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* Comptroller Hynes blasted the governor yesterday…
In what he dubbed “an open letter,” Illinois Comptroller Dan Hynes termed the proposed hike “an ever-changing proposal for an ill-defined problem” and urged the governor to “start over” with a new plan.
“The governor has not called on us to do the hard (cost-cutting) work that must precede any increase in taxes that would affect everyday working people,” Mr. Hynes said in a follow-up phone call. “I’m not the only person who thinks that.”
More…
In a three page letter to the governor, Comptroller Dan Hynes said Quinn has “needlessly incited fear and panic” in calling for cuts to social service programs, while also pledging support for several different types of income tax increases.
“In a sense, we have all been given a false choice: raise taxes by $4 to $5 billion or cut human services by the same amount,” noted Hynes, who is considered a possible candidate for governor or attorney general in 2010.
With just a week left in the state’s fiscal year, Hynes says Quinn and lawmakers should start over when it comes to the budget debate.
“Call on the legislature to pass a 60-day budget that keeps education, health care and other vital services at current levels,” Hynes wrote.
But Hynes’ suggestions don’t even make up half of the budget deficit…
For instance, the state could save up to $300 million if it cut legal and other consulting contracts by a fifth; eliminating “non-essential” programs like the state’s foreign trade offices would yield $350 million, and cutting social service grants just 5% would net $500 million, Mr. Hynes said. Similarly, a combination of expanded gaming and extending the state’s service tax to “luxury” items such as spas, marinas, tanning salon and travel could yield $1.8 billion.
Hynes suggested about $1.2 billion in cuts and $1.8 billion in new revenues, including expanding gaming, which House Speaker Michael Madigan has absolutely rejected, and raising the cigarette tax, which has passed the Senate but has stalled in the House.
Even if all that could be done, that’s $3 billion. The deficit is about $9 billion, but that’s not actually the case. If the state closes the $7 billion hole properly, it can apparently access the rest from federal matches.
Read Hynes’ full letter by clicking here.
He’s sure sounding like a candidate for higher office to me.
…Adding… Oops. I forgot to post this SJ-R editorial…
The allegations leveled at state Comptroller Dan Hynes over the loss of millions of dollars from a pre-need funeral trust fund cry out for answers regarding what his office was doing about the fund’s growing deficit. {…]
After a story about the filing ran, Hynes spokeswoman Carol Knowles said the characterizations in the filing “are not accurate,” that the deficit was only discovered after a 2005 audit of the fund and that no deficit was shown in the IFDA’s annual reports..
It is time for Hynes and the Department of Financial and Professional Regulation, which is controlled by Gov. Pat Quinn, to release the full 2005 audit of the fund, which has been requested by The State Journal-Register under Illinois’ Freedom of Information Act.
The comptroller’s office also should outline any actions it took between 2001 and 2005 and release any audits it may have done during that period. Funeral home owners say the comptroller’s office was vigilant in auditing their books. Was it vigilant enough in auditing those of the IFDA?
posted by Rich Miller
Wednesday, Jun 24, 09 @ 11:07 am
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–He’s sure sounding like a candidate for higher office to me.–
He’s sure sounding like a candidate for governor to me. Maybe the Madigan and Hynes clans have talked.
Comment by wordslinger Wednesday, Jun 24, 09 @ 11:11 am
Yes, he does sound like a candidate for higher office. I guess Lisa Madigan is running for senate because her silence is deafening. She should have got while the getting was good because because someone just might be able to use her father and the whole illinois budget mess to dirty her up on the senate campaign trail.
Also, someone posted about the Hynes statement on this site ysterday, but the media was largely asleep. Other than the Tribune, no one else bothered to report about Hynes’ statement. He sounds like his tossing his hat into the gubernatorial race, and the media wasn’t interested in him. Yet, they reported about Dan Proft.
Comment by Will County Woman Wednesday, Jun 24, 09 @ 11:14 am
I agree we need to expand gambling and still believe putting slots and video poker in the airports would help. No, it doesnt solve all the problems but it starts increasing revenues. Make the tax hike temporary 4.5% for 2 years 4% 2 years 3.5% after that as part of the deal the GOP gets a computer to redreaw districts (it wont help them but they get something) and pension reform for unions and the rest of state employees future hires not current employees. Maybe just maybe we could get some real ethics reform but it doesnt appear anyone really wants that so dont hold your breath.
Comment by fed up Wednesday, Jun 24, 09 @ 11:18 am
Dan Hynes is the one Democrat who Governor Quinn can actually beat in a primary. This letter is a pathetic attempt to capitalize on voters disatisfaction with Illinois government because, while it identifies a problem, its solution is half baked. Dan, your the comptroller…you should be able to make the numbers add up, right?
Comment by anon Wednesday, Jun 24, 09 @ 11:21 am
I think this is the smartest idea out there. Combined with pension reform, I agree there are more choices that this all or nothing proposal put forth by Gov Quinn. And, again, why start with the most vulnerable populations to make cuts? It makes for a bad case PR -wise. Yes, it is a big splash of political theater, but it just frustrates people who want to see change at the top. Demonstrate fiscal responsibility from the top first, then raise taxes. it’s more palatable. I also think bringing people together in unity - “Now more than ever” we need to make sacrifices - the economy, we’re not alone, others states, etc. would have sold the tax hike much more effectively.
Comment by Anon Wednesday, Jun 24, 09 @ 11:30 am
Lame, Dan. Almost as lame as some of Lisa’s criticisms when she was toying with being Governor. Senator Madigan sounds as good as AG Madigan. Your pick, Lisa - you’ve earned it.
Comment by phocion Wednesday, Jun 24, 09 @ 11:32 am
===the media wasn’t interested in him. Yet, they reported about Dan Proft. ===
Proft officially announced yesterday. Hynes just offered up a few criticisms and suggestions. Big dif.
Comment by Rich Miller Wednesday, Jun 24, 09 @ 11:33 am
- anon - Wednesday, Jun 24, 09 @ 11:21 am
yeah well, I have heard some suggest that a certain someone has used populism to pathetically exploit the plight of social services in an effort to capitalize politically (aka political posturing). So, maybe if he invests in a good spin machine Hynes just might do some damage. (Clearly his name alone didn’t generate much interest from the media yesterday.)
Comment by Will County Woman Wednesday, Jun 24, 09 @ 11:36 am
Hynes is saying that cuts need to be first considered and then made before any tax increases are made. Sounds sensible unlike Quinns all or nothing approach.
Comment by Cosmic Charlie Wednesday, Jun 24, 09 @ 11:39 am
@ tich
ok and do you think that had Lisa Madigan (the u.s. semate candidate) weighed-in to offer a critique the media would not have been all over it?
Comment by Will County Woman Wednesday, Jun 24, 09 @ 11:39 am
I note that California is proposing to start witholding 3 percent of state taxes on independent contractor earnings instead of relying on this group to voluntarily pay. Apparently, there is quite a bit of evidence that these contractors often don’t pay taxes, or underpay–in the amount of billions a year in Calif.
Illinois should be looking into strategies like this. They won’t fix the whole problem, but they
represent an alternative to mindlessly and carelessly raising taxes without looking at
honest alternatives.
Comment by Cassandra Wednesday, Jun 24, 09 @ 11:48 am
Has Hynes been in a parallel dimension?
These dopey suggestions are about 3 months late
and don’t do the job
Go back to funeral home scandal Dan
Comment by CircularFiringSquad Wednesday, Jun 24, 09 @ 11:52 am
It is nice to see someone actually sound like a leader on this debate. Instead of using human service groups as pawns like Quinn is doing(ala Blago) and rather than carelessly saying that we can cut our way out like the GOP, Hynes is actually offering a pragmatic approach to dealing with this problem.
It also illustrates why Hynes is uniquely qualified to serve as Governor during these troubling economic times. After the Blago mess and the ensuing Quinn tax fiasco, Hynes’ fiscal discipline and sober personality might just be what people are looking for.
Comment by Ed Rooney Wednesday, Jun 24, 09 @ 12:11 pm
something to fear????????
Re: Hynes
rich adds a negative addendum, and someone immediately posts this:
CircularFiringSquad - Wednesday, Jun 24, 09 @ 11:52 am:
Has Hynes been in a parallel dimension?
These dopey suggestions are about 3 months late
and don’t do the job
Go back to funeral home scandal Dan
———————————–
funeral scandal, um…okay. someone posted a comment that mike madigan and dan hynes have formed an alliance, and he or she just might be right. of course hynes acknowledges that what he is proposing will NOT fill the entire budget gap. and, of course out of deference to the governor he should NOT have given his unsolicited advice on the budget matter 3 months ago, just like president obama should not intervene in iranian elections. hynes has taken a measured and appropriate approach, his letter is well-articulated, very reasonable and exudes an executive office-like confidence and understanding of the sensitive/intricate art of working to pass a state budget DURING A RECESSION AND ON THE HEELS OF TWO CONSECUTIVE EXECUTIVE OFFICE SCANDALS!
Comment by Will County Woman Wednesday, Jun 24, 09 @ 12:17 pm
Hynes’ letter is all about running for governor, and has nothing to do with solving the budget problems. Quinn and others have proposed cuts. Cuts don’t solve the problem as Rich has pointed out. Either you end certain state services or raise more revenue.
Comment by Niles Township Wednesday, Jun 24, 09 @ 12:23 pm
here, here Circular…Dan Hynes is as exciting as watching grass grow…his ascent to higher office will be stalled by the funeral fund fiasco…
Comment by Anonymous45 Wednesday, Jun 24, 09 @ 12:24 pm
===rich adds a negative addendum, and someone immediately posts this: ===
Wrong. The comment came before the addendum. I had the piece and forgot to post it, so the comment reminded me.
Also, using lots of caps in comments makes you look like A RAVING LUNATIC.
Just sayin…
Comment by Rich Miller Wednesday, Jun 24, 09 @ 12:28 pm
Dan Hynes letter seems eminently sensible to me - I may not agree with him on every point - personally I support the income tax increase wholeheartedly- but postponing doomsday for 60 days and trying to hammer out some practical accommodations (some combination of fair and reasonable, non-draconian cuts and revenue increases)seems reasonable to me.
Dan Hynes understands the nuts and bolts of government, as well as the levers of power and influence - he has the respect of people amd trust of people in both parties - and his personal integrity is unimpeachable.
I disagree that Quinn would best Hynes in a gubernatorial primary. It would be competitive\, but I thnk Hynes could beat Governor Quinn in a head-to-head primary contest.
What Illinois government needs is less Machiavellian partisanship. less charisma, less populism, and just plain old common sense and competence/know-how regarding how to get things done!!!
I’d be proud to actively support Lisa Madiagn for Senator and Dan Hynes for Governor, if that’s the way the situtation evolves.
Comment by Captain America Wednesday, Jun 24, 09 @ 12:46 pm
wordslinger gets it right out of the gate…sounds like danny is running for gov. why shouldn’t Lisa run for Senator, where she will barely have to draw breath to win the race. the governor’s race will be messy.
Comment by Amy Wednesday, Jun 24, 09 @ 12:55 pm
i like hynes’ “third-way” approach both from a governmental and a political point of view …
Comment by there you go again Wednesday, Jun 24, 09 @ 1:06 pm
Comptroller Hynes letter about potential revenue items does seem practical to me. However, his proposal of expanded gaming has to be determined one way or another. Its getting silly for this state yearly to know they need revenue and expanded gaming comes out, only for it to be “killed” by someone (Particularly the House Speaker). Speaker Madigan’s “killing” the gaming issue is not really all that correct. Floor Amendment# 1 to House Bill 255 (The revenue source for the Capitol Bill) authorizes and creates the Video Gaming Act. As most know, that creates thousands of video poker machines (up to 10,000) in bars, nightclubs, taverns, etc. Further, it relates the understaffed Illinois Gaming Board to regulate the Video Gaming Act. This proposal really expand gaming, with little oversight. Personally, I would prefer a tightly controlled one, two or three gaming facilities (between 2,000-4,000 gaming positions) than 3-5 video gaming machines from thousands of facilities statewide. Speaker Madigan allowed a vote in the House of that Bill and voted for HB 255 (which is on a current hold, while they play their political games). Therefore, this option should be really looked at.
Comment by My Opinion Wednesday, Jun 24, 09 @ 1:39 pm
–Dan Hynes is as exciting as watching grass grow–
Maybe we need that. Someone who is serious and thoughtful. Might be a nice change from what we’ve had.
Comment by Cosmic Charlie Wednesday, Jun 24, 09 @ 1:39 pm
Charlie: I think Quinn is thoughtful and serious and we see how far that has gotten us this session…Hynes as Gov would not IMHO be an improvement over who is serving now…the issues and endemic problems are more complex than that…one man cannot turn State goverment around (unless you’re MJM)…
Comment by Anonymous45 Wednesday, Jun 24, 09 @ 2:19 pm
Great ideas, good delivery, terrible timing.
Hynes=Not Ready for Prime Time, Episode IV.
Comment by Arthur Andersen Wednesday, Jun 24, 09 @ 2:26 pm
ok. we can see the political campaign commercials now…
quinn jumping up and down the other day will turn into
(picture quinn jumping up and down the other day)
commercial narrator reads:
during the worst budget crisis in Illinois history, as governor quinn threatened to shut down social services, why was he smiling and jumping up and down? This was no laughing matter or time for games. Illinoians were suffering, the state was in fiscial crisis. We need a governor who will work to address tough budget issues. Not a governor who jumps up and down and plays game with the people.
Comment by Will County Woman Wednesday, Jun 24, 09 @ 2:36 pm
Hynes should worry about doing his job and not tell Quinn how to do his job.
As of today, Hynes has yet to issue the state’s audited financial report (ie, the Comprehensive Annual Financial Report or CAFR) for FY2008. That’s nothing new for Hynes — FY2005 wasn’t issued until June 30, 2006 and the FY07 CAFR wasn’t published until June 27, 2008.
(See: http://www.ioc.state.il.us/Library/cr.cfm )
When Moody’s downgraded the State in April, they specifically cited delays in annual reports as one of the key reasons.
Bottom Line: Rather than show up at the 11th hour with ill-thought proposals, Hynes should spend that time in doing his job!
Comment by Professor of Finance Wednesday, Jun 24, 09 @ 3:13 pm
That fear and panic thing Quinn generated may actually work if he can get a few thousand out when he wants them. Either ole Danny is floating a trial balloon or carrying Lisa’s water. Either way, Quinn has shown them all something and is making strong headway with dems. Quinn 1st has to win the primary and sticking up for the little guy isn’t hurting. Hynes is Quinn light.
Comment by Wisdom from the Park Wednesday, Jun 24, 09 @ 3:31 pm
For someone who claims to know the “nuts and bolts” of state government because of his role as Comptroller, I’m a little surprised by this - “For instance, the state could save up to $300 million if it cut legal and other consulting contracts by a fifth”. That sounds good to the uninformed, but if you look at the expenditures that come from the lines that “legal and other”, you’ll see that a lot of necessary activity is down out of the those accounts. Cutting those lines by 20% will in no way be “painless” - it will cut real services and real programs.
Comment by Anonymous Wednesday, Jun 24, 09 @ 3:35 pm
You people have such short memories.
The Comptroller has been put on the hot seat regarding the neverending budget crisis over the past few years. Remember how he had to play games with the previous governor whether the State had the money to pay salaries? Remember how Hynes got hit many times over the past seven years whenever his fellow Democrats wanted to escape their responsiblities?
It just happened last year, remember?
Well, in Mr. Hynes’ defense, it is probably a good time as any for him to start defending himself when he gets hit this year with the charades being played by the General Assembly. The Comptroller may be deadly dull, but after a few rounds, he starts to put up his dukes. With sights set on another office, or re-election to the one he has held for the past decade, Comptroller Hynes is doing what anyone of us would be doing in his position, and given the kind of rough treatments he faced in the past.
Comment by VanillaMan Wednesday, Jun 24, 09 @ 4:48 pm
Well, I was thinking of going to Millenium Park Friday for the fundraiser. Forget it now. My $40 may not make a heck of a lot of difference, but there is no way I could give money to the man after this. Another so-called Democrat.
Comment by this old hack Wednesday, Jun 24, 09 @ 5:23 pm
–You people have such short memories.==
“You people” is such an obnoxious designation.
“You people,” I assume, is the “other people, not the right people?” The ones who don’t quite get it? The “different people?”
Comment by wordslinger Wednesday, Jun 24, 09 @ 7:52 pm
You know, people used to say that Edgar was about as exciting as watching grass grow. Maybe that ain’t all bad.
PoF: as to the late CAFRs, I think lack of cooperation from the previous Governor’s agencies and staff was the reason for the long delays.
Comment by steve schnorf Wednesday, Jun 24, 09 @ 8:30 pm
Hynes dropped the ball with IFDA. Your talking millions of dollars. Very surprised this is not getting more coverage.
Comment by anon Wednesday, Jun 24, 09 @ 10:38 pm