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*** UPDATE *** An e-mail the Illinois Chamber of Commerce…
Rich,
We got a glance at the governor’s [workers’ comp] proposal yesterday afternoon. The Chamber will NOT support it. It was terribly disappointing, a lot of soft mush where the details are concerned, especially on medical. We intend to tell them today that they have not been listening closely enough. Frankly, we truly expected a lot more from them. They had better go back to the drawing board and find some backbone. They are hanging almost everything on the 30% fee cut for savings. Most of the other stuff has too much wiggle room and we’ll end up like ‘05. We’re not on their program at all. There are only a couple of items where the business plans are accepted outright as offered.
Also, the governor’s plan has a lot invested in addressing commission issues. Clearly they are deeply invested in trying to get ahead of the scandal so they can claim they’ve addressed the problems when the dust settles. I think they are losing sight of the real issue of WC reforms and too invested in the Commission issues.
* Rank and file Senate Democrats are having trouble adjusting to the new reality…
Illinois senators Wednesday approved some portions of a new state budget, the opening salvo in what probably will be a protracted struggle to craft a new spending plan for the state.
The Senate didn’t tackle some of the biggest and probably most contentious parts of a budget, like education and human services. […]
One budget bill – Senate Bill 2472 – was defeated. The bill contained budgets for a variety of agencies, including the Historic Preservation Agnecy and Military Affairs. Several Democrats opposed cuts to the Violence Prevention Authority that were also part of the bill.
What will happen to the Senate’s budget bills in the House is anyone’s guess. The House is preparing its own budget that is supposed to be more austere than the one prepared by the Senate. None of that budget has yet been made public.
We’ll see what happens today, but yesterday’s actions were definitely not a good sign.
* And they’re getting no help from Republicans…
Republicans complained that the proposal wouldn’t cut spending nearly enough. But they didn’t bother introducing their own legislation for deeper cuts. […]
A hurried review by Senate Republicans concluded the Democratic plan would spend about $360 million less than Quinn has proposed. Republicans said that’s not good enough.
“If we’re going to get to a point where the tax increase is truly temporary, if we’re going to be at a point where we can pay our bills without more borrowing, if we’re going to get on the path to fiscal sanity, we need to do more budget-cutting than this,” said Sen. Matt Murphy, R-Palatine.
* Related and a roundup…
* Advertising against human services cuts may boomerang
* Editorial: Tame the pension beast
* Health Alliance CEO says he’s puzzled by state’s insurance decision
* Municipalities prepare to fight cuts
* In this corner: Murphy responded the list of GOP cuts offered through press conferences and published for lawmakers was a specific and sufficient guide. Republicans have resisted filing budget legislation.
* Businesses wait while lawmakers talk about workers’ comp
* Quinn urges swift workers’ comp reform
* Quinn seems to back key workers’ comp provision
* Illinois gets more high-speed rail money
* Lawmakers’ pay online?
* Nurses hope for more lenient licensing
posted by Rich Miller
Thursday, May 5, 11 @ 5:15 am
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Sen. Noland is absolutely correct. If Sen. Murphy believes that GOP press releases is sufficient, maybe he should be a reporter instead of a legislator. If he can’t craft language into an actual bill, then he’s not actually doing his job.
So it goes for other legislators, of both parties, that seem to want to have it both ways.
They should all get a little political courage and fix our existing problems.
As for the media/blog/press coverage, I won’t be listening to anymore ‘coverage’ from an outlet that can’t reference an actual bill.
Once they all put some meat on the bones, then we can all start to actually chew the fat!
Comment by northernwatersports Thursday, May 5, 11 @ 6:50 am
It really pains me to see my Senator Murphy pander to the press instead of taking a leadership role that we elected him to do. Step up Senator murphy and propose a budget. Yes I know it won’t be inacted, but you’ll gain creditabilty for proposing what we all know is needed. You lost a hudge chance when the republicans didn’t support the Senator Link downsizing bill. Consolidate service providers.
Comment by Palatine Thursday, May 5, 11 @ 7:08 am
We could save a lot of money by sending the Republican lawmakers home. Doesn’t seem like they do anything.
And Matt Murphy is a plaintiffs’ lawyer for crying out loud. Yeah that’s why I do when I want to fix a budget, put a personal injury trial lawyer in charge.
Comment by just sayin' Thursday, May 5, 11 @ 7:32 am
After seeing what the Democrats introduced in “budget cuts” I can see why the Republicans are reluctant to introduce a series of bills with their more severe cuts and a guarantee of 15 votes for each proposal.
All those Republican cuts would be easily voted down by the Democrats, leaving the Democratic proposal on the table, which raises spending overall while they claim “cuts.”
Alice in Wonderland language and thought!
Reality needs to be introduced to the state legislature.
Comment by Louis G. Atsaves Thursday, May 5, 11 @ 7:41 am
Quinn wants to include the requirement that all Workers’ Comp injuries “arise out of and in the course of the employment” of the employee before he/she would receive benefits.
Did anyone tell the governor that “arising out of and in the course of the employment” is the CURRENT standard of proof for causation according to the Illinois Workers’ Compensation Act? Did the press that reported this “news” even bother to check that “arising out of and in the course of the employment” is the CURRENT standard of proof for causation according to the Illinois Workers’ Compensation Act?
Or did I miss something while handling Workers’ Compensation cases for employees and employers these past 30 years on that issue?
And the CURRENT standard of proof is the same standard of proof used in all 50 states in the field of Workers’ Compensation?
If I used the statement of the blind leading the blind on Workers’ Comp reform, that would be an insult to blind people everywhere!
Comment by Louis G. Atsaves Thursday, May 5, 11 @ 7:51 am
I have to say, at least there is an involved budget process underway this year and tough choices are being weighed all around. Better than the lump sum and leadership crafted budgets of recent memory.
Comment by thechampaignlife Thursday, May 5, 11 @ 8:13 am
“A hurried review by Senate Republicans concluded the Democratic plan would spend about $360 million less than Quinn has proposed. Republicans said that’s not good enough.”
The dirty little fact nobody seems to talk about is that both the Quinn and the Senate Democrat budget BOTH increase net spending. Couple this with a weaker than expected economy (first quarter growth was an anemic 1.4%) which must lower revenue expectations, and Illinois is on a path to an even greater deficit than next year.
Since any Republican proposal that significantly addresses real net spending cuts would be voted down, I see no reason for them to propose any bills in the GA, notwithstanding those who constantly try to blame them for the failure of the Democrat GA and Governor to control spending for the past several years.
If the GA does not pass a budget in Regular session, the Democrats will need Republican votes in an extended session in order to pass a budget. I hear Wisconsin and Indiana are nice at this time of the year…
Comment by Cincinnatus Thursday, May 5, 11 @ 8:13 am
- Since any Republican proposal that significantly addresses real net spending cuts would be voted down, I see no reason for them to propose any bills in the GA -
I guess we’ll never know, will we? Where did you pick up your crystal ball anyway? If the GOP is willing to put their neck on the line with bills and votes, who’s to say their proposals would be voted down? Heck, the Democrats even put some of their ideas into bills for them, and they still didn’t vote for them. More “I’ll take my ball and go home”, except I’m not sure the IL GOP has any…
Comment by Small Town Liberal Thursday, May 5, 11 @ 8:26 am
Why do we have to pay the Republican lawmakers if they aren’t going to do anything?
I thought Republicans were supposed to be against welfare?
Comment by just sayin' Thursday, May 5, 11 @ 8:52 am
@Louis -
Business groups have demanded the standard of causation be in the bill.
Its not Quinn’s fault that causation is already the law of the land, and the media just hasn’t reported it.
So, he’s putting it in the bill, like they asked.
What’s your complaint?
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 9:23 am
Does Quinn’s (or the Democrats’) budget have REAL NET spending cuts?
Yes or no.
Why has the budget been balanced only 15 of the 41 years between 1970 and 2010?
When was the last time Illinois had a balanced budget?
Ans: 2001
Comment by Cincinnatus Thursday, May 5, 11 @ 9:31 am
After a promising start a few weeks ago, the Senate GOP has really missed a trick.
Why did they roll out that big budget presser if they weren’t going to put it in bill form? Why wouldn’t they want to force Dems to take a vote on a tighter budget? Wasn’t that the point of the exercise?
My guess is, they either never had the 15 votes to begin with, or they lost a bunch when there was blowback from folks back home.
Constituent static was predictable. So why ante up if you’re not going to play the hand? Didn’t think it through.
Comment by wordslinger Thursday, May 5, 11 @ 9:33 am
- wordslinger - Thursday, May 5, 11 @ 9:33 am:
You are among the best spinners here. But no matter how you try, Quinn’s and the Democrats’ budget last year, and this year, are their own. Both budgets are severely out of balance, and both had NET spending increases over the previous year. No matter how you spin it, it is not the Republicans’ fault. Like all of the power, all of the responsibility resides with the Democrats, not the Republicans
Comment by Cincinnatus Thursday, May 5, 11 @ 9:38 am
Yellow, most business groups want an increase in causation standards of proof. They want the injury to be primarily caused, or a change in the current arising out of and in the course of standard. Quinn proposed what is already in the Act.
That may be hard to comprehend but at least REPORT it correctly.
Comment by Louis G. Atsaves Thursday, May 5, 11 @ 9:43 am
- all of the responsibility resides with the Democrats, not the Republicans -
And the Republicans are doing their best to keep it that way. I wish I could get a part time job with zero responsibility that paid so well and had a great pension.
Comment by Small Town Liberal Thursday, May 5, 11 @ 9:44 am
If a worker gets hurt on a job no problem,however
if its should be an old football injury,this must be determined by a doctor. Bradley’s idea of letting the courts decide is nonsence. We should not be the #1 state in worker comp preimums,there
has to be a compormise someware. Jobs,taxes and keeping business in our state is whats count’s and Quinn knows it. Madigan said we must learn to say no, now is the time.
Comment by mokenavince Thursday, May 5, 11 @ 9:44 am
–No matter how you spin it, it is not the Republicans’ fault. Like all of the power, all of the responsibility resides with the Democrats, not the Republicans–
You’re missing my point. I’m not in the dreary, endless “fault” game.
I thought the Senate GOP was in a position to advance the ball, both governmentally and politically, and grab some relevance and control by putting out a comprehensive plan.
They forced their way to the table, but now don’t want to play the cards. I don’t get it. What was the point of the dog-and-pony show? I think some of them lost their nerve.
Why wouldn’t they want to force Dems to vote on a GOP budget that cuts spending and narrows the deficit? If it passes, they’re the heroes. If it fails, they get credit for being more responsible.
Comment by wordslinger Thursday, May 5, 11 @ 9:50 am
- wordslinger - Thursday, May 5, 11 @ 9:50 am:
“You’re missing my point. I’m not in the dreary, endless “fault” game.”
Sorry, Word. I didn’t mean to group you in with so many others in this thread.
Comment by Cincinnatus Thursday, May 5, 11 @ 10:04 am
Word,
And to your point, you’re right that the ILGOP has blown a decent political opportunity. I think the reason you’re looking for resides in the almost complete lack of leadership in the ILGOP. If Rutherford were in office a couple of more years (during which he will undoubtedly build a power base), I would be looking to him to carry the banner. Right now, all the Republicans have are the sclerotic GA “leaders” and JBT. I am looking to a pair of Dans (Rutherford and Cronin) to gain in influence.
Comment by Cincinnatus Thursday, May 5, 11 @ 10:08 am
I agree that the GOP needs to start introducing some bills. If the Dems want they can vote against these bills. Let everyone vote on a choice of budgets and let them deal with those votes down the line. The state is in dire fiscal condition lawmakers need to step up. Both sides need to do more than provide lip service or pander to special interest groups via press release governing ie Quinn pulling out of immigration screening of arrestees.
Comment by Fed up Thursday, May 5, 11 @ 10:14 am
c, I fear you are being a tad disingenuous with your “net spending increase” gimmick. Of course there is a net spending increase. The new tax rates add $7B in revenue to the mix, so the structural imbalance could be fixed. Debt service costs, pension contributions etc all grow. So from a budgetary perspective, the keys are how much does spending on programs grow, is the total spending within revenues available, is it sustainable, and does old debt get paid off?
Comment by steve schnorf Thursday, May 5, 11 @ 10:21 am
Why would the GOP waste their time crafting a minority bill that’s just going to get rejected by the majority Dems in both the Senate, House and also by the Governor?
It’s more pandering/gamesmanship to cry out the GOP should come up with a counter proposal that we know darn well has zero chance of going anywhere under the current majority. Can we be realistic please?
Comment by Shemp Thursday, May 5, 11 @ 10:50 am
–It’s more pandering/gamesmanship to cry out the GOP should come up with a counter proposal that we know darn well has zero chance of going anywhere under the current majority. Can we be realistic please?–
They MADE a proposal. It was a good start. They held a press conference. Put out releases. Produced many graphics. Put up a website.
You put out a plan, but you don’t want to vote on it?
I understand there are lawmakers at all levels, on every point on the political spectrum, who never want to make a tough vote, never want to lose. But when it’s an entire caucus, well, what’s the point of showing up for work?
Comment by wordslinger Thursday, May 5, 11 @ 11:00 am
@Louis -
Um, that’s not the way the business groups are spinning it. To hear them complain, there’s absolutely no causation standard in Illinois law at all, that’s the way reporters have mostly glossed over the issue, so you can’t really blame Quinn.
But if you want to enter a “Spin Free Zone”, then let’s be honest about what Big Business really wants:
The ACME Construction Company wants to be able to hire a 39 year-old plumber with 19 years of professional construction experience,
and when his back gives out in the 20th year, they want to be able to argue that he shouldn’t be eligible for worker’s compensation because the wear-and-tear on his back was a pre-existing condition and his CURRENT job was only 5 percent responsible.
They don’t want Joe the Plumber to be able to go to the best back specialist he can find, they want to force him to go to the cheapest doctor that ACME can find, preferably one that is willing to say there’s nothing really wrong with his back and he can return to work immediately.
If, god forbid, Joe the Plumber actually understands the system well enough to learn that after 60 days he can finally go to a doctor who knows what the heck they are doing, the company wants to be able to use “utilization review” to have some guy on the insurance company’s payroll out in Nevada who’s never even met Joe tell his doctor that his request for an MRI is denied.
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 11:48 am
wordslinger,
And remember when the SenGOP put out the plan, within an hour Quinn ridiculed it. What kind of good faith effort is supported by the fact that the leader of the Democrats said he would’t go forth with any effort to reach out to the SenGOP? I’d like to not politicize this issue, like you. But it is politics. And any good faith effort made by the Republicans has been belittled by Quinn. The issue is in his lap.
Steve Snorf,
“c, I fear you are being a tad disingenuous with your “net spending increase” gimmick. Of course there is a net spending increase.”
Yes, there is, no matter how you slice it, the Democrats in the GA, and this governor have for the past couple of budgets overspent, and continue to raise spending on a net basis every year.
Is there any successful effort to pay off past debt and cut programs to rein in spending? No. In fact, the budgets have overspent in the past, and are using those exaggerated baselines to budget in the future, using your justification that costs are all growing. This is a never-ending negative feedback loop that results in spending in excess of revenues for the foreseeable future. This will especially be true if revenues underperform, which may be supported by the fact that GDP is growing at about half the projected rate. I guess we can always raise taxes some more, and let’s increase fees while were at it. That is the only course left to cover ever increasing spending during a recession when revenues are off.
So far, we have had a massive increase in taxes, and spending has risen to fill this new volume of money taken from the taxpayers.
Comment by Cincinnatus Thursday, May 5, 11 @ 11:51 am
=== I’d like to not politicize this issue, like you. But it is politics. And any good faith effort made by the Republicans has been belittled by Quinn. ===
Holding a press conference is not a good faith negotiating effort.
Holding a press conference is the EXACT OPPOSITE of good faith negotiations.
It is more of the same from Republicans. For two years, Tom Cross and the GOP refused to say publicly what cuts were necessary for them to support a tax increase. Only what cuts were necessary before they would CONSIDER a tax increase, and every month that list of demands grew.
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 11:59 am
–And remember when the SenGOP put out the plan, within an hour Quinn ridiculed it.–
So what? 20 minutes later he put out a release contradicting the previous statement. He’s one of three players in the process.
It’s still not the point. What is the purpose of a big dog-and-pony show to put forth a plan and then not even put it in bill form? You don’t want to vote on your own plan? What do you call that?
Comment by wordslinger Thursday, May 5, 11 @ 12:00 pm
c, if you don’t expect overall spending to grow over time in a state’s budget, I’m afraid you aren’t as insightful as I have assumed. Relevant questions one might ask include; on what, by how much, is spending growing at sustainable levels, is it within revenues, and so on.
Our state spending on many programs is down in nominal dollars and down substantially in real dollars, from 10 years ago. That is simply a fact
We haven’t seen finished budgets yet. If the final product doesn’t meet the basic criteria of sustainability, paying down old debt, etc, it is a failure. If it does it is a success budgetarily.
I think much of your agitation is based on philosophical issues related to what is the proper role of government. That’s a fine question, just not a budget question.
Comment by steve schnorf Thursday, May 5, 11 @ 12:05 pm
Murphy is all mouth and no action.
Comment by Louis XVI Thursday, May 5, 11 @ 12:10 pm
lets stop paying any lawmakers salary, travel reimburesement, health insurance or retirmenet until the State budet is balanced, and the backlog of bills paid.
I notice they never do drastic cuts to themselves in times of financial crisis.
Comment by Ghost Thursday, May 5, 11 @ 12:21 pm
Remember, at the end of session last year Madigan floated a bill that cut about $6 billion from the budget. It contained all of the cuts the repubs were calling for and they all voted against their own cuts. Cullerton should do that in the Senate. Try to figure out what Murphy wants to really cut, put it in bill form for him, and call it for a vote. How many Repubs do you think would actually go on record voting for their own cuts?
Comment by Bill Thursday, May 5, 11 @ 12:25 pm
===Um, that’s not the way the business groups are spinning it. To hear them complain, there’s absolutely no causation standard in Illinois law at all, that’s the way reporters have mostly glossed over the issue, so you can’t really blame Quinn.===
Yellow, I agree with you to a point. But where is the reporting to show that “arising out of and in the course of the employment” (i.e. the “causation” standard) already exists in the Act? Today’s reporters just take what is handed to them and run with it. Few bother to check statements out for accuracy.
So when Quinn repeats the standard which is already law and pretends it is a reform measure on his part, my blood begins to boil.
When management groups claim there is no causation standard and all one needs to do is file a claim to collect thousands of dollars with no proof, my blood begins to boil.
Between all the “lies” and “misinformation” we are going to see “reform” emerge? I understand there is a certain amount of gamesmanship in negotiating, but sooner or later FACTS emerge which will either debunk the gamesmanship or prove it.
Comment by Louis G. Atsaves Thursday, May 5, 11 @ 12:36 pm
It never did sink in, it really isn’t likely to do so in the future.
The various state pensions were just as badly underfunded (if not more so) when the 1970 Constitution was drafted - that’s why the ‘guarantee’ provision got put in. That was 40 years ago, and no dose of reality has ever taken hold there. Why do you expect it to now?
Comment by titan Thursday, May 5, 11 @ 12:36 pm
- And remember when the SenGOP put out the plan, within an hour Quinn ridiculed it. -
Aww, were their feelings hurt? Will the GOP draft some bills if I give them a hug?
Comment by Small Town Liberal Thursday, May 5, 11 @ 1:06 pm
=== Between all the “lies” and “misinformation” we are going to see “reform” emerge? I understand there is a certain amount of gamesmanship in negotiating, but sooner or later FACTS emerge which will either debunk the gamesmanship or prove it. ===
That was the advantage of the agreed bill process and why I think the business associations were foolish to abandon it.
Everyone should be sitting down at the table negotiating legislation based upon agreed upon facts, values and goals, recognizing that the worker’s compensation system has lasted 100 years because of a shared interest.
Instead, we’ve got competing facts, competing goals, competing values and competing egos.
Ironically, I bet that when all is said and done, the business groups are going to look in the rear view mirror and realize they could have gotten a better bill out of the agreed bill process. Without blowing a wad of cash not to mention all of their political capital.
BTW, even if the McCarter bill passed — which won’t happen — Illinois would go from having the second-highest work comp premiums in the country to having…the second-highest work comp premiums in the country.
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 1:33 pm
Why won’t the Republicans put forth a bill? Because they don’t have to. With no power comes no responsibility.
If we hit overtime, then Republicans have to play ball. But until then, I’m perfectly happy with them letting the Democrats twist in the wind.
Comment by so... Thursday, May 5, 11 @ 1:36 pm
Is it just me or do others find the banter back and forth form a select few to be tiring.
Comment by Palatine Thursday, May 5, 11 @ 1:48 pm
- There are only a couple of items where the business plans are accepted outright as offered. -
Ok, so does that mean that there are more items where the business plans are partially accepted? And how many items are we talking about? I don’t know the details, obviously, but I hope the chamber doesn’t expect all of the business plans to be accepted outright as offered.
Comment by Small Town Liberal Thursday, May 5, 11 @ 2:06 pm
Or did I miss something while handling Workers’ Compensation cases for employees and employers these past 30 years on that issue?
“And the CURRENT standard of proof is the same standard of proof used in all 50 states in the field of Workers’ Compensation?”–Not True at all!
Comment by Time Keeps on Ticking, Ticking Thursday, May 5, 11 @ 2:24 pm
I am generally agnostic about workers comp issues — don’t know enough about the details to have a thoughtful opinion. But over the past two years, my sister and brother in law have both gone through nightmares trying to get care for on-the-job injuries. My sister had two broken bones, and my bro-in-law snapped his achilles tendon and couldn’t move his foot, so there were clearly no issues of malingering.
My sister in Cali was told that no specialist surgeons would take workers comp cases, and my bro-in-law fell into a bureaucratic wormhole that ultimately took a month to resolve — during which his tendon healed wrong, which meant he needed more extensive surgery than he would have if he had received immediate treatment.
What provisions in this bill would ensure that people who are injured will receive timely, expert care?
Comment by soccermom Thursday, May 5, 11 @ 2:28 pm
The Chamber email confirms that which we’ve suspected. No matter how much they get, it won’t be enough. If/when a bill passes, they will come and out criticize it as a sham, and rattle their sabers and complain. You can’t negotiate effectively if you expect to get everything you want, and criticize any plan short of that. You can’t negotiate effectively if you walk into a meeting and state that you have no intent to compromise. You can’t negotiate effectively by sending an email to the press, or by staring at a camera lens and spouting unsubstantiated claims, cherry-picked and manipulated data, and catchy one-liners.
Comment by unspun Thursday, May 5, 11 @ 2:29 pm
@soccermom -
The proposals being pushed by the business lobby are designed to do the opposite.
Under their plan, your employer, not the injured worker, picks the doctor, and you don’t have the right to get a second opinion for 60 days.
Moreover, you’ll have to prove that the workplace was more than 50% responsible for your injury. In the case of a broken bone, that may not be so hard.
But soft tissue injuries like a snapped tendon? Good luck. You better hope your brother didn’t play sports in high school…you’re going to see insurance companies drag these cases out for 5-10 years, starving families into accepting a settlement for 10 cents on the dollar.
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 2:45 pm
@unspun -
Exactly why Quinn, Cullerton and Madigan should tell the Chamber to go to…
…better yet, do what my grandpa would do.
“Your foot hurts? Here, let me step on your other foot and then you won’t notice it.”
If I were Quinn, I’d unveil a plan next Tuesday to sunset EVERY SINGLE TAX EXPENDITURE FOR CORPORATIONS in the tax code, using every single penny to reduce the overall corporate income tax rate.
Even though it probably won’t get far, let the Chamber try to explain to the media why they oppose reducing the state income tax rate for corporations from 7% to 3%…
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 2:54 pm
thanks, YDD.
Sheesh — all my sister or bro-in-law wanted was to get their injuries fixed and get back to work.
My poor bro-in-law — he was walking to his office and slipped and fell. He didn’t consider it a workers comp injury, but the bureaucracy did. It was hellish — and extremely painful, incidentally.
Comment by soccermom Thursday, May 5, 11 @ 3:23 pm
I didn’t think that the minority party had the responsibility to put out a budget bill.
Comment by Peggy R Thursday, May 5, 11 @ 4:14 pm
@Peggy -
Last i heard, the minority party was still cashing their paychecks and banking time for their pensions.
Moreover, for three years they’ve criticized the majority’s budgets and claimed they have a “plan” of their own.
A press release is not a plan.
Comment by Yellow Dog Democrat Thursday, May 5, 11 @ 5:08 pm
- steve schnorf - Thursday, May 5, 11 @ 12:05 pm:
“c, if you don’t expect overall spending to grow over time in a state’s budget, I’m afraid you aren’t as insightful as I have assumed.”
Steve,
Assume that a budget goes up 100%, while revenues increase 10%. Your budget is way out of whack, right?
Now, assume you do it again the next year, the budget is even more out of whack, right?
Now, you use this new budget as a baseline to establish a spending freeze, or where you start actual net cuts. Unless you halve, or more, the budget, you are not making any inroads into solving the deficit problem. Indeed, no matter that cost may have gone up year to year, your budget is way out of whack, right.
This is exactly the bookkeeping shenanigans being performed right now. From a budgeting standpoint, we are saying that since costs have increased, that is an okay justification to use to increase last year’s budget which was already in a deficit condition. There is a constitutional amendment to prohibit just this condition that has been ignored for years. This is not a discussion about the role of government, it is a constitutionally required budgeting issue made worse by playing games with the numbers where increases are called cuts, and the people who do this get a pass. Not from me, they won’t.
Comment by Cincinnatus Friday, May 6, 11 @ 7:55 am
@Cincinnatus -
Unless you have some trick up your sleeve that enables lawmakers to control the Cost of Doing Business - ya know, things like energy, gas, health care, labor - then state government has to do what every private sector business does: raise revenues.
There’s a reason a gallon of milk costs more than it did ten years ago, and its not because dairy farms are run by lazy, incompetent, dishonest Democrats.
And if you want to have an honest discussion about the budget, let’s ask ourselves why “Budgeting for Outcomes” doesn’t include the $1.6 billion a year in corporate tax expenditures a.k.a. “loopholes” that state government hands out every year.
Did you attend the budget hearings on those loopholes where they discussed whether they were effective at creating jobs and growing our economy?
No?
Me neither. No one did, because they never happened.
If we’re going to do performance-based budgeting, there should be an evaluation of whether providing the newspaper industry with $40 million a year in tax breaks is getting us a good return on our investment, don’t you think?
Comment by Yellow Dog Democrat Friday, May 6, 11 @ 8:33 am
BTW, to put those $1.6 billion in corporate tax loopholes in some perspective, the recent corporate tax hike was only $700 million.
If we closed ALL of the loopholes and used the revenue to roll back the corporate tax rate, Illinois would have one of the lowest corporate tax rates in the country.
Comment by Yellow Dog Democrat Friday, May 6, 11 @ 8:36 am
- - This is exactly the bookkeeping shenanigans being performed right now. -
I’m really sure Mr. Schnorf appreciates a lesson on budgets from you, Cinci.
Comment by Small Town Liberal Friday, May 6, 11 @ 8:53 am
YDD,
I support eliminating all subsidies and tax breaks for businesses. I further support performance based budgeting (even though the metrics will be as politically motivated as our current budget process is now).
But to use increase prices as a justification for increasing budgets over budgets that are already in a deficit condition is wrong, as is calling a spending increase a cut, which is what is happening now.
Bottom line, deficits as far as the eye can see using this methodology.
Comment by Cincinnatus Friday, May 6, 11 @ 9:02 am