Capitol Fax.com - Your Illinois News Radar


Latest Post | Last 10 Posts | Archives


Previous Post: Question of the day
Next Post: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax

This just in…

Posted in:

* 12:27 PM - Wow

Illinois faces an unprecedented backlog of bills–totaling nearly $4 billion now–that could hit $5 billion early next year, state Comptroller Dan Hynes said today.

Hynes sounded the warning to Gov. Rod Blagojevich and legislative leaders in a letter that called the backlog of unpaid bills the largest in state history.

* More

That [state payment] delay could rise to 20 weeks by spring, [Hynes] warned.

Schools could wait several months for more than a billion dollars in payments, food suppliers might end deliveries to state prisons and mental facilities and state police could be turned away from fueling up their vehicles. Nursing homes, colleges and universities and doctors also could face major cutbacks if something isn’t done soon, Hynes cautioned.

“To call this as an imminent crisis is an understatement,” Hynes said in a statement.

He wants lawmakers and the governor to change state law to make it easier for state government to borrow money in the short-term to pay overdue bills and let the state create a revolving line of credit to help the state deal with ongoing borrowing situations.

posted by Rich Miller
Thursday, Nov 13, 08 @ 12:28 pm

Comments

  1. Rod to Obama - “Hey Barry! I need a bailout quick. Say $10 Billion and change should do it.

    Comment by A Citizen Thursday, Nov 13, 08 @ 12:31 pm

  2. Man, I thought the deficit was being exaggerated.

    Comment by pro Thursday, Nov 13, 08 @ 12:31 pm

  3. and it shouldn’t be a surprise to anyone
    lawmakers work at getting re-elected instead of doing the work of the people - their campaign rhetoric is to blame for this - before any talk of the economy or even blaming the gov!

    Comment by Collar Observer Thursday, Nov 13, 08 @ 12:32 pm

  4. Anybody seen the governor at work today?

    Comment by Commonsense in Illinois Thursday, Nov 13, 08 @ 12:36 pm

  5. Hey Tom Cross and GOP “leaders”-here is an issue for you to hammer the Dems on.

    Comment by Ravenswood Right Winger Thursday, Nov 13, 08 @ 12:36 pm

  6. It’s nice to see that Dan Hynes is on top of this. He’s a grown up in a state government with too few grown ups.

    Comment by Joshua Thursday, Nov 13, 08 @ 12:39 pm

  7. Ravenswood, hammer dems to what end? Fun is fun, but politics is a luxury we can’t afford right now. It’s time to sober up, grow up and get to work.

    Comment by wordslinger Thursday, Nov 13, 08 @ 12:46 pm

  8. ===He wants lawmakers and the governor to change state law to make it easier for state government to borrow money in the short-term to pay overdue bills and let the state create a revolving line of credit to help the state deal with ongoing borrowing situations.===

    That’s a mighty nice sound byte, but neither a good idea or realistic considering the state’s track record on fiscal responsibility and tightness in the credit markets.

    Comment by The Doc Thursday, Nov 13, 08 @ 12:47 pm

  9. Guv reads Barry’s rejection letter and bemoans, “Gee, I could’a been a contenda!”

    Comment by A Citizen Thursday, Nov 13, 08 @ 12:49 pm

  10. oh Dan Hynes, be still my heart!

    Comment by jj Thursday, Nov 13, 08 @ 12:59 pm

  11. “Chickens…….meet your roost”

    Comment by Downstater Thursday, Nov 13, 08 @ 12:59 pm

  12. If they borrow the money from the banks or they borrow the money from the providers the fundamental problem is that they are still borrowing money and how will they pay it back?

    What they need to do is stop:
    1) Expanding the programs that they already could NOT pay for and excaserbating the problem

    2) Stop letting soon to be retirees jack up their pension basis which puts more pressure on the monthly payouts which puts more pressure on the funding mechanism.

    3) End COLA’s. We promised you a certain amount when you retired and that is it. Inflation? Too Bad

    None of these clowns has the leadership or the will to make these things happen!

    Comment by BIG R.PH. Thursday, Nov 13, 08 @ 1:02 pm

  13. Is it my imagination or will a 1% increase in the state income tax be insufficient to cover this shortfall?

    Comment by Louis G. Atsaves Thursday, Nov 13, 08 @ 1:04 pm

  14. Isnt the Obama transition team considering some type of bailout for the states–not just Illinois, all of them.

    Maybe the lack of movement by the Blago administration and the Legislature (yup, they’re ALL guilty) in the direction of fiscal reform comes from some type of informal communication that massive Federal funds are on the way next year. After all, if we can give $700 billion to
    keep the financial and credit markets going, we can help state and local governments keep going.
    The money is there. It is all a matter of priorities.

    Comment by Cassandra Thursday, Nov 13, 08 @ 1:08 pm

  15. Guess we now know why they were not sure when they could start those healthcare payments…

    Comment by OneMan Thursday, Nov 13, 08 @ 1:11 pm

  16. If they don’t pay their $350 Capitol Fax subscription, will they be cut off?

    Comment by The 'Broken Heart' of Rogers Park Thursday, Nov 13, 08 @ 1:14 pm

  17. How much could we get for the Thompson building again? Time for a yard sale….

    Comment by Vote Quimby! Thursday, Nov 13, 08 @ 1:15 pm

  18. Joshua- on top of what? The man cuts checks for a living.

    Comment by Bill S. Preston, Esq. Thursday, Nov 13, 08 @ 1:29 pm

  19. VQ,

    Nice time you picked to start dumping real estate:-) Buy high, sell low is not good advice for the public sector, or anyone else for that matter.

    Comment by Six Degrees of Separation Thursday, Nov 13, 08 @ 1:30 pm

  20. on top of what?

    At least the guy who is cutting the checks is manning up (or would that be “personing up”) to let us all in on the state of affairs from his perch.

    Comment by Six Degrees of Separation Thursday, Nov 13, 08 @ 1:32 pm

  21. Six Degrees- All of the constitutionals except the Governor do that. And this isn’t a new story. He was saying the same thing this summer. And didn’t this story come out two weeks ago? I’m just saying, let’s not go and give him a medal for issuing a press release - he’s known about the problem for awhile and clearly hasn’t had the power or whatever skills it takes to get’er done.

    Comment by Bill S. Preston, Esq. Thursday, Nov 13, 08 @ 1:42 pm

  22. Close some more parks or another prison.That should fix it.

    Comment by Leave a light on George Thursday, Nov 13, 08 @ 1:50 pm

  23. Thanks SDS…I’m just trying to think how this administration might react! How about we sell Obama’s Senate seat at an auction, with all the proceeds going to GFR? Candidates could pony up for the two-year stint…and maybe Oberweis could finally win something. Just sayin’

    Comment by Vote Quimby! Thursday, Nov 13, 08 @ 1:53 pm

  24. Hey if they close everything then there would be no bills problem solved…

    Comment by OneMan Thursday, Nov 13, 08 @ 1:55 pm

  25. One Man…

    Don’t be so sure. Hasn’t the Thomson prison cost something like $500k a year for maintenance and utility bills, even though it has never been open?

    Comment by Six Degrees of Separation Thursday, Nov 13, 08 @ 2:04 pm

  26. I really get the feeling that this state is an unguided missile, run like a chicken with it’s head cut off, a rudderless ship, flailing about before drowning, ect.
    At a time when we should be leading the nation toward renewal, we lack direction and many of our elected officials are showcasing the greed and corruption that we have become famous for. It is time for President Obama to get his home in order before he moves away. He should be able to anoint a new Senator, Congressman and encourage a certain Governor to move along. It is a dream I have.

    Comment by Phineas J. Whoopee Thursday, Nov 13, 08 @ 2:09 pm

  27. Louis,
    You are correct. 1% would help but we really need 2% more and some sales tax on services. This is not exactly a good time for any of that however.

    Comment by Bill Thursday, Nov 13, 08 @ 2:27 pm

  28. Rich - Can you post a copy of the letter? Thanks.

    Comment by Anon Thursday, Nov 13, 08 @ 2:29 pm

  29. The magnitude of the unpaid bills is shocking, but not surprising,simply because it accurately
    reflects the abject failure/negligence of Governor Pinocchio, Godfather Jones, and Speaker Machiavelli to do their jobs the last two years.

    The State is teetering on the brink of insolvency because of the moral bankruptcy and negligence of the Democratic triumvirate, with a strong assist from do-nothing Republican leaders. What a complete bunch of losers our legislative laaders and their “shrumic” sycophants are!

    Dan Hynes has been telling the truth about our budget situation for years - no one in the Democratic leadership has been paying attention to these fiscal pronouncements,until it has become too late to avoid draconian service cuts.

    I suspect the unconscionable reduction in substance abuse funding is only the tip of the iceberg relative to the cuts that will be required next year.

    It’s not clear to me that the State can borrow its way out of this mess, particularly given the state of the financial markets. Short-term cash flow financing makes sense, but the real problem will be dramatic revenue shortfalls associated with the economic recession.

    I assume that States are expecting some kind of bailout from the feds to ease the pain.If we can bail-out criminals and incompetents in the private sector, I guess we can bail-out political morons too - at least until China turns off the debt-financing spigot by ceasing to buy our T-bills.

    Comment by Captain America Thursday, Nov 13, 08 @ 2:31 pm

  30. What a surprise! Not.

    The sick joke here is how the State can be so far in debt and operate w/o any big shots losing their jobs. It’s the front line workers.

    What also makes my mouth wet is how the State and big business continues to get bailed out while small business owners go bankrupt, lose their savings, and sometimes much more (like their marriages).

    There’s no help for the little guy, just trying to make a living. But the Governor can sort through his collection of Elvis dolls and other gifts and keep saying it’s someone else’s fault?

    The finger pointing is at an all-time high.

    Leadership?

    Look, a kitty.

    Comment by BandCamp Thursday, Nov 13, 08 @ 2:32 pm

  31. Bill Preston:
    What “power or whatever skills it takes to get’er done” is Hynes supposed to have? I thought his primary job was to cut checks and make sure the other departments knew the current financial standing of the state. Is his department in charge of raising revenue and deciding on a state budget?

    State delay in payment coming to 20 weeks by spring? There are non-profit residential programs in our area who have not been paid since May.

    Comment by zatoichi Thursday, Nov 13, 08 @ 2:41 pm

  32. ===State delay in payment coming to 20 weeks by spring? There are non-profit residential programs in our area who have not been paid since May.===

    That’s because the administration doesn’t submit the bills for payment.

    Comment by Rich Miller Thursday, Nov 13, 08 @ 2:42 pm

  33. Q. Governor, what about the multi-billion backlog of payments by the State?

    A. I think this is a real positive! I mean, all these people about to get all this money from the State to help them through tough times, just when they need it most. In fact, I think it shows good government in that by not paying until now, we provide the funding in critical times, which is what good government is all about. Helping people in their hour of need - I really feel great about it all, and we will continue to serve the people, which is what it is all about.

    Comment by Bubs Thursday, Nov 13, 08 @ 2:47 pm

  34. Good for you Hynes!! Thanks for letting us all know about the $4-5 Billion problem. How about next time you warn us when its closer to $1 Billion or $500 million. Seriously, when will we have someone who knows what they are doing in Springfield? Maybe its time for a fiscal conservative or at least someone who knows how to keep the books straight.

    Comment by J Mack Thursday, Nov 13, 08 @ 3:05 pm

  35. Comptroller Hynes has been raising the alarm on this for years. A sampling:

    Feb. 2008
    http://www.apps.ioc.state.il.us/ioc-pdf/2007FiscalStateOfState.pdf

    Nov. 2005
    http://www.ioc.state.il.us/news/ViewNewsRelease.cfm?ID=2070837180

    March 2002

    http://www.comptroller.state.il.us/News/ViewNewsRelease.cfm?ID=1015600331

    Comment by soccermom Thursday, Nov 13, 08 @ 3:21 pm

  36. J Mack,

    He warned us when it was 1 billion, 2 billion, 3 billion, etc.

    Comment by 2for2 Thursday, Nov 13, 08 @ 3:24 pm

  37. Okay! It’s Thursday again - Where is the “This just in . . .” with Fitz announcing more (and more significant) Indictments? Rich, can you give him a call, please?

    Comment by A Citizen Thursday, Nov 13, 08 @ 3:30 pm

  38. from Bill:

    ==You are correct. 1% would help but we really need 2% more and some sales tax on services. This is not exactly a good time for any of that however.==

    According to the Dept. of Revenue web site, individual income tax revenues were $10.5 billion in FY 07. So you’re claiming that increasing that by 1/3 — or about $3.5 billion per year — isn’t enough? Or even doubling that to $7 billion? What is your boss spending it all on?

    Comment by Anon Thursday, Nov 13, 08 @ 3:41 pm

  39. How about if we sell all of the land east of I-57 to IN,
    sell everything south of I-64 to KY,
    sell everything south of I-74 to MO and
    sell everything west of I-39 to IA and sell everything left to the city of Chicago?
    IL would be much more manageable.

    Comment by North of I-80 Thursday, Nov 13, 08 @ 3:46 pm

  40. A Citizen, we surely would have heard something by now if your “namesake” were involved. I’ve been thinking for some time, however, that NEXT Thursday might be the day. We shall see.

    Comment by Secret Square Thursday, Nov 13, 08 @ 4:00 pm

  41. “That’s because the administration doesn’t submit the bills for payment”

    That used to be true. But not recently. I think with the exception of this Familycare stuff, the comptroller has all the bills.

    Comment by pro Thursday, Nov 13, 08 @ 4:07 pm

  42. They will have no choice but to raise taxes to cover for this.

    Comment by Segatari Thursday, Nov 13, 08 @ 4:15 pm

  43. “They will have no choice but to raise taxes to cover for this.”

    That may be the Hynes/Madigan approach.

    But Illinois worked its way out of a $5 billion hole before without taxes. Don’t think public will buy it now.

    Comment by pro Thursday, Nov 13, 08 @ 4:20 pm

  44. ===But Illinois worked its way out of a $5 billion hole before without taxes. Don’t think public will buy it now.===

    Probably isn’t a good time for another pension bond scheme and skim.

    Comment by Rich Miller Thursday, Nov 13, 08 @ 4:25 pm

  45. Hey - did you also see where Mayor Daley is aware of massive Chicago layoffs coming over the next few months through the spring?

    Yeah - raise taxes?

    Listen - this is Illinois. Compared to growing states, our situation has been long in coming. The last thing we needed to have seen is a governor who cashed out every state asset and credit without investing it. Now we are beyond broke.

    A tax raise isn’t going to fix this problem, it will only make it worse.

    Comment by VanillaMan Thursday, Nov 13, 08 @ 4:26 pm

  46. Vman, see previous posts. There’s been plenty of revenue growth — it’s just been spent.

    Now we’re in a global economic downturn, which you might have noticed, even on Fox News. Illinois is not the Tobacco Road you make it out to be.

    Comment by wordslinger Thursday, Nov 13, 08 @ 4:30 pm

  47. Z- I was talking more about leadership skills, negotiating skills, politicking skills - not actual power granted to his office. Or maybe just the ability to put forth a solution, whether he has the power to do anything about it or not.

    By the way, that there is a constitutional office with a full staff whose job is solely to cut checks and sound the alarm is one of the most ridiculous and money-wasting things I’ve ever heard.

    So my point was, I guess you can praise Hynes for doing his job, but let’s all remember that the job isn’t that hard to do.

    Comment by Bill S. Preston, Esq. Thursday, Nov 13, 08 @ 4:30 pm

  48. Pro, if you’re talking about 2003, Illinois didn’t work its way out of the a $5 billion hole. First of all, $5 billion was the number Rod used (to make him look like “the fixer”) it was not entirely believed that it was $5 billion at the time.

    The way Illinois “worked its way out” was to borrow (pension deal), transfer from designated funds, increase in revenues from economic growth, and one time revenue generators (in some cases they only could try (sell the Thompson Center)).

    Don’t kid yourself, even with the “$5 billion hole”, this administration increased spending.

    Comment by Crystal Clear Thursday, Nov 13, 08 @ 4:34 pm

  49. Yep. See, you can do it without taxes.

    Comment by pro Thursday, Nov 13, 08 @ 4:50 pm

  50. For those who advocate tax increases, you have 3 huge problems.

    First, this is a horrible time to increase taxes on anyone, as we are on the cusp of dramatic downturn that will only be made more dramatic by large increases.

    2nd, Every tax increase merely chases more income and spending OUT of Illinois, creating an economic death spiral, as every loss creates pressure for more increases.

    3rd, Illinois has only ONE frayed and weakened tether to a bearable “business” climate, and that is it’s flat tax and 5/8 tether.

    Raise income taxes 1 or 2% and you have a recipe for disaster.

    If 177 Leg. and the Gov can’t engineer a REAL (not FAKE, a la HB750) tax swap - with dramatic and permanent cuts in property taxes - then the very least they can do is freeze spending.

    While every special interest would squeal, it really is the only rational (and probably politically palatable) solution for the duration of the this downturn.

    The best place to cut would be the group that has been most rapacious - public education bureaucracy. You could cut millions in payroll and administrative bloat with out hurting the actual education of one single child.

    Heck, if you toss enough dead wood (all 892 Superintendents comes to mind), the outcomes would probably improve.

    Comment by Bruno Behrend Thursday, Nov 13, 08 @ 4:59 pm

  51. ===You could cut millions in payroll and administrative bloat with out hurting the actual education of one single child.===

    Those are local decisions.

    Comment by Rich Miller Thursday, Nov 13, 08 @ 5:01 pm

  52. ===then the very least they can do is freeze spending.===

    Pension obligations and health care price inflation combined with increases in public aid and Medicaid rolls, unemployment costs, etc. because of the nation’s economic troubles means a “freeze” on total spending requires deep cuts elsewhere.

    Comment by Rich Miller Thursday, Nov 13, 08 @ 5:03 pm

  53. Rich, maybe your question of the day tomorrow should be, of your posters, who will admit responsibility for voting these people in, and if they voted Democrat on the 6th, are they suprised to be reading about this. If they didnt vote Dem for State Rep. or State Sen., did they do anything to help recruit quality candidates to run in a different party or make calls or walk with literature. We all seem to complain, but it would be interesting if any of us, posters, voters look in the mirror when assessing blame. Just a thought.

    Comment by Ted Thursday, Nov 13, 08 @ 5:11 pm

  54. And, to be clear about it, though millions are always nice, in our current circumstances talking about millions is like p_____g in the ocean to raise the tide; it ain’t gonna make any noticeable difference other than make Bruno feel better.

    Spending needed to be frozen 6 years ago, for at least 2, preferably 3 years. But it wasn’t. So none of that has much to do with where we are now. Its not how we shouldn’t have gotten into this mess, its how do we get out? And, please remember, everyone who made those decisions 6 years ago was elected (and re-elected) by us. Re-read Pogo.

    Comment by steve schnorf Thursday, Nov 13, 08 @ 5:12 pm

  55. There is no way to cut our way out of this morass. Structural increases will more than eat up any revenue growth that might occur in good times. In times like these when we may experience actual decreases in revenue the problem compounds.The only way for our state to remain solvent is to increase revenue. Gas taxes, sales taxes on services, fee increases, toll increases, along with drastic spending cuts might do the trick without chasing business out of state. Somehow I just don’t see all the Illinois barbers moving to Kentucky.

    Comment by Bill Thursday, Nov 13, 08 @ 5:16 pm

  56. If higher taxes drive away business, why is New York home to the most Fortune 500 companies in the world? How do you explain London and Tokyo?

    Comment by wordslinger Thursday, Nov 13, 08 @ 5:37 pm

  57. One of the smartest strategies is to grow the state out of it’s fiscal quicksand. An effective capital bill right now is the best antidote to slipping revenues, but I don’t see Springfield as having the right leadership and the right voice to get this done.

    Comment by there you go again Thursday, Nov 13, 08 @ 5:51 pm

  58. ===. An effective capital bill right now is the best antidote to slipping revenues===

    And you’ll pay for it with what?

    Comment by Rich Miller Thursday, Nov 13, 08 @ 5:54 pm

  59. This is obviously the fault of the previous administration. (We haven’t heard that one in a while)

    Comment by DJ Thursday, Nov 13, 08 @ 5:56 pm

  60. Word, you are on to something, lets just raise our taxes to the highest levels in the country and we will soon be home to the most Fortune 500 companies. You happen, in your example, to identify three financial centers, but you do not point out where these companies have their manufacturing plants, tech centers, and house most of there mid-level and senior employees. I will give you a hint, its not in New York, London or Tokyo. In fact, its not even in New York State. High taxes do not create an attractive atmostphere for job creation. As the economy constricts, look for good paying jobs to be moved to low tax states with positive growth potential, safe neighborhoods and good schools. Illinois? Chicago? As profit margins narrow, businesses will see the difference between a state corp. tax rate being higher by a point or two as the difference between whether the businesses can post a profit and issue a dividend to their stockholders or not. Simple math, not liberal math, but simple math nonetheless. And, painful math if you live in Illinois.

    Comment by Ted Thursday, Nov 13, 08 @ 6:01 pm

  61. Ted, state taxes are low here. Try to leave the rigid dogmatic fundamentalism at the door.

    Comment by Rich Miller Thursday, Nov 13, 08 @ 6:04 pm

  62. I agree. The next QOTD should be: Why did we vote these people back in power?

    I’m all for tax increases. It’s our own fault. We gave Blagojevich and company another four years to do this damage.

    Comment by Macbeth Thursday, Nov 13, 08 @ 6:17 pm

  63. Maybe the State should just file BK and start over.

    Comment by DRB Thursday, Nov 13, 08 @ 6:28 pm

  64. Cross might as well be a Blago minon.

    Comment by x-ray one Thursday, Nov 13, 08 @ 6:32 pm

  65. There’s another question that needs to be answered. Say, for instance, that the GA enacts legislation (sales tax on services, etc.) to substantially increase revenues without a noticeable decline in services while significantly reducing the state’s debt. Obviously a hypotehtical.

    Do we have confidence that our government officials will allocate the funds judiciously? I sure don’t. (Insert mandatory con-con barb here).

    Comment by The Doc Thursday, Nov 13, 08 @ 6:38 pm

  66. When you consider all the taxes we pay in Illinois, not just state income tax, you will see that Chicagoans are in the top 10 most taxed city dwellers in the United States. When you look at Cook County taxes, sales ,real estate, etc., you will see that we are among the highest taxed people in the country. Illinois as a state comes in 44th in Forbes list of business-friendly states (not taking into consideration litigation climate) and is in the bottom half of CNN’s Money rating for local, property and sales tax burden on residents. This does not take into account fees for government services like license plates etc…. The gas tax is very high and it is not progressive, and therefore, adversely effects the poorest among us the worst and those on fixed incomes. The people of this state are overtaxed, with the people in Chicago and the Collars VERY overtaxed. We are not going to tax our way out of our problems. Not rigid, dogmatic fundamentalism, just cold, hard facts. I am not a Democrat, and I am not a liberal. Yet, if I wake up tomorrow and decide, I am now a Democrat and a liberal, Illinois will still be an overtaxed state.

    Comment by Ted Thursday, Nov 13, 08 @ 7:06 pm

  67. Hate to keep showing my rigid, dogmatic fundamentalism, but in keeping with the dire warnings of Dan Hynes, in addition to being an over-taxed state, the only states in a deeper defict hole than Illinois are liberal, high-tax California and liberal, high-tax New York. Do you want to know what is going to happen to the elderly and poor who depend upon Medicare and Medicare to secure them healthcare when Illinois tells the Docs and the hospitals, we aint reimbursing you for treatment for many months, eventhough we insist you provide healthcare at rates lower than you charge paying patients and insurance companies that pay promptly? Maybe the question of the day should be this: Voters of Illinois: Blago, Stroger, Dem. State Senate, Dem State House, Dem Supreme Court: Sadism or Masochism?

    Comment by Ted Thursday, Nov 13, 08 @ 7:30 pm

  68. Ted, you can shout it to the stars, but we still aren’t a high-tax state, including both state and local taxes. We feel like a higher tax state to people in the lower 40% of income brackets, but that’s because our taxes are so regressive (flat rate income, sales esp). And most of us downstate would give anything for Chicago level property taxes. But the brighter ones of us understand that we are paying for what we get, and for most of us, that’s public schools that perform much better than Chicago’s.

    Comment by steve schnorf Thursday, Nov 13, 08 @ 7:38 pm

  69. Steve, yes or no, we can tax our way out of our present problems?

    Comment by Ted Thursday, Nov 13, 08 @ 8:18 pm

  70. Ted, no manufacturing in Tokyo? I didn’t know that. Manufacturing, by the way, is less than 20% of the U.S. economy.

    Taxes certainly play a role in where businesses locate, but it’s not the biggest reason. Those safe neighborhoods and good schools you talked about aren’t free, you know.

    Also, the liberal Dem stuff is kind of simplistic, isn’t it? The GOP administration and Congress of 2000-2006 wasn’t exactly thrifty with a buck, were they?

    Comment by wordslinger Thursday, Nov 13, 08 @ 8:18 pm

  71. Word, can we tax our way out of our present problems in Illinois, yes or no? Congress 2000-2006 was’nt exactly thrifty, and it was’nt exactly conservative or fiscally responsible. Care to discuss the correlation between tax dollars spent per child and test scores on achievement tests? I’m game.

    Comment by Ted Thursday, Nov 13, 08 @ 8:38 pm

  72. Which problems? Obviously, if you’re down $4 billion, you could raise taxes by the same amount. But that’s too simplistic.

    A lot of things go into student achievement. Money is one of them.

    Comment by wordslinger Thursday, Nov 13, 08 @ 8:42 pm

  73. Which problems? Under-funded state pensions, 4 to 5 Billion dollar short fall on short term debt. Can we tax our way out of these two problems? YES or NO?

    Comment by Ted Thursday, Nov 13, 08 @ 8:48 pm

  74. Obviously prayer is the only solution - Pray that the Messiah sends us 5 or 10 Billion of that bailout loot they are giving to all those other guys that got us into this economic quagmire.

    Comment by A Citizen Thursday, Nov 13, 08 @ 8:56 pm

  75. Hey Citizen, can the Feds tax Kansas and Nebraska out of our mess here in Illinois?

    Comment by Ted Thursday, Nov 13, 08 @ 9:01 pm

  76. - Ted -
    Hey! It’s okay by me. I think this new national policy of giving money to those (Auto Companies, AIG, Banks, etc.) that qualify by having proven they can not manage their business(es) is great. And Illinois sure has proven that!

    Comment by A Citizen Thursday, Nov 13, 08 @ 9:06 pm

  77. Stop saying we can’t cut our way out of this problem. We spent our way into it. It is a fact that we could cut our way out of it.

    If our “leaders” had the will to do it, it could be done. I would agree that this legislature and this Governor do not have the will to do it. But, again, it could be done. It’s not impossible, folks.

    Comment by Truth Thursday, Nov 13, 08 @ 9:13 pm

  78. - Ted -
    You DO agree that free money from DC is great - YES or NO !

    Comment by A Citizen Thursday, Nov 13, 08 @ 9:16 pm

  79. Truth, and if wishes were horses…Ideas, no matter how neat in theory, that can’t be implemented aren’t solutions. Yes, in theory, we could cut our way out of these problems. No, we won’t, and it doesn’t matter who is Governor and who is in control of the GA.

    Ted, of course we could tax our way out of this problem. But, again, I think we won’t.

    Comment by steves schnorf Thursday, Nov 13, 08 @ 9:23 pm

  80. Yes, even when its for a bridge to nowhere. Yes! Gimme, Gimme, Gimme!

    Comment by Ted Thursday, Nov 13, 08 @ 9:26 pm

  81. - Ted -
    I was talking about this Great State of Illinois not you personally. And that is why I support “Bill” for the junior Senator from Illinois.

    Comment by A Citizen Thursday, Nov 13, 08 @ 9:35 pm

  82. Mr. Schnorf, tax our way to prosperity? Illinois government spends too little and does’nt tax enough? I stand corrected. Lets vote out the people who control the levers of power; they are too cheap when it comes to spending, and too meek when it comes to taxing us. If taxpayers were horses, I say ride into the ground.

    Comment by Ted Thursday, Nov 13, 08 @ 9:40 pm

  83. Citizen, sorry I misunderstood. Maybe we should promote Mr Schnorf for consideration for US Senate. Ride pony, ride!

    Comment by Ted Thursday, Nov 13, 08 @ 10:12 pm

  84. The State’s Financial Condition is pathetic. John Filan was on watch and they pay him more money to bring his “skills and insight” to bond finance at IFA. Hynes pretends to be innocent but he too is on watch and his caretaker attitude sucks. What a group of incompetents!

    Comment by BlagoFundManager Thursday, Nov 13, 08 @ 10:20 pm

  85. Ted, are you intentionally obtuse? I didn’t say we could tax our way to prosperity (whatever that is, and for whomever). I simply answered your repeated demand for an answer to a simple question, and the answer is still yes, and I repeat for you with limited reading ability or short recall, I don’t think we will.

    Comment by steves schnorf Thursday, Nov 13, 08 @ 11:02 pm

  86. They can’t blame the republicans on this….

    Comment by ironman Friday, Nov 14, 08 @ 1:04 am

  87. Just another day at the Reckoning with living way beyond our means in the big bubble ponzi scheme.

    Comment by vole Friday, Nov 14, 08 @ 6:27 am

  88. Since the govenor has been in office most human services providers have gone for years without any increases except in our costs,with the exception of a occasional small increase to some of them. Illionis already has the fewest state employees per capital of any state. The problem is unless there is more revenue the only things left to cut are limbs. Heaven help the human service providers already lost or hanging on by a thread and heaven help the quality of life in our communities who benifit every day becuase of them. Pray you aren’t under or uninsured and need mental health services, of have a relative with developmental disabilities or a family member who develops alcoholism or sustance abuse, the safety net is about to fail.

    Comment by independent Friday, Nov 14, 08 @ 6:42 am

  89. Lets hope John D’Amico will get Rahm’s seat so he can cash in on that gig!

    Comment by Deep Water Friday, Nov 14, 08 @ 8:34 am

  90. The Reps for the State of Illinois have a part time job, and we get part time results. I suggest we vote the same people in and double the taxes! That has always worked before! What does Daley say?

    Comment by Deep Water Friday, Nov 14, 08 @ 8:37 am

  91. I went to a local school last night and the vast majority of the kids were hispanic. Most of the parents could not speak a work of English. Free school? When I wait for a doctor, I know who is paying. When I shop Jewel, I see all the link cards! This State is messed up. Mayor Daley destroyed Chicago and the State of Illinois. Sooner of later, working people cannot continue to pay for free loaders. Send em back home!

    Comment by Condor Friday, Nov 14, 08 @ 8:46 am

  92. I think it’s time for Martin Sheen to be Governor of Illinois.

    Comment by Wacker Drive Friday, Nov 14, 08 @ 9:07 am

  93. Steve Schnorf: the problem with “freezing spending” is that gas prices go up, the Minimum Wage has increased, insurance costs are up, and health care costs for employees is up.

    Governor Edgar has been asked how he got through the last fiscal crisis. He is a gentleman, and tells the truth: “I froze or reduced all spending outside of state government operations.”

    The problem is that the State has delegated its responsibity for human services to local community based providers. These providers should have been considered part of state government by their extended role, but they were not by the Edgar crew. And after years of rate neglect, that sector is now collapsing.

    The issue is not deciding whether or not to raise taxes. The issue is to examine what state government exists to do, and then cost that out. If the public had confidence in that review and statement of what state government should be doing, the voters would go along with the revenues sufficiency to make it happen - assuming that more taxes were needed.

    My sense is that we need to have a revenue base that reflects the society and economy of the 21st century — a sales tax on most services. Broadening the sales tax at the current rate is a more lasting, effective tool in financing essential state services than an arbitrary rate increase in the income tax. but I agree with you that the income tax should be progressive.

    Now that Con-Con has been rejected, that progressive income tax amendment should be a priority for everyone who cares about fair and responsible government.

    Comment by Capitol View Friday, Nov 14, 08 @ 9:12 am

  94. […] I commented on one his earlier posts, and he gave some reasonable replies countering my suggestions (Spending Freeze and Local Government cutbacks). Fair enough. There certainly is room for debate. […]

    Pingback by Extreme Wisdom » Blog Archive » Capitol Fax debate on Illinois tax increases Tuesday, Nov 18, 08 @ 11:19 am

Add a comment

Sorry, comments are closed at this time.

Previous Post: Question of the day
Next Post: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax


Last 10 posts:

more Posts (Archives)

WordPress Mobile Edition available at alexking.org.

powered by WordPress.