SPRINGFIELD – Illinois Comptroller Judy Baar Topinka released the following statement Wednesday in response to Governor Pat Quinn’s proposed budget, which includes $8.75 billion in new borrowing:
“Governor Quinn inherited a financial disaster from his impeached predecessor and I applaud him for working to restore our state’s fiscal integrity. But ultimately his budget proposal promises a new high in state spending and $8.75 billion in new borrowing. We need to end the disastrous pattern of ‘tax, borrow and spend’ that has put us into this mess. My solution is simple: cut spending, pay off our bills and get our house in order. Once that is done, responsible borrowing with a practical payback timeframe can be considered.
“Illinois families and employers recently endured a massive tax increase to allow the state to make ends meet. They are paying more to their state government than at any time in Illinois history, and they should expect no less than a balanced budget. Today’s proposal by the Governor still falls short of that goal, and in fact relies on borrowed money to cover-up an operating budget that is $1.7 billion higher than last year.
“The Governor’s office has indicated a willingness to work with lawmakers and Constitutional officers from both parties to find common ground, and I thank him for that offer. That dialogue provides an opportunity to move away from further discussion of taxing and borrowing, and focus on spending. We must work together to use this fiscal crisis to reassess every dollar spent, and find ways to become more efficient and do more with less. To that end, I encourage all state leaders to craft their own list of savings, or ways to stretch our tax dollars. From long-overdue changes in Medicaid to consolidation of the state’s fiscal offices, there are things we can do – and time is of the essence.”
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Showing posts with label illinois budget. Show all posts
Showing posts with label illinois budget. Show all posts
Wednesday, February 16, 2011
Thursday, February 10, 2011
IL Committee Looks at Whether State Should Require State Retirees to Pay a Portion of Healthcare Costs
The Illinois Channel will televise some of the Government Forecasting and Accountability committee hearing, which heard testimony Wednesday on whether the state should require retired state employees to pay for a portion of their healthcare costs.
While changing the pensions on retirees may be unconstitutional, healthcare costs are NOT constitutionally protected.
At this time the state spends about $457 million on RETIREE costs, covering approximately 84,100 individuals. Some of those are family members of former state workers.
Before Gov Edgar's administration, workers had to only put in only 8 years of service to the state to get a LIFETIME of free healthcare benefits. Under Gov Edgar, this was changed to 20 years of service.
Watch this issue, as a majoy tussle this spring. Should the state begin charging retirees to pay a portion of their healthcare benefits -- it could add up to a major new source of income to the state. Some of the changes however may have to wait for a new contract with state workers, which may mean any changes in benefit costs could not take effect until July 2012.
While changing the pensions on retirees may be unconstitutional, healthcare costs are NOT constitutionally protected.
At this time the state spends about $457 million on RETIREE costs, covering approximately 84,100 individuals. Some of those are family members of former state workers.
Before Gov Edgar's administration, workers had to only put in only 8 years of service to the state to get a LIFETIME of free healthcare benefits. Under Gov Edgar, this was changed to 20 years of service.
Watch this issue, as a majoy tussle this spring. Should the state begin charging retirees to pay a portion of their healthcare benefits -- it could add up to a major new source of income to the state. Some of the changes however may have to wait for a new contract with state workers, which may mean any changes in benefit costs could not take effect until July 2012.
Wednesday, May 26, 2010
The Beat Goes On: Pension Bill Passes, in Back and Forth Tug-of War on House Floor
The House voted on Tuesday to allow borrowing nearly $4 Billion to make the state's pension payment. It as one of the major dramas floating as the legislators work to wrap up a legislative session that was supposed to be ended on May 7.
The House voted earlier on Tuesday -- around 4 PM - on whether to borrow to make the payment. IT was noted by supporters of borrowing that this was the best of three bad options. Either the state borrows -- at approximately 4% -- to make the payment, OR they face a built-in 8.5% interest accumulation clause if they fail to make the payment. And the third option was to take the money that would have gone to pay those doing business with the state, and use that money to pay the pension payment. But when you pay vendors late, you have to pay 12.5 % interest on the bill.
So what do you want to pay if you're forced to borrow; 4%, 8.5%, or 12.5% ? If you picked 4% as your option, then you side with those who voted to borrow the money. Still, the bill passed by just ONE vote.
Some on the Democratic side of the aisle say the logic of lower interest rates is so clear, that the Republicans are playing pure politics on this issue by voting against it. In fact one of the more dramatic moments in the last ten years in the House came when the Governor stood on the House floor and stared down House Republican leader, Tom Cross, as Cross went into a series of ways the state is being mismanaged, and that we therefore go from one crisis to another.
And that lies at the heart of the Republican opposition to more borrowing. That by borrowing the money to make the payment, the legislature is becoming an enabler of bad policy decisions, and that the Quinn Administration - and the Legislature -- are therefore not facing the tough choices of cutting spending, regulation, and enacting pro-business policies that would lead to greater economic growth -- and thus more money to the state to balance its budget through organic revenue growth.
With these factors in place the vote on whether to borrow FAILED TO PASS on the first vote --failing BY ONE VOTE. And the irony here is Rep David Miller -- the Democratic candidate for Comptroller -- voted NO, in a parliamentary move to place him on the winning side, should the vote be defeated. The Dem leadership didn't have the vote count nailed, and thus sank the first vote themselves by having Miller vote no.
When you vote on the winning side of an issue, you can offer a Motion to Reconsider. That is to say, to allow another vote on the bill. And when it was defeated by one vote - Miller offered his Motion to Reconsider. This lead to another vote some two hours later, in which Miller voted FOR borrowing.. and the bill passed.
Even this lengthy post is a simple version of the political gamesmanship, and drama that was going on around this one issue. IT is also instructive of the horrible state of legislative cooperation-- or lack thereof -- that is hanging over every vote as the lawmakers now try again to put together some bill they'll call a budget, that will allow them to go home.
But the larger issue facing the state isn't this pension borrowing, or this year's budget. It's that the State of Illinois is not having a government facing the realities of needed cuts, needed revenue, needed reforms.. in any kind of organized cooperative fashion, that the citizens would expect of leaders trying to honestly resolve a financial crisis.
And so we won't resolve it. The financial crisis in Illinois will continue to linger.. and next year at this time... we'll be writing about just how they're going to make the pension payment. By then, we'll be past the elections. Perhaps then, with the governor's race behind us, and lawmakers safe for two years.. the tough choices will be faced, and the changes that will return fiscal sanity will be made.
But not this Spring.
The House voted earlier on Tuesday -- around 4 PM - on whether to borrow to make the payment. IT was noted by supporters of borrowing that this was the best of three bad options. Either the state borrows -- at approximately 4% -- to make the payment, OR they face a built-in 8.5% interest accumulation clause if they fail to make the payment. And the third option was to take the money that would have gone to pay those doing business with the state, and use that money to pay the pension payment. But when you pay vendors late, you have to pay 12.5 % interest on the bill.
So what do you want to pay if you're forced to borrow; 4%, 8.5%, or 12.5% ? If you picked 4% as your option, then you side with those who voted to borrow the money. Still, the bill passed by just ONE vote.
Some on the Democratic side of the aisle say the logic of lower interest rates is so clear, that the Republicans are playing pure politics on this issue by voting against it. In fact one of the more dramatic moments in the last ten years in the House came when the Governor stood on the House floor and stared down House Republican leader, Tom Cross, as Cross went into a series of ways the state is being mismanaged, and that we therefore go from one crisis to another.
And that lies at the heart of the Republican opposition to more borrowing. That by borrowing the money to make the payment, the legislature is becoming an enabler of bad policy decisions, and that the Quinn Administration - and the Legislature -- are therefore not facing the tough choices of cutting spending, regulation, and enacting pro-business policies that would lead to greater economic growth -- and thus more money to the state to balance its budget through organic revenue growth.
With these factors in place the vote on whether to borrow FAILED TO PASS on the first vote --failing BY ONE VOTE. And the irony here is Rep David Miller -- the Democratic candidate for Comptroller -- voted NO, in a parliamentary move to place him on the winning side, should the vote be defeated. The Dem leadership didn't have the vote count nailed, and thus sank the first vote themselves by having Miller vote no.
When you vote on the winning side of an issue, you can offer a Motion to Reconsider. That is to say, to allow another vote on the bill. And when it was defeated by one vote - Miller offered his Motion to Reconsider. This lead to another vote some two hours later, in which Miller voted FOR borrowing.. and the bill passed.
Even this lengthy post is a simple version of the political gamesmanship, and drama that was going on around this one issue. IT is also instructive of the horrible state of legislative cooperation-- or lack thereof -- that is hanging over every vote as the lawmakers now try again to put together some bill they'll call a budget, that will allow them to go home.
But the larger issue facing the state isn't this pension borrowing, or this year's budget. It's that the State of Illinois is not having a government facing the realities of needed cuts, needed revenue, needed reforms.. in any kind of organized cooperative fashion, that the citizens would expect of leaders trying to honestly resolve a financial crisis.
And so we won't resolve it. The financial crisis in Illinois will continue to linger.. and next year at this time... we'll be writing about just how they're going to make the pension payment. By then, we'll be past the elections. Perhaps then, with the governor's race behind us, and lawmakers safe for two years.. the tough choices will be faced, and the changes that will return fiscal sanity will be made.
But not this Spring.
Friday, May 7, 2010
IL Senate Passes $26.1 Billion Budget, Based on Skipped Pension Payments and Borrowed Funds. House Votes Friday
FROM THE CHICAGO TRIBUNE
SPRINGFIELD --- The Illinois Senate today approved a $26.1 billion operations budget after working into the early morning hours with Democrats and Republicans pointing fingers at each other in election-year gamesmanship.
Democrats who control the Senate voted 31-26 to send the spending plan to the House, which is set to consider it later today ahead of the General Assembly's scheduled spring adjournment. But first, powerful House Speaker Michael Madigan has scheduled a morning closed-door meeting of his members with Gov. Pat Quinn.
FULL STORY:
http://newsblogs.chicagotribune.com/clout_st/2010/05/illinois-senate-debates-state-budget-into-early-morning.html#more
SPRINGFIELD --- The Illinois Senate today approved a $26.1 billion operations budget after working into the early morning hours with Democrats and Republicans pointing fingers at each other in election-year gamesmanship.
Democrats who control the Senate voted 31-26 to send the spending plan to the House, which is set to consider it later today ahead of the General Assembly's scheduled spring adjournment. But first, powerful House Speaker Michael Madigan has scheduled a morning closed-door meeting of his members with Gov. Pat Quinn.
FULL STORY:
http://newsblogs.chicagotribune.com/clout_st/2010/05/illinois-senate-debates-state-budget-into-early-morning.html#more
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