Tick Tock, Time Running Out on IL Budget Deadline Yet No Inevitable Tax Increase
With legislative leaders and the Gov. refusing to speak to reporters after this afternoon’s leaders meeting, reporters are twittering and blogging that the the outlook for a budget agreement is grim.
Getting to July 1st without a tax increase is a big win for the anti-tax movement. After being told of doomsday budgets (2 versions); that there was no way we could avoid a tax increases; with former Republican Governor’s telling spouting the same nonsense; with legislators of both parties privately lamenting that they couldn’t get out of Springfield with out an income increase we are about 10 hours from the end of the state’s fiscal year and there is no income tax increase.
And lo and behold, by standing strong against taxes, the General Assembly did manage to restore 70% of the social service cuts (on average) that we were told would lead to mayhem. It in fact didn’t take a tax increase to do it. With 73% of voters against an income tax increase and 82% of voters believing the state spends too much Democrat House Speaker Michael Madigan’s caucus has now conceded that there isn’t enough votes for an income tax increase. We can read that as the Republicans may have learned their lesson and have stopped covering for Democrat tax hikes. That would change Illinois politics for the better.
Granted, the Capital Bill, which should be vetoed, has been sent forward for the Governor’s signature with $1 billion in new revenue — $600 million of which are tax and fee increases — and the$2 billion pension bond deal is still more spending and a future tax (albeit a voluntary one) so all is not golden. But the big hit to the tax paying public who right now cannot afford to meet the current insatiable demands of the state government – thus the revenue shortfalls — is being avoided.
We’ve seen in California and New Jersey that holding the line on taxes is forcing legislators to make cuts, unions to open contracts and governor’s change their stripes (that would be CA where Schwarzenegger has embraced a flat tax). It seems Nay on taxes means a Yea on much needed reforms.
While the deadline is July 1st, the state doesn’t actually need the money until July 9th for payroll purposes according to news reports. Before then we can expect another round of scaremongering and extortion threats from the gov, state agencies and service providers. But, if the anti-taxers in the House continue to stand tall and the world doesn’t end maybe then the Gov. Quinn and Sen. Pres. John Cullerton (D-Chicago) will finally resign themselves on some serious budgetary reforms. And if they do so — that’s a real big if — it will codify a major victory for the anti-tax movement in Illinois and the Nation.
Illinois Media: “Doing Everything We Can to Blame the GOP for the Democrats Fiscal Mess”
As President Reagan said to Carter, “There you go, again.”
“After watching from the sidelines for months, Republican lawmakers now enjoy new power over the state’s budget mess, and they’re using it to push doggedly for major changes in government spending.
They want controls on fast-rising health-care and retirement costs, two politically sensitive and financially complex issues that can’t be resolved quickly. To get them, Republicans are willing to delay budget decisions by passing a temporary spending plan to keep government operating while negotiations continue.
The risk for Republicans is that they’ll be tangled up in a budget crisis that, so far, has largely been the responsibility of the Democratic majority.
Even if they get many of the changes they want, Republicans could share in the blame if the stalemate drags on all summer and ultimately produces an unpopular tax increase and painful service cuts.”
The standard line coming from Springfield is that an unpopular tax increase and painful cuts are necessary to fix the budget. In his weekly column Rich Miller states, “Once again, pretty much everybody at the Statehouse knows that taxes will have to rise in order to balance this massively out-of-whack budget.” Miller’s comment too, is about holding Republican candidates feet to the fire.
And it’s no stretch for me to state that just about everyone knows that spending will be cut, too. Gov. Quinn offered a few — just a few in his budget address. Yet, this inevitable conclusion is that it’s all the GOP’s fault.
The Democrats have a veto-proof majority in the Senate. They are one vote short of a veto-proof majority in the House. They hold elected constitutional office in the state. Therefore, if anything goes wrong, blame the Republicans. Get it?
Of course on any other occasion all you hear from the press is how Republicans don’t matter in Illinois.
In the end, the voters will determine who gets the blame. And they rarely — if ever — blame the party that’s in power. The only way that the GOP can screw this up is by believing what the press and the Democrats are telling them. The regrettable truth, is that some undoubtedly will believe them.
IL State Sen. Larry Bomke (R-Spfld), Off the Anti-tax Reservation?
State Sen. Larry Bomke (R-Springfield) endorses a temporary income tax hike to stave off massive state layoffs in Central Illinois? Give me a break.
As a Springfield native I have many, many friends who work for state government. Some of which lost their jobs when Gov. Blagojevich moved jobs to Chicago. Where’s was Sen. Bomke then? There are thousands of square feet of empty office space in downtown Springfield as a result of the Blagojevich Administration’s wholesale removal of state jobs from Springfield. Sen. Bomke was one of 4 Senators who voted for the $10 billion bond deal back in 2003 that got the whole ball rolling on the train wreck that is the state budget. That didn’t save the jobs at LDC he exchanged the vote to save, so why would he do it again?
What did the other famous Illinois politician say about “fool me once?”
A normally very decent public servant — who actually understands the service part — Sen. Bomke has shown a blind eye to the long term costs of short-sighted quick fixes. However, feeding the beast isn’t the answer.
Getting the Illinois economy on track is the right answer. If we take care of the state economy then the state economy will take care of state employees. Putting the cart before the horse won’t help. Instead, stopping an income and corporate income tax hike would send the message that Illinois is open for business after all. It sends the message to our politicians that they need to reform how they do the people’s business.
Defending state workers — who are the Senator’s constituents — is one thing, but the Senator needs to put the long term benefits of reform ahead of the short-term fixes that kick the can down the road and put him in the very same position he is now a few years from now.
73% of Illinoisans are against a tax hike. In a Republican District, I’m sure the figure is much higher. Sen. Bomke needs to listen to the vast majority of Illinoisans and not just curry favor of one special interest — even if it is a big one in his District. Sen. Bomke, do the right thing.
Dem. Comptroller Undermines Gov. Quinn — Updated
This should provide much fodder for the ongoing fight over taxes in Illinois.
In the letter, which isn’t posted on the comptroller’s web site, yet. Hynes tells the governor that:
“In it, Hynes says Quinn has been inconsistent about how large a tax increase is needed. He also questions whether Quinn has done a thorough review of state spending to see where it could be cut.”
Last week a poll showed that 73% of the public does not support a tax increase to balance the budget and 82% thinks the state spends too much. Hynes’ points along with those two numbers should become the major talking points in Illinois against a tax increase.
I would add the following to that. A vote against a tax increase is a vote for reform. In California, after voters rejected further tax increases, the Gov. has had to float the idea of a flat tax as a way of solving the state’s problems. In New Jersey, the public employee union is being pressured to open up its contract for renegotiation because the state is functionally bankrupt — as is Illinois.
To date, there has been a refusal to reform the budget process in Illinois, pensions and Medicaid. Cutting Springfield off from the trough may be just the thing necessary to focus on what needs to be done. The dichotomy between cuts and higher taxes is a false one. Reform can allow you to do more with less. We do it all the time in our private lives.
And even if reform doesn’t solve every problem, it’s a good start.
Here a link to the actual letter. Thanks for posting it, Rich.
LTE: Don’t Blame IL GOP for Illinois’ Fiscal Mess
On June 14th, the Springfield State Journal-Register opined that,
“This is the Republican creed on Illinois’ two-year, $12 billion budget deficit. House Republican votes are needed to pass a budget that doesn’t massacre services and state employees by the fiscal year’s July 1 start.
This principle is reasonable if considered in a vacuum.
But the impossibility of major budget reforms before the July deadline and the near certainty of layoffs and service cuts if it is blown make this an unreasonable stance. Legislators need to find the revenue now.”
Today, they, gratefully, ran my reply:
“It’s not the House Republicans living in a vacuum; it’s this paper’s editorial board. The SJ-R’s editorial “Broken Budget — People vs. reality in state budget battle” (June 14) argues that House Republicans need to get off their duffs to provide bi-
partisan cover for an income tax increase because there is no longer any time to reform state spending.The Republican creed of cut, reform and then we’ll talk increases has been on the table since January. It has been backed by reform idea after reform idea. Republican Leader Tom Cross (R-Oswego) went so far as to say nice things about possible tax increases in January only to be chastised and punished by anti-taxers. Democrats ignored all this.
Now, the SJ-R joins partisan Democrats such as Senate President John Cullerton (D-Chicago) by arguing that it’s Republicans in the House who need to get off of their duffs.
Seriously?
Democrats running the clock out on bi-partisan reform ideas and then blaming everyone else including the House GOP for the fiscal mess they created is the height of hypocrisy. To not recognize (often to my frustration) GOP Leader Cross’ efforts to play “a constructive role” these past six months in the process has to lead me to conclude that it isn’t the House GOP living in the vacuum.
The vacuum we live in now is the kind that sucks the money out of Illinois families’ already dwindling bank accounts to spare the politicians from making unpopular choices.
Legislative brinksmanship, in which the career politicians in Springfield “run out the clock” on reform so that they don’t have to cut spending should not be rewarded.
We live in a competitive, two-party system and the people’s representatives have made their preferences known, and I’m sorry but an income tax increase didn’t have the votes. That is the “reality.” And given that the “people” chose overwhelmingly a Democratic majority to run this state, you realistically aren’t going to get away with pinning the blame on Republicans. You’d really have to be in a vacuum to believe you can get away with that one.
Gregory Blankenship
President, Illinois Alliance for Growth
Springfield”
The letter prompted one local reader to call and leave a voice mail in support of the position put forward here. She also added that if they do raise taxes, Springfield will find new ways of wasting the money. Here, here.
It’s never preferable to have your own argument turned against you, so hats off to the SJ-R for their willingness to publish a very critical letter.
The Tax Fight in Illinois Needs to be Joined
The Capital Fax Blog has pictures of today’s large pro-tax rally in Chicago, while Fran Eaton at Illinois Review is reporting that picketers are showing up to protest for tax increases at member offices in Chicagoland.
But as the commenter Elizabeth notes, taxpayers are picking up phones:
“Our local rep got hit by a SEIU protest yesterday. But, he said that calls to his office are 10 to 1 AGAINST a tax increase.”
The Democrats and their friends in the media are ratcheting up the pressure for a tax increase. Rumors are swirling about regarding what kind of deals will be acceptable to the center right. So far, the answer is that nothing short of No will suffice.
Gov. Quinn and the Democrats have been able to increase pressure on the Republicans by going after human services providers in the state. Shortly after the budget was passed — with no tax increases — Gov. Quinn released his first doomsday budget. In it, he threatened to cut off state money to local law enforcement and fire protection. He also threatened to empty the state’s prisons. No one balked.
He came back with human services which affects every legislative district in the state, too. This is grant money provided to group homes for the physically and mentally disabled, alcohol treatment, and the infirm elderly. The idea behind these grants is that home care and local community care are cheaper alternatives to expensive institutionalization (about $75K per person a year) while providing better quality services and a better quality of life for recipients. It’s also includes aid to families with developmentally disable children, who in many instances are becoming increasingly aged as childeren with 20 year life expectancies are living longer into their 40’s and above. You literally have retirees taking care of what amounts to 200 lb children.
Gov. Blagojevich tried the same thing last year to shame the House Democrats into supporting his budget that went $2 billion into the red. It didn’t work then. It shouldn’t work now.
The irony here is that there wasn’t so much as a whimper from the press when Blagojevich kicked these people to curb. There were cries from the providers, but they were muted compared to the pressure on the GOP. The House Democrats had the fortitude to stand up to these tactics. The question, now that Republican House votes will be needed for any tax increase, is will the GOP have the backbone that House Speaker Mike Madigan (D-Chicago) had?
It takes a super majority of 3/5ths (71 votes) to pass tax increase since we’ve passed the May 31st deadline for having a budget. Democrats wouldn’t do it when they had a majority of 70 to 48 and so now it’s the GOP’s fault that they couldn’t get at tax increase when only 60 votes were needed. Puhlease…
Both House Minority Leader Tom Cross (R-Oswego) and Senate Minority Leader Christine Radogno (R-Lemont) deserve kudos for their efforts — so far — to hold the line on an income tax hike. They need to keep doing so. They have offices in Springfield. The number there is 217.782.2000. I urge people to call and let them know that 73% of Illinois voters against an income tax hike, and that you are too.
Illinois State Government: Pork is Our Priority
File this under actions speak louder than words.
fore bolting from Springfield Monday morning, Democrats and Republicans took out their knives and participated in what has become a tradition: carving up a fortune in pork-barrel projects around the state.
But instead of having to pick from the state’s regular budget as they have in recent years, lawmakers this year had an even larger plate to pull from after passing a massive public works spending plan.
The new pot of money allowed lawmakers to approve $3.1 billion in projects, which varied from $50,000 for a firetruck in Rockford to $40 million for a Chicago State University campus to be built somewhere on the city’s West Side.
In sheer size, the number of projects being funded was vast. There’s a gazebo in Willowbrook, two separate war memorials, millions for YMCAs, even a new roof at a Catholic church in Plainfield. The bill detailing all of the work was 972 pages long.
Passed shortly before lawmakers went home early Monday, the legislation made it difficult to determine the propriety of the bricks-and-mortar projects for hundreds of cities, park districts, hospitals and social service agencies.”
A couple of points.
Many pork projects may be good ideas, but we’ll never know because the legislature doesn’t hold hearings on any of these projects. They simply drop them in the bill. That, according to Citizens Against Government Waste, makes them pork. According CAGW pork spending occurs when it’s:
- Requested by only one chamber of Congress;
- Not specifically authorized;
- Not competitively awarded;
- Not requested by the President;
- Greatly exceeds the President’s budget request or the previous year’s funding;
- Not the subject of congressional hearings; or
- Serves only a local or special interest.
Just replace the federal titles with state titles and you have a pretty comprehensive criteria on identifying pork spending.
Next is the issue of priorities. Clearly the General Assembly has spoken that the $29 billion capital bill is a priority while “human services” as they have been called are not. Politicians claim are claiming otherwise, but they put the Capital Bill first and voted for it in overwhelming numbers. Yet, we still hear whining from the budget losers.
From the Springfield State Journal-Register:
“Gov. Pat Quinn and the four legislative leaders are still working on a budget, but there seems to be no rush.
The General Assembly on Sunday approved a spending plan designed to keep state government operating, but Quinn is demanding something better.
To ratchet up the pressure, Quinn said Monday that organizations that are paid by the state to provide human services will be getting letters warning them that funding will be drastically reduced after July 1, the start of the state’s new fiscal year.
“It is important for everyone to know in advance what the consequences are,” Quinn said. “It amounts to thousands of people being affected.”
The budget sent to Quinn sets spending on a wide variety of mostly human service programs at 50 percent of what Quinn says they need. ”
Of course these programs also receive little to no oversight hearings, the taxpayer has little idea of whether these programs are working or not, and they often benefit narrow and local constituencies.
To pay for these services, Gov. Quinn is demanding a tax increase to pay for human services while stating the need for a capital program and a willingness to sign it. But first he has agreed to spend the $29 billion and hike taxes by roughly $600 million per year while leasing the lottery, expanding gambling, and hiking license fees and motor-vehicle infraction fines for another $400 million in new revenues.
Illinois has the money, and despite all their posturing to help the most needy, they chose pork instead. The GA balked at raising taxes because of fear of being held accountable to voters. The decisions have been made, it’s now time for the politicians to live with it and stop carping.
