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Voices for Illinois Children unhappy with proposed Democratic “compromise”

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Illinois

Hours after the Illinois House failed to override Republican Gov. Bruce Rauner’s veto of a higher education funding bill, the chamber’s Democratic leader announced a new plan to fund universities, community colleges and grants to low-income students — along with several human services programs.

The House will be asked Thursday to consider a bill that would fund the programs at the same levels as the General Assembly approved in May, said Steve Brown, a spokesman for House Speaker Michael Madigan, D-Chicago. That funding is tied to another measure that would do away with a requirement that the state repay within 18 months about $450 million that was borrowed from special funds to plug holes in last year’s budget.

Funding for higher education and some human services has been caught up in a deadlock between Rauner and Democratic leaders in the Legislature, now in its ninth month.

Brown called the plan announced Wednesday evening “a new compromise effort that contains an agreed funding source.”

* Celeste Bott and Monique Garcia…

Still, the roll call has some political benefits for Madigan, who also is chairman of the state Democratic Party, because he once again got Republicans on the record as voting against higher education funding. That allows his Democratic candidates to send out election-year mailers highlighting their support. […]

But the matter is far from over, as a Madigan spokesman said late Wednesday that the House would consider an alternative proposal to fund higher education Thursday. It relies in part on dollars from special funds, as well as a provision in Rauner’s most recent budget proposal that would allow the state to forgo repaying more than $450 million it borrowed from similar funds to plug a deficit last year.

The measure also funds various programs outside of higher education, including millions for drug and alcohol treatment, autism therapy and homeless prevention programs. Madigan spokesman Steve Brown painted it as a “compromise,” but Rauner’s office dismissed it as “more phony budgeting” by Democrats.

* Voices for Illinois Children’s Emily Miller is not exactly happy about this “compromise” development…

Hi Rich,

Voices’ Fiscal Policy Center has been taking a look at HB2990, amendment 1. While it appropriates about $3 billion out of general funds to vital areas such as universities, MAP grants, and a range of unfunded human services, it does not appear to be backed by new revenue (or a plan to raise new revenue) needed to pay for these services now and going forward.

An amendment to HB648 allows the state not to repay $454 million borrowed from other funds at the end of FY15—the so-called “patch.” Obviously, that dollar amount is significantly short of the proposed appropriated amount. But more importantly, deciding not to repay money it borrowed doesn’t mean the state has suddenly found resources to use on a long-term basis.

Until lawmakers and the governor are also willing to say they want to reform and modernize the tax code, which must include (insert gasp) raising income taxes, the reality is that the state will continue to increase its debt. Promising to pay for things we don’t have money for means the backlog increases.

Problem Identified: We want to pay for things but we don’t have the money to pay for them.

Solution: Create, vote for, and sign a plan to responsibly generate revenue to pay for things.

Emily Miller
Voices for Illinois Children

A memo from GOMB Director Tim Nuding to House Republicans basically says the same thing.

So Emily Miller and Tim Nuding are on the same page. First time for everything, I suppose.

* Related…

* Illinois House fails to override Rauner’s MAP funding veto

* House short 2 votes, stops MAP grant bill override

posted by Rich Miller
Thursday, Mar 3, 16 @ 9:42 am

Comments

Bump personal income tax back to 5. Puts out some fires and stabilizes things enough to work on “reform.”

Unless you secretly want the fire to continue in order to set things up for a private enterprise takeover. But who’d be so callous as to cause that much pain for that?

/s

Comment by There is power in a union... Thursday, Mar 3, 16 @ 9:48 am
“Problem Identified: We want to pay for things but we don’t have the money to pay for them.
Solution: Create, vote for, and sign a plan to responsibly generate revenue to pay for things.”

That would be called a budget, and it’s not happening.

Comment by northsider (the original) Thursday, Mar 3, 16 @ 10:00 am
Why don’t we remember how Gov.-elect Rauner pleaded the lame duck legislature not to extend the 5% state income tax before he took office? It seems like that one little bit of history needs to be revisited over and over. By not doing that, and giving Rauner what he wanted, we are piling up more bills that are not being paid, and many social programs are being cut, thus hurtin’ our most vulnerable citizens. Sandack would again say that he is frustrated too, but never remembers that his Governor asked for less revenue when he took office. Remember that when you go to vote.

Comment by Big Joe Thursday, Mar 3, 16 @ 10:01 am
When the tax payers find out what all this spending will cost them, you can expect an increase in tax payers leaving the state for good!

Comment by Anonymous Thursday, Mar 3, 16 @ 10:01 am
Good advice, but there aren’t enough votes to heed it. We have to do what is doable now, or we will continue to be harmed by Rauner.

Comment by VanillaMan Thursday, Mar 3, 16 @ 10:06 am
=== Solution: Create, vote for, and sign a plan to responsibly generate revenue to pay for things. ===

Emily, easier said than done. The votes and signature are not there for a tax hike and nobody is going to front the massive cuts needed to balance the budget. This is trench warfare at it’s worst. Your focus needs to be to educate the home folks about the carnage that is being done and encourage them to demand the impasse be ended.

Comment by Norseman Thursday, Mar 3, 16 @ 10:07 am
It reads like a very politic way of saying not to release the higher Ed hostages unless social services are funded also.

Comment by Anonymous Thursday, Mar 3, 16 @ 10:08 am
This would pass both Houses, but as we saw with the MAP veto and yesterday’s House override failure it would be outright vetoed and would never withstand an override attempt. And if the Governor’s office and top advisers “signed off” on Nuding’s memo, then that is the tell that Rauner will assuredly veto it outright without even a consideration of an AV.

Comment by Team Sleep Thursday, Mar 3, 16 @ 10:11 am
Emily is absolutely correct. We’ll continue to lurch from crisis to crisis until we match revenues to spending in a long-term way. Patches simply forestall the day of reckoning.

Emily Miller might be the only responsible adult in the room. Kudos to her.

Comment by 47th Ward Thursday, Mar 3, 16 @ 10:13 am
And the more times Rauner vetoes legislation, the more times he owns the destruction. The same goes for every legislator (D or R) that fails to vote an override. Right now, getting those that were left out “in line” for funding is the only way. A tax hike is not in the near future. This bill approaches one of Rauner’s compromise points, but unless it’s “his” bill (you know- clean and untouchable), he’s not going to go along. The Republicans are going to have to decide within the next two years, how much yellow and red are actually worth.

Comment by Anon221 Thursday, Mar 3, 16 @ 10:16 am
Apparently the calculus of political manuvering is far more important than the arithmetic of paying bills and following through on agreed to contracts. This is a bipartisan, self created problem based on:
1. Go ahead and lower the tax from 5% to 3.75%. No biggie.
2. No need for balanced budgets from anyone.
3. I want services but I do not want to pay for them, but they better be there if I need them.
4. Much easier to point fingers and blather.
5. You want money? Want to stay in your position? Better follow my lead and stay with the team.

Comment by zatoichi Thursday, Mar 3, 16 @ 10:27 am
Emily Miller continues gaining respect.

She can see the big picture. This looks good on paper, but it leaves social service providers in limbo, wondering if and when the $ will actually be provided.

And why should service providers be forced to go through this again next year? Without a reliable $ source, chances are they will be stuck back in the middle of negotiations again next year.

Comment by Formerly Known As... Thursday, Mar 3, 16 @ 10:28 am
===very politic way of saying not to release the higher Ed hostages unless social services are funded also===

You are clearly blind.

The approp “compromise” would fund human service programs.

Comment by Rich Miller Thursday, Mar 3, 16 @ 10:31 am
Kudos to Emily.
Seems to me the Democrats should keep on votin’. As in, a failed override is better than not even tryin’.

Comment by Independent retired lawyer, journalist Thursday, Mar 3, 16 @ 10:40 am
==Why don’t we remember how Gov.-elect Rauner pleaded the lame duck legislature not to extend the 5% state income tax before he took office?==

Respectfully, @Big Joe, many do remember that. Many also remember that the tax increase functioned as it was designed to when it was written, passed and signed by Cullerton, Madigan, Democratic GA members, and Quinn. The tax rate reduced on January 1 2015, exactly what they intended to happen well before Rauner was even in the picture.

That makes it difficult to blame just one or the other.

Comment by Formerly Known As... Thursday, Mar 3, 16 @ 10:50 am
Without Rauner sharing the responsibility for a tax increase there will be none. He is bent on Democrats owning any tax increase and we are witnessing the lengths he will go to for that. All this pain for 1.25% is sickening… Why not a press conference? Rauner and legislative leaders standing side-by-side, sharing responsibility; explaining to the people they represent that an income tax increase is needed. Rauner would never do that, it only serves his agenda if he’s the victim. Never mind the real victims; he only pays lip service to them.

Comment by Jimmy H Thursday, Mar 3, 16 @ 11:15 am
Emily for governor.

Comment by morningstar Thursday, Mar 3, 16 @ 12:06 pm
Release the hostages first. Negotiate the long term revenue solution next. The matter has gone on far too long.

Comment by CCP Hostage Thursday, Mar 3, 16 @ 12:13 pm
Some of the “various programs outside higher education” in the bill are funded by special funds that are not part of general revenue. The money for them is already there, it has just not been released. Hopefully some of these can be agreed on. I know Rauner would veto the Bill as a whole because of the lack of a revenue, but maybe he can just do a line item on the “unfunded” parts in order to release these funds?

Comment by I'llPourYouAGlass Thursday, Mar 3, 16 @ 1:24 pm