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“Mini” capital bill on hold

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Illinois

[Bumped up for visibility.]

* This isn’t news to subscribers, but do you remember the “mini” capital bill approved in early April? As subscribers have known for many days now, it’s on hold….

A small version of the [capital] plan was approved in early spring in order to get road projects going for the summer. But those have stalled as well.

Illinois Department of Transportation spokeswoman Paris Ervin said new projects can’t get started until a full state spending plan is approved.

That $3 billion “jump start” capital bill was designed to get people working as soon as possible with “shovel ready” projects until the main capital bill was passed. Well, the main capital bill was passed, but it hasn’t been signed into law yet because we have no state budget for next fiscal year. And because we have no state budget, there’s no appropriating authority for the “mini” capital projects, either.

Oops.

posted by Rich Miller
Wednesday, Jun 17, 09 @ 2:43 am

Comments

WUIS State Week in Review reported otherwise a couple of weeks ago (That Quinn had signed the mini). Maybe they should subscribe to your blog

Comment by Das Man Tuesday, Jun 16, 09 @ 6:25 pm
The mini capital bill was signed. It’s just been on hold for most of this month.

Comment by Rich Miller Tuesday, Jun 16, 09 @ 6:30 pm
–Illinois Department of Transportation spokeswoman Paris Ervin said new projects can’t get started until a full state spending plan is approved.–

A full plan? Doesn’t one of the budget bills contain the stimulus cash and state road fund revenues for the mini-capital? If so, couldn’t that bill be signed and the projects funded?

Sorry, lot of questions.

Comment by wordslinger Tuesday, Jun 16, 09 @ 6:36 pm
ARe we sure that Blago is not secretly STILL RUNNING THIS STATE???? What a mess!! We are just Mississippi with snow..

Comment by ivoted4judy Tuesday, Jun 16, 09 @ 6:42 pm
Pass the income tax if it is a guarantee that it will help the state and we can put people to work and programs can be saved. I would like to know why the state leaders are dragging there feet on this. Election should be held on July 1st of the year so then all this negative advertising of state programs being cut will stop. What is the state doing with all this federal stimulus tax dollars? Exactly how much are they keeping and dishing out for programs? Is this mini capital bill on line where we the tax payer could read exactly what will be done? Maybe there is a reason why it is on hold?

Comment by thunder1 Tuesday, Jun 16, 09 @ 6:42 pm
So, were we lied to by someone? If the argument for the bill is that it is immediately needed but the reality is that can’t be implemented until the full blueprint for spending is in place then isn’t the whole rationale behind it not true?

Comment by Greg B. Tuesday, Jun 16, 09 @ 6:45 pm
thunder1

The state is already billions in debt :\

Comment by 815Sox Tuesday, Jun 16, 09 @ 6:51 pm
The State has failed to honor its existing contracts on capital projects from the last 3 or more years, so why would these pathetic examples of political leaders believe it is right to obligate new money to new projects. They all seem thick as brick. It is much easier to believe in the evil of a former gov/leader (pick from the list) then it is to accept that the problems are larger, deal with systemic failure and numerous weak leaders. Honor the existing obligations and contracts and agreements before charging foward into the new and sexy sphere of spending.

Comment by Sinequanon Tuesday, Jun 16, 09 @ 7:01 pm
Point of information:

PA 96-0004 (HB 210) is the supplemental appropriation authorizing the state to spend federal stimulus funds. It includes (Sections 4 and 5) authority for the state Department of Transportation to spend more than $5 billion for roads, bridges, mass transit, airports, rail freight and related purposes. The bill had an immediate effective date and the governor signed it April 3. Thus it would appear that sufficient spending authority is available to begin a “mini” capital program at once, regardless of whether the FY 2010 budget and accompanying capital program has been enacted. In fact, PA 96-0004 specifically states that its spending authority is for FY 2009. Of course, the governor and the department can choose not to make use of it, as appears to be the case.

Comment by Charlie Wheeler Tuesday, Jun 16, 09 @ 8:18 pm
Sorry, Rich, for posting under this item.

My spouse is an administrator at a social service agency who spent the day telling people who make little more than minimum wage that they WILL lose their jobs in two weeks, per their union contracts.

I would just like to say to Mike Madigan, Tom Cross, John Cullerton, Christine Radogno and Pat Quinn that I hope you sleep well tonight.

Your games have caused a lot of pain to a lot of people who don’t deserve it. If I truly believed you were sincere in trying to solve the budget problems, I would cut you more slack. You get none.

Comment by Fed Up Tuesday, Jun 16, 09 @ 8:20 pm
This is exactly why there was a huge ’sigh’ after a memo was sent out after the mini capital bill was signed thanking everyone for a job well done. It was a nice thought but the job’s not done at IDOT until the white and yellow stripes are down.

Comment by Heavy Construction Tuesday, Jun 16, 09 @ 8:36 pm
Charlie Wheeler, thank you very much.

Comment by wordslinger Tuesday, Jun 16, 09 @ 8:36 pm
CW - The ARRA jobs are being built, the mini cap ones are not. Might be two different pots were talking about.

Comment by Heavy Construction Tuesday, Jun 16, 09 @ 8:41 pm
A mess!

Comment by Levois Tuesday, Jun 16, 09 @ 8:49 pm
The reflex of so many on this board to attribute any glitch to grandiose incompetence or grandiose malevolence is disturbing.

Although Mr. Wheeler’s post certainly has the self-assured tone of an authoritative pronouncement, it nonetheless obscures more than it reveals.

Had Wheeler read HB 210 with more care, he’d have realized that all the unexpended money from the FY 09 portion of the mini-capital bill were reappropriated for FY 10 as part of the approps for the major capital bill.

There is a simple reason for this: the Department of Transportation ran out of appropriation authority for FY 09 projects and needed FY 10 authority to begin new projects and continue ongoing projects.

The reappropriation in HB 210 is a clear acknowledgment by the legislative leaders (who drafted the bill) that without the reappropriations, IDOT would be paralyzed in terms of the mini-capital bill project.

One might argue, moreover, that putting the reappropriations in the same bill as the other capital projects, apart from being an acknowledgment that the Governor was in a trick box as the fiscal year was ending, was a pretty slick way of incentivizing a quick signature on all the legislator projects in the rest of HB 210.

Of course, all of this is a moot point if the legislature doesn’t figure out a way to make the budget solvent. What bond house would want to lend money to an entity whose checking account (GRF) is as strained as Illinois’ is?

Comment by Leroy Brown Tuesday, Jun 16, 09 @ 11:51 pm
Heavy Construction-

There was only $650 million or so of ARRA highway projects. Even with the requirement that all the money is fronted by the state before federal reimbursement, and allowing for additional capital public transit projects for IL (which did not have as rigid a deadline as the highway stuff), the $5 mil referred to in CW’s 8:18 post should cover funding both ARRA and mini-cap projects.

Comment by Six Degrees of Separation Tuesday, Jun 16, 09 @ 11:52 pm
Please forgive me!

In the post above, please disregard the reference to HB 210 and replace it with HB 255!

Comment by Leroy Brown Tuesday, Jun 16, 09 @ 11:53 pm
ARRA (federal stimulus) projects would also necessarily be put on hold as noted above. There’s been no reappropriation for either ARRA or mini-cap (which also needs to get funded through a bond sale, which hasn’t hnappened). Illinois is determined to maintain its place as national laughingstock.

Comment by phocion Wednesday, Jun 17, 09 @ 7:20 am
–What bond house would want to lend money to an entity whose checking account (GRF) is as strained as Illinois’ is?–

Every single one of them.

Invetor demand for state GO bonds is high, despite the nationwide state budget crisis. Tax-exemption, even double-tax exemption, is a strong draw.

California has the worst credit rating and ongoing budget crisis of any state in the nation. And…

March 26, 2009
Huge demand for California bonds
The Sacramento business journal is reporting “huge” demands for California bonds: Investors were more enthusiastic about buying California debt than expected, putting in orders for $6.54 billion in general obligation bonds in a sale by the state Treasurer’s Office that ended Tuesday State officials had expected to sell $4 billion.

Other states have had similar experiences in recent weeks. Investors know the bonds will be paid before anything else, current problems notwithstanding.

Comment by wordslinger Wednesday, Jun 17, 09 @ 7:35 am
Bad, Bad, Leroy Brown,

{What bond house would want to lend money to an entity whose checking account (GRF) is as strained as Illinois’ is?}

The reflex of so many on this board to attribute incompetence to others while inflating their own grandiose sense of knowledge on a particular subject is often more disturbing; especially if left un-challenged.

Although Mr. Brown’s post certainly has the self-assured tone of an authoritative pronouncement, it nonetheless reveals more about the knowledge of the person posting, than perhaps the person he is posting about.

Just as an FYI Mr. Brown, “bond houses” don’t “loan money”, but instead sell bonds, and serve principally as a facilitator to do so. The determination of credit worthiness is primarily an assessment made by the bond purchaser rather than the bond sales facilitator or the bond seller, and that is reflected most often in the terms gradation of the issuer by the rating agencies and the associated interest rates and terms and conditions of the instruments to be issued and sold.

Leroy, the next time you climb up on your high horse late at night to go slaying dragons like the esteemed Mr. Wheeler, you might want to assess your own BAC first. Otherwise some of those readers you perceive to be far less learned than yourself could quickly confuse you for Don Quixote, rather than the White Knight coming to save the great un-washed from the stain of ignorance spilled upon us by someone you believe to be far less knowledgable than yourself.

I am not quite certain whether the readings based on your post last night would be better measured with a breathalyzer or on the Richter Scale, but if I were out on patrol, I would have steered you into the State Police check-point and radio’ed ahead that you were related to Jim Tobin, just for good measure.

Now for those of you that are straining your insufficiently caffeinated eyes to get a better look at Mr. Brown at this hour of the morning, don’t be alarmed.

Leroy actually does look like a jigsaw puzzle, with a couple of pieces gone.

Comment by Quinn T. Sential Wednesday, Jun 17, 09 @ 7:42 am
Note to 47th Ward:

{if I’m buried on the south side, make sure it’s face down in the outfield of U.S. Cell-out Field so all of you Sox fans can kiss my behind.}

Sox fans are not one to blindly adopt the silly customs engaged in by the beer soaked Bleacher Bums that are typically more focused on their summer tan than the game they are attending, but throwing one back hit out their way by the opponent in your case is certainly one that would be enacted for a special occasion.

Now, given the news today:
http://www.wbbm780.com/Illinois-suspends-funerals-for-poor/4618785

Besides; Reinsdorf and BALCOR have long previously syndicated all of the available plots in U.S. Cellular in a side deal he cut with Thompson back on the night when they concocted the Illinois Sports Facilities Authority. Forgie me, but I just can’t remember whether it was right before, or right after they pissed on the grave of Frances McCuddy (Since 1910) while cutting their deal.

For the sake of the emotional well being of the patronage workers you will no doubt leave behind, however, you might want to get your attorney working on recovering whatever monies you have invested to date in Roland’s pre-paid budget special.

Otherwise, the only alternative for you may be a midnight burial at sea over the side of one of those dingy’s that continue to be operated by some of the 47th ward hold-overs that are still hanging on to their positions in the lakefront harbors.

Anchors Away!

Comment by Quinn T. Sential Wednesday, Jun 17, 09 @ 8:12 am
Charlie I think the problem is not the 2009 approp, since most of these projets look like they would begin after July 1, the problem is the lack of a BIMP for FY 2010 which is only a couple of weeks away.

Comment by Ghost Wednesday, Jun 17, 09 @ 8:29 am
Ghost,

These projects were placed on a special construction letting May 15. Many have already been awarded to the contractor and are ready to go other than the state’s glitch. In normal times, construction would be underway before July 1. And it’s a head scratcher if the ARRA projects (some of which are already DONE) were funded out of the same approp as the mini capital projects.

Comment by Six Degrees of Separation Wednesday, Jun 17, 09 @ 8:45 am
All of the previous posts about the various bills associated with the proposed spending for capitol projects are very interesting. And (in my humble opinion) miss the salient point. All of this mess is, at its core, political posturing. The Democrats don’t want to be seen as responsible for raising taxes, no matter how obvious the need. The Republicans are miffed that they were frozen out of any and all budget discussions prior to the end of May. Now that they have a seat at the table… Well, you get the idea.

It’s politics. Not government. These people abandoned the notion of being stewards of the peoples interests long ago.

Comment by Springfield Sceptic Wednesday, Jun 17, 09 @ 8:56 am
Everybody is always so down now that state government has run out of money (and want tax increases). I am finally content with the state (not kidding)… They have no money to spend, and the bills they pass to spend money end up “on hold.” There has been no tax increase, and the 50% human services cuts make sense. I need to find the old Wonkish budget that I made… I am sure that the state budget that passed is similar to mine….

Comment by Heartless Libertarian Wednesday, Jun 17, 09 @ 9:13 am
Perhaps (perish the thought!) Quinn is holding back these projects, the apparent root of which is the budget, as his only lever against the legislative “leaders” who painted him into a box based upon tax increase needs, and left him out to dry so that other future gubernatorial candidates can look good.(Forgive the run on sentence) It’s all about who can look good at another’s expense. Scaring people about job cuts, service cuts, sky falling, whatever it takes to get re-elected. A pox on all their houses. The piper is deamding to be paid. The payment will be either tax increase (I oppose), job cuts (equally less desirable, but they are occruing outside government jobs, why would state workers be immune>) or most importantly, an honest review of where we spend our money as a state. We have done it in our house. We need this, even at higher cost, so let’s give up that and that to pay for it. Yes it hurts, but we all felt good before and looked the other way to continue the good feeling. Now the bills are due!

Comment by LisleMike Wednesday, Jun 17, 09 @ 9:55 am
It is bordering on insane to go into more debt to fund the pork bill when the state in in debt to the tune of about $70 billion to their own pension funds and another $8 billion or so that they already bonded out. This constant borrowing is one of the causes. No revenue enhancements, no pork Republicans! Deal with it. By the way Quinn T, the arrogance shown by your condescending upbraiding of poor Leroy is indicative of the another of the causes of the problems that the state is suffering from…hubris on the part of the legislature in general and the leaders in particular, as well as a lot of mid level state employees. Try to control yourself.

Comment by Bill Wednesday, Jun 17, 09 @ 10:58 am
ahh ok Six, then the peices of this puzzle do not all go together.

Comment by Ghost Wednesday, Jun 17, 09 @ 11:25 am
Bill,
Next time you visit your doctor ask him or her to conduct an Emotional Intelligence Test and ascertain your EQ, and then see what can be done about raising it.

The note to Bad, Bad, Leroy Brown is nothing more than a Ciceronian rhetorical device in the form of sarcastic hyperbole, meant to illustrate to Mr. Brown, that perhaps commenting with such arrogance in the way that he did may not be the best approach to get his point across about his own intellectual superiority, especially when the attempt to do so is riddled with mistakes.

Comment by Quinn T. Sential Wednesday, Jun 17, 09 @ 11:40 am
a Ciceronian rhetorical device

Wow, we have the Sword of Damocles and a Ciceronian rhetorical device all within one week of CapFax. A fine and erudite blog, this is.

Comment by Six Degrees of Separation Wednesday, Jun 17, 09 @ 12:04 pm
The jerks really came out of the woodwork on this thread. Ciceronian device indeed!

Comment by Skirmisher Wednesday, Jun 17, 09 @ 5:27 pm
And I always thought a Ciceronian device was a set of brass knuckles, or a blackjack. Best used in the parking lot outside one of those 4 AM bars.

Comment by Six Degrees of Separation Wednesday, Jun 17, 09 @ 8:58 pm