From today's Illinois Chamber/NFIB meeting, Gov Scott Walker's keynote address
Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts
Tuesday, April 17, 2012
Wednesday, February 22, 2012
Lt Gov Simon Statement on Gov Quinn's FY 2013 Budget Address
“A responsible budget must be based on real revenue. With pension and Medicaid costs eating up more of our tax dollars, we must reduce spending. As Lt. Governor, I worked hard to cut 9 percent of our budget, and applaud the other agencies who scoured their operations to do the same. As a Southern Illinois resident, I am disappointed that the state is proposing facility closures in areas that already suffer from high unemployment. I encourage the people whose livelihoods will be affected to join me in the budget process and speak up as we review the economic impact of such closures.”
Simon’s fiscal year 2013 appropriation request is more than 9 percent lower than her budget request from fiscal year 2012 and includes a reduction in full-time staff, from 24 to 21 members. The appropriation request is the lowest in at least 16 years and will net taxpayers a savings of nearly $200,000. In FY12, Simon is the only constitutional officer to return the equivalent of 12 days pay to the General Revenue Fund. Her senior staff voluntarily is taking four unpaid furlough days in FY12, as well.
As the Governor’s point person on education reform and a member of the Budgeting for Results Commission, Simon recently announced a community college reform package that will use existing state resources to increase college completion rates. As chair of the Classrooms First Commission, Simon is developing recommendations that will make elementary and high school districts more efficient.
Simon’s fiscal year 2013 appropriation request is more than 9 percent lower than her budget request from fiscal year 2012 and includes a reduction in full-time staff, from 24 to 21 members. The appropriation request is the lowest in at least 16 years and will net taxpayers a savings of nearly $200,000. In FY12, Simon is the only constitutional officer to return the equivalent of 12 days pay to the General Revenue Fund. Her senior staff voluntarily is taking four unpaid furlough days in FY12, as well.
As the Governor’s point person on education reform and a member of the Budgeting for Results Commission, Simon recently announced a community college reform package that will use existing state resources to increase college completion rates. As chair of the Classrooms First Commission, Simon is developing recommendations that will make elementary and high school districts more efficient.
Tuesday, October 12, 2010
Pensions -- The Issue that Can No Longer Be Swept Under the Rug
by Terry Martin
One of my biggest mistakes was NOT writing the book I began in 1994 on the coming collapse in publicly funded pension systems. Called "The Pension Eclipse" and based on my Masters Thesis, it was going to lay out how there were far too many promises made to ever be realized. This was long before I ever knew I was coming to Illinois.
The largest point is that one must factor in the cost of ALL of the taxpayer supported pensions, and what that means to one taxpayer. A citizen of Chicago for example, pays taxes to support Soc Sec, Federal workers retirement, State workers, County workers, and local Fire, Police and civil servants. In addition, they have to underwrite the govt's bailout of private pensions that go bellyup.
When you add it all up -- that taxpayer would have to be taxed at such a rate to make good on those obligations, that he/she wouldn't be able to support themselves! Thus, publicly funded pension will Eclipse all other spending issues, until govts reform them, and quit trying to finance their way out of the insatiable black hole, that are our publicly funded pension systems T'aint enough money to around to make it possible. It's simply an issue of fishes and loaves... and too large a crowd.
Pretending we can pay full pensions, to all that have had promises made to them at the Federal, State, and local level -- is to continue the lie of the last 40 years. It doesn't help those who are expecting a pension, to have their system go under. The fact is -- we can make adjustments to decrease benefits, while asking taxpayers to pay a bit more. We can make some other tweaks that spread the pain out over more years. But there is no escaping that pain is on the way. And the longer we wait to face these inescapable facts... the greater the pain will be to those who were promised benefits beyond financial reason... or simple math.
One of my biggest mistakes was NOT writing the book I began in 1994 on the coming collapse in publicly funded pension systems. Called "The Pension Eclipse" and based on my Masters Thesis, it was going to lay out how there were far too many promises made to ever be realized. This was long before I ever knew I was coming to Illinois.
The largest point is that one must factor in the cost of ALL of the taxpayer supported pensions, and what that means to one taxpayer. A citizen of Chicago for example, pays taxes to support Soc Sec, Federal workers retirement, State workers, County workers, and local Fire, Police and civil servants. In addition, they have to underwrite the govt's bailout of private pensions that go bellyup.
When you add it all up -- that taxpayer would have to be taxed at such a rate to make good on those obligations, that he/she wouldn't be able to support themselves! Thus, publicly funded pension will Eclipse all other spending issues, until govts reform them, and quit trying to finance their way out of the insatiable black hole, that are our publicly funded pension systems T'aint enough money to around to make it possible. It's simply an issue of fishes and loaves... and too large a crowd.
Pretending we can pay full pensions, to all that have had promises made to them at the Federal, State, and local level -- is to continue the lie of the last 40 years. It doesn't help those who are expecting a pension, to have their system go under. The fact is -- we can make adjustments to decrease benefits, while asking taxpayers to pay a bit more. We can make some other tweaks that spread the pain out over more years. But there is no escaping that pain is on the way. And the longer we wait to face these inescapable facts... the greater the pain will be to those who were promised benefits beyond financial reason... or simple math.
Wednesday, March 31, 2010
What's the Truth Behind Illinois' State Budget
Truth In Accounting's Shelia Weinberg, explains how Illiois State Budget is based on "Political Math"
http://cbs2chicago.com/video/?id=69744@wbbm.dayport.com
http://cbs2chicago.com/video/?id=69744@wbbm.dayport.com
Tuesday, March 16, 2010
Josh Barro: What's the Matter With Illinois?
By Josh Barro
Josh Barro is a Senior Fellow at the Manhattan Institute
Over the last two budget cycles, every state except North Dakota has had to close a budget gap. But a handful of states stand out for the depth of their fiscal problems. For 2010, seven states had budget gaps totaling more than 25% of general fund spending, as measured by the Center on Budget and Policy Priorities. Of these, six have a clear story about how they ended up in such a mess.
Nevada is battered by weak travel to Las Vegas, while California is heavily reliant on shrinking income tax revenues. Arizona, California and Nevada were all hit particularly hard by the burst of the property bubble. Alaska's odd finances are sensitive to falling oil prices. And New York and New Jersey are feeling the effects of fewer, and smaller, Wall Street bonuses.
The most puzzling member of the "over 25% club" is Illinois. Illinois did not see a particularly large bubble (or burst) in property prices, does not have outsize exposure to finance or tourism, and has a lower-than-normal reliance on its flat income tax. So how did the state achieve a staggering budget gap equaling 47% of its fiscal 2010 budget, second only to California?
The trouble is that Illinois did not enter the recession from a position of budget balance. While California's budget shenanigans have garnered national attention, Illinois' behavior has been similarly poor but less widely noticed. The Land of Lincoln has not truly balanced its budget since 2001, and its large structural deficit has it poised for fiscal ruin in the recession. While other states can blame external economic factors, the key cause of Illinois' budget crisis is legislative malfeasance.
Illinois has taken the budget gimmicks seen in many states to an extreme. Occasionally, states postpone payments during budget crises to close budget gaps. But for the last decade, Illinois has made a standard practice of delaying vendor payments -- even in good years -- and then periodically floating general obligation bonds to clear the backlog.
The state has also used its pension system as a venue for stealth borrowing. From 1996 to 2008, the state's unfunded pension liability grew by $36 billion -- and $19 billion of that growth was due to elected officials funding pensions below the actuarially required level. (Another $6 billion was attributable to benefit increases enacted ten years ago at the height of the dot-com stock market bubble.)
Even taking its aggressive investment assumptions at face value, Illinois' public employee retirement system has assets to cover only 54% of its accrued liabilities -- one of the country's worst ratios. When the state promises future benefits to employees without setting aside the cash to pay for them, it is effectively borrowing without reflecting bond debt on its balance sheet.
Meanwhile, when the state did make required pension contributions, it often did so by floating bonds -- over $13 billion in "pension obligation notes" over the last decade. It's no surprise that in 2008, the Pew Center on the States rated Illinois' money management the third worst in the country, behind only Rhode Island and California.
Unlike tax increases and spending cuts, these gap-closing strategies make future year deficits even worse -- the state spends over $1 billion a year just to service previously-issued pension obligation bonds. Having made no real progress on its structural deficit, Illinois faces a $13 billion gap in its $32 billion 2011 general fund.
Last week, Governor Patrick Quinn proposed his FY 2011 budget, and the contents are not inspiring. Quinn's proposed budget includes delaying over $6 billion in vendor payments to the next fiscal year, and raising the state's personal and corporate income taxes by a point each. (Last year, Quinn proposed raising the personal and corporate income taxes, but was thwarted by the Democratic-controlled legislature.) These measures would combine with spending cuts to close the gap.
Illinois' low income tax, with a flat rate of 3%, serves to offset high property taxes and high sales taxes, especially in Chicago. Overall, Illinois is not a low-tax state -- in fact, it already collects more state and local taxes per capita than any Midwestern state except Minnesota. Raising income taxes would deprive the state of its one key tax environment advantages compared to its neighbors, and is the wrong answer to close the gap.
What's the consequence of foregoing the tax hike? Governor Quinn has threatened that, if his income tax increase does not pass, he will be forced to cut $1.3 billion in state aid to school districts. Legislators should take the governor up on his threat, which would represent an approximately 5% cut in total education spending, and let school districts decide whether they wish to raise property taxes to cover the gap.
Beyond education, positive fiscal reform will require getting the expense side of the state's ledger under control, especially on employee compensation and pensions. The state's required pension plan contribution has exploded to over $4.1 billion for 2011 from $1.1 billion in 2000, accounting for more than 1/8 of general fund spending and crowding out other programs. This reflects the generosity and unsustainability of public employee benefits in Illinois.
The Illinois Policy Institute, a free-market think tank based in Chicago, has promoted a creative reform on public pensions, which combines a state expenditure limit with a commitment to direct all surplus revenues into the pension fund until adequate funding is reached. New employees would be shifted to a defined contribution retirement plan that would prevent future pension funding crises.
Meanwhile, the state and localities could freeze or even cut employee wages to offset the value of generous pensions. Fewer than 2% of state employees voluntarily left their jobs in 2008, a lower figure than in any other state, which suggests that Illinois could reduce employee compensation while continuing to retain talent. (Similarly, a wage freeze at the school district level would significantly reduce the pressure from state aid cuts.)
What Illinois cannot do is go on forever with a fiscal strategy of borrowing to finance current operations. The state already has one of the worst credit ratings in America (though still better than California), which will continue to deteriorate so long as the state's structural deficit and pension underfunding problems persist. If the state fails to control spending and fix its pension problem, it is poised to follow California off a fiscal cliff.
Josh Barro is a Senior Fellow at the Manhattan Institute
Over the last two budget cycles, every state except North Dakota has had to close a budget gap. But a handful of states stand out for the depth of their fiscal problems. For 2010, seven states had budget gaps totaling more than 25% of general fund spending, as measured by the Center on Budget and Policy Priorities. Of these, six have a clear story about how they ended up in such a mess.
Nevada is battered by weak travel to Las Vegas, while California is heavily reliant on shrinking income tax revenues. Arizona, California and Nevada were all hit particularly hard by the burst of the property bubble. Alaska's odd finances are sensitive to falling oil prices. And New York and New Jersey are feeling the effects of fewer, and smaller, Wall Street bonuses.
The most puzzling member of the "over 25% club" is Illinois. Illinois did not see a particularly large bubble (or burst) in property prices, does not have outsize exposure to finance or tourism, and has a lower-than-normal reliance on its flat income tax. So how did the state achieve a staggering budget gap equaling 47% of its fiscal 2010 budget, second only to California?
The trouble is that Illinois did not enter the recession from a position of budget balance. While California's budget shenanigans have garnered national attention, Illinois' behavior has been similarly poor but less widely noticed. The Land of Lincoln has not truly balanced its budget since 2001, and its large structural deficit has it poised for fiscal ruin in the recession. While other states can blame external economic factors, the key cause of Illinois' budget crisis is legislative malfeasance.
Illinois has taken the budget gimmicks seen in many states to an extreme. Occasionally, states postpone payments during budget crises to close budget gaps. But for the last decade, Illinois has made a standard practice of delaying vendor payments -- even in good years -- and then periodically floating general obligation bonds to clear the backlog.
The state has also used its pension system as a venue for stealth borrowing. From 1996 to 2008, the state's unfunded pension liability grew by $36 billion -- and $19 billion of that growth was due to elected officials funding pensions below the actuarially required level. (Another $6 billion was attributable to benefit increases enacted ten years ago at the height of the dot-com stock market bubble.)
Even taking its aggressive investment assumptions at face value, Illinois' public employee retirement system has assets to cover only 54% of its accrued liabilities -- one of the country's worst ratios. When the state promises future benefits to employees without setting aside the cash to pay for them, it is effectively borrowing without reflecting bond debt on its balance sheet.
Meanwhile, when the state did make required pension contributions, it often did so by floating bonds -- over $13 billion in "pension obligation notes" over the last decade. It's no surprise that in 2008, the Pew Center on the States rated Illinois' money management the third worst in the country, behind only Rhode Island and California.
Unlike tax increases and spending cuts, these gap-closing strategies make future year deficits even worse -- the state spends over $1 billion a year just to service previously-issued pension obligation bonds. Having made no real progress on its structural deficit, Illinois faces a $13 billion gap in its $32 billion 2011 general fund.
Last week, Governor Patrick Quinn proposed his FY 2011 budget, and the contents are not inspiring. Quinn's proposed budget includes delaying over $6 billion in vendor payments to the next fiscal year, and raising the state's personal and corporate income taxes by a point each. (Last year, Quinn proposed raising the personal and corporate income taxes, but was thwarted by the Democratic-controlled legislature.) These measures would combine with spending cuts to close the gap.
Illinois' low income tax, with a flat rate of 3%, serves to offset high property taxes and high sales taxes, especially in Chicago. Overall, Illinois is not a low-tax state -- in fact, it already collects more state and local taxes per capita than any Midwestern state except Minnesota. Raising income taxes would deprive the state of its one key tax environment advantages compared to its neighbors, and is the wrong answer to close the gap.
What's the consequence of foregoing the tax hike? Governor Quinn has threatened that, if his income tax increase does not pass, he will be forced to cut $1.3 billion in state aid to school districts. Legislators should take the governor up on his threat, which would represent an approximately 5% cut in total education spending, and let school districts decide whether they wish to raise property taxes to cover the gap.
Beyond education, positive fiscal reform will require getting the expense side of the state's ledger under control, especially on employee compensation and pensions. The state's required pension plan contribution has exploded to over $4.1 billion for 2011 from $1.1 billion in 2000, accounting for more than 1/8 of general fund spending and crowding out other programs. This reflects the generosity and unsustainability of public employee benefits in Illinois.
The Illinois Policy Institute, a free-market think tank based in Chicago, has promoted a creative reform on public pensions, which combines a state expenditure limit with a commitment to direct all surplus revenues into the pension fund until adequate funding is reached. New employees would be shifted to a defined contribution retirement plan that would prevent future pension funding crises.
Meanwhile, the state and localities could freeze or even cut employee wages to offset the value of generous pensions. Fewer than 2% of state employees voluntarily left their jobs in 2008, a lower figure than in any other state, which suggests that Illinois could reduce employee compensation while continuing to retain talent. (Similarly, a wage freeze at the school district level would significantly reduce the pressure from state aid cuts.)
What Illinois cannot do is go on forever with a fiscal strategy of borrowing to finance current operations. The state already has one of the worst credit ratings in America (though still better than California), which will continue to deteriorate so long as the state's structural deficit and pension underfunding problems persist. If the state fails to control spending and fix its pension problem, it is poised to follow California off a fiscal cliff.
Wednesday, March 10, 2010
Statement from Illinois Republican Party Chairman Pat Brady Regarding Gov. Quinn's Budget Proposal
From the Illinois Republican Party
Illinois Republican Party Chairman Pat Brady released the following statement regarding Governor Quinn's budget proposal:
"Governor Quinn layed out one of the most irresponsible budgets the people of Illinois have ever seen, perpetuating the status quo of massive borrowing and spending that got us into the fiscal crisis we face today. It's almost like Governor Blagojevich never left Springfield. What's worse is this address should have been given from Quinn's campaign office because it's clear his budget proposal is nothing more than political theatre to get him reelected in November. Raising taxes 33% on Illinois families is not the answer to fixing this budget mess. Republican Senator Bill Brady is in line with the people of Illinois who want fiscal responsibility and reform - neither of which Quinn is willing to bring to the table."
Illinois Republican Party Chairman Pat Brady released the following statement regarding Governor Quinn's budget proposal:
"Governor Quinn layed out one of the most irresponsible budgets the people of Illinois have ever seen, perpetuating the status quo of massive borrowing and spending that got us into the fiscal crisis we face today. It's almost like Governor Blagojevich never left Springfield. What's worse is this address should have been given from Quinn's campaign office because it's clear his budget proposal is nothing more than political theatre to get him reelected in November. Raising taxes 33% on Illinois families is not the answer to fixing this budget mess. Republican Senator Bill Brady is in line with the people of Illinois who want fiscal responsibility and reform - neither of which Quinn is willing to bring to the table."
Tuesday, March 9, 2010
Illinois Capitol Prepares for Budget Briefing and Battles
The Illinois Budget gets presented by Gov Quinn on Wednesday. Reporters get briefed this evening at 5 pm. What is interesting is that the Senate Democratic Caucus already has its satellite time booked to respond to the Gov's Budget. So it is not the case that the State Democratic Party is likely to just come out in favor of the Governor's proposals.
What is certainly a change from the Blago years, is that Gov Quinn is allowing cameras to videotape the Budget Briefing this evening. That was always off limits in the past.
What is certainly a change from the Blago years, is that Gov Quinn is allowing cameras to videotape the Budget Briefing this evening. That was always off limits in the past.
Tuesday, February 2, 2010
Durbin: President Obama's Budget Focused on Job Creation and Reducing Federal Deficit
From the Office of U.S. Senator Dick Durbin
Monday, February 1, 2010
[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) said the budget President Obama delivered to Congress today will help put millions of Americans back to work, build a new foundation for long-term prosperity and continue restoring fiscal responsibility.
“Each year, the President has a chance to clearly articulate his vision and his priorities through his budget. Today’s budget is a vision for the future that is focused on creating jobs and rebuilding our economy,” said Durbin. “This budget includes tax credits and other incentives designed to encourage new hires, it adds dramatically to education so that our kids will be prepared to succeed in college and compete in the global economy and it includes more than a billion dollars for jobs related to energy efficiency.”
The President’s 2011 Budget makes critical investments in the key areas that will help to reverse the decline in economic security that American families have experienced over the past decade with investments in job creation, education, clean energy and infrastructure.
It also reflects the Obama Administration’s commitment to tighten the government’s belt to reduce deficits in the years ahead. In this budget, the President proposes to save $250 billion by freezing all non-security related discretionary spending for three years. The freeze would exempt the budgets of the Defense Department, Homeland Security Department and the Department of Veterans Affairs.
Job Creation
The President’s budget proposes several smart, targeted initiatives that would help encourage job creation this year. It proposes to invest $100 billion in programs to help small businesses access the credit they need to expand and hire; incentives to encourage energy efficiency renovations that would put contractors to work on homes and manufacturing plants; and infrastructure projects that would employ construction firms to make our roads, trains, and airports more efficient.
ILLINOIS IMPACT: There are over 250,000 small employers and over 850,000 sole proprietors in Illinois, most of which would benefit from easier access to credit to finance expansion as the economy begins to grow again. Most of the over 3.3 million homes in Illinois could benefit from incentives to make those homes more energy efficient. There are 310 transportation projects in Illinois worth $1.3 billion that are ready to go if funding were available to put people to work.
The budget encourages the creation of as many as one million new jobs in small businesses throughout the country this year through the proposal of a Small Business Jobs and Wages Tax Cut.
ILLINOIS IMPACT: The Small Business Jobs and Wages Tax Cut could create over 43,000 jobs in Illinois.
The budget includes $237 million to purchase, activate, and operate the “supermax” state prison in Thomson, Illinois. There is a critical need for a facility to address federal prison overcrowding problems nationwide and a particularly urgent need for supermax-type bed space. There are more than 209,000 inmates in the custody of the federal Bureau of Prisons, up sharply from 202,000 last year.
ILLINOIS IMPACT: The purchase, activation and operation of Thomson Correctional Center could generate more than 3,000 jobs and inject more than $1 billion into the regional economy.
Education
The President’s budget expands access to a quality education through the largest funding increase ever requested for programs authorized by the Elementary and Secondary Education Act – a $3 billion increase to $28 billion, plus up to an additional $1 billion if the law is reauthorized by Congress.
ILLINOIS IMPACT: Less than a quarter of Illinois students graduate high school ready for college level work. The President’s budget will help prepare all students for college by investing $2.1 billion in Illinois schools, students, and teachers.
The budget invests in comprehensive education reform through a $1.35 billion increase to expand the President’s Race to the Top competition.
ILLINOIS IMPACT: Illinois was one of 41 states to submit an application for the first round of the Race to the Top competition. If Illinois’s application is successful, the state will receive between $200 million and $400 million to implement state-wide education reforms.
The budget makes college more affordable by raising the maximum Pell Grant to $5,710 and indexing the grant amount to inflation.
ILLINOIS IMPACT: The President’s budget will make $1.4 billion available to Pell Grant recipients in Illinois. This will help more than 361,000 students in the state afford college.
The budget would lessen the burden of student loan payments on recent graduates by strengthening income-based repayment so that overburdened borrowers will pay only 10% of their discretionary income in repayments and have their remaining debt forgiven after 20 years.
ILLINOIS IMPACT: College students in Illinois graduate with an average of over $20,000 in student loan debt. The President's budget expands federal student aid and reforms the student loan system so that it works for students, not lenders.
The budget would expand child care and early education funding for working parents by adding $1.6 billion to the Child Care Development Fund and $1 billion to Head Start and Early Head Start
ILLINOIS IMPACT: The President’s investment in child care would mean $268.7 million in child care assistance for Illinois families. And the investment in Head Start would help place children in high-quality early childhood programs so that they enter school ready to learn.
Energy, Science and the Environment
The President’s budget would strengthen the Great Lakes Restoration Initiative by adding $300 million for the interagency effort which targets federal funding at the most pressing environmental concerns in the Great Lakes. Last year the Obama Administration created the Great Lakes Restoration Initiative and Congress appropriated $475 million for its efforts.
ILLINOIS IMPACT: The Great Lakes Restoration Initiative is an interagency effort that targets federal funding at the most pressing environmental concerns in the Great Lakes including efforts to control the spread of Asian Carp. In December, $13 million was directed to fund emergency efforts to control Asian Carp. Next week, the Administration will be announcing its comprehensive Asian Carp plan that will address short and long term efforts by the Federal Government.
The budget builds on last year’s historic investments in energy efficiency, renewable energy and science with nearly a 7% increase in overall funding for the Department of Energy and an 8% increase for the National Science Foundation.
ILLINOIS IMPACT: Both of Illinois’ Federal labs, Argonne and Fermilab, are slated for increased funding. Argonne’s overall budget is increased to $532 million and Fermilab’s overall budget is increased to $420 million. The state of Illinois is proposed to receive over $1.3 billion in energy spending from the Department of Energy. This is nearly a 6% increase from 2010 levels.
Heath Care
The President’s budget offers more security for our communities by investing $2.5 billion for health centers to provide affordable high quality primary and preventive care to underserved populations, including the uninsured. This will allow health centers in Illinois to continue to provide care to the additional patients they served under the Recovery Act and support new health center sites.
ILLINOIS IMPACT: Since 2000, Illinois community health centers have more than doubled the number of patients—from over 400,000 to over 1 million today—a 150% increase. Last year alone, Illinois health centers provided direct health care services to over 1.1 million people.
The budget invests in the future of healthcare by providing $330 million as part of the health workforce initiative to address the shortage of health care providers in underserved areas. The Health Workforce Initiative includes $169 million in the National Health Service Corps and additional monies for the Nurse Education Loan Repayment and Scholarship Program, the Nurse Faculty Loan Program, and Dental Workforce Development Grants.
ILLINOIS IMPACT: In Illinois, 97 of the 102 counties have been designated full or partial health professional shortage areas. As the primary care shortage worsens, Illinoisans will benefit from the President’s investment in targeting funding to the neediest areas. Almost 2.2 million Illinoisans live in federally designated health professional shortage areas and are at great risk for being unable to establish a medical home because of a shortage of primary care doctors where they live. That’s 1 out of almost every 5 of Illinois’ citizens.
The budget offers stability for states and families by including $25.5 billion in additional Federal Medicaid assistance to help states maintain their Medicaid programs and ensure access to health care for millions of low-income Americans.
ILLINOIS IMPACT: Over 2.4 million Illinoisans depend on the Medicaid program including over 1 million children. The President’s budget will allow a total of almost $8 billion to help Illinois protect health care coverage for vulnerable families with dependent children as well as aged, blind, or disabled individuals
Veterans
The President’s budget expands access to high-quality health care for all of our nation's veterans. The President's budget provides record funding to the Department of Veterans Affairs, building on historic funding increases with a 20 percent total increase since 2009. $57 billion is requested for FY2011. $50.6 billion is provided in advance appropriations for the VA medical care program in 2012, so that veteran care is not hindered by budget delays. The President's budget continues enrollment of more than 500,000 moderate-income veterans into the VA health care system by 2013.
ILLINOIS IMPACT: In 2008, Illinois' five VA medical centers and 22 outpatient clinics saw over 200,000 patients from Illinois and surrounding states. Illinois veterans will benefit from an increase in medical services funding of approximately $4 billion. The budget supports the VA and Defense Department joint implementation of the Virtual Lifetime Electronic Record, which will rely heavily on the lessons learned from the soon to be complete merger of North Chicago VA Medical Center and Naval Health Clinic Great Lakes into the Captain James A. Lovell Federal Health Care Center. Illinois veterans affected by Traumatic Brain Injury and Post-Traumatic Stress disorder will get the care they need through a $5.2 billion investment in specialized care.
The budget improves veteran access to the disability, education, and other benefits they have earned as a result of service to our nation.
ILLINOIS IMPACT: The approximately 841,500 Illinois veterans stand to benefit from a variety of benefits initiatives. In 2008, over 77,000 Illinois veterans received VA compensation or pension benefits. In addition, more than 26,000 took advantage of VA sponsored education, home loan, or vocational rehabilitation programs. The President's budget allows the VA to hire thousands of new personnel to attack the current claims backlog, and puts $200 million into automated processing. According to a 2006 VA report, 2,197 Illinois veterans go homeless every night, with only 136 VA-funded beds available. The budget puts $799 million toward the administration's commitment to dramatically reduce veteran homelessness.
Transportation
The President’s budget helps promote nationally significant transportation infrastructure investments by creating the National Infrastructure Innovation and Finance Fund. The budget requests $4 billion in grants and loans for transportation projects that provide a significant economic benefit to the nation or a region.
ILLINOIS IMPACT: Last year’s Recovery Act included $1.5 billion in competitive Transportation Investment Generating Economic Recovery (TIGER) grants for nationally significant transportation projects that will provide long-term economic benefits. Last year, Illinois submitted 49 applications totaling more than $2.3 billion to DOT for this program. This new program proposed in the budget is similar to the TIGER program but will add innovative financing assistance in addition to grants for these projects.
The budget makes a significant investment in our nation’s rail infrastructure by including $1.052 billion for Amtrak’s capital costs and $563 million for operating assistance – an increase of $50 million.
ILLINOIS IMPACT: There are 1,487 Amtrak employees in Illinois, earning $98 million in wages. Amtrak’s routes from Chicago to St. Louis, Milwaukee, Carbondale, and Quincy connect 35 Illinois cities. From Chicago you can visit the over 500 cities Amtrak serves. This funding could also benefit new routes from Chicago to Rockford and the Quad Cities.
The budget continues the Obama Administration’s historic federal commitment to high speed rail. $1 billion for 2011 is proposed for the high speed rail State grant program. This funding comes on top of the $8 billion included in the recovery Act and the $2.5 billion included in the 2010 Omnibus Appropriations bill. This program will be directed by the states and is intended to create several high-speed rail corridors across the country linking regional population centers.
ILLINOIS IMPACT: Last week, the Obama Administration awarded $8 billion in grants from the Recovery Act. Illinois received $1.23 billion for work along the Chicago to St. Louis route. This grant will upgrade 2/3rd of the current track so it can handle 110 mph trains; shave up to an hour off the current trip time of 5.5 or more hours; improve on-time-performance to over 80%; upgrade stations along the corridor; and support 6,000 construction jobs. This funding could also benefit new routes from Chicago to Rockford and the Quad Cities.
Agriculture and Nutrition
The President’s budget responds to the needs of low-income Americans by continuing to support the nutrition provisions incorporated in the Recovery Act, including enhanced benefits for the Supplemental Nutrition Assistance Program (formerly known as food stamps) averaging about $20 per person per month.
ILLINOIS IMPACT: In Illinois, the SNAP program helps over 1.5 million individuals (12.3% of the population) afford groceries. This is a 41% increase in participation over 5 years ago, a sign that this help is desperately needed now. In addition, food stamps have a direct impact on the state economy—USDA research has found that $1 in food stamps generates $1.84 in total economic activity.
The budget strengthens nutrition assistance and promotes healthy eating by investing $8.1 billion in discretionary nutrition programs, which is a $400 million increase over the FY10 level. This funding supports programs such WIC and the Commodity Supplemental Food Program which provide healthy food to low-income pregnant women, new mothers, and their infants; and supports our nation’s food banks and soup kitchens through The Emergency Food Assistance Program.
ILLINOIS IMPACT: In Illinois, nearly 295,000 women and children participate in WIC, which provides low-income at-risk women and children with vouchers for nutritious supplemental food packages, nutrition education, and health and immunization referrals.
Defense
The President’s budget helps take care of our men and women in uniform. It provides a 1.4 percent basic pay raise for all servicemembers to keep their pay increases consistent with pay increases in the private sector. The budget also provides an average housing increase of 4.2 percent for servicemembers and their families. It increases military family support programs more than 3 percent above 2010 levels, to $8.8 billion, including $1.3 billion for child care services at over 800 child development centers in the U.S. and overseas. It also includes $1.9 billion for expanded counseling and assistance services to help families meet the challenges of repeated deployments and family separations.
ILLINOIS IMPACT: About 42,000 active duty and National Guard and Reserve members in Illinois will benefit from these increases. In 2008, servicemembers, Department of Defense civilian employees, and military retirees from Illinois received $2.49 billion in pay. The budget will help fund the child development centers at Scott Air Force Base and the Rock Island Arsenal.
The budget provides quality health care for servicemembers, their families, and military retirees. It provides $30.9 billion overall for health care for the 9.5 million servicemembers, military family members, and military retirees who receive health care through the military’s TRICARE program. This amount includes $669 million to provide care for traumatic brain injury and psychological health and another $250 million for continued research in these areas.
ILLINOIS IMPACT: About 157,000 Illinois residents receive their health care through the Department of Defense’s TRICARE program.
Monday, February 1, 2010
[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) said the budget President Obama delivered to Congress today will help put millions of Americans back to work, build a new foundation for long-term prosperity and continue restoring fiscal responsibility.
“Each year, the President has a chance to clearly articulate his vision and his priorities through his budget. Today’s budget is a vision for the future that is focused on creating jobs and rebuilding our economy,” said Durbin. “This budget includes tax credits and other incentives designed to encourage new hires, it adds dramatically to education so that our kids will be prepared to succeed in college and compete in the global economy and it includes more than a billion dollars for jobs related to energy efficiency.”
The President’s 2011 Budget makes critical investments in the key areas that will help to reverse the decline in economic security that American families have experienced over the past decade with investments in job creation, education, clean energy and infrastructure.
It also reflects the Obama Administration’s commitment to tighten the government’s belt to reduce deficits in the years ahead. In this budget, the President proposes to save $250 billion by freezing all non-security related discretionary spending for three years. The freeze would exempt the budgets of the Defense Department, Homeland Security Department and the Department of Veterans Affairs.
Job Creation
The President’s budget proposes several smart, targeted initiatives that would help encourage job creation this year. It proposes to invest $100 billion in programs to help small businesses access the credit they need to expand and hire; incentives to encourage energy efficiency renovations that would put contractors to work on homes and manufacturing plants; and infrastructure projects that would employ construction firms to make our roads, trains, and airports more efficient.
ILLINOIS IMPACT: There are over 250,000 small employers and over 850,000 sole proprietors in Illinois, most of which would benefit from easier access to credit to finance expansion as the economy begins to grow again. Most of the over 3.3 million homes in Illinois could benefit from incentives to make those homes more energy efficient. There are 310 transportation projects in Illinois worth $1.3 billion that are ready to go if funding were available to put people to work.
The budget encourages the creation of as many as one million new jobs in small businesses throughout the country this year through the proposal of a Small Business Jobs and Wages Tax Cut.
ILLINOIS IMPACT: The Small Business Jobs and Wages Tax Cut could create over 43,000 jobs in Illinois.
The budget includes $237 million to purchase, activate, and operate the “supermax” state prison in Thomson, Illinois. There is a critical need for a facility to address federal prison overcrowding problems nationwide and a particularly urgent need for supermax-type bed space. There are more than 209,000 inmates in the custody of the federal Bureau of Prisons, up sharply from 202,000 last year.
ILLINOIS IMPACT: The purchase, activation and operation of Thomson Correctional Center could generate more than 3,000 jobs and inject more than $1 billion into the regional economy.
Education
The President’s budget expands access to a quality education through the largest funding increase ever requested for programs authorized by the Elementary and Secondary Education Act – a $3 billion increase to $28 billion, plus up to an additional $1 billion if the law is reauthorized by Congress.
ILLINOIS IMPACT: Less than a quarter of Illinois students graduate high school ready for college level work. The President’s budget will help prepare all students for college by investing $2.1 billion in Illinois schools, students, and teachers.
The budget invests in comprehensive education reform through a $1.35 billion increase to expand the President’s Race to the Top competition.
ILLINOIS IMPACT: Illinois was one of 41 states to submit an application for the first round of the Race to the Top competition. If Illinois’s application is successful, the state will receive between $200 million and $400 million to implement state-wide education reforms.
The budget makes college more affordable by raising the maximum Pell Grant to $5,710 and indexing the grant amount to inflation.
ILLINOIS IMPACT: The President’s budget will make $1.4 billion available to Pell Grant recipients in Illinois. This will help more than 361,000 students in the state afford college.
The budget would lessen the burden of student loan payments on recent graduates by strengthening income-based repayment so that overburdened borrowers will pay only 10% of their discretionary income in repayments and have their remaining debt forgiven after 20 years.
ILLINOIS IMPACT: College students in Illinois graduate with an average of over $20,000 in student loan debt. The President's budget expands federal student aid and reforms the student loan system so that it works for students, not lenders.
The budget would expand child care and early education funding for working parents by adding $1.6 billion to the Child Care Development Fund and $1 billion to Head Start and Early Head Start
ILLINOIS IMPACT: The President’s investment in child care would mean $268.7 million in child care assistance for Illinois families. And the investment in Head Start would help place children in high-quality early childhood programs so that they enter school ready to learn.
Energy, Science and the Environment
The President’s budget would strengthen the Great Lakes Restoration Initiative by adding $300 million for the interagency effort which targets federal funding at the most pressing environmental concerns in the Great Lakes. Last year the Obama Administration created the Great Lakes Restoration Initiative and Congress appropriated $475 million for its efforts.
ILLINOIS IMPACT: The Great Lakes Restoration Initiative is an interagency effort that targets federal funding at the most pressing environmental concerns in the Great Lakes including efforts to control the spread of Asian Carp. In December, $13 million was directed to fund emergency efforts to control Asian Carp. Next week, the Administration will be announcing its comprehensive Asian Carp plan that will address short and long term efforts by the Federal Government.
The budget builds on last year’s historic investments in energy efficiency, renewable energy and science with nearly a 7% increase in overall funding for the Department of Energy and an 8% increase for the National Science Foundation.
ILLINOIS IMPACT: Both of Illinois’ Federal labs, Argonne and Fermilab, are slated for increased funding. Argonne’s overall budget is increased to $532 million and Fermilab’s overall budget is increased to $420 million. The state of Illinois is proposed to receive over $1.3 billion in energy spending from the Department of Energy. This is nearly a 6% increase from 2010 levels.
Heath Care
The President’s budget offers more security for our communities by investing $2.5 billion for health centers to provide affordable high quality primary and preventive care to underserved populations, including the uninsured. This will allow health centers in Illinois to continue to provide care to the additional patients they served under the Recovery Act and support new health center sites.
ILLINOIS IMPACT: Since 2000, Illinois community health centers have more than doubled the number of patients—from over 400,000 to over 1 million today—a 150% increase. Last year alone, Illinois health centers provided direct health care services to over 1.1 million people.
The budget invests in the future of healthcare by providing $330 million as part of the health workforce initiative to address the shortage of health care providers in underserved areas. The Health Workforce Initiative includes $169 million in the National Health Service Corps and additional monies for the Nurse Education Loan Repayment and Scholarship Program, the Nurse Faculty Loan Program, and Dental Workforce Development Grants.
ILLINOIS IMPACT: In Illinois, 97 of the 102 counties have been designated full or partial health professional shortage areas. As the primary care shortage worsens, Illinoisans will benefit from the President’s investment in targeting funding to the neediest areas. Almost 2.2 million Illinoisans live in federally designated health professional shortage areas and are at great risk for being unable to establish a medical home because of a shortage of primary care doctors where they live. That’s 1 out of almost every 5 of Illinois’ citizens.
The budget offers stability for states and families by including $25.5 billion in additional Federal Medicaid assistance to help states maintain their Medicaid programs and ensure access to health care for millions of low-income Americans.
ILLINOIS IMPACT: Over 2.4 million Illinoisans depend on the Medicaid program including over 1 million children. The President’s budget will allow a total of almost $8 billion to help Illinois protect health care coverage for vulnerable families with dependent children as well as aged, blind, or disabled individuals
Veterans
The President’s budget expands access to high-quality health care for all of our nation's veterans. The President's budget provides record funding to the Department of Veterans Affairs, building on historic funding increases with a 20 percent total increase since 2009. $57 billion is requested for FY2011. $50.6 billion is provided in advance appropriations for the VA medical care program in 2012, so that veteran care is not hindered by budget delays. The President's budget continues enrollment of more than 500,000 moderate-income veterans into the VA health care system by 2013.
ILLINOIS IMPACT: In 2008, Illinois' five VA medical centers and 22 outpatient clinics saw over 200,000 patients from Illinois and surrounding states. Illinois veterans will benefit from an increase in medical services funding of approximately $4 billion. The budget supports the VA and Defense Department joint implementation of the Virtual Lifetime Electronic Record, which will rely heavily on the lessons learned from the soon to be complete merger of North Chicago VA Medical Center and Naval Health Clinic Great Lakes into the Captain James A. Lovell Federal Health Care Center. Illinois veterans affected by Traumatic Brain Injury and Post-Traumatic Stress disorder will get the care they need through a $5.2 billion investment in specialized care.
The budget improves veteran access to the disability, education, and other benefits they have earned as a result of service to our nation.
ILLINOIS IMPACT: The approximately 841,500 Illinois veterans stand to benefit from a variety of benefits initiatives. In 2008, over 77,000 Illinois veterans received VA compensation or pension benefits. In addition, more than 26,000 took advantage of VA sponsored education, home loan, or vocational rehabilitation programs. The President's budget allows the VA to hire thousands of new personnel to attack the current claims backlog, and puts $200 million into automated processing. According to a 2006 VA report, 2,197 Illinois veterans go homeless every night, with only 136 VA-funded beds available. The budget puts $799 million toward the administration's commitment to dramatically reduce veteran homelessness.
Transportation
The President’s budget helps promote nationally significant transportation infrastructure investments by creating the National Infrastructure Innovation and Finance Fund. The budget requests $4 billion in grants and loans for transportation projects that provide a significant economic benefit to the nation or a region.
ILLINOIS IMPACT: Last year’s Recovery Act included $1.5 billion in competitive Transportation Investment Generating Economic Recovery (TIGER) grants for nationally significant transportation projects that will provide long-term economic benefits. Last year, Illinois submitted 49 applications totaling more than $2.3 billion to DOT for this program. This new program proposed in the budget is similar to the TIGER program but will add innovative financing assistance in addition to grants for these projects.
The budget makes a significant investment in our nation’s rail infrastructure by including $1.052 billion for Amtrak’s capital costs and $563 million for operating assistance – an increase of $50 million.
ILLINOIS IMPACT: There are 1,487 Amtrak employees in Illinois, earning $98 million in wages. Amtrak’s routes from Chicago to St. Louis, Milwaukee, Carbondale, and Quincy connect 35 Illinois cities. From Chicago you can visit the over 500 cities Amtrak serves. This funding could also benefit new routes from Chicago to Rockford and the Quad Cities.
The budget continues the Obama Administration’s historic federal commitment to high speed rail. $1 billion for 2011 is proposed for the high speed rail State grant program. This funding comes on top of the $8 billion included in the recovery Act and the $2.5 billion included in the 2010 Omnibus Appropriations bill. This program will be directed by the states and is intended to create several high-speed rail corridors across the country linking regional population centers.
ILLINOIS IMPACT: Last week, the Obama Administration awarded $8 billion in grants from the Recovery Act. Illinois received $1.23 billion for work along the Chicago to St. Louis route. This grant will upgrade 2/3rd of the current track so it can handle 110 mph trains; shave up to an hour off the current trip time of 5.5 or more hours; improve on-time-performance to over 80%; upgrade stations along the corridor; and support 6,000 construction jobs. This funding could also benefit new routes from Chicago to Rockford and the Quad Cities.
Agriculture and Nutrition
The President’s budget responds to the needs of low-income Americans by continuing to support the nutrition provisions incorporated in the Recovery Act, including enhanced benefits for the Supplemental Nutrition Assistance Program (formerly known as food stamps) averaging about $20 per person per month.
ILLINOIS IMPACT: In Illinois, the SNAP program helps over 1.5 million individuals (12.3% of the population) afford groceries. This is a 41% increase in participation over 5 years ago, a sign that this help is desperately needed now. In addition, food stamps have a direct impact on the state economy—USDA research has found that $1 in food stamps generates $1.84 in total economic activity.
The budget strengthens nutrition assistance and promotes healthy eating by investing $8.1 billion in discretionary nutrition programs, which is a $400 million increase over the FY10 level. This funding supports programs such WIC and the Commodity Supplemental Food Program which provide healthy food to low-income pregnant women, new mothers, and their infants; and supports our nation’s food banks and soup kitchens through The Emergency Food Assistance Program.
ILLINOIS IMPACT: In Illinois, nearly 295,000 women and children participate in WIC, which provides low-income at-risk women and children with vouchers for nutritious supplemental food packages, nutrition education, and health and immunization referrals.
Defense
The President’s budget helps take care of our men and women in uniform. It provides a 1.4 percent basic pay raise for all servicemembers to keep their pay increases consistent with pay increases in the private sector. The budget also provides an average housing increase of 4.2 percent for servicemembers and their families. It increases military family support programs more than 3 percent above 2010 levels, to $8.8 billion, including $1.3 billion for child care services at over 800 child development centers in the U.S. and overseas. It also includes $1.9 billion for expanded counseling and assistance services to help families meet the challenges of repeated deployments and family separations.
ILLINOIS IMPACT: About 42,000 active duty and National Guard and Reserve members in Illinois will benefit from these increases. In 2008, servicemembers, Department of Defense civilian employees, and military retirees from Illinois received $2.49 billion in pay. The budget will help fund the child development centers at Scott Air Force Base and the Rock Island Arsenal.
The budget provides quality health care for servicemembers, their families, and military retirees. It provides $30.9 billion overall for health care for the 9.5 million servicemembers, military family members, and military retirees who receive health care through the military’s TRICARE program. This amount includes $669 million to provide care for traumatic brain injury and psychological health and another $250 million for continued research in these areas.
ILLINOIS IMPACT: About 157,000 Illinois residents receive their health care through the Department of Defense’s TRICARE program.
Monday, February 1, 2010
Obama Releases $3.8 TRILLION FY 2011 Budget
From the NY Times
WASHINGTON — President Obama sent Congress on Monday a proposed budget of $3.8 trillion for the fiscal year 2011, saying that his plan would produce a decade-long reduction in the deficit from $1.6 trillion this year, a shortfall swollen by $100 billion in additional tax cuts and public works spending that he is seeking right away.
Full Story:
http://www.nytimes.com/2010/02/02/us/politics/02budget.html?8au&emc=au
WASHINGTON — President Obama sent Congress on Monday a proposed budget of $3.8 trillion for the fiscal year 2011, saying that his plan would produce a decade-long reduction in the deficit from $1.6 trillion this year, a shortfall swollen by $100 billion in additional tax cuts and public works spending that he is seeking right away.
Full Story:
http://www.nytimes.com/2010/02/02/us/politics/02budget.html?8au&emc=au
Friday, January 8, 2010
State Successfully Sells $3.466 Billion of General Obligation Bonds to Fund Employee Pensions
From the Governor's Office of Management and Budget
Thursday, January 7, 2010
CHICAGO – January 7, 2010. The Governor’s Office of Management and Budget of the State of Illinois today is pleased to announce the successful sale of $3.466 Billion in taxable General Obligation Bonds at a rate of 3.854% to be deposited into the Pension Contribution Fund. Funds from these bonds will reimburse or fund the State’s required deposit to its pension systems for fiscal year 2010. The bond principal amount will be paid in equal installments over the next five years.
“This is a very successful deal for the State of Illinois and the 3.854% rate is proof the State’s economy is strong,” said Governor Pat Quinn. “Investors have expressed confidence in our State and have allowed us to meet our Pension Contribution for this fiscal year."
Close to 200 investors, including major American, European, and Asian investors purchased these bonds. Demand exceeded $8 Billion resulting in an oversubscription of $3.9 Billion-a 2 to 1 coverage. The oversubscription allowed pricing to be improved 15 basis points over initial indications.
“The level of demand for this bond issuance reflects the markets belief in the State’s long term financial strength, said David Vaught, Director of the Governor’s Office of Management and Budget.
Eleven Banks participated in this transaction including J.P. Morgan, Goldman Sachs, and Loop Capital Markets who served as Joint Book Running Senior Managers. Mesirow Financial served as Senior Manager. Seven other firms completed the underwriting syndicate. Peralta Garcia Solutions served as financial advisor to the State in connection with this financing.
“I’m very pleased with the hard work and great execution provided to the State by our bank group,” said John Sinsheimer, Director of Capital Markets for the Governor’s Office of Management and Budget.
This is the State's first issuance of medium term notes for its pension system and is the second largest deal ever done by the State. It is one of only a handful of deals this size ever completed by state issuers.
The General Assembly authorized these bonds during the July 2009 Session. In excess of $800 Million from this bond sale will be used to reimburse the Common School Fund and the General Revenue Fund for monies already advanced to the pension funds.
Thursday, January 7, 2010
CHICAGO – January 7, 2010. The Governor’s Office of Management and Budget of the State of Illinois today is pleased to announce the successful sale of $3.466 Billion in taxable General Obligation Bonds at a rate of 3.854% to be deposited into the Pension Contribution Fund. Funds from these bonds will reimburse or fund the State’s required deposit to its pension systems for fiscal year 2010. The bond principal amount will be paid in equal installments over the next five years.
“This is a very successful deal for the State of Illinois and the 3.854% rate is proof the State’s economy is strong,” said Governor Pat Quinn. “Investors have expressed confidence in our State and have allowed us to meet our Pension Contribution for this fiscal year."
Close to 200 investors, including major American, European, and Asian investors purchased these bonds. Demand exceeded $8 Billion resulting in an oversubscription of $3.9 Billion-a 2 to 1 coverage. The oversubscription allowed pricing to be improved 15 basis points over initial indications.
“The level of demand for this bond issuance reflects the markets belief in the State’s long term financial strength, said David Vaught, Director of the Governor’s Office of Management and Budget.
Eleven Banks participated in this transaction including J.P. Morgan, Goldman Sachs, and Loop Capital Markets who served as Joint Book Running Senior Managers. Mesirow Financial served as Senior Manager. Seven other firms completed the underwriting syndicate. Peralta Garcia Solutions served as financial advisor to the State in connection with this financing.
“I’m very pleased with the hard work and great execution provided to the State by our bank group,” said John Sinsheimer, Director of Capital Markets for the Governor’s Office of Management and Budget.
This is the State's first issuance of medium term notes for its pension system and is the second largest deal ever done by the State. It is one of only a handful of deals this size ever completed by state issuers.
The General Assembly authorized these bonds during the July 2009 Session. In excess of $800 Million from this bond sale will be used to reimburse the Common School Fund and the General Revenue Fund for monies already advanced to the pension funds.
Tuesday, December 8, 2009
McKenna to Air Budget Plan Today
Republican Gubernatorial candidate Andy McKenna and his running mate, Sen. Matt Murphy, will hold a press conference in Chicago today at 10:30 in which McKenna and Murphy will lay out how they plan to cut state spending, and reduce the state's budget deficit.
Monday, October 5, 2009
Governor Quinn Names Key Advisor to Lead Office of Management and Budget
From the Office of Governor Pat Quinn
CHICAGO – October 5, 2009. Governor Pat Quinn today named his Senior Advisor David Vaught as Director of the Governor’s Office of Management and Budget (GOMB). Vaught will succeed Ginger Ostro, who was named Senior Policy Advisor at the Illinois Student Assistance Commission (ISAC). These appointments are effective immediately.
“The people of Illinois will be well-served by these two experienced and hard-working public servants,” said Governor Pat Quinn. “David Vaught brings a wealth of accomplishments to his new position as Budget Chief. Also, I look forward to benefiting from Ginger Ostro’s expertise at ISAC and want to express my thanks for her fine work at GOMB.”
Vaught, an attorney and financial analyst, is Senior Advisor to Governor Quinn and Chairman of Illinois’ Procurement Policy Board. As Senior Advisor he has focused on advancing Governor’s Quinn’s legislative, fiscal and economic development efforts. Previously, Vaught worked for then-Illinois Treasurer Pat Quinn from 1991 to 1995 and served as an ISAC commissioner from 2005 to 2008. He has also been elected to two school boards and is a trustee of the Great Lakes Protection Fund.
Prior to his current state service, Vaught was Managing Director for Mitchell Vaught & Taylor, Inc. Investment Advisors. He is a graduate of the Southern Illinois University School of Law and the United States Military Academy at West Point. He also served in the U.S. Army’s 82nd Airborne Division as a field artillery officer.
“I look forward serving as Governor Quinn’s Budget Director,” said Vaught. “I am eager to take on Illinois’ unprecedented budgetary challenge and am confident that we can emerge a stronger and more resilient state.”
Ostro, who has held numerous positions in state government for nearly 20 years, was with GOMB for six years and in 2007 was named the agency’s director. She received a Bachelor's degree from the University of Chicago and a Master's degree in Public Policy from the John F. Kennedy School of Government at Harvard University.
As Senior Policy Advisor at ISAC, Ostro will focus on the agency’s strategic direction while also developing innovative ways to make college more affordable for students and their families.
"It has been an extraordinary and exhilarating six years with the Governor’s Office of Management and Budget, and a distinct honor to help Governor Quinn through the most challenging budget in state history,” said Ostro. “I look forward to continuing my service to the people of Illinois as Senior Policy Advisor at the Illinois Student Assistance Commission.”
CHICAGO – October 5, 2009. Governor Pat Quinn today named his Senior Advisor David Vaught as Director of the Governor’s Office of Management and Budget (GOMB). Vaught will succeed Ginger Ostro, who was named Senior Policy Advisor at the Illinois Student Assistance Commission (ISAC). These appointments are effective immediately.
“The people of Illinois will be well-served by these two experienced and hard-working public servants,” said Governor Pat Quinn. “David Vaught brings a wealth of accomplishments to his new position as Budget Chief. Also, I look forward to benefiting from Ginger Ostro’s expertise at ISAC and want to express my thanks for her fine work at GOMB.”
Vaught, an attorney and financial analyst, is Senior Advisor to Governor Quinn and Chairman of Illinois’ Procurement Policy Board. As Senior Advisor he has focused on advancing Governor’s Quinn’s legislative, fiscal and economic development efforts. Previously, Vaught worked for then-Illinois Treasurer Pat Quinn from 1991 to 1995 and served as an ISAC commissioner from 2005 to 2008. He has also been elected to two school boards and is a trustee of the Great Lakes Protection Fund.
Prior to his current state service, Vaught was Managing Director for Mitchell Vaught & Taylor, Inc. Investment Advisors. He is a graduate of the Southern Illinois University School of Law and the United States Military Academy at West Point. He also served in the U.S. Army’s 82nd Airborne Division as a field artillery officer.
“I look forward serving as Governor Quinn’s Budget Director,” said Vaught. “I am eager to take on Illinois’ unprecedented budgetary challenge and am confident that we can emerge a stronger and more resilient state.”
Ostro, who has held numerous positions in state government for nearly 20 years, was with GOMB for six years and in 2007 was named the agency’s director. She received a Bachelor's degree from the University of Chicago and a Master's degree in Public Policy from the John F. Kennedy School of Government at Harvard University.
As Senior Policy Advisor at ISAC, Ostro will focus on the agency’s strategic direction while also developing innovative ways to make college more affordable for students and their families.
"It has been an extraordinary and exhilarating six years with the Governor’s Office of Management and Budget, and a distinct honor to help Governor Quinn through the most challenging budget in state history,” said Ostro. “I look forward to continuing my service to the people of Illinois as Senior Policy Advisor at the Illinois Student Assistance Commission.”
Wednesday, July 15, 2009
BREAKING NEWS: House GOP Caucus Has Ended
House GOP caucus just ended. The view at the Capitol is the budget deal is done.
Tuesday, July 14, 2009
BREAKING NEWS: Tax Increase Taken Off Table
The proposed tax increase has been taken off the table. Discussion now focuses on borrowing so that social service agencies do not have to be cut. The tax increase may be discussed again if the state will run out of money in March or April.
Wednesday, June 17, 2009
Doomsday Budget Effects Make Headlines
From Jim Broadway, Publisher, State School News Service
Unless Illinois legislators pass a true, full-year FY 2010 budget - and the income tax increased required to fund it - state agencies will have to lay off 10,000 employees and non-profit social service organizations serving the poor, the ill, the elderly, veterans and children in a variety of settings will lose state grants that employ another 100,000 Illinoisans, Gov. Pat Quinn's Chief of Staff Jerome Stermer announced this week.
Among other consequences: Nearly 200,000 senior citizens would lose help with the costs of their medications; more than 140,000 poor families would lose subsidized child care services; foster care oversight caseloads would jump from 15 to 50 per DCFS agent; 145,000 low-income college students would lose 75% of their already meager MAP grants they need to continue to pursue higher education.
Infants and children, struggling young families, senior citizens - the pain of a doomsday budget reaches from the cradle to the grave. Speaking of graves, without a true budget for FY 2010, the state will have to stop paying about $1,500 each for paupers' funerals.
That's another 10,000 doomsday budget victims, assuming the number doesn't go even higher when funding for homeless shelters and food pantries is also curtailed.
The Illinois State Board of Education will surely add hundreds of thousands of young people to the list this afternoon when it begins slashing at least $400 million from its already reduced budget for discretionary (not including General State Aid and Mandated Categorical) programs.
Apparently the Board committee overseeing the cuts expects some push-back. The "public participation" segment of its meeting, which usually takes about five minutes, is scheduled to last two hours. Advocates for early childhood, career and technical, and gifted education, school technology, at-risk students, safe schools and other long-standing priorities will want to have their say before the axe falls.
Will the legislators respond to the apparent damage that will result from their insistence on keeping for Illinois the honor of having the lowest income tax in the nation, of ranking 45th among the state in per-capita support for public services at all levels? Quinn is counting on it. He is meeting with legislative leaders today to insist that the General Assembly return to Springfield next Tuesday to pass a tax increase and fix the budget.
While we admire his optimism, we doubt Quinn's goal will be reached next week. Political dynamics are now in control. Republican legislators, who have not given a single vote to any tax-hike bill, claim the governor is just trying to scare the citizens into supporting higher taxes. Democrats, who passed a tax hike in the Senate and put 42 votes on a bill for one in the House, now require GOP participation for such a politically volatile measure.
That will probably happen, but not next week. The issue now seems truly up to "the people," and they will need proof - not just projections - of the pain before they will prevail on the GOP to "do the right thing." Proof means the meals on wheels have to stop coming, facilities have to shut down, workers have to be laid off, programs they like to see in their schools have to stop. We are two months away, perhaps three, from the moment of proof.
Scandals are a distraction. Recent revelations that legislators have added getting children of their supporters admitted to the University of Illinois to the long list of hidden political perks they enjoy are starting to stink up the Capitol pretty much. Quinn has appointed a credible commission to investigate the matter. A report is due in 60 days. The Chicago Tribune, which broke the story, has had to sue the university to get more documentation on the case.
Using the university as a political asset is a bipartisan abuse of power, as are most abuses. But this one will play out in the coming weeks. Names will be named. Situations will be scrutinized. Coming as it does with the MAP grants for less affluent students being slashed just adds to the justifiable outrage spreading around the state.
Speaking of outrage, there's the Illinois Historic Preservation Agency's misuse of about $100,000 in Amistad Commission funding. The Amistad Commission was established in 2005 legislation to fund education on slavery in the United States and "vestiges of slavery" that remain in this country. Instead of putting the program with the Illinois State Board of Education where it belonged, the measure put it with Histor ic Preservation where it would be more hidden from view.
The educational materials that were to have been developed and delivered to the schools of Illinois never materialized. The potential of the Amistad Commission was never realized. Instead, a nice dinner was held for 250 people. Four "experts" were given $10,000 each, plus $1,000 for travel and lodging, to make speeches. Catering costs exceeded $18,000.
The Agency spent about $400 per invitee to this dinner.
According to a report from Illinois General William Holland [see Page 14], the Agency didn't provide receipts for its Amistad dinner expenses. About $10,000 wasn't accounted for in any way. It was just part of a scathing report of fiscal mismanagement by the agency, now headed by a woman recommended for the job by former Gov. Rod Blagojevich. She was equally incompetent as Blagojevich's appointed director of the Capital Development Board.
There will be more on this. The ISBE is fortunate to have been shut out of the Amistad program. It is a situation, on a smaller scale, consistent with the types of abuse of office that, after being revealed by Holland, led to Blagojevich's impeachment. This time, meddling legislators' careers are on the line.
We care what you think. Click here to comment to SSNS. Your policymakers may also care what you think. You may want to call, write or email them on the issues described above or other matters. Click here for their contact information, including email addresses.
Unless Illinois legislators pass a true, full-year FY 2010 budget - and the income tax increased required to fund it - state agencies will have to lay off 10,000 employees and non-profit social service organizations serving the poor, the ill, the elderly, veterans and children in a variety of settings will lose state grants that employ another 100,000 Illinoisans, Gov. Pat Quinn's Chief of Staff Jerome Stermer announced this week.
Among other consequences: Nearly 200,000 senior citizens would lose help with the costs of their medications; more than 140,000 poor families would lose subsidized child care services; foster care oversight caseloads would jump from 15 to 50 per DCFS agent; 145,000 low-income college students would lose 75% of their already meager MAP grants they need to continue to pursue higher education.
Infants and children, struggling young families, senior citizens - the pain of a doomsday budget reaches from the cradle to the grave. Speaking of graves, without a true budget for FY 2010, the state will have to stop paying about $1,500 each for paupers' funerals.
That's another 10,000 doomsday budget victims, assuming the number doesn't go even higher when funding for homeless shelters and food pantries is also curtailed.
The Illinois State Board of Education will surely add hundreds of thousands of young people to the list this afternoon when it begins slashing at least $400 million from its already reduced budget for discretionary (not including General State Aid and Mandated Categorical) programs.
Apparently the Board committee overseeing the cuts expects some push-back. The "public participation" segment of its meeting, which usually takes about five minutes, is scheduled to last two hours. Advocates for early childhood, career and technical, and gifted education, school technology, at-risk students, safe schools and other long-standing priorities will want to have their say before the axe falls.
Will the legislators respond to the apparent damage that will result from their insistence on keeping for Illinois the honor of having the lowest income tax in the nation, of ranking 45th among the state in per-capita support for public services at all levels? Quinn is counting on it. He is meeting with legislative leaders today to insist that the General Assembly return to Springfield next Tuesday to pass a tax increase and fix the budget.
While we admire his optimism, we doubt Quinn's goal will be reached next week. Political dynamics are now in control. Republican legislators, who have not given a single vote to any tax-hike bill, claim the governor is just trying to scare the citizens into supporting higher taxes. Democrats, who passed a tax hike in the Senate and put 42 votes on a bill for one in the House, now require GOP participation for such a politically volatile measure.
That will probably happen, but not next week. The issue now seems truly up to "the people," and they will need proof - not just projections - of the pain before they will prevail on the GOP to "do the right thing." Proof means the meals on wheels have to stop coming, facilities have to shut down, workers have to be laid off, programs they like to see in their schools have to stop. We are two months away, perhaps three, from the moment of proof.
Scandals are a distraction. Recent revelations that legislators have added getting children of their supporters admitted to the University of Illinois to the long list of hidden political perks they enjoy are starting to stink up the Capitol pretty much. Quinn has appointed a credible commission to investigate the matter. A report is due in 60 days. The Chicago Tribune, which broke the story, has had to sue the university to get more documentation on the case.
Using the university as a political asset is a bipartisan abuse of power, as are most abuses. But this one will play out in the coming weeks. Names will be named. Situations will be scrutinized. Coming as it does with the MAP grants for less affluent students being slashed just adds to the justifiable outrage spreading around the state.
Speaking of outrage, there's the Illinois Historic Preservation Agency's misuse of about $100,000 in Amistad Commission funding. The Amistad Commission was established in 2005 legislation to fund education on slavery in the United States and "vestiges of slavery" that remain in this country. Instead of putting the program with the Illinois State Board of Education where it belonged, the measure put it with Histor ic Preservation where it would be more hidden from view.
The educational materials that were to have been developed and delivered to the schools of Illinois never materialized. The potential of the Amistad Commission was never realized. Instead, a nice dinner was held for 250 people. Four "experts" were given $10,000 each, plus $1,000 for travel and lodging, to make speeches. Catering costs exceeded $18,000.
The Agency spent about $400 per invitee to this dinner.
According to a report from Illinois General William Holland [see Page 14], the Agency didn't provide receipts for its Amistad dinner expenses. About $10,000 wasn't accounted for in any way. It was just part of a scathing report of fiscal mismanagement by the agency, now headed by a woman recommended for the job by former Gov. Rod Blagojevich. She was equally incompetent as Blagojevich's appointed director of the Capital Development Board.
There will be more on this. The ISBE is fortunate to have been shut out of the Amistad program. It is a situation, on a smaller scale, consistent with the types of abuse of office that, after being revealed by Holland, led to Blagojevich's impeachment. This time, meddling legislators' careers are on the line.
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Tuesday, May 19, 2009
"Doomsday Budget" Stirs National Reaction
From Jim Leach, Publisher of State School News Service
In presenting a no-tax-hike “doomsday budget” – 14,000 teachers would be laid off; 650,000 citizens would lose health services – Gov. Pat Quinn put the bloggers in a frenzy Monday.
Some say the people deserve to know the consequences of the legislators’ failure to raise the revenue they need to cover all their spending impulses. Others say the governor is just using “scare tactics” to force them to accept his proposed 1.5-percentage point income tax increase.
Our friend Jim Leach, a respected broadcast journalist in Springfield, tweeted the Huffington Post site with a poignant question: “Is it wrong of me to think that, just once, a governor ought to actually sign a doomsday budget so everyone can see what it’s like?”
Quinn’s “dear citizen” message addressed the issue as simple math. The budget hole is $1.6 billion deep. Of the federal “stimulus” money, $4.1 billion can be used in FY 2010, leaving a $7.5 billion gap that can be bridged only with spending cuts.
Quinn’s analysis spreads the fiscal pain fairly evenly. From K-12 education, representing about one-third of state GRF spending, the governor would slash $1.5 billion – 20% of the cuts – costing about 14,000 teachers their jobs and eliminating pre-school for 100,000 kids.
College students, about 400,000 of them, would lose scholarships and MAP grants to save $1.2 billion. Local governments would lose $1 billion. Hundreds of thousands of senior citizens, veterans, disabled and children would lose state support they have come to rely on.
There’s a public safety component. A doomsday budget would doom 1,000 state troopers to joblessness, and force the “early release” of 6,000 inmates. The cuts would include services thought of as frills. There would be no state fair. Parks that Quinn recently reopened would be closed.
So what is it, a scare tactic or just information citizens need to know about what the state would look like if the legislators continue to be bold about spending and weak-kneed about raising the revenue?
This is a problem that frequently confronts school districts. When they need to pass a referendum, they are hit with the demand to know “or else what?” When they respond with the lists of cuts they will have to make (band, art class, clubs or – Oh, no! Not sports!) they hear the same thing.
“You’re just trying to scare us.”
Legislators are just like the general public. That’s not a bad thing, but one aspect of that is that they need to be shown the alternative before they’ll make a sacrifice. You have to show them “death” before they will accept “pain.” Perhaps my friend Jim Leach has a point.
In presenting a no-tax-hike “doomsday budget” – 14,000 teachers would be laid off; 650,000 citizens would lose health services – Gov. Pat Quinn put the bloggers in a frenzy Monday.
Some say the people deserve to know the consequences of the legislators’ failure to raise the revenue they need to cover all their spending impulses. Others say the governor is just using “scare tactics” to force them to accept his proposed 1.5-percentage point income tax increase.
Our friend Jim Leach, a respected broadcast journalist in Springfield, tweeted the Huffington Post site with a poignant question: “Is it wrong of me to think that, just once, a governor ought to actually sign a doomsday budget so everyone can see what it’s like?”
Quinn’s “dear citizen” message addressed the issue as simple math. The budget hole is $1.6 billion deep. Of the federal “stimulus” money, $4.1 billion can be used in FY 2010, leaving a $7.5 billion gap that can be bridged only with spending cuts.
Quinn’s analysis spreads the fiscal pain fairly evenly. From K-12 education, representing about one-third of state GRF spending, the governor would slash $1.5 billion – 20% of the cuts – costing about 14,000 teachers their jobs and eliminating pre-school for 100,000 kids.
College students, about 400,000 of them, would lose scholarships and MAP grants to save $1.2 billion. Local governments would lose $1 billion. Hundreds of thousands of senior citizens, veterans, disabled and children would lose state support they have come to rely on.
There’s a public safety component. A doomsday budget would doom 1,000 state troopers to joblessness, and force the “early release” of 6,000 inmates. The cuts would include services thought of as frills. There would be no state fair. Parks that Quinn recently reopened would be closed.
So what is it, a scare tactic or just information citizens need to know about what the state would look like if the legislators continue to be bold about spending and weak-kneed about raising the revenue?
This is a problem that frequently confronts school districts. When they need to pass a referendum, they are hit with the demand to know “or else what?” When they respond with the lists of cuts they will have to make (band, art class, clubs or – Oh, no! Not sports!) they hear the same thing.
“You’re just trying to scare us.”
Legislators are just like the general public. That’s not a bad thing, but one aspect of that is that they need to be shown the alternative before they’ll make a sacrifice. You have to show them “death” before they will accept “pain.” Perhaps my friend Jim Leach has a point.
AFSCME Announces "Fair Budget Illinois" Campaign
From the Office of AFSCME Council 31
Illinois’ largest union of state and university employees today launched Fair Budget Illinois, an aggressive grassroots campaign to protect public services, prevent job loss and pay the state’s bills.
The campaign from the American Federation of State, County and Municipal Employees (AFSCME) Council 31 includes:
*An initial TV ad, “No One Is Here To Take Your Call,” airing on broadcast and cable.
*A first radio ad, “Recession.”
*A new Web site, FairBudgetIL.com, where the public can get information about the budget crisis, access these and future ads, and contact state lawmakers with one click.
*Coordinated grassroots outreach to state legislators by AFSCME members across Illinois, including phone calls, e-mail, petitions and postcards.
“Every Illinoisan depends on public services, so everyone has a stake in this budget debate,” AFSCME Council 31 executive director Henry Bayer said. “A budget without new revenue will force devastating cuts to education, health care, law enforcement, transportation, human services and more. We urge legislators to support a tax increase to preserve these essential public services, prevent tens of thousands of layoffs and pay the state’s bills.”
AFSCME Council 31 represents 100,000 active and retired public-service workers across Illinois.
Illinois’ largest union of state and university employees today launched Fair Budget Illinois, an aggressive grassroots campaign to protect public services, prevent job loss and pay the state’s bills.
The campaign from the American Federation of State, County and Municipal Employees (AFSCME) Council 31 includes:
*An initial TV ad, “No One Is Here To Take Your Call,” airing on broadcast and cable.
*A first radio ad, “Recession.”
*A new Web site, FairBudgetIL.com, where the public can get information about the budget crisis, access these and future ads, and contact state lawmakers with one click.
*Coordinated grassroots outreach to state legislators by AFSCME members across Illinois, including phone calls, e-mail, petitions and postcards.
“Every Illinoisan depends on public services, so everyone has a stake in this budget debate,” AFSCME Council 31 executive director Henry Bayer said. “A budget without new revenue will force devastating cuts to education, health care, law enforcement, transportation, human services and more. We urge legislators to support a tax increase to preserve these essential public services, prevent tens of thousands of layoffs and pay the state’s bills.”
AFSCME Council 31 represents 100,000 active and retired public-service workers across Illinois.
Wednesday, April 1, 2009
Daley Puts 'Tax Swap' Concept Back on Table
From Jim Broadway, Publisher, State School News Service
The state's FY 2010 budget challenges just became even more complicated. For decades, all experts and blue-ribbon commissions studying how Illinois citizens pay for public services have arrived at the same conclusion: We rely too heavily on property taxes and not enough on state general revenue source, mainly the income tax. This imbalance cripples public services, mostly schools, where property values are low and over-burdens taxpayers where they are high.
As consequences, for example, at least one-third of Illinois schoolchildren are educated in cash strapped schools unable to meet their basic needs, while hundreds of thousands of moderate-income residents in high-property value areas are being taxed out of their homes. All experts' recommendations have called for a "tax swap" - lower property taxes and higher state taxes.
But that takes state action, and state officials are reluctant. For all the good property tax relief would do, they know they would not get credit for that; instead, they would just take the blame for the higher state taxes needed to make it possible. Thus, to address the state fiscal black hole confronting the state in the coming FY 2010, Gov. Pat Quinn has proposed a relatively small 1.5-percentage point increase in the state income tax - and no tax swap.
Combined with federal stimulus money, that would close the $11.5 billion state deficit and put the state on a strong footing to fund state obligations in coming years. But it would do nothing for property taxpayers, and Chicago Mayor Richard Daley says it is "unacceptable." He also objects to Quinn's plan to keep all revenue from his tax increase at the state level rather than sharing 10% of it with local governments as has been the law for decades.
Daley is just one more voice in the policy process, but his is a very powerful voice. With a quarter of the legislators representing his community, he exerts a huge influence on state policy. His position on the tax structure cannot be ignored.
What would it cost to add a tax-swap and maintain state-local revenue sharing in Quinn's budget?
The tax-swap alone would require about $3 billion in state funds. Let's guess the total impact of Daley's demands at about $3.5 billion. According to the most recent information on state tax proceeds [see pp. 54-62] it seems the state income tax on individuals would have to rise by 2 points, with a proportionate hike for corporations, for Daley to have his way.
That would seem to make a tax increase all but impossible to pass. But a letter is circulating now indicating that its signers will be reluctant to support any budget that does not include the tax swap Daley demands. Who signed that letter? - about 30 members of the Illinois Senate.
Complicating the argument is the fact that school leaders in areas with a huge property tax base are not keen on the swap notion. Although the citizens who fund their schools would benefit more than anyone in the state, they see the swap as a risk to their schools' funding. Tax relief for their taxpayers would rely on state funding for abatements. These school officials don't trust the state to keep its promises.
They don't feel state policymakers are very reliable. Imagine that.
At any rate, as they say at the Capitol, it's not soup yet. The legislators will finish out the week debating bills to beat Friday's third-reading deadline. Then they'll take two weeks off. Perhaps they'll confer with constituents. Perhaps they'll go some place and hide, as we all would be tempted to do. But when they return to the Capitol on April 21, they'll face five weeks of fury, more heavy lifting and politically risky votes than they've seen in six years.
Can they suck it up and get the job done by May 31? One way or another, they certainly will.
The state's FY 2010 budget challenges just became even more complicated. For decades, all experts and blue-ribbon commissions studying how Illinois citizens pay for public services have arrived at the same conclusion: We rely too heavily on property taxes and not enough on state general revenue source, mainly the income tax. This imbalance cripples public services, mostly schools, where property values are low and over-burdens taxpayers where they are high.
As consequences, for example, at least one-third of Illinois schoolchildren are educated in cash strapped schools unable to meet their basic needs, while hundreds of thousands of moderate-income residents in high-property value areas are being taxed out of their homes. All experts' recommendations have called for a "tax swap" - lower property taxes and higher state taxes.
But that takes state action, and state officials are reluctant. For all the good property tax relief would do, they know they would not get credit for that; instead, they would just take the blame for the higher state taxes needed to make it possible. Thus, to address the state fiscal black hole confronting the state in the coming FY 2010, Gov. Pat Quinn has proposed a relatively small 1.5-percentage point increase in the state income tax - and no tax swap.
Combined with federal stimulus money, that would close the $11.5 billion state deficit and put the state on a strong footing to fund state obligations in coming years. But it would do nothing for property taxpayers, and Chicago Mayor Richard Daley says it is "unacceptable." He also objects to Quinn's plan to keep all revenue from his tax increase at the state level rather than sharing 10% of it with local governments as has been the law for decades.
Daley is just one more voice in the policy process, but his is a very powerful voice. With a quarter of the legislators representing his community, he exerts a huge influence on state policy. His position on the tax structure cannot be ignored.
What would it cost to add a tax-swap and maintain state-local revenue sharing in Quinn's budget?
The tax-swap alone would require about $3 billion in state funds. Let's guess the total impact of Daley's demands at about $3.5 billion. According to the most recent information on state tax proceeds [see pp. 54-62] it seems the state income tax on individuals would have to rise by 2 points, with a proportionate hike for corporations, for Daley to have his way.
That would seem to make a tax increase all but impossible to pass. But a letter is circulating now indicating that its signers will be reluctant to support any budget that does not include the tax swap Daley demands. Who signed that letter? - about 30 members of the Illinois Senate.
Complicating the argument is the fact that school leaders in areas with a huge property tax base are not keen on the swap notion. Although the citizens who fund their schools would benefit more than anyone in the state, they see the swap as a risk to their schools' funding. Tax relief for their taxpayers would rely on state funding for abatements. These school officials don't trust the state to keep its promises.
They don't feel state policymakers are very reliable. Imagine that.
At any rate, as they say at the Capitol, it's not soup yet. The legislators will finish out the week debating bills to beat Friday's third-reading deadline. Then they'll take two weeks off. Perhaps they'll confer with constituents. Perhaps they'll go some place and hide, as we all would be tempted to do. But when they return to the Capitol on April 21, they'll face five weeks of fury, more heavy lifting and politically risky votes than they've seen in six years.
Can they suck it up and get the job done by May 31? One way or another, they certainly will.
Wednesday, March 18, 2009
Statement from Illinois GOP Chairman Andy McKenna on Gov. Quinn's Budget Address
From the Illinois Republican Party
“The efforts by Blagojevich Democrats to enact massive, job-killing tax hikes in the midst of an economic crisis, while the people of Illinois are already struggling to find good-paying jobs, are wrong.
“It is outrageous that the Party of Blagojevich, currently led by his running-mate Pat Quinn, has put Illinois eleven billion dollars in debt and now expects the hardworking men and women of this state to bail them out with job-killing tax hikes.
“Governor Quinn’s job-killing tax hikes will reach directly into the pockets of middle class families who are already struggling to make ends meet.
“Six years ago, Blagojevich Democrats promised to change the way Illinois does business but gave us the most corrupt governor in our history, out-of-control spending, lost jobs, and now want to give us our largest income tax increase in forty years.
“The people of Illinois are hungry for change and the massive tax increases proposed by Blagojevich Democrats are further proof that the current leadership is taking our state in the wrong direction.”
“The efforts by Blagojevich Democrats to enact massive, job-killing tax hikes in the midst of an economic crisis, while the people of Illinois are already struggling to find good-paying jobs, are wrong.
“It is outrageous that the Party of Blagojevich, currently led by his running-mate Pat Quinn, has put Illinois eleven billion dollars in debt and now expects the hardworking men and women of this state to bail them out with job-killing tax hikes.
“Governor Quinn’s job-killing tax hikes will reach directly into the pockets of middle class families who are already struggling to make ends meet.
“Six years ago, Blagojevich Democrats promised to change the way Illinois does business but gave us the most corrupt governor in our history, out-of-control spending, lost jobs, and now want to give us our largest income tax increase in forty years.
“The people of Illinois are hungry for change and the massive tax increases proposed by Blagojevich Democrats are further proof that the current leadership is taking our state in the wrong direction.”
Illinoisans Say Proposed Tax Hike Will Hurt
From the Illinois Republican Party
CHICAGO (AP) -- Illinois taxpayers are reacting to Gov. Pat Quinn's proposed budget with a bit of anger, resignation and, in some cases, downright fear.
In downtown Chicago, several Illinoisans said the proposed income tax hike is certainly no surprise given news of the state's $11.5 billion budget deficit.
But some say they still don't understand why they have to be the ones who pay and why the state can't do more to cut some services or address wasteful government spending.
And some echoed Janet Redmond, a 56-year old suburban Chicago school secretary. She says that because of things like unpaid furloughs she's been forced to take, the $441 income tax hike Quinn is proposing for her tax bracket will make it impossible to pay her bills.
CHICAGO (AP) -- Illinois taxpayers are reacting to Gov. Pat Quinn's proposed budget with a bit of anger, resignation and, in some cases, downright fear.
In downtown Chicago, several Illinoisans said the proposed income tax hike is certainly no surprise given news of the state's $11.5 billion budget deficit.
But some say they still don't understand why they have to be the ones who pay and why the state can't do more to cut some services or address wasteful government spending.
And some echoed Janet Redmond, a 56-year old suburban Chicago school secretary. She says that because of things like unpaid furloughs she's been forced to take, the $441 income tax hike Quinn is proposing for her tax bracket will make it impossible to pay her bills.
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