Summing up Illinois’ Woes

House Republican Leader Tom Cross (R-Oswego) eloquently sums up Illinois’ woes and why voting for a tax increase is just plain wrong:

“We’ve seen reckless spending the last six years, and no one seems interested in changing the culture in this place both from an ethics standpoint and an economic standpoint,” said House Minority Leader Tom Cross, R-Oswego.”

By holding the line on an income tax increase, the Republicans are giving Illinois voters a clear choice in next year’s state elections.  Democrats are furious, and I’m sure after the Capital Bill tax increases — admittedly a very, very poor decision — they’ll be yelling hypocrite from now to 2010, that they aren’t getting bailed out by Republicans.  

Finally, we may be witnessing some accountable government in Illinois.  Saying no to tax increases isn’t playing politics it’s doing the state a public service. Way to go Tom Cross!

IL Democrats Seeking GOP Cover on Tax Increases

Seeking to hike taxes and not take the blame is a standard Democrat tactic in Illinois and the permanent minority republicans are usually all too happy to participate in these efforts.  This Chicago Tribune story sets the stage for what could be a very ugly weekend in Springfield:

Leading Democrats still are looking to raise Illinois’ income tax to fix the state’s out-of-whack budget, but they may put off doing so until after Sunday’s scheduled adjournment to try to force Republicans to share in the political pain.

Publicly, House Speaker Michael Madigan and Senate President John Cullerton, both Chicago Democrats, said Tuesday they believed the legislature could meet its Sunday deadline for delivering a budget and acting on reform legislation spawned by former Gov. Rod Blagojevich’s arrest and ouster.

But both leaders are having trouble rounding up enough votes to pass Gov. Pat Quinn’s 50 percent increase in the income tax rate.

“I think we need some help from the Republicans,” Cullerton said.

It would take 30 votes to pass Quinn’s tax hike in the Senate, and Democrats outnumber Republicans there 37-22.

In the House, Rep. Lou Lang (D-Skokie), a member of Madigan’s leadership team, said the Democrats’ 70-48 majority also lacks the 60 votes that would be needed to approve an income tax hike.

“It could still go either way” between higher taxes and making deep cuts in state programs, Lang said.

Going past the legislature’s Sunday deadline would put Republicans in play because three-fifths — instead of a simple majority — would be required to approve legislation that immediately takes effect.”

It would take a real fool of republican to give bail out the Democrats after six years of Blagojevich overspending.   Alas, there are potentially a lot of fools in the Illinois General Assembly.

More coverage of the emerging train wreck can be found here and here.

One very real possibility is that Democrats use last week’s Capital Bill as leverage against Republicans who have shown their willingness to hike taxes in a desperate attempt to get road construction funding for local projects against them.  The message will be, no income tax vote, no pork.  Right now, the fight is over who will hold that hammer, House Democrats who have yet to send the passed legislation to the governor’s desk, or the Governor, who after stating no strings attached, announced last week that he might want to hold that hammer.

Illinois Alliance for Growth Urges No Vote On Capital Plan Before Illinois House

Massive Tax Hike Passes IL State Senate Committee

Out of no where Illinois’ most infamous bad idea — the income tax – property tax swap — is back with a vengeance.  The Illinois Issues Blog has the story:

“Shortly before passing the capital plan, the Senate debated a proposal that woulddrastically change the tax structure for the state and possibly resolve a pending lawsuit. The bill, which has been considered in different versions for the last seven sessions, would raise the personal income tax from 3 percent to 5 percent and expand the sales tax to specific services.

Sen. James Meeks, a Chicago Democrat, classified some of the services as “luxury,” including limousine rentals, massages and pet grooming. But the bill also includes movies and movie rental, taxis and bowling. It would also double theearned income tax credit to protect low-income families and provide property tax relief for all.

Meeks said the intent of the measure is to create more revenue for Illinois schools and ensure schools receive equal funding because the state would take over most of the responsibility. Currently, school districts heavily rely on local property taxes, so funding can vary greatly among districts depending on how much revenue the local tax generates.

He added that after giving more money to schools and higher education, providing tax relief and putting funds toward capital projects, a large chunk of money (Meeks estimates around $4 billion) would be left over to help plug the state’s budget deficit.”

Note that after the swap is implemented and the income tax rate goes up by 67%.  And that the property tax relief actually goes into an abatement fund.  That abatement fund then puts a note at the bottom of your property tax bill saying that the state will x% of your property taxes.  So, your tax doesn’t really go down.  You are charged the same rate and the money in the abatement fund — which can be raided at any time — picks up the tab.  There is nothing stopping local officials from raising your property taxes after the “swap” either.

And then when all said and done, there is almost $4 billion leftover to the pay for the budget deficit.  Do you actually believe Springfield will use that to close the deficit?  Really?  Nope, it will go for new spending.  Why pay for old promises when you can buy new votes with the new money?  Only a fool of a legislator would do that?

And only a fool of taxpayer would buy into any of this.

Quinn’s “Doomsday Budget” is Political Extortion

FOR IMMEDIATE RELEASE

Contact:  Greg Blankenship | 217.544.4759 | gkblankenship@all4growth.org

 

QUINN’S “DOOMSDAY BUDGET” IS POLITICAL EXTORTION

Blagojevich like tactics; Threatening Public Safety Won’t Help the Illinois Taxpayer 

(Springfield, Ill. May 19, 2009)  “Gov. Pat Quinn’s release of “doomsday,” “slash and burn” budget reductions should be seen for what they are, political extortion,” charged the Illinois Alliance for Growth, a Springfield based taxpayer protection group today.

In a letter to the Illinois citizen released yesterday, Gov. Quinn threatened the taxpaying public of “dire consequences” should the Illinois General Assembly pass a “slash and burn” budget without passing his 50% income tax increase.  He conveniently failed to mention the negative impact of the tax increases on the Illinois economy.

Included in his list of threats are reductions in law enforcement, fire protection, firing teachers, closing all state parks and museums, evicting veterans from veteran homes, and early release of prison inmates.

The governor’s letter does not include any reviews of state spending for duplicative or unproductive programs. There’s no mention of reforming major programs such as Medicaid, which approximately doubles in spending every ten years, reforming education spending with reductions in overhead at the state board of education, or examining how state dollars are used to pay for higher education. 

Throughout the Spring Session of the General Assembly a bi-partisan chorus of groups from both outside and inside state government, including the Governor’s own Tax Advisory Board, have put forth ideas to reform the budget process.  Instead, the liberal cabal running state government has insisted on tax hikes and more government spending as the answer to the state’s fiscal crisis.

“This doomsday scenario is nothing more than an attempt to extort money from Illinois taxpayers and take the easy way out of the state’s fiscal mess at the expense of jobs and the economy,” said Illinois Alliance for Growth President, Greg Blankenship.  “These Blagojevich like tactics will only harden the resolve of those working to protect the taxpayer and the state’s economy.  These threats are beneath the governor’s office.”

The reductions outlined in Gov. Quinn’s letter would have served as an excellent starting point for reforming state government. If the governor proposed these changes just a few short months ago, it would have forced stake holders to find creative ways to provide services more efficiently in order to preserve the state’s core functions. Releasing them at the eleventh hour of budget negotiations can only be viewed as an extortion threat to the taxpaying public.  “The Governor is saying that if he doesn’t get more of our money then he will see to it that the fire department doesn’t show up and criminals will be released on the street,” concluded Blankenship.

The Illinois Alliance for Growth is a non-profit, non-partisan taxpayer protection group dedicated to economic growth and limited government.  You can find out more about the Illinois Alliance for Growth at www.all4growth.org.

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All4Growth Responds to Pantagraph Editorial

Back in 2004 I first proposed the idea that Illinois needed a commission modeled on the Base Closure and Realignment Commission (BRAC) to weed out ineffective programs in state government.  This year, House Republicans are trying to promote legislation to do just that.  It will probably go nowhere.  Jim Thompson ran on the idea of a Grace Commission in 1976, was elected governor, and the idea went nowhere.  

Quite frankly, in my opinion, I wouldn’t want the idea introduced because it has no support.  When we get enough responsible lawmakers to support, they’ll of course be turned off by the idea because by then it will be a two time loser with no sustainable support.  However, it doesn’t mean that the idea bad nor does it mean that it shouldn’t be out there.  

Today, however, the Bloomington Pantagraph through a little more cold water on the idea. Overall, they like the idea itself but they don’t believe voting up or down on a commission’s recommendations is a good idea.  This letter to the editor was my response:

Base-closing panel is good model to cut waste

Advertisement

Your May 14 editorial, “Weed out waste with review of state programs,” while agreeing with the concept of a sunset – and yes, I hate the term “sunshine” commission, too – commission takes issue with the model chosen by House Republicans proposing it.

It is a model I chose when I first began writing about it in 2004. So I guess I should defend it.

Your argument that the General Assembly and governor ought to take the lead and be responsible flies in the face of actual history.

The idea was first proposed by gubernatorial candidate Jim Thompson in 1976. It went nowhere. Irresponsible government has been the problem all along.

This proposal deals with the reality of what is – not what ought to be.

Second, the Editorial Board’s contention that it isn’t convinced that a Base Closure and Realignment Commission model isn’t devoid of politics and the commission itself hasn’t acted with “complete information” are red herrings.

No meeting is devoid of politics, but we can minimize the political incentives of re-election and turf protecting that prevents pet projects from being shut down. That’s all that is being done here.

Finally, no one or no group can act with “complete information.” Mistakes, just as they do in our judicial system, will occur. What the process does do is attempt to give both sides a fair hearing.

If they mostly get it right, then let the General Assembly pass the recommendation; if not, let it fail. That’s about all we can ask for.

Greg Blankenship

Springfield

The writer is president, Illinois Alliance for Growth.

Illinois Governor Tries to Extort a Tax Increase

Rich Miller, as always, has the rundown on $7 billion plus in drastic state cuts if Gov. Quinn doesn’t get his way.  Typical of what we are seeing in California, parks will be closed, veterans kicked the curbs, there will be no police to stop criminals. 

We won’t take a serious look at the budget process, duplicative programs, reforming Medicaid because…well… that might up set the contributors that make it possible to get people like Gov. Quinn elected — i.e. liberal constituency groups.  Instead, we’ll make the people that we serve suffer.  

Here were my comments on Miller’s post:

“. . . This is a great jumping off point for an adult discussion on right sizing state government and discussing what we believe priorities should be.

Would we be better off with state parks charging admissions and demanding they be self sufficient? Sanganois has had to live like that for years and by gosh the mallard loving enthusiasts keep it open and it is one of the premier spots for migratory birds in the country!

Do local budgets need to be subsidized by the state taxpayer? Yes, local taxes might go up. But under the current system both could very well end up going up. How’s that for a better deal for taxpayers?

Do economic development programs work? A lot economists say no. A lot of states argue they do it to keep up with the Jones’ next door.

Higher education could use a hair cut. A little market discipline could do them a lot of good. Steve Rauschenberger is big champion of looking under the hood of this area of the budget.

Instead of extortion, this could have been put to good use.”

Is Threat of IL Income Tax Hike Behind Us?

It may just very well may be if we read betwen the lines of Rich Miller’s weekly column:

“It’s been clear from the beginning that Gov. Pat Quinn muffed his budget rollout.

Instead of stressing the billion dollars or so in cuts he made and the additional cuts he might be open to, Quinn has repeatedly stressed the need for a 50 percent increase in the income tax rate and has flatly rejected additional budget reductions.

Polling conducted for the Senate Democrats reportedly shows voters want the exact opposite approach. First, make the cuts, then increase taxes if and only if they are absolutely necessary.

So, Quinn hasn’t made it any easier to wrap up the General Assembly’s business by May 31 and balance a budget that has a hole somewhere in the neighborhood of $12 billion.

Senate President John Cullerton said last week he believed two of the three major issues facing the General Assembly were going quite well. You’d never know it by hanging out at the Statehouse, but he was more upbeat than I’ve seen him in weeks.

An ethics reform bill is beginning to take shape as Cullerton negotiates with the governor and the governor’s reform commission.

The public works “capital” bill is also moving forward, Cullerton said. The leaders have agreed to a basic outline of revenue sources, including increasing the sales tax on most alcohol; a sales tax expansion to include candy, iced tea and beauty products; privatizing lottery management and allowing Internet lottery ticket sales; raising various vehicle registration and licensing fees; legalizing video poker and using road fund money that is currently spent elsewhere.

The big problem, Cullerton said, is the budget.”

Indeed, the budget is the problem.  At an industry event last week, I participated in a conversation with a Democrat House Member who referred to a tax increase vote as a “career ending vote.”  This isn’t the first time the big tax has gone down in flames.  HB750 (property tax – income tax swap), that would’ve massively hiked taxes went nowhere in 2005 and there is the now infamous Gross Receipts Tax in 2007.

The challenge, as we close out the Spring Session, this week will be on little tax increases such as sin taxes.  As Rich’s column notes, sin taxes and expanding some sales taxes and license fees are all being seriously looked at.  I’ve confirmed that this is a pretty accurate description of what’s occurring on behalf of a $26 billion capital bill.  A bill that would be very appealing to Republicans — some of whom would be willing to sell out their assurances on tax hikes for some pork in their districts.

And keep in mind that Sen. President Cullerton and Speaker Madigan could use agreements on reform and on the road construction bill as leverage against wavering Democrats on the income tax increase — thus reviving it.  No income tax increase vote — no pork for your district.  It’s a hard ball tactic for the Illinois General Assembly, but not out of the realm of possibility.  

The bottom line?  This will be an interesting week.

National Review Editors Hit Home Run on Healthcare

The situation isn’t as dire as we think.

I think it was in turn of the 19th Century California that government run health care was first defeated.  Or something a decade or two after.  For the last sixty years we’ve been fighting this one.  In a historical sense I think the odds are significantly in favor of the opposition once serious proposals are debated.

Drug Testing Medicaid Recipients

The Daily-Herald thinks the state has better things to do:

“BILL MITCHELL thinks that recipients of Medicaid should randomly undergo drug testing before qualifying for benefits.

While the idea sounds popular, one has to wonder if it’s practical or even necessary.

Rep. Mitchell, R-Forsyth, held news conferences around his district a couple of weeks ago touting the idea. Random drug testing for Medicaid recipients has been adopted in six states and is under consideration in eight other states.”

. . .

But once the state starts testing recipients of state money, where does it end? Does Illinois start testing those who receive state grants or even state contracts? State government has plenty to keep it busy; it doesn’t need to be intruding into people’s lives in this manner.”

I agree.  Exhibit A would be the brow-beating banks have taken via the federal bailouts over executive pay and how they run their bank.  Chrysler is another example.  You get in bed with the government and kiss your property rights good bye.  You take federal money — i.e. taxpayer dollars — then the government is going to oversee how that money is spent.  

You take Medicaid dollars and the government has the right, by this logic, to run recipients lives.  No smoking, drinking, or fast food.  Forget risky behaviors such as motorcycles.  And look at sports injuries.  They are expensive.  Better cut out that exercise.

Put the government in charge health care and in the name of cost cutting they’ll run roughshod over our personal decisions.

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