite some time. Someone that can afford to buy and insure a car can surely afford $6 a year for a drivers license. I would argue that the fee for a drivers license had been kept artificially low when compared to that state ID fee.

    Then there is the fee for the Illinois FOID card. Last time I renewed mine I think I paid only $5. I would expect that there is considerably expense in doing the necessary background checks for firearm ownership.

    Gun owners are very vocal. I suspect that drivers are more vocal than people that just require a state ID. Are the lower fees for the most vocal merely another example of greasing the squeaky wheel?

    Comment by Paul Thursday, Oct 15, 09 @ 10:18 am

  15. I think we should consider Bill’s favorite person to be the next governor. We should start a draft Todd Stroger for gov campaign to get the wonder kid on the ballot. After all, he has solved the budge problem in Cook Cty - why not move him up to the mansion in Springfield. Problem solved!

    Comment by dupage dan Thursday, Oct 15, 09 @ 10:26 am

  16. Great. While everyone is up in arms about the MAP grants, we’ve got 30 people in Morris with developmental disabilites that will be homeless on January 1. This is not just happening in Morris, but all over the state. Where is the outrage?

    The funding was cut to a residential facility that assists adults with developmental disabilites with daily living skills. These are adults who need assistance with banking, cooking, shopping and a myriad of daily activities that most of us take for granted. Most of these adults function on a third grade level and cannot take care of themselves.

    I have a call in to DHS to find out what we are suppose to do with these people. (I volunteer at this facility.) Waiting lists for other facilities are several years long and we are suppose to be moving people out of institutions.

    I am a single mother of twins who are seniors in high school. Their father died when they were four months old. Our Social Security Survivors benefits end when they graduate high school. If MAP grants were availbale, we would qualify, even with my state job. My kids will be taking one college course a semester, if we can afford that. Otherwise, we will try to get student loans.

    If there was an extra 200 million for every program that was cut, we would be in fine shape. Do you only get an appropriation if you can jump up and down and yell the loudest?

    Comment by rachel Thursday, Oct 15, 09 @ 10:29 am

  17. wordslinger:

    What layoffs? Under Quinn, the state is still hiring. The Quinn PR machine wants us to think there have been 2600 layoffs, but there haven’t been any folks actually laid off. And nearly all the Blago appointees are still there, many of them reappointed to lush four year terms by Quinn, others getting soft landings in other parts of our Democratic state bureaucracy.

    If you look at the actual behavior of Quinn and our ever-greedy Democratic legislators (example, after all that weeping and wailing, money magically found for the MAP grants), and knew nothing about the budget, you’d think that there was plenty of money and Vaught just wanted more to top up the trough. The Democratic trough.

    Comment by cassandra Thursday, Oct 15, 09 @ 10:34 am

  18. Magic Money, Cassandra? Nothing magic about it, just means something else gets cut (down to the bone already? pfft, not being a consideration) even more or state delays more bills to something else.

    Comment by Cindy Lou Thursday, Oct 15, 09 @ 10:41 am

  19. But the money was found. But not before an lot of people had to go through a period of worry and uncertainty—unnecessarily, it turns out. The Dems-Quinn, Vaught, et al–think they are modern day kings and the government’s money is their money. We’re supposed to beg for it. But it is theirs to give.

    Comment by cassandra Thursday, Oct 15, 09 @ 10:53 am

  20. I’m not getting the impression ‘money was found’, I’m not sure they know where they’re getting it from yet but rather just proving they’ll allow the appros. — but it’s not theirs to just give, wherever it comes from is likely to set off the next round of begging elsewhere.

    Comment by Cindy Lou Thursday, Oct 15, 09 @ 11:05 am

  21. Grants for college though, can be beneficial down the road to the state. I, for instance, got quite a pretty chunk of change from the state of IL for my college 20 years ago. The state of IL granted me at least $8000-$10000 over 4 years. I graduated college in 1989 and have worked every year since then in jobs that have paid well due to that degree. I’ve lived in IL the entire time and have never directly received another cent from the state. So I’ve probably paid IL back way more than that $8000-$10000 in taxes since then.

    Comment by cermak_rd Thursday, Oct 15, 09 @ 11:57 am

  22. Although many people feel that we do not need the MAP Grant anymore, this is a vital piece of thousands of students’ education. At my small school alone we have over 800 students that get the Grant and without it, they may possibly not be able to finish their degree. By providing students with that money we are planning for the future by allowing those students to finish their degree and work towards a better future. Everyone always talks about the importance of a higher education and how vital it is to the betterment of our society. If that is the case why not provide students with that money so they can finish their degree. So many students go for a semester, a year, or even two years and then have to drop out to get a minimum wage job because they couldn’t afford that last “lap” in their education. If we want a better future for our state then why not allow for continuing education. Also providing students with the MAP grant allows for hundreds more jobs on college campuses for professors, deans, custodians, librarians, secretaries, etc. The MAP grant is also indirectly helping those people too by providing them with stable well paid jobs.

    Comment by democratgirl Thursday, Oct 15, 09 @ 12:04 pm

  23. I don’t begrduge financially needy college students MAP grant funding. I wish someone had told them that they will get the money, it just has to be figured out how/from wher; lawmakers haven’t been saying no. Quinn has money and should be using it to help MAP funding. Why the students and governor are acting like they won’t get MAP funding doesn’t make sense. What I don’t like about the college students is their EXPECTATIONS being a bit self-centered and out of whack with reality. I heard some of them stating that they EXPECT MAP funding, with a wee bit of attitude. They need to understand that these are tough financial time all over, and so reality sometimes has to take precedence over expecations.

    Why is Mayor Daley looking more like a leader on his budget crisis than Governor Quinn is on his? Like him or loathe him, Mayor Daley is a leader, knows how to lead, and is a competent public adminstrator. Interestingly he is remaining firm on NO tax increase. Wow! I am not fan of Mayor Daley, but I must say that he handles his business and he knows his business (his business being the city of Chicago.)

    I respect him for that. It has been said of Mayor Daley that he is really more of a repulican than democrat, so far as governing is concerned. I think the way he conducts himself in many ways as Mayor, suggests there is some truth to that.

    Rich, you want solutions? Sorry that the newspaper editorial board didn’t, but I want to give some solutions/suggestions on cutting for starters…

    Pat Quinn needs to cut agency directors’ and secretary salaries by 20 percent for essential department heads (e.g., dept of public heath), and layoff heads of non-essential departments (e.g. public housing, south african trade liaison whatever, dept of veteran’s affairs etc.). in the cases of the latter, these offices can run bare bones with front line workers. these department heads are not making decisions that are critical to day-to-day state operations. All non-department head state workers need to take 15 furlough days between now and the end of the year, and next year they need to take 30 furlough days. Also, if the Illinois State Police is stil be led by someone who is “acting” he needs to be cut, and his position not filled. Clearly the ISP can be run and function without a non-acting director until Jan of 2011.

    Moving foward, no state workers should receive holdiday pay for non-major holidays e.g., Columbus Day, President’s Day etc.

    Quinn needs to issue a hiring freeze ASAP, in all honesty he should done that months ago! Instead he has been busy as a bee filling political administration positions at $70K on up. (in this fiscal crisis that’s totally unacceptable on his part) He needs to reduce his own administration staff by 20 percent and mandate 20 percent pay decreases for the remaining. to help him make deicisons and “govern” he runs government with all-volunteer task forces, commissions and panels anyway. So I don’t see why he needs all the policy advisors and deputy chief of staff around him.

    All remaining non-department head state employees should take 10 percent pay cuts. All state agencies should be mandated to reduce redunandcies in job fuction and in the course of performing their work.

    Quinn need to change his mind and support the elimination of the lt. governor’s ofice, and then follow the line of succession post lt. gov. Quinn needs to back the idea of consolidating the Comptroller and treasurer’s offices, though he has expressed a willingness to consider this.

    Comment by Will County Woman Thursday, Oct 15, 09 @ 12:40 pm

  24. We’ll get a hint of what state government under a
    Quinn who won his own election looks like by watch Ms. Saddler over at DHS. She is highly qualified with stellar educational creds, but…..she’s a Quinn protegee. What will she do.

    First, why do we need 14,000 employees at DHS.
    Couldn’t technology replace many of them (why would I have to have a “food stamp worker” just because I’m getting food stamps. I’m not a lesser being in need of government social services simply because I have a low income. I can solve my own problems, thanks) and couldn’t technology help the remaining employees do their jobs better. Will DHS remain a jobs farm for underqualified Dems.

    By many accounts, under Adams, DHS (like DCFS and other patronage-heavy agencies) was a major Democratic pork farm with scores of desputies and assistant deputies at six figure salaries and ittle of value in the way of duties. And don’t forget the chauffeurs. Will she dump at least some of the deputies, even if they do have powerful Dem relatives and sponsors.Will she and her top aides have chauffeurs?

    Will she be able to responsibly shut down the
    Howe Developmental Center….or will Quinn waffle yet again, leaving Saddler holding the bag.

    She doesn’t have much time. If doesn’t do much in her first three to six months, the bureaucracy
    will take over again and DHS will return to
    backwater normal, run for the benefit of bureaucrats and Dem pols at great cost to taxpayers.

    Anyway, we’ll know by the February elections–that gives her over three months.

    Comment by cassandra Thursday, Oct 15, 09 @ 1:18 pm

  25. I am officially NOT reading Cassandra or WCW comments anymore…WCW: I predicted yesterday that the legislators would vote to add additional MAP funding…not everything that is out of whack in State government is solely the Governor’s doing…remember, Quinn is trying to undo six years of a dysfunctional leadership in this State…try blaming some of the former leaders in the Gov’s mansion and the State Senate…

    Comment by Loop Lady Thursday, Oct 15, 09 @ 1:35 pm

  26. Cassandra: Nobody in State government hires their protegees except Pat Quinn, right? Who’s he supposed to hire? People he doesn’t know/trust?
    Get real!

    Comment by Loop Lady Thursday, Oct 15, 09 @ 1:36 pm

  27. LL-

    I think Ms. Saddler is a great choice, protegee or not. But will she have the freedom to use her abilities? Or Will Quinn and the Machine Dems rein her in? And I do think she, like all new execs, has to move fast.

    I have consistently applauded Quinn’s choice of
    Randle at DOC. I think he has done a remarkable job so far. Obviously, I’m not impressed with the tax-loving Vaught. But I wish Ms. Saddler the best-for the sake of all of us.

    Comment by cassandra Thursday, Oct 15, 09 @ 2:41 pm

  28. “I am officially NOT reading Cassandra or WCW comments anymore”

    Apparently Loop Lady works for Quinn (probably did for Blago too). Her attitude fits both administrations well.

    Comment by Ha Thursday, Oct 15, 09 @ 2:41 pm

  29. Ha: I know that is you WCW, nice try though…

    Comment by Loop Lady Thursday, Oct 15, 09 @ 3:01 pm

  30. Mr C.L. says the college kids did fine today at the rally. Could tell this was a first for many of them, but they were respectful with real concerns and had for the most part been prepared with ‘facts’. Mr. C.L. was impressed with how well these kids have been paying attention to everything, it was not just “me,me,me”.

    Comment by Cindy Lou Thursday, Oct 15, 09 @ 3:42 pm

  31. No, Loop Lady I’m just WCW. I am sorry that you won’t be reading anymore of my post or to know that they offend you. they should not offend you or anyone else. My posts are just my opinions. You take good care of yourself, and know that while I may not always agree with you, I will always read whatever you post.

    :)

    Comment by Will County Woman Thursday, Oct 15, 09 @ 4:07 pm

  32. They don’t offend me in the the least, it aint personal, it’s business, and my time is valuable.

    I read this blog to look at things from the perspective of others and can be appreciative of the opinions of others. Your mind is closed, are too sanctimonious for my tastes, and your opinions are predictable and oblivious to some of the realities of the business of politics.

    That is all…

    Comment by LoopLady Thursday, Oct 15, 09 @ 5:17 pm

  33. Loop Lady, you’re right in that I am not so engaged in the politics all of the time. I am more interested in the broader social implications of policymakers’ actions and decisions. I probably am looking at it more from of a technical and administrative perspective, in terms of efficacy, rather than merely base political concerns.

    As a case in point, I think Quinn would have had considerable more leverage with legislators and especailly AFSCME and its members had he made some his harshest cuts at the executive level long ago. As a result I think he would have avoided the sparring and gridlock with legislators and now the AFSCME union. A lot of his demands fell upon deaf ears because he didn’t quite handle things right. Sometimes you’ve got to give to get.

    Comment by Will County Woman Thursday, Oct 15, 09 @ 5:54 pm

  34. After watching the first segement of Chicago Tonight, I feel vindicated here.

    Comment by Will County Woman Thursday, Oct 15, 09 @ 7:27 pm

  35. Cassandra it is completely false to state that no state employees have actually been laid off.
    I have been laid off with no pay for 5 days and am looking at 7 days more. This also affects my retirement. Those that do not work in state government do not have clue about what is really is going on internally.

    And BTW the kinda/sorta revenue source that was referred to in the article is of course the state employee pension funds. So once again the tax payers of Illinois can reap the benfit of paying artificially low tax rates which are being subsidized by the state employees retirement plans.

    Comment by anon Thursday, Oct 15, 09 @ 7:49 pm

  36. Will County Woman in my opinion Quinn did not make the necessary cuts at the executive level because he did not have the necessary back field of poltical hacks needed to step into these policy roles. For years Quinn was the outsider looking in and did not have the patronage machine that both the GOP and the DEMs have built up over the years.

    I agree we you that the purging of blago hacks is necessary to get the state pointed in another direction.

    Comment by anon Thursday, Oct 15, 09 @ 7:54 pm

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