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Because… Madigan!

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Illinois

* From an Illinois Policy Institute writer…

Madigan has stared down Gov. Bruce Rauner for more than 700 days while the state has sputtered along without a budget, daring him to “make a deal” as the House refuses to pass a budget.

Rauner just blinked.

His administration gave its blessing to a GOP budget plan that includes the $5.4 billion tax hike Illinoisans first saw in the Senate’s failed “grand bargain.” Dubbed the “capitol compromise,” the plan starts with a 33 percent income tax increase, and contains new taxes on services such as Netflix, laundry services and more. Each Illinois household would eventually have to pay $1,125 in additional taxes annually under this plan.

What the GOP budget proposal lacks in spending restraint it makes up for in fake reforms: A four-year property tax freeze time bomb that doesn’t address bloated local contract costs; a four-year spending cap that does nothing to rein in core spending drivers; and unconstitutional changes to government-worker pensions that keep in place the failed defined-benefit system.

The trap worked.

Madigan got his tax hike without any real medicine for Illinois’ fiscal sickness.

Thoughts on this?

posted by Rich Miller
Thursday, Jun 22, 17 @ 12:57 pm

Comments

IPI is setting this up to make Rauner look even tougher, anti-tax-wise, when there is no deal, no budget, no tax increase. Or am I overthinking this?

Comment by perry noya Thursday, Jun 22, 17 @ 1:00 pm
Spot on.

Comment by Papa2008 Thursday, Jun 22, 17 @ 1:01 pm
Hard to beat a man who not only understands the game, but also wrote the rule book.

Comment by Anonymous Thursday, Jun 22, 17 @ 1:02 pm
Madigan is the consumate game player. Rauner does not understand how to play the big game.

Comment by Anonymous Thursday, Jun 22, 17 @ 1:04 pm
In writing, the IPI states the proposed pension changes are unconstitutional.

Where is the GOP tax hike bill they are referring to?

Truthfully, I’m not seeing any blinking, but do see goal post moving.

Comment by Thoughts Matter Thursday, Jun 22, 17 @ 1:04 pm
Not the kind of “friends” you like to have.

Comment by Frenemie Thursday, Jun 22, 17 @ 1:04 pm
I think their conclusion is a wee bit premature. I’ll believe it when a budget is signed, not before.

Comment by 47th Ward Thursday, Jun 22, 17 @ 1:04 pm
Doubt this will pass either - Can we just go insolvent and see where the pieces fall? Realistically I know that’s an awful idea, but I just want to know what would happen if?

Comment by JoeyK Thursday, Jun 22, 17 @ 1:05 pm
Because Madigan. . . the drumbeat never ends.

Comment by Lt Guv Thursday, Jun 22, 17 @ 1:06 pm
It’s only true if Rauner puts votes on these bills and signs these bills.

Right now, this is Rauner’s IPI trying to crush Rauner’s Capitol Compromise… for Rauner?

How can the group subsidized by Rauner and his allies “allowed” to be so harsh?

Rauner really would prefer no deal. Rauner needs his vertical integration to say it’s so.

Rauner was “acting” when he gave the speech at the Old State House.

Rauner is being real with the IPI.

Comment by Oswego Willy Thursday, Jun 22, 17 @ 1:07 pm
I think the sunset provision on the last tax hike kind of blows up that whole line of thinking.

Comment by Ducky LaMoore Thursday, Jun 22, 17 @ 1:09 pm
This makes no sense. No budget has been or will be passed. I understand the attack of pieces of the proposed budget and how far (or not far) the reforms go but it doesn’t add up to anyone blinking because none of it turned into signed legislation.

Comment by J IL Thursday, Jun 22, 17 @ 1:09 pm
What exactly is the IPI’s solution aside from opposing any and all taxes?

Comment by Boone's is back Thursday, Jun 22, 17 @ 1:11 pm
I see the Rauner budget proposal as a trap. It includes more than a billion dollars in pension and health care savings that will not be realized next fiscal year if at all. Cuts will have to be made elsewhere to fill the gap. The property tax freeze puts local governments in the same bind as the State government. Just with a lag and unevenly across the State. Key programs are not adequately funded. And the service taxes will be challenged in court.

Too me it looks like too little too late.

Comment by Last Bull Moose Thursday, Jun 22, 17 @ 1:12 pm
Kill the beast is the IPI approach. Ramifications be damned.

Comment by Lt Guv Thursday, Jun 22, 17 @ 1:13 pm
- Boone’s is back -
Taking funding from other units of government that do crazy things with the money like balancing their budgets.

Comment by Dance Band on the Titanic Thursday, Jun 22, 17 @ 1:14 pm
It’s a message from a parallel universe.

Comment by Hamlet's Ghost Thursday, Jun 22, 17 @ 1:15 pm
IPI is probably angling for more of that Rauner cash. Watch for them to flip flop before the election and make nice.

Comment by anonymous Thursday, Jun 22, 17 @ 1:17 pm
Best news I’ve heard since my ex-wife moved to Montana in 2002.

Comment by illinoised Thursday, Jun 22, 17 @ 1:26 pm
== Can we just go insolvent ==

Been there, done that the last year and s half. Didn’t solve anything.

Comment by RNUG Thursday, Jun 22, 17 @ 1:28 pm
IPI providing cover for blowing up any deal.

Comment by RNUG Thursday, Jun 22, 17 @ 1:29 pm
== What exactly is the IPI’s solution aside from opposing any and all taxes? ==

To their credit, IPI did propose a budget with new taxes. Lots of cuts, lots of pain. Brutal, especially to anyone who cares more about people than money.

Comment by RNUG Thursday, Jun 22, 17 @ 1:33 pm
===IPI providing cover for blowing up any deal.===

That’s it. That’s the “only” it.

Rauner funds IPI. Rauner’s allies fund IPI.

This is a message to Raunerites. The speech at the Old State Capitol is for the masses. The message i want heard by you Raunerites…is from IPI… or we take you out.

It’s cover to blow up the deal.

Comment by Oswego Willy Thursday, Jun 22, 17 @ 1:40 pm
Myself @ 1:33pm

IPI did propose a budget WITHOUT new taxes

Comment by RNUG Thursday, Jun 22, 17 @ 1:48 pm
IPI isn’t funded by Rauner, and they genuinely oppose his plan. Keep it simple, stupid.

Comment by Or maybe Thursday, Jun 22, 17 @ 1:50 pm
For crying out loud, Rauner/IPI just did this lame oompa-loompa act in the Senate. Get some new material.

Have you seen the spots Rauner is running? You think he’s bankrolling that message right before he signs a budget with a tax increase?

squeeze the beast will continue, as planned.

Comment by wordslinger Thursday, Jun 22, 17 @ 1:50 pm
- Or maybe -,

From Bernie…

http://bit.ly/1czmg7u

===When in Springfield last week, Rauner called himself a “significant donor” to the policy institute. He said he didn’t recall the amount, and when I suggested a large number, he said, “I love you, man.”

I said that wasn’t an answer.

“Yes it is,” he said, adding that he also has given to Americans for Prosperity, Club for Growth and CATO Institute.===

Later, same article..,

===Rauner’s spokesman, MIKE SCHRIMPF, got specific this week.

“Bruce has long been a supporter of (the Illinois Policy Institute) and has contributed more than half a million dollars over the last five years,” Schrimpf said.===

It’s been ongoing, Rauner and his supporters fund IPI

Capiche?

Comment by Oswego Willy Thursday, Jun 22, 17 @ 1:57 pm
Stop with the conspiracy theories. IPI is not some how playing a double game here. They’re criticizing him.

Yes Rauner has donated to IPI. He also campaigned on a 3% income tax rate and mercilessly bashed Quinn for fund transfers and unconstitutional pension reform.

He’s now agreeing to a 4.95% rate, closing the gap with fund transfers, and signing onto a likely unconstitutional pension plan that saves less than Quinn’s did. What does he get in return? Minor temporary reforms that are a shadow of his campaign agenda.

They’re unhappy with him. It’s that simple.

Most commentators here are very liberal and stuck in the Statehouse bubble. They think Rauner is too conservative and uncompromising.

Well to his base, he’s too liberal and compromising too much. You guys are just so disconnected from the real world you don’t see what average people see.

This deal may be the best he could possibly get. Heck, he may not even be able to get this (though it’s about 5% of what he originally wanted.) This may be the political reality. But his base doesn’t understand or care about political realities. This is not what they WANT.

Many Republicans, and many conservative think tanks, will not accept any tax increase period. Doesn’t matter what it comes with.

Comment by Phil King Thursday, Jun 22, 17 @ 2:10 pm
===Stop with the conspiracy theories. IPI is not some how playing a double game here===

Agreed. Some of y’all need a nap.

Comment by Rich Miller Thursday, Jun 22, 17 @ 2:10 pm
It is amazing that the Gov doesn’t cut their funding off. Rank & file GOP Legislators should demand it.

Comment by ugh Thursday, Jun 22, 17 @ 2:11 pm
===They think Rauner is too conservative===

Speaking for myself, I do not believe he is a conservative at all. Looking at this fiscal record, there is no evidence that he holds any conservative principles whatsoever.

Comment by 47th Ward Thursday, Jun 22, 17 @ 2:12 pm
Last time I took a nap, I dreamt that Rauner was publicly supportive of the Senate grand bargain process that IPI was down on. Then, the troncs said that behind the scenes Rauner was actually threatening to primary GOP senators who played ball.

But that was just a dream, it didn’t really happen.

Comment by wordslinger Thursday, Jun 22, 17 @ 2:20 pm
“Each Illinois household would eventually have to pay $1,125 in additional taxes annually under this plan.”

So the tax rate is increasing by 1.2% (3.75% to 4.95%). For each household to pay $1,125 in additional taxes, the average household income would have to be almost $94k.

Is there sometime I’m missing? Or is IPI inflating this number?

Comment by Get a Job!! Thursday, Jun 22, 17 @ 2:20 pm
===Most commentators here are very liberal and stuck in the Statehouse bubble. They think Rauner is too conservative and uncompromising.===

Rauner is not a conservative by any definition and he has shown, just today, how uncompromising he is. I’m not a Liberal, and I’m pretty confident Rauner isn’t close to a conservative.

Comment by Oswego Willy Thursday, Jun 22, 17 @ 2:21 pm
Seems close to spot on to me. The property tax is still phony baloney since it has nothing to do with the problems the State has caused. I lean a bit conservative, but open to tax increase IF there are changes to work comp, collective bargaining, prevailing wage calculations/usage, bidding, etc. I see the effects in my work. They are real and should be addressed. But I also think Illinois will never address the need for change without being held hostage… unfortunately.

Comment by Shemp Thursday, Jun 22, 17 @ 2:31 pm
Word, he has his own package of legislation now that he’s said he will sign. Let’s see how that one goes.

As far as IPI goes, they have always, always been down on tax hikes. There’s no conspiracy on their part. It’s what they do.

Comment by Rich Miller Thursday, Jun 22, 17 @ 2:35 pm
The comments in this blog oscilate between genuine moral outrage over the suffocation of social services, and cheerleading flin support of political games, cattle trading, and reverence for personalities who play the backroom game, completely disconected from the fact that decades of cattle trading is the root cause of a financial diaster that began with the end of the Thompson administration, and has decimated state institutions, education, and the economy. All well before the election of BVR.

Comment by KAY-ro Thursday, Jun 22, 17 @ 2:35 pm
IPI seems to be following the Wall Street Journal’s article of a couple of days ago titled “The Illinois Capitulation.” I’ll guess that the WSJ’s motive is to bring the IL fiscal debacle to a head, sooner than later, so the first steps to a likely torrent of state and local government defaults across the US have some precedent to guide the process.

Comment by Cook County Commoner Thursday, Jun 22, 17 @ 2:36 pm
Actually the IPI is wrong. The Governor is required to submit a Constitutionally Mandated Balanced Budget. He hasnt.

I wonder if someone who works the nursing home that Brucie owns would still be employed if they refused to do their job and blamed others?

Comment by Mike Cirrincione Thursday, Jun 22, 17 @ 2:41 pm
You take $5.4 billion and divide it by the number of households in Illinois 4,591,779 (from the demographic chart I found).

Comment by Arock Thursday, Jun 22, 17 @ 2:45 pm
==Speaking for myself, I do not believe he is a conservative at all. Looking at this fiscal record, there is no evidence that he holds any conservative principles whatsoever. ==

He constantly describes himself as a “low tax, fiscal conservative” who praises Milton Friedman. He donates to Cato, IPI, and Club For Growth.

He wants right to work, fewer regulations on businesses, etc.

He may not be acting conservatively (agreeing to spending increases and tax increases) but his rhetoric is ideologically conservative on economics (not social issues).

==he has shown, just today, how uncompromising he is.===

From your perspective, sure, he doesn’t compromise enough. But you also don’t share his agenda and you’re used to the statehouse horse trading.

He’s kinda in a no-win situation. He’s not willing enough to compromise with the people he has to deal with. He’s too willing to compromise with the people he needs to vote for him.

Despite what people here seem to think, Rauner is not even close to the most influential donor in those circles. Not even in Illinois, much less nationally.

IPI sees this as a sell out and they will say so.

What IPI, their major donors, and their base of voters want is for Rauner to let the whole thing burn unless he gets a hack and slash budget with no tax increases at all.

Comment by Phil King Thursday, Jun 22, 17 @ 2:46 pm
“I am not Liberal” - now that is hilarious.

Comment by Arock Thursday, Jun 22, 17 @ 2:48 pm
===He may not be acting conservatively (agreeing to spending increases and tax increases) but his rhetoric is ideologically conservative on economics (not social issues)===

I never heard of conservatives looking at contracts as “optional” the way Rauner does.

Rauner practices Raunerism;

Passively and intentionally reduce things like social services and higher education, and build wedges, like Rauner describes, between social services and Labor to defeat Labor as a crusade, not a fiscal principle.

Oh - Arock -

I’m a Edgar-Thompson Republican.

You seem to be content to be a “Because… Madigan!”… whatever they are, lol!

Comment by Oswego Willy Thursday, Jun 22, 17 @ 2:54 pm
(Sigh)

===From your perspective, sure, he doesn’t compromise enough. But you also don’t share his agenda and you’re used to the statehouse horse trading.===

Then pray tell how will Rauner get 71 and 36?

It’s like you’re lacking a governing gene.

===Despite what people here seem to think, Rauner is not even close to the most influential donor in those circles. Not even in Illinois, much less nationally===

So now he’s not the “one tenth of one percent” that decided to spend $70+ millions to buy a whole party in the 5th largest state, fund Proft and his newspapers, and an admitted significant donor.

Rauner’s spokespeople said it. We didn’t.

What, Rauner is now a $25 donater hoping to get an “Obey” Madigan shirt, maybe a mug too?

Comment by Oswego Willy Thursday, Jun 22, 17 @ 3:00 pm
IPI will always be positioned on Rauners right policy flank. It gives him cover to fake play towards the center before ultimately “coming home”. This isnt some new special session strategy, its just more of the same.

Comment by Dr. Bonners Thursday, Jun 22, 17 @ 3:00 pm
Right to Work is a marketing slogan, like Pro-Life…designed to get the base all excited.

In no way is Uncle Brucie giving anyone a RIGHT TO WORK. If anything, he is taking away an Individuals Constitutional Right to bargain for better wages and benefits with their employer. Think before repeating things.

You cant be Pro-Life and a small Government Conservative at the same time. They are mutually incompatible positions.

Comment by Mike Cirrincione Thursday, Jun 22, 17 @ 3:14 pm
Phil, could you give us the down-low on the conservative philosophy of reneging on signed contracts and running up more than $10 billion in unpaid bills — and still climbing like a rocket — in 2.5 years?

The old Main Street conservatives I grew up with just called that Deadbeatism, or much worse.

Comment by wordslinger Thursday, Jun 22, 17 @ 3:31 pm
== mercilessly bashed Quinn for fund transfers ==

How about that GRF to SSRF transfer Munger did at Rauner’s behest …

Comment by Anonymous Thursday, Jun 22, 17 @ 3:33 pm
== mercilessly bashed Quinn for fund transfers and unconstitutional pension reform. ==

And that unconstitutional Tier 1 forced choice pension “reform” Rauner has been insisting on (until he didn’t) …

Comment by RNUG Thursday, Jun 22, 17 @ 3:35 pm
Kayro, could you flesh out your theory on Jim Thompson’s role in the failure to enact an FY17 or FY18 budget? You know, matching one-year revenues and expenditures?

You sure it wasn’t Barzini, all along?

Comment by wordslinger Thursday, Jun 22, 17 @ 3:39 pm
–Word, he has his own package of legislation now that he’s said he will sign. Let’s see how that one goes.–

The Great Salesman ain’t exactly shouting it from the rooftops.

If he swaps out his current TV spot with one that pushes his supposed budget and tax increase plan (whatever that is), I’ll take note.

But the spot he’s running right now doesn’t sound like a guy who’s going to sign off on any revenue increase.

Comment by wordslinger Thursday, Jun 22, 17 @ 3:48 pm
Laundry tax? Another regressive tax.

What’s next, a public transportation tax?

God forbid we get a surcharge on those making over a certain income level.

Comment by Anonymous Thursday, Jun 22, 17 @ 4:11 pm
Thoughts? Why do we keep calling the IPI’s propaganda arm a “news service”?

Comment by The_Equalizer Thursday, Jun 22, 17 @ 4:41 pm
I’ll believe Rauner is serious when his tax package includes a proposed tax on political ads.

And, yes, I know SCOTUS would shoot that down in a New York Minute …

Comment by RNUG Thursday, Jun 22, 17 @ 7:44 pm