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Different budget perspectives

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Illinois

* AP…

With an expected deficit nearing $6 billion at the June 30 end of the fiscal year and the pile of past-due bills ending the week at $14.4 billion, few people believe the state can dig its way out without new revenue. The plans call for a 32 percent increase in the personal income tax rate, from 3.75 percent to 4.95 percent, for seven years. Senate Democrats say that would produce $5 billion more each year when the accompanying corporate tax hike is included.

An expanded sales tax would produce about $150 million. For the first time, the 6.25 percent sales tax would be applied to repair and maintenance; landscaping; laundry and dry cleaning; storage units; cable, satellite and streaming services; pest control; private detectives, alarm and security services; and personal care.

* The Southern…

The recession significantly changed the way the state handles its budgeting, said Jak Tichenor, interim director at the Paul Simon Public Policy Institute at Southern Illinois University at Carbondale.

Before then, a majority of spending was related to federal mandates such as Medicaid, making for a fairly predictable budget process. State lawmakers negotiated over discretionary spending such as K-12 and higher education funding, but Tichenor said they would enter those negotiations knowing state revenue was stable.

“But if you go back to 2008 to the great recession, and state revenues just went off a cliff,” he said. “You had appropriation committee chairs at the Capitol looking at balance sheets and saying, ‘Well I’m trying to fund a $32 billion budget, and I only have $24 (billion) to $25 billion in income.’

“And that’s where you started to see the real allocation of pain and scarcity instead of budget making as we traditionally did it.”

* SJ-R editorial…

And when it comes to economic development, it’s hard to overstate the importance of a strong higher education system as a must-have asset for attracting and retaining business. Yet, Illinois’ budget impasse has slashed our higher education system, from community colleges — often on the front lines of workforce development training — to the state’s premier universities, which ought to be catalysts for research and technological development.

Rauner has voiced good ideas in the past about the potential for universities to coordinate on focused tech R&D efforts — but the state has to step up and provide support for that to happen.

Which brings us back, again, to the budget.

It can’t be stated strongly enough: Business owners need to know what they’ll pay in taxes. They need to know how the state plans to invest in infrastructure and other programs. They need to have confidence that state government is able to fulfill its most basic duties.

Many steps are needed to nurture Illinois’ economic development strategies. But passing a budget needs to be the first one.

* Belleville News-Democrat editorial…

As Austin Berg of the Illinois Policy Institute points out, state lawmakers have cheered a day off and made time to discuss their basketball and softball teams. Weeks have passed since any of the public hearings or committee working sessions were held that would signal true progress toward any budget, much less a balanced budget, much much less a balanced budget without a massive tax hike.

“My sense is this is probably a last-minute attempt to create a distraction and derail the senators who seem to be making progress and coming close to an agreement,” Rauner said.

Lawmakers are gone May 31. With them goes the fantasy of a budget and starting to fix anything in Illinois.

We have the nation’s highest tax burden at 15 percent of our income. Even with that, we are $14.5 billion behind in our immediate bills and $130 billion in the hole for state pensions. Social services are crumbling, universities are losing students and faculty and 148,000 millennials moved out of Illinois just as they are entering their prime working and taxpaying years.

Springfield doesn’t care to see the current damage, much less the bleak future in which fewer aging workers pay even more than 15 percent. They just see 2018. They just see their campaign calculations.

* Greg Hinz…

If something does get out of the Senate, Rauner finally would have a chance to box out Madigan. But the wily House speaker rarely gets boxed out, and though Emanuel could apply pressure to go along with a Senate deal, there are lots of other scenarios that could play out.

That means it’s decision time, folks. Sometime in the next few days, either the big budget deal will come together or it will finally and completely collapse. At which point the question will be whether to pass another underfunded stopgap budget like last year, inviting Wall Street’s wrath, or just say no and block schools from opening in August and September, as Rauner has said he’ll do without his property tax freeze.

Will anyone in Springfield meet the challenge and avoid catastrophe or calamity or whatever else you’d call this collective failure to govern? One can hope. But it’s very, very late.

* From an editorial in The Southern Illinoisan…

In a story in today’s paper, Kent Redfield, a professor emeritus of political science at the University of Illinois at Springfield, said, “If we have no movement until after the 2018 elections, I think it would be a certainty some universities would not open that fall. I think Eastern, Western, Northeastern, and Chicago State are all the top of the list. The Carbondale situation is pretty tenuous as well.”

Is that alarming enough for the folks in Springfield? We hope so.

That’s no way to get the state on better grounds. In order for Illinois to get back to what it once was, the people who live here have to stay here.

And it would all start with funding SIUC and the rest of our public universities. And, don’t forget freezing the state’s sky-high property taxes, but that’s a story for another day.

Earlier this month, State Sen. Paul Schimpf said he’s been given “assurances” that lawmakers will vote by the end of May to get funding to universities on way or another. “Obviously, we would prefer a full budget, but if we have to do this incrementally then certainly a lifeline would be appreciated,” he said then.

posted by Rich Miller
Monday, May 22, 17 @ 1:01 pm

Comments

===“If we have no movement until after the 2018 elections, I think it would be a certainty some universities would not open that fall. I think Eastern, Western, Northeastern, and Chicago State are all the top of the list. The Carbondale situation is pretty tenuous as well.”===

But, but, but… Term limits!

Rauner could be the only governor that I could think of that would embrace state universities not opening in the fall and think “Thus is a short term pain. I’m winning, Carbondale. I’m staying strong Charleston!”

Dear Sen. Schimpf,

Unless you start standing up for your district, I’m not going to believe you want any state university saved.

It’s not impressive to be quoted in a paper.

Either you know that state universities are important, even the one(s) in your district, or you are too concerned about $71 million that tells you “Meh, a university, or two, closes, but I can’t cross Rauner.”

Comment by Oswego Willy Monday, May 22, 17 @ 1:23 pm
OW: One might make the same point to quite a few Republicans in the House and Senate including Leaders Brady & Rose in the Senate and Brady, Hammond & Demmer in the House. Those folks certainly recognize the importance of Higher Ed not only to the state, but to their districts as well.

Comment by Pot calling kettle Monday, May 22, 17 @ 1:48 pm
@Willy - exactly correct!

Comment by illini Monday, May 22, 17 @ 1:50 pm
OW, the entire Republican side of the aisle will have to hold hands and jump off that cliff together. “On the count of three . . .”

Comment by Dome Gnome Monday, May 22, 17 @ 2:00 pm
To - Pot calling kettle -, - illini -, and - Dome Gnome -

You understand the raw realities and honesty to message and thought in this question on state universities.

I’d like to think I do too, and I’m not dismissing others, even others I greatly respect, and I also know that they all need to hang together, jump together, or it won’t work, but…

… it’s Sen Schimpf’s quote, that’s where in with this, at this moment, and I’m glad, heartened, that others see these problems.

OW

Comment by Oswego Willy Monday, May 22, 17 @ 2:16 pm
State universities are vital. Higher ed spending on admin is not. Unies cry poor but meanwhile, spending on admin has gone unchecked for years. And these $$$ aren’t for classroom costs, these are $$$ for the folks in the ivory towers each racking up hundreds of thousands in salary and benes.

Worst of all, those admins spend most of their time figuring out how to cut more $$$ from classrooms to help the whole scheme running.

I just threw up in my mouth a little. Go Salukis.

Comment by Slim Pickens Monday, May 22, 17 @ 2:17 pm
Dear Sen. Schimpf,

Could you please find Rep. Terri Bryant and let her know there is a major university is her district. Remind her that she should represent her constituents, not the Republican Party or even Bruce Rauner.

Thanks,
Gene

Comment by Gene, Gene the Dancing Machine Monday, May 22, 17 @ 2:18 pm
@SlimPickins - State universities are vital. Higher ed spending on admin is not.

Administration has been cut drastically, as has been all the support, maintenance and “overhead” expenses.

Cite your sources.

Yet with the significant reduction in funding the administrators that are left have a responsibility to make the numbers “work”.

You have not made your point.

Comment by illini Monday, May 22, 17 @ 2:48 pm
From the S IL article: “Earlier this month, State Sen. Paul Schimpf said he’s been given “assurances” that lawmakers will vote by the end of May to get funding to universities on way or another. ‘Obviously, we would prefer a full budget, but if we have to do this incrementally then certainly a lifeline would be appreciated,’ he said then.”

Questions- What “assurances” were given, by whom, and under what “conditions”? Is Schimpf willing to vote for another stopgap AND the override vote that will be needed, or will he press Yellow or Red if he doesn’t want to buck Rauner’s veto to get that university funding for a stopgap?

Comment by Anon221 Monday, May 22, 17 @ 2:58 pm
Notice Sen Shrimp sez senators will vote not “I will vote…”

Comment by Annonin' Monday, May 22, 17 @ 3:14 pm
@Anon221 and Annonin’ - good points from both of you.

I have talked to the Senator, even though he is not my member in the GA, and I have gotten the same hollow polemics and passionate “gee, I wish we could really get something done.”

Put the pressure on, and with Terrie as well, if you are his constituents.

Comment by illini Monday, May 22, 17 @ 3:31 pm
Thanks illini. They aren’t, but Rose, Barickman, and Brady are in areas that are of concern to me- one is the senator for the district I live in, and the other two represent places I attended school. And all three are in the “we need more time” group. Don’t see any one of them bucking Rauner. Maybe I’ll be surprised, but I doubt it.

Comment by Anon221 Monday, May 22, 17 @ 3:51 pm
Gene, Gene the Dancing Machine @ 2:18 pm:

Gee, thanks, now I can’t get that song out of my head!

Comment by cover Monday, May 22, 17 @ 4:20 pm
@Anon221 - Do the very best you can - keep up the pressure - make the phone calls - insist on the personal contacts with those in the GA - don’t settle for the polite excuses or push backs - hold your ground and INSIST on full funding for all of Higher Ed in Illinois as well as ALL of the appropriated, but unpaid, monies owed to all of Higher Ed.

Keep up the pressure.

Comment by illini Monday, May 22, 17 @ 4:21 pm
Illinois Public Higher Ed
1857-2018
Cause of Death: Bruce V. Rauner

Comment by Precinct Captain Monday, May 22, 17 @ 4:53 pm
==Illinois Public Higher Ed
1857-2018
Cause of Death: Bruce V. Rauner==

I suspect the SURS Virus was a contributing factor.

Comment by City Zen Monday, May 22, 17 @ 6:38 pm
Oh - City Zen -, lol

It wasn’t because of SURS that Rauner has refused to fully fund higher education, but you already know that.

Comment by Oswego Willy Monday, May 22, 17 @ 6:41 pm
@Willy - thanks for pointing out the obvious once again.

How Much Longer Will We Have To Discuss The Obvious Planned, Orchestrated And Intentional Destruction Of Higher Education In Our State?

Comment by illini Monday, May 22, 17 @ 7:11 pm
Can someone please explain this to me? All I hear, over and over, is that if there’s a tax increase, people are going to leave the state in droves.
So in other words, all those people who live here and didn’t leave when the income tax was 5%, then got a 36% tax cut for two years, are now going to leave if the tax rate goes up to just under 5%? Again, they didn’t leave before, but this time, they will? and that 36% tax cut wasn’t enough to make them stay (even though it has basically destroyed the state)?

Comment by filmmaker prof Monday, May 22, 17 @ 7:19 pm
- illini -

You’re very generous and kind with your praises. Thank you.

And you know, as I do, it’s places like this Rich’s blog and those covering Rauner, allowing discussions and sunshine to be seen where others might want reflected light.

You too keep up your pressure, as every voice calling out what is happening makes all the voices stronger.

OW

Comment by Oswego Willy Monday, May 22, 17 @ 7:23 pm
As someone who has dug deep into the UIUC budget over several years, Slim Pickens is not wrong. However, not giving money to higher ed is NOT going to solve that problem. The admins control the money. When funding gets cut, do you really think they will fire themselves. How the money gets allocated is a separate problem and should be addressed, but destroying the institution is not the way to solve it. And by the way, you do know who controls the boards of trustees at all our state universities, don’t you? Rauner. Yet he whines about administrative bloat in higher ed as though he is powerless to do anything about it.

Comment by filmmaker prof Monday, May 22, 17 @ 7:25 pm
Schimpf has publicly said he’d accept a stopgap with no strings attached–that is, without the conditions Rauner wanted met first. (As it happens, I was in a townhall meeting, asked a follow-up question to pin him down, and he was quoted in the Southern.) Let’s see if he keeps his word. His fellow downstate Senator, Dale Fowler, also said he would support a stopgap without strings–but has since backtracked. A real profile in courage. Terry Bryant–good luck with that.

Administrative costs? Well, yeah, they are *part* of the problem. At my school (SIUC), numbers of administrators and other support staff are declining more slowly than faculty, in some large part, I think, because support staff and administrators don’t tend to leave of their own accord, while faculty and students do. And boy are they ever–there’s a real brain drain going on across Illinois. Universities have turned to layoffs only as a last resort, so most support and administrative staff have stayed put. But administrative and support numbers *are* declining, and at least at SIUC the “bloat”, such as it is, isn’t among the top tier of high-paid administrators (as the public rhetoric so often claims) as much as in the middle.

It is however absurd to blame administrative costs for the problem. No one has seriously claimed that our universities have higher administrative costs than those elsewhere in the US–we’re in deep trouble because Springfield isn’t providing public universities with public funds. My university will have been permanently degraded even if Bruce Rauner were replaced by Abraham Lincoln tomorrow. Unless Rauner and the Democrats (who also deserve some of the blame, but rather less than Bruce, who has caused the current crisis) get together soon, I fear we won’t just have a degraded university but no university at all.

Comment by Doc Anonymous Monday, May 22, 17 @ 9:42 pm