By Jamey Dunn with Caitlin Rydinsky contributing
After an austere budget bill failed miserably on the House floor on Friday, House Speaker Michael Madigan said that Democrats would craft a more workable budget without an extension of the current tax rates.
The proposal failed with only five voting “yes” and 107 members voting against it. All the votes in favor of the $34.8 billion budget came from Democrats. The so-called doomsday budget would have cut education by $570 million and human services by $365 million from the current fiscal year.
Republicans decried the proposal as a stunt and not a legitimate effort to cut the budget in a responsible way. “I think it was something that was another ploy, a tactic, that is in the game plan of the speaker. We’ll have to wait and see what the real meaning was behind that vote,” said Bloomington Republican Rep. Dan Brady, who serves on the House higher education budgeting committee.
Madigan said he was not surprised that most on his side of the aisle rejected the plan. “Democrats generally are not interested in reducing government and providing less government help for people. They’re not interested in that, and so [the] democratic vote on the budget this morning should not be a surprise.” He said that Democrats on the budgeting committees in the House will meet to try and work out a plan that can pass in both chambers and be signed by Gov. Pat Quinn. “My expectation is at the end of the day, there will be at least 60 Democrats, maybe more, that will be supporting a budget which will continue to provide a good level of state services to the people of Illinois without the extension of the income tax increase.”
As the law stands, the income tax rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. A rollback of the rates would take an estimated $1.6 billion in revenue with it. Gov. Pat Quinn and Democratic legislative leaders have said they support for an extension of the rates, which are 5 percent for individuals and 7 percent for corporations. But Madigan told reporters this week that there are not enough Democrats in the House who support keeping the current rates.
One way that plan without a tax rate extension might avoid deep cuts is by reducing the amount of money the state uses to pay down its backlog of overdue bills. Such a move would likely result in schools, social services providers, doctors and others who do business with the state having to wait longer to be reimbursed for their services. The backlog is expected to be about $5.6 billion when the current fiscal year ends on June 30. That number is down from the peak level of $9.9 billion in 2010. In some cases, those owed money by the state where waiting for six months or longer to be reimbursed.
Such a move could earn the plan opponents from both parties. “I know that the amount of the unpaid bills that the sate has outstanding is of concern, not only to me but to other legislators as well, and any budget plan is going to have to have a component that pays off a substantial amount of that debt,” said Rep. Sam Yingling, a Democrat from Round Lake Beach. “I think difficult decisions are going to have to be made. Everybody knows that the state of Illinois has lived far beyond its means for a number of years, and now the state is going to have to come to grasp with the fact that it can’t afford everything its been funding. So difficult decisions are going to have to be made, and not everybody is going to be happy with those decisions.” Yingling does not support an extension of the current tax rates.
Madigan said Friday that he still supports extending the current income tax rates, but he said that getting it done is another matter. He says that only 34 members of his caucus are in favor of extending the current rates. “I’m going to continue to work for the extension of the income tax increase because my view is that the state does need more money to support the programs that are offered by the state, but 34 is a long way from 60.” Madigan said that he does not plan to send Quinn a lump sum budget or pass bills that do not match the revenue coming in, forcing the governor to make cuts.
“There’s certainly not the votes for the tax increase,” said Rep. Jack Franks, a Marengo Democrat. Franks opposes extending the current tax rate. But he says that he thinks there could be an option in between the doomsday option voted down today and the $38 billion in spending the House approved last week. Madigan put a hold on those budget bills, so they did not go over to the Senate after passage. “I think there’s a happy medium; at least there should be a compromise and I’m hoping in the next few days we’ll get closer to it.”
Still, some are hoping that House Democrats will come around to the idea of keeping the income tax increase. Weekend session has been canceled, so lawmakers from both chambers will presumably head back to their districts for the next two days. “I think that the members, at least in the House, need to come to their senses and realize that you can’t adequately fund education without adequate resources to do so,” said Homewood Democratic Rep. William Davis, who chairs the House’s K-12 education budgeting committee. “Hopefully, members will take the weekend, come to their senses and realize that we need to come back sit down and have real conversations about the priorities of the stat of Illinois and then discuss what it’s going to take to fund those priorities.”
If the House can did pass a budget somewhere in the middle, the real challenge of getting support from the Senate and Quinn would begin. Senate President John Cullerton has said that he has the support to pass an extension of the rates, and Quinn has been lobbying house members hard for a tax vote. Getting more liberal Democrats in the Senate to vote for a budget that cuts or even funds services at a flat level but delays payments to schools and vendors could be difficult.
Quinn based his budget proposal on extending the rates, expecting the sometimes-stubborn governor to back track on the budget during a close election could be unrealistic. Part of Quinn’s proposal also included a $500 rebate for home owners to defer their property tax costs—an initiative the governor was no doubt hoping to tout on the campaign trail.
Franks said of Quinn: “If there’s no additional revenue coming in, then he can’t spend any extra money. I think he may not like it, but it is going to be what it is.”
He added, “Nobody’s going to like the budget.”
Showing posts with label Gov. Pat Quinn. Show all posts
Showing posts with label Gov. Pat Quinn. Show all posts
Friday, May 23, 2014
Wednesday, May 21, 2014
Madigan tells House committees to craft a tax-rollback budget
By Jamey Dunn
House Speaker Michael Madigan said Wednesday that a proposal to extend the current tax rates is short by nearly half the votes it would need to pass. Madigan said he told budgeting committees to draft a plan that assumes the rates will begin to step down next fiscal year.
As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. A rollback of the rates would take an estimated $1.6 billion in revenue with it. Gov. Pat Quinn and Democratic legislative leaders are advocating for an extension of the rates, which are 5 percent for individuals and 7 percent for corporations.
House Democrats took a test vote on the extension behind closed doors this afternoon. Madigan said just 34 of them voted in favor of extending the current tax rates, while 30 voted “no.” A handful of Democrats did not take a stance. The proposal needs 60 votes to pass in the House, and the House Republican caucus has already taken a stance against it. “Obviously it’s a very difficult vote. It’s coming at a difficult time,” Madigan said after the caucus meeting. The plan also includes a annual $500 rebate for home owners, which Quinn has pitched as property tax relief.
Last week, the House passed spending that assumed the rates would be extended. Madigan said he has asked the chairs of the chamber's budget committees to work with committee members and present new budget bills without that revenue as soon as possible. “Our plan and our goal is to work toward the preparation of an alternative budget to the one that was adopted by the House a few days ago.”
Budgeting committees in both chambers have already held hearings on what the fallout of such a budget might be. The potential outcomes have been framed as dire and include: the closer of state prisons and the release of inmates with little to no monitoring; the layoff of thousands of teachers; the elimination of child care for many low-income families and in-home care for many seniors; the closure of all forensic labs in the state and the layoff of hundreds of state troopers. The governor also presented a budget based on the current law, which he dubbed his “not recommended budget.”
“Things are very fluid,” Quinn's spokeswoman Brooke Anderson said of Madigan's vote count. “The not-recommended budget includes radical cuts that would harm schools, students and our most vulnerable residents.” Quinn has been meeting with House Democrats individually this week to try and persuade them to support the extension.
Madigan said he thinks it is possible that some House Democrats may change their minds about the tax vote once they see what the cuts without it would look like. “As far as I’m concerned, I’m going to continue to work for the governor’s proposal. I presume the governor is going to continue to work for the proposal. However, the clock is running, and we’re getting closer to the end of the month.” The regular session is scheduled to at midnight on May 31. A budget passed after that time would require a supermajority. However, after January (and after the November general election) the requirement goes back down to a simple majority.
Madigan said he plans to ask Senate Democrats to work with the House on a version of the budget that assumes the current tax rates. A spokeswomen for Senate President John Cullerton said that Senate Democrats will collaborate with the House. But she says they would likely not be willing to pass any plan that is based on an extension of the current rates if the extension is not approved, too. “We have the votes to renew our tax rates. There is strong opposition to passing a budget that doesn’t match available revenues,” Rikeesha Phelon said in a written statement. “If the House is unable to pass revenue, we will be forced to develop budget outlines that may be balanced [but] will be insufficient to meet our budget pressures. It won’t be pretty.”
Opponents to extending that rates claim that Democratic leaders are making the budget picture look worse than it would need to be in order to gain support for their plan. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.”
Madigan said he has not put forth any other potential revenue sources. He also said that a capital construction plan is not moving forward at this time. Quinn has called for a new capital bill because the current one will run out soon. Capital construction projects may also be a lure for Democrats who are on the fence about extending the tax rates. “In my discussions with members, some of those members talked about capital projects. I didn’t,” said Madigan.
House Speaker Michael Madigan said Wednesday that a proposal to extend the current tax rates is short by nearly half the votes it would need to pass. Madigan said he told budgeting committees to draft a plan that assumes the rates will begin to step down next fiscal year.
As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. A rollback of the rates would take an estimated $1.6 billion in revenue with it. Gov. Pat Quinn and Democratic legislative leaders are advocating for an extension of the rates, which are 5 percent for individuals and 7 percent for corporations.
House Democrats took a test vote on the extension behind closed doors this afternoon. Madigan said just 34 of them voted in favor of extending the current tax rates, while 30 voted “no.” A handful of Democrats did not take a stance. The proposal needs 60 votes to pass in the House, and the House Republican caucus has already taken a stance against it. “Obviously it’s a very difficult vote. It’s coming at a difficult time,” Madigan said after the caucus meeting. The plan also includes a annual $500 rebate for home owners, which Quinn has pitched as property tax relief.
Last week, the House passed spending that assumed the rates would be extended. Madigan said he has asked the chairs of the chamber's budget committees to work with committee members and present new budget bills without that revenue as soon as possible. “Our plan and our goal is to work toward the preparation of an alternative budget to the one that was adopted by the House a few days ago.”
Budgeting committees in both chambers have already held hearings on what the fallout of such a budget might be. The potential outcomes have been framed as dire and include: the closer of state prisons and the release of inmates with little to no monitoring; the layoff of thousands of teachers; the elimination of child care for many low-income families and in-home care for many seniors; the closure of all forensic labs in the state and the layoff of hundreds of state troopers. The governor also presented a budget based on the current law, which he dubbed his “not recommended budget.”
“Things are very fluid,” Quinn's spokeswoman Brooke Anderson said of Madigan's vote count. “The not-recommended budget includes radical cuts that would harm schools, students and our most vulnerable residents.” Quinn has been meeting with House Democrats individually this week to try and persuade them to support the extension.
Madigan said he thinks it is possible that some House Democrats may change their minds about the tax vote once they see what the cuts without it would look like. “As far as I’m concerned, I’m going to continue to work for the governor’s proposal. I presume the governor is going to continue to work for the proposal. However, the clock is running, and we’re getting closer to the end of the month.” The regular session is scheduled to at midnight on May 31. A budget passed after that time would require a supermajority. However, after January (and after the November general election) the requirement goes back down to a simple majority.
Madigan said he plans to ask Senate Democrats to work with the House on a version of the budget that assumes the current tax rates. A spokeswomen for Senate President John Cullerton said that Senate Democrats will collaborate with the House. But she says they would likely not be willing to pass any plan that is based on an extension of the current rates if the extension is not approved, too. “We have the votes to renew our tax rates. There is strong opposition to passing a budget that doesn’t match available revenues,” Rikeesha Phelon said in a written statement. “If the House is unable to pass revenue, we will be forced to develop budget outlines that may be balanced [but] will be insufficient to meet our budget pressures. It won’t be pretty.”
Opponents to extending that rates claim that Democratic leaders are making the budget picture look worse than it would need to be in order to gain support for their plan. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.”
Madigan said he has not put forth any other potential revenue sources. He also said that a capital construction plan is not moving forward at this time. Quinn has called for a new capital bill because the current one will run out soon. Capital construction projects may also be a lure for Democrats who are on the fence about extending the tax rates. “In my discussions with members, some of those members talked about capital projects. I didn’t,” said Madigan.
Monday, May 19, 2014
Madigan: tax extension is "significantly" short of votes needed to pass
By Jamey Dunn with Caitlin Rydinksy contributing
House Speaker Michael Madigan said that an extension of the current income tax rates is “significantly” short of the votes needed to pass in his chamber despite Gov. Pat Quinn addressing a House Democratic caucus meeting Monday evening.
Quinn met with House Democrats behind closed doors for more than two hours Monday. The governor is advocating for an extension of the current income tax rates of rates of 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. Supporters of extending the current rates argue that allowing the rates to sunset would cause devastating cuts to education and other core areas of state government. As part of his tax plan, Quinn also wants to send an annual $500 property tax rebate to homeowners in the state. “I think we need to make sure that we properly invest in our schools. Our state over relies right now on property tax to fund education. I think we have to do better. We have to use a tax based on ability to pay, the income tax, to properly fund our schools. I spoke about that quite a bit in the caucus,” Quinn said after he addressed the Democrats.
Upon exiting the meeting, many Democrats described it as “cordial” and said that their colleagues had plenty of questions for Quinn. Rep. Elaine Nekritz, a Northbrook Democrat, described the caucus meeting as “tense.” Nekritz said she would support an extension of the current rates if it was coupled with some larger budget reforms, such as the creation of a rainy day fund. “We have a variety of opinions and thoughts on the direction that we ought to be taking, and there was a lot of that aired,” Nekritz said of the caucus. “This is a very very difficult decision for members, so I think that it just creates tension.”
Madigan said that he is working to pass the tax rates extension solely with Democratic support. No Republicans voted in favor of the temporary increase when it was approved in 2011. House Minority Leader Jim Durkin said that he does not plan on putting any votes on an extension of the rates. “Our caucus is firmly against it.” Durkin said that Republicans would make a tax vote a campaign issue for Democrats running for reelection. “It’s kind of a defining issue between the parties,” he said. “Remember, this [tax increase] was temporary three and a half years ago.”
Madigan said that Quinn worked hard to present his case, but he doesn’t know yet if any minds were changed. “I thought he did an excellent job of presenting his position, arguing for his position, taking questions. He took every question. He answered every question. He got very animated on a lot of his answers because, at times, he wasn’t hearing what he wanted to hear,” Madigan said. “I think it’s significant that there was opposition expressed from all sectors of our caucus. I’m going to continue to work to find 60 Democrats to vote for the governor’s bill. We are significantly away from 60 today.” When asked how he would get the votes, Madigan said, “It’s going to take a great deal of persuasion.” He refused to answer questions about possible alternative revenue sources or what would happen with the budget if he cannot get the votes for the extension.
Quinn’s tone was more optimistic. “You’re always building a majority on any issue; it’s a building of a majority to get to 60. I think we’re doing our very best to get that majority. I think my philosophy in life is hope for the best and work for it. So, we’re working real hard on getting those 60 votes in the House of Representatives. Obviously, we have to keep on working until we get there.”
Lawmakers who are likely targets of lobbying efforts from Quinn and Madigan were coy when approached by reporters after hearing Quinn’s arguments. Rep. Sam Yingling, a Democrat from Round Lake Beach, would not comment when asked about his reactions as he excited the meeting. Yingling is signed on as a cosponsor of a bill that would roll back the tax rates to the levels they were at before the increase. Another suburban Democrat, Rep. Fred Crespo, said his constituents are “very concerned” about the possibility of the tax rates being extended. Crespo, who is from Hoffman Estates, has previously opposed extending the rates. “There’s a lot of conversations going on, and we’ll just have to wait and see,” said Crespo. “You know, every day’s a different day.”
House Speaker Michael Madigan said that an extension of the current income tax rates is “significantly” short of the votes needed to pass in his chamber despite Gov. Pat Quinn addressing a House Democratic caucus meeting Monday evening.
Quinn met with House Democrats behind closed doors for more than two hours Monday. The governor is advocating for an extension of the current income tax rates of rates of 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. Supporters of extending the current rates argue that allowing the rates to sunset would cause devastating cuts to education and other core areas of state government. As part of his tax plan, Quinn also wants to send an annual $500 property tax rebate to homeowners in the state. “I think we need to make sure that we properly invest in our schools. Our state over relies right now on property tax to fund education. I think we have to do better. We have to use a tax based on ability to pay, the income tax, to properly fund our schools. I spoke about that quite a bit in the caucus,” Quinn said after he addressed the Democrats.
Upon exiting the meeting, many Democrats described it as “cordial” and said that their colleagues had plenty of questions for Quinn. Rep. Elaine Nekritz, a Northbrook Democrat, described the caucus meeting as “tense.” Nekritz said she would support an extension of the current rates if it was coupled with some larger budget reforms, such as the creation of a rainy day fund. “We have a variety of opinions and thoughts on the direction that we ought to be taking, and there was a lot of that aired,” Nekritz said of the caucus. “This is a very very difficult decision for members, so I think that it just creates tension.”
Madigan said that he is working to pass the tax rates extension solely with Democratic support. No Republicans voted in favor of the temporary increase when it was approved in 2011. House Minority Leader Jim Durkin said that he does not plan on putting any votes on an extension of the rates. “Our caucus is firmly against it.” Durkin said that Republicans would make a tax vote a campaign issue for Democrats running for reelection. “It’s kind of a defining issue between the parties,” he said. “Remember, this [tax increase] was temporary three and a half years ago.”
Madigan said that Quinn worked hard to present his case, but he doesn’t know yet if any minds were changed. “I thought he did an excellent job of presenting his position, arguing for his position, taking questions. He took every question. He answered every question. He got very animated on a lot of his answers because, at times, he wasn’t hearing what he wanted to hear,” Madigan said. “I think it’s significant that there was opposition expressed from all sectors of our caucus. I’m going to continue to work to find 60 Democrats to vote for the governor’s bill. We are significantly away from 60 today.” When asked how he would get the votes, Madigan said, “It’s going to take a great deal of persuasion.” He refused to answer questions about possible alternative revenue sources or what would happen with the budget if he cannot get the votes for the extension.
Quinn’s tone was more optimistic. “You’re always building a majority on any issue; it’s a building of a majority to get to 60. I think we’re doing our very best to get that majority. I think my philosophy in life is hope for the best and work for it. So, we’re working real hard on getting those 60 votes in the House of Representatives. Obviously, we have to keep on working until we get there.”
Lawmakers who are likely targets of lobbying efforts from Quinn and Madigan were coy when approached by reporters after hearing Quinn’s arguments. Rep. Sam Yingling, a Democrat from Round Lake Beach, would not comment when asked about his reactions as he excited the meeting. Yingling is signed on as a cosponsor of a bill that would roll back the tax rates to the levels they were at before the increase. Another suburban Democrat, Rep. Fred Crespo, said his constituents are “very concerned” about the possibility of the tax rates being extended. Crespo, who is from Hoffman Estates, has previously opposed extending the rates. “There’s a lot of conversations going on, and we’ll just have to wait and see,” said Crespo. “You know, every day’s a different day.”
Thursday, May 15, 2014
House approves budget bills without revenue source to cover costs
By Jamey Dunn
The House today approved budget bills for next fiscal year that would spend billions more than the amount of revenue the state would bring in under current law. UPDATE: House Speaker Michael Madigan has filed a motion that will effectively prevent the more than 70 budget bills passed today from automatically going to the Senate. Madigan told the Chicago Tribune that the move was needed in case the House wanted to further amend the bills.
Earlier in the spring session, both chambers voted on a $34.4 billion revenue projection. Now many House Democrats are backing a plan that would require more. Spending was broken down into more than 70 bills. This gave lawmakers the chance to strategically pick and choose what areas of the budget they wanted to vote to support. It also made for more than 9 hours of debate. Republicans spent much of the time crying foul. They argued that the spending bills are unconstitutional because they were approved without matching revenues. The state’s Constitution calls for a balanced budget. “We are voting today for an unconstitutional budget, plain and simple,” said House Minority Leader Jim Durkin. “The state of Illinois needs to live within its means, and we must stop this reckless pattern of insane spending.”
Rep. Ron Sandack, a Downers Grove Republican, described the process as “a shame, a sham and something I am embarrassed to be a part of.” During the debate for almost every bill, Republicans decried voting for spending that they say would require making the temporary tax increase permanent. The current income tax rates are 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. At one point during the debate, Durkin used a procedural move to try to force an end to the day’s session and slow down the process, but his motion was voted down. Democrats criticized Republicans for not presenting an alternative budget plan. “Here’s our plan. Stop spending money,” Sandack said in response.
Democrats who supported the legislation argued that lawmakers should move the appropriations bills through the process while the revenue side of the budget is still in the works because the end of session is rapidly approaching. Adjournment is scheduled for May 31. “There’s some discussion going on the revenue side. Obviously that’s not going very well,” said Hoffman Estates Democrat Rep. Fred Crespo, who presented several of the bills on the floor today. “There’s less than a week and a half left is session, and we need to come up with appropriations.”
The Democrats who presented the bills on the floor acknowledged today that the budget would need more revenue to support the plan, but they were careful to focus on their individual bills and not talk about the tax increase on the floor. Chicago Democratic Rep. Greg Harris, who chairs the human services budgeting committee, said that lawmakers must make the responsible choice to take care of those in need, such as the elderly and the disabled. He added that the funding levels would also be necessary to comply with state and federal law and several court orders that require certain services be provided.
Some Democrats opposed some or all of the spending. “You’re asking us to spend $4 billion more than what our revenue estimates indicate. You’re asking implicitly and tacitly for a tax increase. So a vote for this budget, is also a vote for a tax increase,” said Marengo Democratic Rep. Jack Franks, who was a vocal opponent of the temporary tax increase when it passed in 2011. “If we’re going to do that tax increase, let’s be honest about it. Let’s vote for it today. Let’s see if they’ve got the votes up for it, and let’s do it. Once we know what the revenues are, then we should be talking about the budget.” But Franks said he has his doubts about whether an extension of the tax rates could pass. “There’s no consensus here on raising taxes. ... We’re promising imaginary money that does not exist.”
Meanwhile, House Speaker Michael Madigan said yesterday that he is lobbying for an extension of current rates. There is also a package of changes to business taxes in the works. So the final revenue plan could be a combination of several things in addition to the income tax. Madigan said yesterday he was open to rolling back the corporate income tax rates as part of a larger “balanced package.”
Gov. Pat Quinn said today that he has been lobbying members of both parties in both chambers for a “responsible budget.” Quinn told reporters at an event in Cicero today: “The month of May is all about getting a responsible budget that invests in the future, invests in the classroom, making sure we have world class education, making sure we have [the] proper amount of money for our health care.” Quinn’s staff said that he was in Springfield meeting with lawmakers before he went to the event. “We’ll get a responsible budget, if we work together and work hard,” Quinn said. “That’s what I’m committed to, morning noon and night, getting a responsible budget that doesn’t go back in time, back to a time where Illinois had all kinds of fiscal problems.”
The plan approved today was largely based on Gov. Pat Quinn’s budget proposal, which calls for an extension of the current income tax rates. The rates are scheduled to begin stepping down in the second half of next fiscal year. The plan would increase spending for K-12 and higher education, as well as human services. The spending includes several line items specifically requested by Quinn, including increased funding to the Monetary Assistance Program (MAP) for low-income college students, additional funding for maternal and early childhood health programs, money to turn two shuttered youth centers into special treatment centers for mentally ill and substance addicted adult inmates and raises for home health care workers.
Still, the plan would not fully fund General State Aid to schools. GSA has been prorated for the last three years. The legislation passed today would fund GSA at 90 percent. Some Republicans argued that if there is going to be a tax increase, more of the money should go to education. The line item for transportation would be funded at 83 percent. “We’re spending more money than at any time in history and the question is where is the money? Cause it doggone sure is not in education,” said Rep. Chad Hays, a Catlin Republican. “Where is the money? This process doesn’t add up.” Lewiston Democratic Rep. William Davis, who is chairman of the House K-12 education budgeting committee, said that K-12 education would be getting a bigger chunk of revenue than other areas of the budget. “Tell me someone in this chamber who doesn’t run on some education platform—that they support education and want to see it fully funded? I think we all agree on that. But I think the reality is that there are always some limitations. We don’t have an unlimited pot of resources that we can use.”
In order to make it to Quinn's desk, the bills would still have to clear the Senate, where Democrats who work on the budgeting process have said they are reluctant to approve spending without the funding to match. Senate President John Cullerton has said that he has the votes to get the tax extension through his chamber, but he wants to wait and see if it can pass in the House first.
The House today approved budget bills for next fiscal year that would spend billions more than the amount of revenue the state would bring in under current law. UPDATE: House Speaker Michael Madigan has filed a motion that will effectively prevent the more than 70 budget bills passed today from automatically going to the Senate. Madigan told the Chicago Tribune that the move was needed in case the House wanted to further amend the bills.
Earlier in the spring session, both chambers voted on a $34.4 billion revenue projection. Now many House Democrats are backing a plan that would require more. Spending was broken down into more than 70 bills. This gave lawmakers the chance to strategically pick and choose what areas of the budget they wanted to vote to support. It also made for more than 9 hours of debate. Republicans spent much of the time crying foul. They argued that the spending bills are unconstitutional because they were approved without matching revenues. The state’s Constitution calls for a balanced budget. “We are voting today for an unconstitutional budget, plain and simple,” said House Minority Leader Jim Durkin. “The state of Illinois needs to live within its means, and we must stop this reckless pattern of insane spending.”
Rep. Ron Sandack, a Downers Grove Republican, described the process as “a shame, a sham and something I am embarrassed to be a part of.” During the debate for almost every bill, Republicans decried voting for spending that they say would require making the temporary tax increase permanent. The current income tax rates are 5 percent for individuals and 7 percent for corporations. As the law stands, the rates would step down to 3.75 for individuals and 5.25 for corporations half way through Fiscal Year 2015. At one point during the debate, Durkin used a procedural move to try to force an end to the day’s session and slow down the process, but his motion was voted down. Democrats criticized Republicans for not presenting an alternative budget plan. “Here’s our plan. Stop spending money,” Sandack said in response.
Democrats who supported the legislation argued that lawmakers should move the appropriations bills through the process while the revenue side of the budget is still in the works because the end of session is rapidly approaching. Adjournment is scheduled for May 31. “There’s some discussion going on the revenue side. Obviously that’s not going very well,” said Hoffman Estates Democrat Rep. Fred Crespo, who presented several of the bills on the floor today. “There’s less than a week and a half left is session, and we need to come up with appropriations.”
The Democrats who presented the bills on the floor acknowledged today that the budget would need more revenue to support the plan, but they were careful to focus on their individual bills and not talk about the tax increase on the floor. Chicago Democratic Rep. Greg Harris, who chairs the human services budgeting committee, said that lawmakers must make the responsible choice to take care of those in need, such as the elderly and the disabled. He added that the funding levels would also be necessary to comply with state and federal law and several court orders that require certain services be provided.
Some Democrats opposed some or all of the spending. “You’re asking us to spend $4 billion more than what our revenue estimates indicate. You’re asking implicitly and tacitly for a tax increase. So a vote for this budget, is also a vote for a tax increase,” said Marengo Democratic Rep. Jack Franks, who was a vocal opponent of the temporary tax increase when it passed in 2011. “If we’re going to do that tax increase, let’s be honest about it. Let’s vote for it today. Let’s see if they’ve got the votes up for it, and let’s do it. Once we know what the revenues are, then we should be talking about the budget.” But Franks said he has his doubts about whether an extension of the tax rates could pass. “There’s no consensus here on raising taxes. ... We’re promising imaginary money that does not exist.”
Meanwhile, House Speaker Michael Madigan said yesterday that he is lobbying for an extension of current rates. There is also a package of changes to business taxes in the works. So the final revenue plan could be a combination of several things in addition to the income tax. Madigan said yesterday he was open to rolling back the corporate income tax rates as part of a larger “balanced package.”
Gov. Pat Quinn said today that he has been lobbying members of both parties in both chambers for a “responsible budget.” Quinn told reporters at an event in Cicero today: “The month of May is all about getting a responsible budget that invests in the future, invests in the classroom, making sure we have world class education, making sure we have [the] proper amount of money for our health care.” Quinn’s staff said that he was in Springfield meeting with lawmakers before he went to the event. “We’ll get a responsible budget, if we work together and work hard,” Quinn said. “That’s what I’m committed to, morning noon and night, getting a responsible budget that doesn’t go back in time, back to a time where Illinois had all kinds of fiscal problems.”
The plan approved today was largely based on Gov. Pat Quinn’s budget proposal, which calls for an extension of the current income tax rates. The rates are scheduled to begin stepping down in the second half of next fiscal year. The plan would increase spending for K-12 and higher education, as well as human services. The spending includes several line items specifically requested by Quinn, including increased funding to the Monetary Assistance Program (MAP) for low-income college students, additional funding for maternal and early childhood health programs, money to turn two shuttered youth centers into special treatment centers for mentally ill and substance addicted adult inmates and raises for home health care workers.
Still, the plan would not fully fund General State Aid to schools. GSA has been prorated for the last three years. The legislation passed today would fund GSA at 90 percent. Some Republicans argued that if there is going to be a tax increase, more of the money should go to education. The line item for transportation would be funded at 83 percent. “We’re spending more money than at any time in history and the question is where is the money? Cause it doggone sure is not in education,” said Rep. Chad Hays, a Catlin Republican. “Where is the money? This process doesn’t add up.” Lewiston Democratic Rep. William Davis, who is chairman of the House K-12 education budgeting committee, said that K-12 education would be getting a bigger chunk of revenue than other areas of the budget. “Tell me someone in this chamber who doesn’t run on some education platform—that they support education and want to see it fully funded? I think we all agree on that. But I think the reality is that there are always some limitations. We don’t have an unlimited pot of resources that we can use.”
In order to make it to Quinn's desk, the bills would still have to clear the Senate, where Democrats who work on the budgeting process have said they are reluctant to approve spending without the funding to match. Senate President John Cullerton has said that he has the votes to get the tax extension through his chamber, but he wants to wait and see if it can pass in the House first.
Tuesday, May 06, 2014
Legislative panel plans probe of Quinn's anti-violence initiative
By Jamey Dunn
A legislative commission that reviews state audits voted today to activate its subpoena power to look into Gov. Pat Quinn’s troubled anti-violence program.
A scathing audit from Auditor General William Holland thrust the Neighborhood Recovery Initiative (NRI) into the spotlight earlier this year. According to the report, the program did not use a competitive bidding process to select the providers and dole out grants but instead relied on recommendations from Chicago aldermen. Auditors found that at least $2 million was unaccounted for and necessary documentation was missing, including timecards for workers.
Since the audit, the U.S. attorney's office and the Cook County prosecutor's office have both begun investigating to program. Republicans have accused the governor of using the $54 million program as a “political slush fund.” The bulk of the money for the program came from discretionary spending Quinn is allowed under the state budget. Contracts for the program were signed shortly before Quinn narrowly won the 2010 race for governor, and some of the funding began to go out shortly after Election Day.
Quinn says that he shut the NRI down as soon as he became aware that it had problems. “When it wasn’t going in the right direction, when it wasn’t doing what we wanted it to do, I shut it down completely and stopped it cold,” Quinn said today. “I didn’t sweep anything under the rug. I acted on behalf of the public and shut the program down.” Quinn is also advocating for the passage of House Bill 3820, which would require more oversight for state grants. The House passed the bill last month. “I’m ready to sign it into law. I think that that certainly is something that is an important mission.”
Sen. Jason Barickman, a Bloomington Republican, brought a motion to the Legislative Audit Commission today that would allow the bipartisan panel to subpoena witnesses or information pertaining to the NRI. The commission, which is made up of members of both chambers, reviews audits, holds public hearings with state agency heads and sometimes recommends changes to the law as a result of audit findings. “Given what we know today about this program, given the many questions that many of us have about this program, the statute makes clear that we need to further investigate, find out what facts exist and make our recommendations accordingly,” said Barickman. “It’s clear that we have more work to do to get to the bottom of this.”
The proposal received bipartisan support; however, several Democrats on the commission voiced concerns that a probe from the commission would at best produce nothing beyond what will come out during the ongoing criminal investigations and would at worst impede them. “What’s the value at the end of the day that we’ll be putting on the table?” asked Hoffman Estates Democratic Rep. Fred Crespo, who sponsors HB 3820. “What can we do that they cannot do?” Crespo and others said that the commission does not have the resources to launch a major investigation.
Barickman, who chairs the committee, and co-chair Rep. Frank Mautino, a Democrat from Spring Valley, would both have to sign off on any subpoenas issued. Mautino was the sole vote against the motion. He argued that the information the committee needs is already available and that subpoenas may be unecessary. He noted that Holland’s office has several boxes of documents related to the audit and that no legislative staffers have gone through them at this point. Mautino said that the panel should first ask for the information and witnesses it is seeking instead of resorting to subpoena powers.
Holland said he would provide the commission with any information they want. “You don’t have to subpoena the records, and you don’t have to FOIA the records. You make an appointment, you come in and you take a look. That’s the way we do business,” He said. Holland also said that state agencies are required by law to comply. Barickman said that because the agency that oversaw the program has been dissolved and some of the people who worked on the NRI have since left state government, the commission may need the legal power to compel them to cooperate.
Barickman said that today’s action would give the committee “every tool available” to look into the issue in the coming months. “We’re not scheduled to meet [again] until late August or September of 2014. So this gives us all of the tools necessary to continue with our duties over the summer.” If the commission decides to bring forward any revelations about the NRI at that next hearing, it would be pretty inopportune political timing for Quinn’s reelection bid.
Quinn called Brickman’s motion politically motivated. “Politcs as usual. It’s a political time of year. We shut the program down. That’s the bottom line. We did it two years ago.”
Barickman said Quinn has been trying to “rewrite the facts” in recent media appearances. He said that the commission’s vote today “demonstrated wholeheartedly” that “this absolutely is not a partisan issue.” But whether the power will actually come into play is yet to be seen. Mautino would have to agree to subpoenas and an equally balanced bipartisan subcommittee would then have to draft them and approve them by a majority vote. Democrats on the commission went along with today’s vote, for the most part, but they may not be as accommodating when and if the subpoenas begin to fly.
A legislative commission that reviews state audits voted today to activate its subpoena power to look into Gov. Pat Quinn’s troubled anti-violence program.
A scathing audit from Auditor General William Holland thrust the Neighborhood Recovery Initiative (NRI) into the spotlight earlier this year. According to the report, the program did not use a competitive bidding process to select the providers and dole out grants but instead relied on recommendations from Chicago aldermen. Auditors found that at least $2 million was unaccounted for and necessary documentation was missing, including timecards for workers.
Since the audit, the U.S. attorney's office and the Cook County prosecutor's office have both begun investigating to program. Republicans have accused the governor of using the $54 million program as a “political slush fund.” The bulk of the money for the program came from discretionary spending Quinn is allowed under the state budget. Contracts for the program were signed shortly before Quinn narrowly won the 2010 race for governor, and some of the funding began to go out shortly after Election Day.
Quinn says that he shut the NRI down as soon as he became aware that it had problems. “When it wasn’t going in the right direction, when it wasn’t doing what we wanted it to do, I shut it down completely and stopped it cold,” Quinn said today. “I didn’t sweep anything under the rug. I acted on behalf of the public and shut the program down.” Quinn is also advocating for the passage of House Bill 3820, which would require more oversight for state grants. The House passed the bill last month. “I’m ready to sign it into law. I think that that certainly is something that is an important mission.”
Sen. Jason Barickman, a Bloomington Republican, brought a motion to the Legislative Audit Commission today that would allow the bipartisan panel to subpoena witnesses or information pertaining to the NRI. The commission, which is made up of members of both chambers, reviews audits, holds public hearings with state agency heads and sometimes recommends changes to the law as a result of audit findings. “Given what we know today about this program, given the many questions that many of us have about this program, the statute makes clear that we need to further investigate, find out what facts exist and make our recommendations accordingly,” said Barickman. “It’s clear that we have more work to do to get to the bottom of this.”
The proposal received bipartisan support; however, several Democrats on the commission voiced concerns that a probe from the commission would at best produce nothing beyond what will come out during the ongoing criminal investigations and would at worst impede them. “What’s the value at the end of the day that we’ll be putting on the table?” asked Hoffman Estates Democratic Rep. Fred Crespo, who sponsors HB 3820. “What can we do that they cannot do?” Crespo and others said that the commission does not have the resources to launch a major investigation.
Barickman, who chairs the committee, and co-chair Rep. Frank Mautino, a Democrat from Spring Valley, would both have to sign off on any subpoenas issued. Mautino was the sole vote against the motion. He argued that the information the committee needs is already available and that subpoenas may be unecessary. He noted that Holland’s office has several boxes of documents related to the audit and that no legislative staffers have gone through them at this point. Mautino said that the panel should first ask for the information and witnesses it is seeking instead of resorting to subpoena powers.
Holland said he would provide the commission with any information they want. “You don’t have to subpoena the records, and you don’t have to FOIA the records. You make an appointment, you come in and you take a look. That’s the way we do business,” He said. Holland also said that state agencies are required by law to comply. Barickman said that because the agency that oversaw the program has been dissolved and some of the people who worked on the NRI have since left state government, the commission may need the legal power to compel them to cooperate.
Barickman said that today’s action would give the committee “every tool available” to look into the issue in the coming months. “We’re not scheduled to meet [again] until late August or September of 2014. So this gives us all of the tools necessary to continue with our duties over the summer.” If the commission decides to bring forward any revelations about the NRI at that next hearing, it would be pretty inopportune political timing for Quinn’s reelection bid.
Quinn called Brickman’s motion politically motivated. “Politcs as usual. It’s a political time of year. We shut the program down. That’s the bottom line. We did it two years ago.”
Barickman said Quinn has been trying to “rewrite the facts” in recent media appearances. He said that the commission’s vote today “demonstrated wholeheartedly” that “this absolutely is not a partisan issue.” But whether the power will actually come into play is yet to be seen. Mautino would have to agree to subpoenas and an equally balanced bipartisan subcommittee would then have to draft them and approve them by a majority vote. Democrats on the commission went along with today’s vote, for the most part, but they may not be as accommodating when and if the subpoenas begin to fly.
Friday, April 25, 2014
What to watch: budget edition
By Jamey Dunn
Illinois lawmakers have had a two week break from the capitol, but they are scheduled to be back in session on Tuesday. As those who watch the legislature closely know, the action typically doesn’t truly get geared up until this point. But soon enough we will be immersed in the blur of activity that is May at the Statehouse. Here are some things to watch for on the budget front.
The General Assembly has until midnight on May 31 to approve a budget with a standard majority. After that time, any bills passed require a three-fifths majority to have an immediate effective date. Crafting a budget is not going to be easy this year. The temporary income tax approved in 2011 is set to begin its phaseout in the second half of Fiscal Year 2015. For months, heads of state agencies, lobbyists, public university presidents and others have come before budget committees to lay out what they say would be the dire consequences of the cuts that would be needed if the tax rates drop. Mass layoffs, facility closures, threats to public safety, spikes in K-12 class sizes and deep cuts to programs that provide care to seniors or children, have all been cited in the doom and gloom presentations.
Meanwhile, Republicans argue that the state’s budget outlook is being framed as worse than it really is. They say that Democrats are pushing a doomsday version of the budget to lay the ground work for making the temporary income tax permanent. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.” Democrats passed the increase without Republican support in 2011. It seems likely that if the want to extend the rates, they will have to go it alone again. House Speaker Michael Madigan told reporters this week that the votes aren’t there to pass it in his chamber. He said that extending the tax would be a “difficult role call.” “Every person in the legislature is going to be called upon to make a budgetary decision — either a reduction budget or an as-is budget or a slight-increase budget,” Madigan said. “And they’ll be called upon to vote for the money to support the budget that they want.”
Gov. Pat Quinn advocated for extending the current rates in his budget address. He also wants to give homeowners a $500 tax credit that he has dubbed property tax relief. Madigan and Senate President John Cullerton quickly backed the governor’s call for keeping the current rates.
A potential extension of the income tax rates is not the only tax talk legislators are going to have in the coming weeks. The sponsor of a proposal to allow the state to have a graduated income tax has said he plans to call his proposal for a vote next week. Oak Park Democratic Sen. Don Harmon’s Senate Joint Constitutional Amendment 40 would overturn the current provision in the state’s Constitution that requires Illinois to have a flat income tax. The plan would not set the rates for such a tax, but Harmon and other supporters have issued proposed rates framework. If the amendment makes it through both chambers, it would appear before voters on the general election ballot. But that seems unlikely. Harmon may be able to get the amendment through the Senate, but Madigan said that it is “significantly short” of the support needed to pass on the House. Two constitutional amendments — one that would voters from discrimination and another that would strengthen the role of victims in the judicial process — have already been approved by lawmakers and will appear on the November ballot.
Proposed tax changes relating to business in the state could also be on the way. A House committee has been focusing on the tax climate faced by Illinois businesses. The group has been taking testimony on the issue for months, but has yet to publicly present any ideas.
Before the break, a Senate committee approved a plan to change the way that the state funding is doled out to schools. Senate Bill 16 would focus more heavily on the financial need of districts. The proposal would also eliminate the individual block grant that is given to Chicago schools, something Republicans on the committee have supported. The plan would also require more spending transparency at the district level. The committee debate became heated when Republicans accused sponsor Sen. Andy Manar, a Bunker Hill Democrat, of rushing the process. The Illinois State Board of Education is working to produce numbers that would show how the changes in SB 16 would affect each school district. Republicans say that they do not want to vote on the plan until they have that information.
Manar said that lawmakers from both parties agree that the current funding formula does not work. “The idea that we can have a few premier school districts in the state that exceed every expectation ... and have an incredible number that lag behind and call that a win in the state system is not a win in my book.” The ideas behind the legislation came from a report complied by a bipartisan committee that spent more than a year considering the topic. However, Republicans say they were not involved in drafting SB 16. Manar hopes that there will eventually be bipartisan support for the bill. He says he introduced it when he did to spur debate. “We could have waited until the last week of May, negotiated behind closed doors, popped a bill out and then had a vote. That’s not the way to do this,” Manar said.
A gaming expansion always seems to be on the table as the end of spring session nears. But getting it done is a difficult task. Putting together a bill that will make all the powerful groups involved happy, or at least not irate, is a balancing act, so is figuring out how to spread around the potential revenues in a way that will please or at least appease lawmakers. And even when gambling expansions have passed, Quinn has vetoed them. This time around, the governor has made some positive comments about expanding gambling. “You’ve got to have strong ethical standards, and I think they need to be enforced, and it has to be done by the independent Illinois Gaming Board,” Quinn told reporters in early April. “I think we have kind of ironed that out. I think we’re on the right path.” The governor has said in the past that he would not support an expansion unless the revenues went to fund education.
Blue Island Democratic Rep. Robert Rita is sponsoring a bill that would allow for the creation of new casinos, including one in Chicago, and slots at horse racing tracks. However, when compared to past proposals, Rita’s bill would scale back the number of slot machines racetracks could have. Rita has another version that would only create a Chicago casino. The racing industry opposes both. It also seems that Chicago Mayor Rahm Emanuel will not throw his weight behind a Chicago casino plan at this point. Emanuel is echoing past statements from Quinn, saying that he will not focus on a casino until the city’s underfunded pension systems are addressed. The General Assembly already approved changes to the systems for city workers. Emanuel also wants changes to stabilize the systems for teachers, police officers and firefighters. Before they passed changes to the state’s pension systems, Quinn warned lawmakers not to be distracted by the “shiny” object of gaming legislation.
Check back for a guide on bills to watch as legislators make the final push toward the end of spring session.
Illinois lawmakers have had a two week break from the capitol, but they are scheduled to be back in session on Tuesday. As those who watch the legislature closely know, the action typically doesn’t truly get geared up until this point. But soon enough we will be immersed in the blur of activity that is May at the Statehouse. Here are some things to watch for on the budget front.
The General Assembly has until midnight on May 31 to approve a budget with a standard majority. After that time, any bills passed require a three-fifths majority to have an immediate effective date. Crafting a budget is not going to be easy this year. The temporary income tax approved in 2011 is set to begin its phaseout in the second half of Fiscal Year 2015. For months, heads of state agencies, lobbyists, public university presidents and others have come before budget committees to lay out what they say would be the dire consequences of the cuts that would be needed if the tax rates drop. Mass layoffs, facility closures, threats to public safety, spikes in K-12 class sizes and deep cuts to programs that provide care to seniors or children, have all been cited in the doom and gloom presentations.
Meanwhile, Republicans argue that the state’s budget outlook is being framed as worse than it really is. They say that Democrats are pushing a doomsday version of the budget to lay the ground work for making the temporary income tax permanent. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” said Palatine Sen. Matt Murphy. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.” Democrats passed the increase without Republican support in 2011. It seems likely that if the want to extend the rates, they will have to go it alone again. House Speaker Michael Madigan told reporters this week that the votes aren’t there to pass it in his chamber. He said that extending the tax would be a “difficult role call.” “Every person in the legislature is going to be called upon to make a budgetary decision — either a reduction budget or an as-is budget or a slight-increase budget,” Madigan said. “And they’ll be called upon to vote for the money to support the budget that they want.”
Gov. Pat Quinn advocated for extending the current rates in his budget address. He also wants to give homeowners a $500 tax credit that he has dubbed property tax relief. Madigan and Senate President John Cullerton quickly backed the governor’s call for keeping the current rates.
A potential extension of the income tax rates is not the only tax talk legislators are going to have in the coming weeks. The sponsor of a proposal to allow the state to have a graduated income tax has said he plans to call his proposal for a vote next week. Oak Park Democratic Sen. Don Harmon’s Senate Joint Constitutional Amendment 40 would overturn the current provision in the state’s Constitution that requires Illinois to have a flat income tax. The plan would not set the rates for such a tax, but Harmon and other supporters have issued proposed rates framework. If the amendment makes it through both chambers, it would appear before voters on the general election ballot. But that seems unlikely. Harmon may be able to get the amendment through the Senate, but Madigan said that it is “significantly short” of the support needed to pass on the House. Two constitutional amendments — one that would voters from discrimination and another that would strengthen the role of victims in the judicial process — have already been approved by lawmakers and will appear on the November ballot.
Proposed tax changes relating to business in the state could also be on the way. A House committee has been focusing on the tax climate faced by Illinois businesses. The group has been taking testimony on the issue for months, but has yet to publicly present any ideas.
Before the break, a Senate committee approved a plan to change the way that the state funding is doled out to schools. Senate Bill 16 would focus more heavily on the financial need of districts. The proposal would also eliminate the individual block grant that is given to Chicago schools, something Republicans on the committee have supported. The plan would also require more spending transparency at the district level. The committee debate became heated when Republicans accused sponsor Sen. Andy Manar, a Bunker Hill Democrat, of rushing the process. The Illinois State Board of Education is working to produce numbers that would show how the changes in SB 16 would affect each school district. Republicans say that they do not want to vote on the plan until they have that information.
Manar said that lawmakers from both parties agree that the current funding formula does not work. “The idea that we can have a few premier school districts in the state that exceed every expectation ... and have an incredible number that lag behind and call that a win in the state system is not a win in my book.” The ideas behind the legislation came from a report complied by a bipartisan committee that spent more than a year considering the topic. However, Republicans say they were not involved in drafting SB 16. Manar hopes that there will eventually be bipartisan support for the bill. He says he introduced it when he did to spur debate. “We could have waited until the last week of May, negotiated behind closed doors, popped a bill out and then had a vote. That’s not the way to do this,” Manar said.
A gaming expansion always seems to be on the table as the end of spring session nears. But getting it done is a difficult task. Putting together a bill that will make all the powerful groups involved happy, or at least not irate, is a balancing act, so is figuring out how to spread around the potential revenues in a way that will please or at least appease lawmakers. And even when gambling expansions have passed, Quinn has vetoed them. This time around, the governor has made some positive comments about expanding gambling. “You’ve got to have strong ethical standards, and I think they need to be enforced, and it has to be done by the independent Illinois Gaming Board,” Quinn told reporters in early April. “I think we have kind of ironed that out. I think we’re on the right path.” The governor has said in the past that he would not support an expansion unless the revenues went to fund education.
Blue Island Democratic Rep. Robert Rita is sponsoring a bill that would allow for the creation of new casinos, including one in Chicago, and slots at horse racing tracks. However, when compared to past proposals, Rita’s bill would scale back the number of slot machines racetracks could have. Rita has another version that would only create a Chicago casino. The racing industry opposes both. It also seems that Chicago Mayor Rahm Emanuel will not throw his weight behind a Chicago casino plan at this point. Emanuel is echoing past statements from Quinn, saying that he will not focus on a casino until the city’s underfunded pension systems are addressed. The General Assembly already approved changes to the systems for city workers. Emanuel also wants changes to stabilize the systems for teachers, police officers and firefighters. Before they passed changes to the state’s pension systems, Quinn warned lawmakers not to be distracted by the “shiny” object of gaming legislation.
Check back for a guide on bills to watch as legislators make the final push toward the end of spring session.
Wednesday, April 09, 2014
Quinn bashes Rauner for Cellini statement, stays mum on Blagojevich
By Jamey Dunn
Gov. Pat Quinn took a swipe at Republican candidate for governor Bruce Rauner today after a former Republican powerbroker, who was convicted on a corruption charge, made positive statements about him.
William Cellini and Rauner attended a Republican fundraiser in Springfield yesterday. Cellini told reporters that it was the first time he had seen Rauner speak, and called him “impressive.” When asked if he planned to vote for Rauner, he said, “I've been a Republican all of my life, and he's the Republican candidate.” Cellini was convicted in 2011 of attempting to extort a Hollywood producer into giving former Democratic Gov. Rod Blagojevich a $1.5 million campaign contribution. Cellini served less than a year in federal prison.
“I think he’s now a convicted felon, and I certainty don’t want to have anything to do with him personally, and I think anybody who aspires to this office should stay clear of him and should make that crystal clear to the people of Illinois,” Quinn said an unrelated news conference today.
A statement from Rauner’s campaign said that he “obviously renounces” any endorsement from Cellini.
Quinn, who served as lieutenant governor under Blagojevich, was asked today about his own ties to the impeached former governor, who is currently doing time in a federal prison after being convicted on corruption charges. “I’m not going to get into any politics,” Quinn responded.
Gov. Pat Quinn took a swipe at Republican candidate for governor Bruce Rauner today after a former Republican powerbroker, who was convicted on a corruption charge, made positive statements about him.
William Cellini and Rauner attended a Republican fundraiser in Springfield yesterday. Cellini told reporters that it was the first time he had seen Rauner speak, and called him “impressive.” When asked if he planned to vote for Rauner, he said, “I've been a Republican all of my life, and he's the Republican candidate.” Cellini was convicted in 2011 of attempting to extort a Hollywood producer into giving former Democratic Gov. Rod Blagojevich a $1.5 million campaign contribution. Cellini served less than a year in federal prison.
“I think he’s now a convicted felon, and I certainty don’t want to have anything to do with him personally, and I think anybody who aspires to this office should stay clear of him and should make that crystal clear to the people of Illinois,” Quinn said an unrelated news conference today.
A statement from Rauner’s campaign said that he “obviously renounces” any endorsement from Cellini.
Quinn, who served as lieutenant governor under Blagojevich, was asked today about his own ties to the impeached former governor, who is currently doing time in a federal prison after being convicted on corruption charges. “I’m not going to get into any politics,” Quinn responded.
Tuesday, April 08, 2014
Chicago pension changes pass in both chambers
By Jamey Dunn
The General Assembly today approved legislation to address the funding shortfall in pensions systems for Chicago city workers.
Mayor Rahm Emanuel’s proposal to stabilize the two systems fell flat last week, but sailed through the House and Senate today. The key factor that helped spur action was the removal of a provision that would have authorized city council members to approve a property tax increase. The new version of Senate Bill 1922, which is sponsored by House Speaker Michael Madigan, allows the city to pay for the plan with property tax money or any other available revenue.
Gov. Pat Quinn is running for re-election on a budget plan that would extend the current income tax rates instead of allowing them to sunset. The potential upside to his plan for some Illinoisans is that is would also offer a $500 annual credit for homeowners that Quinn has billed as property tax relief. Quinn made negative comments about the highly unpopular tax at most public appearances lately. Needless to say the governor opposed Emanuel’s push for a property tax increase blessed by state lawmakers. He panned it yesterday by calling it a “lousy tax” and saying that the proposal was “a sketch” not a clear plan.
But Emanuel described the proposal to reporters in Chicago as: “an honest compromise between leaders of organized labor and the city to secure the pensions; secure it in a way that city can afford it and make sure that to the 61,000 people who have come to relay on it, that it will be there.” Under the measure, workers would be asked to contribute more toward their retirement and would see reductions to their cost of living increases. Retirees would not get increases in 2017, 2019 and 2025. However, retirees with pension payouts of less than $22,000 annually would receive a minimum of 1 percent increase each year and would still get an increase during the skipped years. “If you do nothing, these plans are loosing money everyday. They’re going to go belly up within a decade,” Emanuel says.
As the legislation made its way through the process today, Quinn was unwilling to say whether he supported the bill. “I have to see the final bill. I’ll take a look at it. That’s what I do with all bills.” He did tell reporters that he was encouraged by the removal of the property tax components. “I think they got the message yesterday that [the] provision in the bill was not the way to go, and I’m glad they recognized that.” However, Quinn conceded that the city would have to find money somehow to cover the cost associated with the plan. “If they have any kind of pension reform, they need to have revenue to pay for it, but there’s many different creative ways to do that.”
Republicans in the House backed the plan, saying that it has to be done. “If we do nothing—we already have the roadmap for that. It’s called the city of Detroit,” said Elmhurst Republican Dennis Reboletti. “We can’t let the city of Chicago fail. And if the aldermen there chose to do nothing or choose to raise taxes, that’s their business.” The systems are governed by state law, so the General Assembly must sign off on changes. However, the revenue component of the plan can be handled at the local level. House Minority Leader Jim Durkin echoed that sentiment. “Doing nothing is not an option,” he said during floor debate. “We can’t ignore the fact that the city of Chicago is the economic engine of this state.”
Senate Republicans did not see the issue the same way. They called on the Democrats in their chamber to put the breaks on the legislation, which they say moved too quickly. “It will be here in two weeks, and we’re happy to partner with you, but it must be a true partnership,” said Senate Minority Leader Christine Radogno. Senate Republicans say they want to know what the plan is to deal with the city’s other underfunded pensions systems for teachers, firefighters and police officers. “What’s the plan? The place is on fire up there,” Palatine Republican Sen. Matt Murphy said. Murphy said that members of his party are worried that they city might look to the state’s coffers to bail out those systems.
Chicago Democratic Sen. Kwame Raoul, who sponsored the bill in the Senate, said that it is unrealistic to wait around for an omnibus bill that addresses all the systems because different bargaining units are working out their own negotiations with the city. But he said that if the city can work out a deal with labor, like his bill, lawmakers should approve it. “It’s irresponsible for us not to act when...labor and employer, labor and the city, has come to the table [on this bill],” he said. Raoul said that 31 out of the 34 bargaining representing those affected by the plan have offered no opposition to the bill.
Speaker Madigan had a busy day on the House floor today as the chamber also approved a constitutional amendment that he is sponsoring. House Joint Constitutional Amendment Resolution 52 prohibits denying the right to vote based on a person's race, color, ethnicity, status as a member of a language minority, sex, sexual orientation, income national origin or religion. Madigan said the amendment sends the message, “that in Illinois we believe that every legal voter should be treated equally and have the ability to vote for the candidate of their choice.”
Durkin also backed the speaker’s amendment, but others on his side of the aisle panned it as unnecessary. “This is a constitutional amendment looking for a problem,” said Rep. David Reis, a Republican from Willow Hill. Reis is a sponsor of legislation that would require voters to present identification at the polls. Madigan describe such requirements as “voter suppression” during the debate of his amendment.
If the Senate approves the proposal, which seems likely, it will appear before voters on the November ballot. While Madigan has not shared any ulterior motive for the amendment, some see the proposal as geared toward brining out the Democratic base for the general election.
The General Assembly today approved legislation to address the funding shortfall in pensions systems for Chicago city workers.
Mayor Rahm Emanuel’s proposal to stabilize the two systems fell flat last week, but sailed through the House and Senate today. The key factor that helped spur action was the removal of a provision that would have authorized city council members to approve a property tax increase. The new version of Senate Bill 1922, which is sponsored by House Speaker Michael Madigan, allows the city to pay for the plan with property tax money or any other available revenue.
Gov. Pat Quinn is running for re-election on a budget plan that would extend the current income tax rates instead of allowing them to sunset. The potential upside to his plan for some Illinoisans is that is would also offer a $500 annual credit for homeowners that Quinn has billed as property tax relief. Quinn made negative comments about the highly unpopular tax at most public appearances lately. Needless to say the governor opposed Emanuel’s push for a property tax increase blessed by state lawmakers. He panned it yesterday by calling it a “lousy tax” and saying that the proposal was “a sketch” not a clear plan.
But Emanuel described the proposal to reporters in Chicago as: “an honest compromise between leaders of organized labor and the city to secure the pensions; secure it in a way that city can afford it and make sure that to the 61,000 people who have come to relay on it, that it will be there.” Under the measure, workers would be asked to contribute more toward their retirement and would see reductions to their cost of living increases. Retirees would not get increases in 2017, 2019 and 2025. However, retirees with pension payouts of less than $22,000 annually would receive a minimum of 1 percent increase each year and would still get an increase during the skipped years. “If you do nothing, these plans are loosing money everyday. They’re going to go belly up within a decade,” Emanuel says.
As the legislation made its way through the process today, Quinn was unwilling to say whether he supported the bill. “I have to see the final bill. I’ll take a look at it. That’s what I do with all bills.” He did tell reporters that he was encouraged by the removal of the property tax components. “I think they got the message yesterday that [the] provision in the bill was not the way to go, and I’m glad they recognized that.” However, Quinn conceded that the city would have to find money somehow to cover the cost associated with the plan. “If they have any kind of pension reform, they need to have revenue to pay for it, but there’s many different creative ways to do that.”
Republicans in the House backed the plan, saying that it has to be done. “If we do nothing—we already have the roadmap for that. It’s called the city of Detroit,” said Elmhurst Republican Dennis Reboletti. “We can’t let the city of Chicago fail. And if the aldermen there chose to do nothing or choose to raise taxes, that’s their business.” The systems are governed by state law, so the General Assembly must sign off on changes. However, the revenue component of the plan can be handled at the local level. House Minority Leader Jim Durkin echoed that sentiment. “Doing nothing is not an option,” he said during floor debate. “We can’t ignore the fact that the city of Chicago is the economic engine of this state.”
Senate Republicans did not see the issue the same way. They called on the Democrats in their chamber to put the breaks on the legislation, which they say moved too quickly. “It will be here in two weeks, and we’re happy to partner with you, but it must be a true partnership,” said Senate Minority Leader Christine Radogno. Senate Republicans say they want to know what the plan is to deal with the city’s other underfunded pensions systems for teachers, firefighters and police officers. “What’s the plan? The place is on fire up there,” Palatine Republican Sen. Matt Murphy said. Murphy said that members of his party are worried that they city might look to the state’s coffers to bail out those systems.
Chicago Democratic Sen. Kwame Raoul, who sponsored the bill in the Senate, said that it is unrealistic to wait around for an omnibus bill that addresses all the systems because different bargaining units are working out their own negotiations with the city. But he said that if the city can work out a deal with labor, like his bill, lawmakers should approve it. “It’s irresponsible for us not to act when...labor and employer, labor and the city, has come to the table [on this bill],” he said. Raoul said that 31 out of the 34 bargaining representing those affected by the plan have offered no opposition to the bill.
Speaker Madigan had a busy day on the House floor today as the chamber also approved a constitutional amendment that he is sponsoring. House Joint Constitutional Amendment Resolution 52 prohibits denying the right to vote based on a person's race, color, ethnicity, status as a member of a language minority, sex, sexual orientation, income national origin or religion. Madigan said the amendment sends the message, “that in Illinois we believe that every legal voter should be treated equally and have the ability to vote for the candidate of their choice.”
Durkin also backed the speaker’s amendment, but others on his side of the aisle panned it as unnecessary. “This is a constitutional amendment looking for a problem,” said Rep. David Reis, a Republican from Willow Hill. Reis is a sponsor of legislation that would require voters to present identification at the polls. Madigan describe such requirements as “voter suppression” during the debate of his amendment.
If the Senate approves the proposal, which seems likely, it will appear before voters on the November ballot. While Madigan has not shared any ulterior motive for the amendment, some see the proposal as geared toward brining out the Democratic base for the general election.
Monday, April 07, 2014
Quinn says gaming expansion talks "on the right path," pans Chicago pension plan
By Jamey Dunn
Gov. Pat Quinn today weighed in on some issues potentially facing lawmakers this spring session. The governor had some positive comments about a possible gambling expansion but criticized Chicago Mayor Rahm Emanuel’s plan to address the underfunded pension systems for city workers.
Quinn has been viewed as the roadblock to long-proposed racetrack and casino gambling expansion in the state. While the governor signed off on allowing video poker in bars, truck stops and restaurants across Illinois as part of funding for the capitol construction plan, he has twice vetoed gambling expansions for casinos and horse-racing tracks that have been sent to his desk. But he told reporters in Chicago today that he thinks some progress has been made on the topic. He said that he would not support any gambling expansion unless it has strong ethics rules and oversight from the Illinois Gaming Board. A proposed Chicago casino, which would be owned by the city, has been the target of Quinn’s scrutiny. He says he backs the idea, but so far has not liked the way lawmakers have proposed structuring the oversight of a city casino. “You’ve got to have strong ethical standards, and I think they need to be enforced, and it has to be done by the independent Illinois Gaming Board,” Quinn said today. “I think we have kind of ironed that out. I think we’re on the right path.” The governor has also said in the past that he would not support an expansion unless the revenues went to fund education.
Quinn said he is willing to meet with those supporting an expansion bill and then said he thinks the “issue could come up this year.”
The governor had less than positive things to say about Emanuel’s proposal to reduce the city’s $19.5 billion unfunded liability for its workers pensions. The plan would ask employees to pay a larger portion toward their retirement benefits and reduce their annual cost of living adjustments. The city would also increase local property taxes to bring in an additional $50 million per year for five years beginning in 2016. Pensions for police, firefighters and teachers are not included in the plan. If those systems are added in, the city’s unfunded liability is more than $29 billion.
House Speaker Michael Madigan is sponsoring the measure, which passed in committee but failed to make it to a floor vote last week. As part of his budget proposal for next fiscal year, Quinn pitched a plan to offer property tax relief to many homeowners while extending the current income tax rates. Today, Quinn said he was not impressed by the mayor’s proposal. “I wouldn’t call a bill; I would call it a sketch. It kept changing by the hour,” he said. Quinn said he wants to see a “comprehensive” proposal to address the shortfall in the city’s pension systems, but he would not offer specifics. “If they think they’re just going to gouge property taxpayers, no can do. We’re not going to go that way,” he said. “Chicago has to address its own situation with respect to pension reform, but I think they need to be a whole lot more creative than I have seen so far.”
Emanuel has pitched the concept as a hard-fought compromise worked out with unions. However, some labor groups do not support the bill. “We finally have a model that brings both reform and revenue together,” Emanuel told reporters at a different Chicago news conference today. “It was never anyone’s intention to have Springfield deal with that. That’s our responsibility. But I do believe, to actually give the 61,000 workers and retirees the certainty they deserve, you need reform and revenue. And we’ll deal with our responsibility.” The city’s pensions are governed by state law, so the General Assembly must approve any change. However, the city can increase the property tax on its own. A major sticking point in getting the bill passed is whether the increase will be included in the legislation. State lawmakers do not want to take the hit for a tax increase they believe should be approved at the local level. But unions want the security of knowing that the revenue would come with the benefit reductions instead of counting on city officials to approve the tax increase after their members’ benefits have already been cut.
Gov. Pat Quinn today weighed in on some issues potentially facing lawmakers this spring session. The governor had some positive comments about a possible gambling expansion but criticized Chicago Mayor Rahm Emanuel’s plan to address the underfunded pension systems for city workers.
Quinn has been viewed as the roadblock to long-proposed racetrack and casino gambling expansion in the state. While the governor signed off on allowing video poker in bars, truck stops and restaurants across Illinois as part of funding for the capitol construction plan, he has twice vetoed gambling expansions for casinos and horse-racing tracks that have been sent to his desk. But he told reporters in Chicago today that he thinks some progress has been made on the topic. He said that he would not support any gambling expansion unless it has strong ethics rules and oversight from the Illinois Gaming Board. A proposed Chicago casino, which would be owned by the city, has been the target of Quinn’s scrutiny. He says he backs the idea, but so far has not liked the way lawmakers have proposed structuring the oversight of a city casino. “You’ve got to have strong ethical standards, and I think they need to be enforced, and it has to be done by the independent Illinois Gaming Board,” Quinn said today. “I think we have kind of ironed that out. I think we’re on the right path.” The governor has also said in the past that he would not support an expansion unless the revenues went to fund education.
Quinn said he is willing to meet with those supporting an expansion bill and then said he thinks the “issue could come up this year.”
The governor had less than positive things to say about Emanuel’s proposal to reduce the city’s $19.5 billion unfunded liability for its workers pensions. The plan would ask employees to pay a larger portion toward their retirement benefits and reduce their annual cost of living adjustments. The city would also increase local property taxes to bring in an additional $50 million per year for five years beginning in 2016. Pensions for police, firefighters and teachers are not included in the plan. If those systems are added in, the city’s unfunded liability is more than $29 billion.
House Speaker Michael Madigan is sponsoring the measure, which passed in committee but failed to make it to a floor vote last week. As part of his budget proposal for next fiscal year, Quinn pitched a plan to offer property tax relief to many homeowners while extending the current income tax rates. Today, Quinn said he was not impressed by the mayor’s proposal. “I wouldn’t call a bill; I would call it a sketch. It kept changing by the hour,” he said. Quinn said he wants to see a “comprehensive” proposal to address the shortfall in the city’s pension systems, but he would not offer specifics. “If they think they’re just going to gouge property taxpayers, no can do. We’re not going to go that way,” he said. “Chicago has to address its own situation with respect to pension reform, but I think they need to be a whole lot more creative than I have seen so far.”
Emanuel has pitched the concept as a hard-fought compromise worked out with unions. However, some labor groups do not support the bill. “We finally have a model that brings both reform and revenue together,” Emanuel told reporters at a different Chicago news conference today. “It was never anyone’s intention to have Springfield deal with that. That’s our responsibility. But I do believe, to actually give the 61,000 workers and retirees the certainty they deserve, you need reform and revenue. And we’ll deal with our responsibility.” The city’s pensions are governed by state law, so the General Assembly must approve any change. However, the city can increase the property tax on its own. A major sticking point in getting the bill passed is whether the increase will be included in the legislation. State lawmakers do not want to take the hit for a tax increase they believe should be approved at the local level. But unions want the security of knowing that the revenue would come with the benefit reductions instead of counting on city officials to approve the tax increase after their members’ benefits have already been cut.
Wednesday, March 26, 2014
Quinn calls for making temporary income tax increase permanent
By Jamey Dunn with Caitlin Rydinsky contributing
Gov. Pat Quinn called on lawmakers to make the temporary income tax increase permanent during his budget speech today.
“The truth is, while we've taken some difficult steps to balance the budget, the issue of expiring revenue this year is a real challenge that will require another hard choice,” Quinn said in his speech to lawmakers today. Quinn presented a budget that he says reflects the severity of cuts that would be needed if the current income tax rates, which are 5 percent for individuals and 7 percent for corporations, were allowed to step down in 2015. Under current law, the rates would go to 3.75 for individuals and 5.25 for corporations half way through next fiscal year. The reduction would take more than $1.5 billion in revenues with it. Quinn also presented an alternative budget that would include revenue from extending the tax rates, and it is this second plan that the governor advocates for. “Our plan is specific, concrete and responsible. It balances the budget and doesn't shirk our responsibility to our veterans, to our children, to our working families and to our most vulnerable citizens,” he said.
Quinn offered property tax relief and an incremental doubling of the Earned Income Tax Credit as potential sweetener that might help the income tax proposal go down with voters. Homeowners would lose their current property tax credit and it would be replaced with a flat $500 refund for each owner occupied property. Quinn’s budget office estimates that such tax relief would cost $1.3 billion annually. The current credit costs about $600 million. While some homeowners currently get a tax credit that is larger than $500, Quinn’s staff said that 92 percent homeowners would be better off under his proposal. Quinn’s plan would also increase the EITC from 10 percent of the federal credit to 20 percent at a rate of 2.5 percentage points per year. The increase would cost more than $200 million annually once it reaches 20 percent. Quinn and his staff are packaging his pitch to make the tax increase permanent as a reform of the state’s tax system. His proposal also included a five-year budget “blueprint” that calls for spending caps, a rainy day fund and cutting the state’s bill payment cycle down to 30 days.
The governor's Republican opponents say he is going back on the promise of a temporary tax increase. “Pat Quinn first promised the working people of Illinois he wouldn’t raise taxes by 67 percent. He broke that promise, taking away nearly a week's worth of pay for Illinois families. Then he promised his tax hike would be temporary. Today he broke that promise too and is doubling down on his failed policies,” Republican candidate for governor Bruce Rauner said in a prepared statement. “After five years of Pat Quinn’s failed leadership, we have record tax hikes, outrageously high unemployment, massive cuts in education and there’s still a giant budget mess in Springfield. It’s now or never to save Illinois. We can balance the budget without more tax increases, if we create a growth economy, and restructure and reform our broken government. That’s what I’ll do as governor.”
They claim that Quinn and other Democrats are trying to make the fiscal situation look worse than it truly is to justify keeping the current tax rates. So what people need to remember at the end of the day [is], it’s still a tax increase. Your income tax is going to go up from where it should have been come January 1,” Senate Minority Leader Christine Radogno said. She said that Quinn’s property tax relief plan is not all it's cracked up to be because it would eliminate the current property tax credit that homeowners already receive. So they would not get $500 in addition to their current break, but in place of it.
House Minority Leader Jim Durkin said after Quinn’s speech, “the Democrats who run this building do not tell the truth about taxes and spending.” He said that spending has increased in recent years. Quinn’s staff is quick to point out that the governor never made any promises about whether he would seek an extension of the tax increase. They say that Quinn has signed budgets with billions of dollars of cuts to discretionary spending, but overall spending totals have increased some years because fixed costs, such as the required payments into the pension systems, have gone up. His campaign issued a statement this morning claiming that Rauner’s “budget plan” would result in devastating cuts to education. Rauner has yet to give details on his vision for the budget, other than saying he wants to the tax increase to roll back and that he is not prepared to take the possibility of taxing retirement income off the table. Quinn said today that he would not support taxing retirement income or charging a sales tax on many “basic” services, such as haircuts.
In his speech, the governor tried to walk a fine line between highlighting the improvements he says have happened during his time in office and making the case that the budget situation is still unstable enough to justify hanging on to the current tax rates. “Illinoia is in stronger financial position now then we were five years ago because of the hard choices we have made,” Quinn said today. Time will tell if this strategy will resonate with voters. Not surprisingly, a recent poll from the Paul Simon Public Policy Institute at Southern Illinois Carbondale found that 60 percent of voters oppose making the tax rates permanent. However, the majority of respondents liked major state services and were opposed to cutting them. Voters were also opposed to taxing retirement income or increasing sales taxes. The only new revenue source that more than half of those polled supported was expanding gambling.
Democratic lawmakers said today that they do not think voters are really aware of the progress that has been made in terms of the state's budget. “I think voters do not grasp how much progress has been made. It’s unfortunate to me that one budget address will not necessarily emblazon that in people’s minds,” said Northbrook Democratic Rep. Elaine Nekritz, who was one of the key players on recently passed changes to the state’s pensions systems. But she said that while voters may not be as aware of some of the things, such as pension reform and cuts to Medicaid costs, that have been done to help the state climb out of its budget hole, the bond rating agencies that determine the state’s credit rating do seem to have taken notice. “We are getting there. It took us a long time to get in, and I always said it’s going to take us a long time to get out.” Nekritz noted that the property tax relief in Quinn’s plan has the potential to be very popular with voters. “The number one thing I hear from constituents back home is (complaints about) their property taxes.”
The chairmen of House budgeting committees, which are considering deep cuts for their areas of the budget, said they were glad Quinn came out strongly for more revenue. “I have always not shied away from the revenue conversation so I am encourage that the governor wants to look at ways to bring new revenue or additional revenue to the state,” said Lewistown Democratic Rep. William Davis, who is chairman of the House education budgeting committee. He said that K-12 education is currently facing a $900 million cut. Davis said he supports the concept of coupling tax relief for low-income workers and homeowners with a call for new revenue.
Marion Democratic Rep. John Bradley, who is chairman of the House revenue committee, said that he does not think that an extension of the tax rates has enough support to pass in his chamber at this point. “That’s going to be a difficult issue. That was a tough vote before. So I think a lot of people will keep an open mind to it but that’s a long way from happening right now.” He said that lawmakers should be open-minded about Quinn’s ideas. “He threw it out there, and I give him credit for putting ideas out there. So now the legislature will move forward.”
Quinn’s proposal has the backing of the legislative leaders in his party. “I would commend the governor for his political courage and honesty,” House Speaker Michael Madigan told Illinois Public Television’s Jak Tichenor, host of Illinois Lawmakers. Madigan said that he “demanded” property tax relief be included in a proposal to make the tax rates permanent. “I plan to support the governor’s position on the extension of the income tax increase,” said Madigan. “If we wish to continue to provide the level of services which we’ve become accustomed to for education and other purposes, then the income tax increase should be extended.” However, Madigan said he still supports his own “tax on millionaires” to fund education. The proposal is a constitutional amendment that would place a 3 percent surcharge on any income over $1 million. Madigan said he expects that the tax issue will be “resolved” before the spring legislative session ends.
Bradley said that his committee plans to move ahead with Madigan’s millionaire tax proposal “right away.”
“I think the governor made a really bold stand basically saying ‘we’re going to keep the taxes the way they are, but we’re going to give back a whole bunch of money in property tax relief,’” Senate President John Cullerton told Tichenor. He said the proposal takes the state’s high property tax rates into consideration while also deferring “draconian cuts.” Cullerton said he did not expect Republican support, which he called “unfortunate.”
Judging from the reaction to Quinn's speech from across the aisle, Cullerton’s prediction seems dead on. “The governor is more interested in making the argument that if there is not another massive tax increase that school children would be thrown into mobile homes and would be dying in the streets. That’s the governor’s arguments here. It’s an argument of hysteria. I think the governor, his first job is not to run for governor and create a campaign based on class envy, it’s to govern,” said Sen. Dale Righter, a Republican from Mattoon. He said that Quinn should do a line-by-line review of the budget to find savings. “I think he is going to discover in his own budget there are a lot of areas that he could save money and in then the words he speaks on lower income and middle income Illinoisans can actually come to prevision. Because he will find out he doesn’t have to take more money from families.”
Gov. Pat Quinn called on lawmakers to make the temporary income tax increase permanent during his budget speech today.
“The truth is, while we've taken some difficult steps to balance the budget, the issue of expiring revenue this year is a real challenge that will require another hard choice,” Quinn said in his speech to lawmakers today. Quinn presented a budget that he says reflects the severity of cuts that would be needed if the current income tax rates, which are 5 percent for individuals and 7 percent for corporations, were allowed to step down in 2015. Under current law, the rates would go to 3.75 for individuals and 5.25 for corporations half way through next fiscal year. The reduction would take more than $1.5 billion in revenues with it. Quinn also presented an alternative budget that would include revenue from extending the tax rates, and it is this second plan that the governor advocates for. “Our plan is specific, concrete and responsible. It balances the budget and doesn't shirk our responsibility to our veterans, to our children, to our working families and to our most vulnerable citizens,” he said.
Quinn offered property tax relief and an incremental doubling of the Earned Income Tax Credit as potential sweetener that might help the income tax proposal go down with voters. Homeowners would lose their current property tax credit and it would be replaced with a flat $500 refund for each owner occupied property. Quinn’s budget office estimates that such tax relief would cost $1.3 billion annually. The current credit costs about $600 million. While some homeowners currently get a tax credit that is larger than $500, Quinn’s staff said that 92 percent homeowners would be better off under his proposal. Quinn’s plan would also increase the EITC from 10 percent of the federal credit to 20 percent at a rate of 2.5 percentage points per year. The increase would cost more than $200 million annually once it reaches 20 percent. Quinn and his staff are packaging his pitch to make the tax increase permanent as a reform of the state’s tax system. His proposal also included a five-year budget “blueprint” that calls for spending caps, a rainy day fund and cutting the state’s bill payment cycle down to 30 days.
The governor's Republican opponents say he is going back on the promise of a temporary tax increase. “Pat Quinn first promised the working people of Illinois he wouldn’t raise taxes by 67 percent. He broke that promise, taking away nearly a week's worth of pay for Illinois families. Then he promised his tax hike would be temporary. Today he broke that promise too and is doubling down on his failed policies,” Republican candidate for governor Bruce Rauner said in a prepared statement. “After five years of Pat Quinn’s failed leadership, we have record tax hikes, outrageously high unemployment, massive cuts in education and there’s still a giant budget mess in Springfield. It’s now or never to save Illinois. We can balance the budget without more tax increases, if we create a growth economy, and restructure and reform our broken government. That’s what I’ll do as governor.”
They claim that Quinn and other Democrats are trying to make the fiscal situation look worse than it truly is to justify keeping the current tax rates. So what people need to remember at the end of the day [is], it’s still a tax increase. Your income tax is going to go up from where it should have been come January 1,” Senate Minority Leader Christine Radogno said. She said that Quinn’s property tax relief plan is not all it's cracked up to be because it would eliminate the current property tax credit that homeowners already receive. So they would not get $500 in addition to their current break, but in place of it.
House Minority Leader Jim Durkin said after Quinn’s speech, “the Democrats who run this building do not tell the truth about taxes and spending.” He said that spending has increased in recent years. Quinn’s staff is quick to point out that the governor never made any promises about whether he would seek an extension of the tax increase. They say that Quinn has signed budgets with billions of dollars of cuts to discretionary spending, but overall spending totals have increased some years because fixed costs, such as the required payments into the pension systems, have gone up. His campaign issued a statement this morning claiming that Rauner’s “budget plan” would result in devastating cuts to education. Rauner has yet to give details on his vision for the budget, other than saying he wants to the tax increase to roll back and that he is not prepared to take the possibility of taxing retirement income off the table. Quinn said today that he would not support taxing retirement income or charging a sales tax on many “basic” services, such as haircuts.
In his speech, the governor tried to walk a fine line between highlighting the improvements he says have happened during his time in office and making the case that the budget situation is still unstable enough to justify hanging on to the current tax rates. “Illinoia is in stronger financial position now then we were five years ago because of the hard choices we have made,” Quinn said today. Time will tell if this strategy will resonate with voters. Not surprisingly, a recent poll from the Paul Simon Public Policy Institute at Southern Illinois Carbondale found that 60 percent of voters oppose making the tax rates permanent. However, the majority of respondents liked major state services and were opposed to cutting them. Voters were also opposed to taxing retirement income or increasing sales taxes. The only new revenue source that more than half of those polled supported was expanding gambling.
Democratic lawmakers said today that they do not think voters are really aware of the progress that has been made in terms of the state's budget. “I think voters do not grasp how much progress has been made. It’s unfortunate to me that one budget address will not necessarily emblazon that in people’s minds,” said Northbrook Democratic Rep. Elaine Nekritz, who was one of the key players on recently passed changes to the state’s pensions systems. But she said that while voters may not be as aware of some of the things, such as pension reform and cuts to Medicaid costs, that have been done to help the state climb out of its budget hole, the bond rating agencies that determine the state’s credit rating do seem to have taken notice. “We are getting there. It took us a long time to get in, and I always said it’s going to take us a long time to get out.” Nekritz noted that the property tax relief in Quinn’s plan has the potential to be very popular with voters. “The number one thing I hear from constituents back home is (complaints about) their property taxes.”
The chairmen of House budgeting committees, which are considering deep cuts for their areas of the budget, said they were glad Quinn came out strongly for more revenue. “I have always not shied away from the revenue conversation so I am encourage that the governor wants to look at ways to bring new revenue or additional revenue to the state,” said Lewistown Democratic Rep. William Davis, who is chairman of the House education budgeting committee. He said that K-12 education is currently facing a $900 million cut. Davis said he supports the concept of coupling tax relief for low-income workers and homeowners with a call for new revenue.
Marion Democratic Rep. John Bradley, who is chairman of the House revenue committee, said that he does not think that an extension of the tax rates has enough support to pass in his chamber at this point. “That’s going to be a difficult issue. That was a tough vote before. So I think a lot of people will keep an open mind to it but that’s a long way from happening right now.” He said that lawmakers should be open-minded about Quinn’s ideas. “He threw it out there, and I give him credit for putting ideas out there. So now the legislature will move forward.”
Quinn’s proposal has the backing of the legislative leaders in his party. “I would commend the governor for his political courage and honesty,” House Speaker Michael Madigan told Illinois Public Television’s Jak Tichenor, host of Illinois Lawmakers. Madigan said that he “demanded” property tax relief be included in a proposal to make the tax rates permanent. “I plan to support the governor’s position on the extension of the income tax increase,” said Madigan. “If we wish to continue to provide the level of services which we’ve become accustomed to for education and other purposes, then the income tax increase should be extended.” However, Madigan said he still supports his own “tax on millionaires” to fund education. The proposal is a constitutional amendment that would place a 3 percent surcharge on any income over $1 million. Madigan said he expects that the tax issue will be “resolved” before the spring legislative session ends.
Bradley said that his committee plans to move ahead with Madigan’s millionaire tax proposal “right away.”
“I think the governor made a really bold stand basically saying ‘we’re going to keep the taxes the way they are, but we’re going to give back a whole bunch of money in property tax relief,’” Senate President John Cullerton told Tichenor. He said the proposal takes the state’s high property tax rates into consideration while also deferring “draconian cuts.” Cullerton said he did not expect Republican support, which he called “unfortunate.”
Judging from the reaction to Quinn's speech from across the aisle, Cullerton’s prediction seems dead on. “The governor is more interested in making the argument that if there is not another massive tax increase that school children would be thrown into mobile homes and would be dying in the streets. That’s the governor’s arguments here. It’s an argument of hysteria. I think the governor, his first job is not to run for governor and create a campaign based on class envy, it’s to govern,” said Sen. Dale Righter, a Republican from Mattoon. He said that Quinn should do a line-by-line review of the budget to find savings. “I think he is going to discover in his own budget there are a lot of areas that he could save money and in then the words he speaks on lower income and middle income Illinoisans can actually come to prevision. Because he will find out he doesn’t have to take more money from families.”
Waiting in the dark for doomsday
By Jamey Dunn
Gov. Pat Quinn is not releasing details ahead of his budget speech tomorrow, but Republicans say they expect him to paint a picture that is more negative than it needs to be.
UPDATE 3/26/2014: The Chicago Tribune has reported that Quinn plans to propose making the temporary income tax increase permanent and offering property tax relief for homeowner. The story cites anonymous sources. Quinn's budget staff refuses to share any details of his plan with the press. His budget office did not give reporters a customary budget briefing that typically takes place the night before the speech. However, his campaign released a statement this morning blasting Republican candidate for governor Bruce Rauner for wanting to roll back the tax increase, an indication that Quinn will advocate for keeping the current rates. His campaign says allowing the tax rates to roll back would be devastating to education, making it seem likely that the governor's speech today will focus on funding schools. “Rauner’s sales pitch to run Illinois like a business would run our state straight into the ground,” Deputy Press Secretary Izabela Miltko said. “It's clear his plan would take a sledgehammer to education, lay off tens of thousands of teachers and leave Illinois’ students at a huge disadvantage. His inability to provide real solutions for our state makes it clear he can’t be trusted to run Illinois.” Quinn is required by law to present a budget based on current statute. But there is nothing stopping him from calling on lawmakers to make the tax increase permanent as he does that, as long as his budget document is not based upon the proposal.
Quinn is breaking from tradition in a few ways when it comes to this year’s budget. He intends to present a five-year plan to lawmakers tomorrow instead of the typical one-year proposal. Quinn asked lawmakers to give him extra time to prepare his budget, pushing the speech until after last week’s primary. Staff was reportedly still putting final tweaks on it through he weekend. Quinn is facing wealthy Republican businessman Bruce Rauner in the November general election, and politics will tinge every aspect of the rollout of his proposal. Rauner has already released an ad attacking Quinn in anticipation of the budget speech and is expected to come to Springfield tomorrow.
While lawmakers on both sides of the aisle have said that they would support longer-range budget planning, some are suspicious of Quinn pitching a budget that might last longer than his time in office. They see the new format as a possible way to spread out accounting tricks over several years and make what will be a difficult budget for Quinn politically an easier sell. “The governor is talking about completely changing the format that he presents this budget in from the way it’s been done in the past, and I think it is an intentional act on his part to confuse and distract,” said Sen. Matt Murphy, a Republican from Palatine. Republicans said that did not expect to receive an advance briefing on the budget. A press briefing is scheduled for tomorrow after the speech. When asked why they were pushing off the briefing, Quinn staffers said that the 5-year plan could be confusing and they wanted to ensure they would have enough time to answer all of reporters’ questions.
Murphy and the rest of his caucus say that Democrats are trying to make the situation look worse than it could be in order to justify continuing the current income tax instead of allowing them to step down as the are scheduled to beginning in 2015. Murphy said that Democrats started off with a more conservative revenue estimate and are ignoring some money that typical come in, such as revenue from unclaimed property. He also said they could consider transferring less money out of the general revenue fund for other spending, and could make a smaller payment to the fund for state employee health insurance. The insurance fund has been shorted in recent budget years. He said that less money could also be dedicated towards bills because there will likely be more revenue than expected at the end of the current fiscal year, and that could be used to pay down the backlog. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” he said. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.”
He presented a few scenarios, one of which he said would actually give the state $13 million more to spend on discretionary costs and one that would require a $700 million cut. Murphy said that Republicans are not necessarily advocating for all of these ideas, but he says they illustrated that there are more options out there besides devastating cuts or a tax increase. “We’re not suggesting that you do this,” he said. “It’s just an exercise to illustrate that they’re kind of gaming the numbers to create a doomsday scenario.” Some of the options Murphy outlined would require changes to law.
Senate Democrats strongly disagree with Murphy and his party’s take on the budget. “These are real numbers. This is the impact that we see. This is the reality that we’ve been dealing with,” Park Ridge Democratic Sen. Dan Kotowski said at a hearing budget earlier this week. Senate Democrats asked state agencies to present the potential fallout from a 20 percent cut. Kotowski said today of Murphy’s scenarios, “That’s just wrong. If you look at the numbers that we presented, the group health [insurance] number represents the actual costs.” He said that under the budget starting point that is currently being used by lawmakers, total obligations to the health insurance plan are being underfunded. He also said that much of the money that is put aside for overdue bills would go toward Medicaid obligations and capture federal matching funds. He also said that Quinn’s plan to present a five-year proposal is a step in the right direction because it allows the governor to indicate his vision for the future instead of potentially using creative accounting to scrape through one tough fiscal year. He said government should adopt more long-term budget planning tactics, which are commonplace in the private sector. “It depoliticizes the budget process because you’re looking at five years.”
Democrats note that levels of state staffing and core services have been cut in recent budget years, and under the $34.495 billion revenue projection approved by both chambers, that trend would continue. That amount is about $1.5 billion less than the revenue projection approved for the current fiscal year. House committees have already been told what numbers they are working with based on the revenue projection and they are considering 14 percent reductions. Chicago Democratic Rep. Greg Harris, who is chairman of the House human services budgeting committee, said that under the revenue projection his committee would have $719 million less to work with this year. He said that all programs that are not mandated by court orders or other requirements could be eliminated “and then we’ll have to cut 200 million more.” Childcare for low-income parents, in-home care for seniors and addiction treatment and prevention programs would all be on the chopping block. Meanwhile, he said that a proportionally equal cut for education would lead to the layoffs of thousands of teachers. “In order to balance the budget and provide the services and undo our backlog of bills, we need to be responsible in how we budget. That means controlling our expenses, but it also means having necessary revenue.” He said that putting off bills and underfunding obligation is not the way to go.
When asked what he hoped to see from Quinn tomorrow, Harris said: “I would like to see just a really bold and powerful explanation of the fiscal realities that face our state and how we must be responsible to pay down our back log of bills. So we need the revenue to do that, to meet our current obligations and to be sure that we are not cutting aid to education, that we’re not discontinuing meals on wheels to seniors, that we are not cutting substance abuse programs.”
Arlington Heights Republican Rep. David Harris said he hopes to hear the opposite. He says he would like Quinn to say that he agrees with the House’s revenue estimate, which he helped craft as part of the House revenue committee, and that the state can live within that amount. Harris agrees with Murphy that some costs could potentially be shifted to make the situation a little easier and bring the cuts down to a few hundreds of millions of dollars instead of billions of dollars. “Do you mean to tell me that we can’t have a reduction of $700 [million] to $800 million and not run sate government? I don’t buy that.” He said he is concerned that Quinn instead is going to propose some costly initiatives, such as an increase to the Earned Income Tax Credit for low-income workers.
Murphy said he is not expecting much out of the speech tomorrow. “He’s got a real divide in his party about whether to raise taxes or not, and I think he’s going to try to get out of tomorrow without saying anything concrete and hope nobody notices.” He, and other lawmakers, said that he has heard that Quinn's budget office, which originally had a larger revenue estimate than the one lawmakers approved, is revising its estimate down. Murphy reads this as indication that Quinn may follow the Senate Democrats' lead in framing the budget as a “doomsday” scenario.
Rep. Greg Harris said that whatever Quinn presents, his committee will meet the next day to continue with the budgeting process they, and other budgeting committees in the House and Senate, have started.
Rep. David Harris said that so far, Democrats and Republicans in his chamber have been able to work together to agree on a spending number. But once the debate comes down to how to spend the money, things may not remain so amicable. “The fireworks will start on Thursday,” he said.
Gov. Pat Quinn is not releasing details ahead of his budget speech tomorrow, but Republicans say they expect him to paint a picture that is more negative than it needs to be.
UPDATE 3/26/2014: The Chicago Tribune has reported that Quinn plans to propose making the temporary income tax increase permanent and offering property tax relief for homeowner. The story cites anonymous sources. Quinn's budget staff refuses to share any details of his plan with the press. His budget office did not give reporters a customary budget briefing that typically takes place the night before the speech. However, his campaign released a statement this morning blasting Republican candidate for governor Bruce Rauner for wanting to roll back the tax increase, an indication that Quinn will advocate for keeping the current rates. His campaign says allowing the tax rates to roll back would be devastating to education, making it seem likely that the governor's speech today will focus on funding schools. “Rauner’s sales pitch to run Illinois like a business would run our state straight into the ground,” Deputy Press Secretary Izabela Miltko said. “It's clear his plan would take a sledgehammer to education, lay off tens of thousands of teachers and leave Illinois’ students at a huge disadvantage. His inability to provide real solutions for our state makes it clear he can’t be trusted to run Illinois.” Quinn is required by law to present a budget based on current statute. But there is nothing stopping him from calling on lawmakers to make the tax increase permanent as he does that, as long as his budget document is not based upon the proposal.
Quinn is breaking from tradition in a few ways when it comes to this year’s budget. He intends to present a five-year plan to lawmakers tomorrow instead of the typical one-year proposal. Quinn asked lawmakers to give him extra time to prepare his budget, pushing the speech until after last week’s primary. Staff was reportedly still putting final tweaks on it through he weekend. Quinn is facing wealthy Republican businessman Bruce Rauner in the November general election, and politics will tinge every aspect of the rollout of his proposal. Rauner has already released an ad attacking Quinn in anticipation of the budget speech and is expected to come to Springfield tomorrow.
While lawmakers on both sides of the aisle have said that they would support longer-range budget planning, some are suspicious of Quinn pitching a budget that might last longer than his time in office. They see the new format as a possible way to spread out accounting tricks over several years and make what will be a difficult budget for Quinn politically an easier sell. “The governor is talking about completely changing the format that he presents this budget in from the way it’s been done in the past, and I think it is an intentional act on his part to confuse and distract,” said Sen. Matt Murphy, a Republican from Palatine. Republicans said that did not expect to receive an advance briefing on the budget. A press briefing is scheduled for tomorrow after the speech. When asked why they were pushing off the briefing, Quinn staffers said that the 5-year plan could be confusing and they wanted to ensure they would have enough time to answer all of reporters’ questions.
Murphy and the rest of his caucus say that Democrats are trying to make the situation look worse than it could be in order to justify continuing the current income tax instead of allowing them to step down as the are scheduled to beginning in 2015. Murphy said that Democrats started off with a more conservative revenue estimate and are ignoring some money that typical come in, such as revenue from unclaimed property. He also said they could consider transferring less money out of the general revenue fund for other spending, and could make a smaller payment to the fund for state employee health insurance. The insurance fund has been shorted in recent budget years. He said that less money could also be dedicated towards bills because there will likely be more revenue than expected at the end of the current fiscal year, and that could be used to pay down the backlog. “The Democrats’ approach this entire spring has been to try to create as dire a picture as possible,” he said. “You can make it a lot more plausible that you can fund core services and still allow the tax rate to go back down as the Democrats promised it would, but they don’t want people to see that. They don’t want that argument out there because they want to continue to get the money that they’ve been getting.”
He presented a few scenarios, one of which he said would actually give the state $13 million more to spend on discretionary costs and one that would require a $700 million cut. Murphy said that Republicans are not necessarily advocating for all of these ideas, but he says they illustrated that there are more options out there besides devastating cuts or a tax increase. “We’re not suggesting that you do this,” he said. “It’s just an exercise to illustrate that they’re kind of gaming the numbers to create a doomsday scenario.” Some of the options Murphy outlined would require changes to law.
Senate Democrats strongly disagree with Murphy and his party’s take on the budget. “These are real numbers. This is the impact that we see. This is the reality that we’ve been dealing with,” Park Ridge Democratic Sen. Dan Kotowski said at a hearing budget earlier this week. Senate Democrats asked state agencies to present the potential fallout from a 20 percent cut. Kotowski said today of Murphy’s scenarios, “That’s just wrong. If you look at the numbers that we presented, the group health [insurance] number represents the actual costs.” He said that under the budget starting point that is currently being used by lawmakers, total obligations to the health insurance plan are being underfunded. He also said that much of the money that is put aside for overdue bills would go toward Medicaid obligations and capture federal matching funds. He also said that Quinn’s plan to present a five-year proposal is a step in the right direction because it allows the governor to indicate his vision for the future instead of potentially using creative accounting to scrape through one tough fiscal year. He said government should adopt more long-term budget planning tactics, which are commonplace in the private sector. “It depoliticizes the budget process because you’re looking at five years.”
Democrats note that levels of state staffing and core services have been cut in recent budget years, and under the $34.495 billion revenue projection approved by both chambers, that trend would continue. That amount is about $1.5 billion less than the revenue projection approved for the current fiscal year. House committees have already been told what numbers they are working with based on the revenue projection and they are considering 14 percent reductions. Chicago Democratic Rep. Greg Harris, who is chairman of the House human services budgeting committee, said that under the revenue projection his committee would have $719 million less to work with this year. He said that all programs that are not mandated by court orders or other requirements could be eliminated “and then we’ll have to cut 200 million more.” Childcare for low-income parents, in-home care for seniors and addiction treatment and prevention programs would all be on the chopping block. Meanwhile, he said that a proportionally equal cut for education would lead to the layoffs of thousands of teachers. “In order to balance the budget and provide the services and undo our backlog of bills, we need to be responsible in how we budget. That means controlling our expenses, but it also means having necessary revenue.” He said that putting off bills and underfunding obligation is not the way to go.
When asked what he hoped to see from Quinn tomorrow, Harris said: “I would like to see just a really bold and powerful explanation of the fiscal realities that face our state and how we must be responsible to pay down our back log of bills. So we need the revenue to do that, to meet our current obligations and to be sure that we are not cutting aid to education, that we’re not discontinuing meals on wheels to seniors, that we are not cutting substance abuse programs.”
Arlington Heights Republican Rep. David Harris said he hopes to hear the opposite. He says he would like Quinn to say that he agrees with the House’s revenue estimate, which he helped craft as part of the House revenue committee, and that the state can live within that amount. Harris agrees with Murphy that some costs could potentially be shifted to make the situation a little easier and bring the cuts down to a few hundreds of millions of dollars instead of billions of dollars. “Do you mean to tell me that we can’t have a reduction of $700 [million] to $800 million and not run sate government? I don’t buy that.” He said he is concerned that Quinn instead is going to propose some costly initiatives, such as an increase to the Earned Income Tax Credit for low-income workers.
Murphy said he is not expecting much out of the speech tomorrow. “He’s got a real divide in his party about whether to raise taxes or not, and I think he’s going to try to get out of tomorrow without saying anything concrete and hope nobody notices.” He, and other lawmakers, said that he has heard that Quinn's budget office, which originally had a larger revenue estimate than the one lawmakers approved, is revising its estimate down. Murphy reads this as indication that Quinn may follow the Senate Democrats' lead in framing the budget as a “doomsday” scenario.
Rep. Greg Harris said that whatever Quinn presents, his committee will meet the next day to continue with the budgeting process they, and other budgeting committees in the House and Senate, have started.
Rep. David Harris said that so far, Democrats and Republicans in his chamber have been able to work together to agree on a spending number. But once the debate comes down to how to spend the money, things may not remain so amicable. “The fireworks will start on Thursday,” he said.
Tuesday, February 25, 2014
Anti-violence program promoted by Quinn mismanaged funds, audit finds
By Jamey Dunn
Republicans are calling for an investigation of Gov. Pat Quinn’s administration after an audit released today found mismanagement in an anti-violence program backed by the governor.
In the summer of 2010, Quinn announced $50 million in funding for the Neighborhood Recovery Initiative, a violence prevention program. The initiative received nearly $55 million from October 2010 to October 2012. The bulk, nearly $45 million, came from Quinn’s discretionary funds and was not directly approved by the General Assembly. Lawmakers approved about $10 million for the initiative as part of the Fiscal Year 2012 budget.
The Neighborhood Recovery Initiative has been the target of scrutiny for a few years now. A 2012 report from CNN called into question some of the program’s spending, including paying youth to hand out fliers, attend yoga classes and march in a parade with Quinn. Later that year, lawmakers approved a resolution calling for an audit of the program.
That review, conducted by the office of Illinois Auditor General William Holland, was released today. The report describes the program as “hastily implemented” and says that the Illinois Violence Prevention Authority (IVPA), which oversaw the program, failed to properly document how money was spent. The funding for the program increased from $20 million to $50 million in less than two months.
Republicans are asking that the executive inspector general’s office to launch an investigation into the program. “This is the kind of information that indictments are made out of,” said Dixon Republican Sen. Tim Bivins. “Obviously there’s got to be an investigation. Everyone’s innocent until proven guilty.” He added, “I think there’s more than enough probable cause ... for an investigation to occur.”
The audit found that the IVPA did not use a competitive bidding process to select the providers that administered the services under the program, instead relying on recommendations from Chicago aldermen. The agency also did not have documentation on how it selected the communities that would receive funding. “The communities selected for NRI were not all the most violent in terms of crime in the Chicago area. Our comparison of NRI communities to the violent crime totals published by the Chicago police found seven Chicago neighborhoods that were among the 20 most violent neighborhoods that did not receive NRI funding. In Year 3 of NRI, another Chicago community, Hermosa, was added to the NRI program. This community ranked 48th in violent crime from 2005 [to] 2010,” the audit said.
The audit looked at 23 providers that participated in the program. Auditors found that 40 percent of the contracts with community providers in the program were approved after the contract work timeline was already completed. Providers were allowed to work on the program before they entered into a contract with the state, and 33 contracts either had no end date or were never approved. Only 30 percent of audited providers kept time sheets for staff paid with funding from the initiative. Holland found documentation indicating that some workers were paid for more time than they worked. More than 60 percent of providers' quarterly reports were late. Some agencies revised quarterly reports more than a year after they were due. Of the 23 providers, two closed, and the IVPA did not recoup unspent program founds. The audit found documentation indicating that $2 million in unspent funds from the initiative were never recovered.
Republicans point to the timing of the spending and accuse Quinn of using the program as a slush fund to try to build community support before the 2010 general election. Quinn narrowly defeated Republican Sen. Bill Brady in 2010 to hang onto his office. Brady is running for governor again “This is a very troubling report about a program launched by Governor Quinn just weeks before the 2010 election with little planning from what certainly appears to be a taxpayer-paid political slush fund,” Brady said in a prepared statement.
Quinn’s office brushed off the accusations. “These issues were resolved more than a year ago,” said a statement from Quinn’s office. “When the governor’s office became aware of the issues with IVPA in 2012, the administration acted quickly and, working with Attorney General [Lisa Madigan’s] Office and the General Assembly, passed legislation to have [the Illinois Criminal Justice Information Authority] take over the authority. The ICJIA has taken major steps to ensure responsible management of this critical violence prevention program and this issue has since been resolved. We are committed to providing effective work and educational opportunities for our youth to help prevent violence in communities across Illinois.”
The revamped version of the program, now called the Community Violence Prevention Program, is currently operating on an annual budget of about $17 million. The program serves 24 communities and plans to branch out to 33 next year. According to the Illinois Criminal Justice Information Authority, last year it administered job training to about 1,800 youth and placed young people in jobs, such as office and retail positions. The state pays the participants’ salaries in these summer jobs. Those in the program also participate in community service and receive mentoring. The program almost provided reentry services to nearly 450 young people who were returning to society after doing time in the state’s corrections system. “We’re excited about our program, and we’re going to continue to provide the effective work program that we’ve designed and continue to offer these opportunities for youth to help prevent violence in communities across Illinois,” said Cristin Evans, spokeswoman for the Illinois Criminal Justice Information Authority.
Republicans say a reworking of the initiative is not enough. They say they want answers about the years in which money was misspent. “Every once in a while, the truth comes out of this town, and I would hope that people have the courage to look at it and see what it shows,” said Palatine Republican Sen. Matt Murphy.
Republicans are calling for an investigation of Gov. Pat Quinn’s administration after an audit released today found mismanagement in an anti-violence program backed by the governor.
In the summer of 2010, Quinn announced $50 million in funding for the Neighborhood Recovery Initiative, a violence prevention program. The initiative received nearly $55 million from October 2010 to October 2012. The bulk, nearly $45 million, came from Quinn’s discretionary funds and was not directly approved by the General Assembly. Lawmakers approved about $10 million for the initiative as part of the Fiscal Year 2012 budget.
The Neighborhood Recovery Initiative has been the target of scrutiny for a few years now. A 2012 report from CNN called into question some of the program’s spending, including paying youth to hand out fliers, attend yoga classes and march in a parade with Quinn. Later that year, lawmakers approved a resolution calling for an audit of the program.
That review, conducted by the office of Illinois Auditor General William Holland, was released today. The report describes the program as “hastily implemented” and says that the Illinois Violence Prevention Authority (IVPA), which oversaw the program, failed to properly document how money was spent. The funding for the program increased from $20 million to $50 million in less than two months.
Republicans are asking that the executive inspector general’s office to launch an investigation into the program. “This is the kind of information that indictments are made out of,” said Dixon Republican Sen. Tim Bivins. “Obviously there’s got to be an investigation. Everyone’s innocent until proven guilty.” He added, “I think there’s more than enough probable cause ... for an investigation to occur.”
The audit found that the IVPA did not use a competitive bidding process to select the providers that administered the services under the program, instead relying on recommendations from Chicago aldermen. The agency also did not have documentation on how it selected the communities that would receive funding. “The communities selected for NRI were not all the most violent in terms of crime in the Chicago area. Our comparison of NRI communities to the violent crime totals published by the Chicago police found seven Chicago neighborhoods that were among the 20 most violent neighborhoods that did not receive NRI funding. In Year 3 of NRI, another Chicago community, Hermosa, was added to the NRI program. This community ranked 48th in violent crime from 2005 [to] 2010,” the audit said.
The audit looked at 23 providers that participated in the program. Auditors found that 40 percent of the contracts with community providers in the program were approved after the contract work timeline was already completed. Providers were allowed to work on the program before they entered into a contract with the state, and 33 contracts either had no end date or were never approved. Only 30 percent of audited providers kept time sheets for staff paid with funding from the initiative. Holland found documentation indicating that some workers were paid for more time than they worked. More than 60 percent of providers' quarterly reports were late. Some agencies revised quarterly reports more than a year after they were due. Of the 23 providers, two closed, and the IVPA did not recoup unspent program founds. The audit found documentation indicating that $2 million in unspent funds from the initiative were never recovered.
Republicans point to the timing of the spending and accuse Quinn of using the program as a slush fund to try to build community support before the 2010 general election. Quinn narrowly defeated Republican Sen. Bill Brady in 2010 to hang onto his office. Brady is running for governor again “This is a very troubling report about a program launched by Governor Quinn just weeks before the 2010 election with little planning from what certainly appears to be a taxpayer-paid political slush fund,” Brady said in a prepared statement.
Quinn’s office brushed off the accusations. “These issues were resolved more than a year ago,” said a statement from Quinn’s office. “When the governor’s office became aware of the issues with IVPA in 2012, the administration acted quickly and, working with Attorney General [Lisa Madigan’s] Office and the General Assembly, passed legislation to have [the Illinois Criminal Justice Information Authority] take over the authority. The ICJIA has taken major steps to ensure responsible management of this critical violence prevention program and this issue has since been resolved. We are committed to providing effective work and educational opportunities for our youth to help prevent violence in communities across Illinois.”
The revamped version of the program, now called the Community Violence Prevention Program, is currently operating on an annual budget of about $17 million. The program serves 24 communities and plans to branch out to 33 next year. According to the Illinois Criminal Justice Information Authority, last year it administered job training to about 1,800 youth and placed young people in jobs, such as office and retail positions. The state pays the participants’ salaries in these summer jobs. Those in the program also participate in community service and receive mentoring. The program almost provided reentry services to nearly 450 young people who were returning to society after doing time in the state’s corrections system. “We’re excited about our program, and we’re going to continue to provide the effective work program that we’ve designed and continue to offer these opportunities for youth to help prevent violence in communities across Illinois,” said Cristin Evans, spokeswoman for the Illinois Criminal Justice Information Authority.
Republicans say a reworking of the initiative is not enough. They say they want answers about the years in which money was misspent. “Every once in a while, the truth comes out of this town, and I would hope that people have the courage to look at it and see what it shows,” said Palatine Republican Sen. Matt Murphy.
Monday, February 17, 2014
Cullerton: Lawmakers must address $3 billion budget shortfall
By Jamey Dunn
Illinois Senate President John Cullerton today highlighted the challenges lawmakers will face as they try to craft a budget for the next fiscal year.
Cullerton said at a Chicago news conference today that Senate Democratic staff members have been running the numbers as budgeting hearings will begin this week in the Senate. “We find that Illinois faces a nearly $3 billion budget hole for this coming [fiscal] year, and if not corrected, this could decimate classroom funding, send college tuition soaring and erode all the financial progress that we have made in the last few years.” Several factors are coming together to create the shortfall. The temporary income tax increase will begin to step down in the second half of Fiscal Year 2015, taking an estimate $1.6 billion in revenue with it. Expenses such as Medicaid, the state’s annual pension payments and personnel costs are expected to increase.
Gov. Pat Quinn’s budget address was scheduled to take place this week, but the General Assembly voted earlier this month to move it to March 26. Quinn’s staff says he needs more time because he intends to present a five-year budget plan. Republicans called the move political because the new date falls after the primary election, when Quinn would know whom his general election opponent would be. Quinn is the presumptive Democratic nominee, but four Republicans are vying for the GOP nomination. Two of them, Bloomington Sen. Bill Brady and Hinsdale Sen. Kirk Dillard, are sitting legislators.
Before the vote, Cullerton announced that the Senate would begin hearing budget ideas this week. “Surely people who have been running for governor for five years have some idea about what their budget should be,” he said. “For those who are disappointed in this, February 19th is the day to have your budgets ready.” A joint hearing of the chamber’s two budgeting committees is scheduled for Wednesday.
Today, Cullerton said he hopes to jump start a “discussion” on bridging the budget gap, and he called on Republicans in his chamber to present potential solutions. “We need to solve this $3 billion hole in our budget in a bipartisan way,” However, Cullerton said there is “no easy way to do it,” and he dismissed proposals such as cuts to Medicaid that Republicans have made in the past. “That would ignore the fact that we’ve already done that,” he said. Lawmakers approved and Quinn signed into law a package of Medicaid changes and new revenue in 2012.“This Medicaid reform package that was done in a bipartisan fashion — Republicans and Democrats — nothing was left on the table, and so it’s not like there’s $3 billion in savings that we ignored in our Medicaid reform bill.” Cullerton said lawmakers from both sides of the aisle have made tough choices to manage the budget in recent years, including approving changes to pension benefits for public employees. “We’ve gone right at the nature of the problems, pensions and Medicaid, and we’ve cut them.”
He indicated that finding more to cut could be difficult, and any large spending reduction could result in slashing the state’s education budget. “We’ve already closed prisons, closed mental health facilities and other centers, cut payroll, head count is down thousands from years ago. So when someone says, 'Well, just eliminate the waste and fraud,' you have to cross-examine them and ask them what they’re really talking about.” While budget cuts have been made, the tax increase, which was approved with only Democratic support in 2011, also provided billions in revenue that helped Illinois partially climb out of the estimated $13 billion deficit it faced just a few years ago.
Republicans see this week’s hearing as another political maneuver in an election year. Senate GOP spokeswoman Patty Schuh said the hearing seems to be intended to provide the governor some “cover” for presenting his budget late. “Our members will be looking to see what the Democratic majority plans to do to keep the promises they have made.”
Illinois Senate President John Cullerton today highlighted the challenges lawmakers will face as they try to craft a budget for the next fiscal year.
Cullerton said at a Chicago news conference today that Senate Democratic staff members have been running the numbers as budgeting hearings will begin this week in the Senate. “We find that Illinois faces a nearly $3 billion budget hole for this coming [fiscal] year, and if not corrected, this could decimate classroom funding, send college tuition soaring and erode all the financial progress that we have made in the last few years.” Several factors are coming together to create the shortfall. The temporary income tax increase will begin to step down in the second half of Fiscal Year 2015, taking an estimate $1.6 billion in revenue with it. Expenses such as Medicaid, the state’s annual pension payments and personnel costs are expected to increase.
Gov. Pat Quinn’s budget address was scheduled to take place this week, but the General Assembly voted earlier this month to move it to March 26. Quinn’s staff says he needs more time because he intends to present a five-year budget plan. Republicans called the move political because the new date falls after the primary election, when Quinn would know whom his general election opponent would be. Quinn is the presumptive Democratic nominee, but four Republicans are vying for the GOP nomination. Two of them, Bloomington Sen. Bill Brady and Hinsdale Sen. Kirk Dillard, are sitting legislators.
Before the vote, Cullerton announced that the Senate would begin hearing budget ideas this week. “Surely people who have been running for governor for five years have some idea about what their budget should be,” he said. “For those who are disappointed in this, February 19th is the day to have your budgets ready.” A joint hearing of the chamber’s two budgeting committees is scheduled for Wednesday.
Today, Cullerton said he hopes to jump start a “discussion” on bridging the budget gap, and he called on Republicans in his chamber to present potential solutions. “We need to solve this $3 billion hole in our budget in a bipartisan way,” However, Cullerton said there is “no easy way to do it,” and he dismissed proposals such as cuts to Medicaid that Republicans have made in the past. “That would ignore the fact that we’ve already done that,” he said. Lawmakers approved and Quinn signed into law a package of Medicaid changes and new revenue in 2012.“This Medicaid reform package that was done in a bipartisan fashion — Republicans and Democrats — nothing was left on the table, and so it’s not like there’s $3 billion in savings that we ignored in our Medicaid reform bill.” Cullerton said lawmakers from both sides of the aisle have made tough choices to manage the budget in recent years, including approving changes to pension benefits for public employees. “We’ve gone right at the nature of the problems, pensions and Medicaid, and we’ve cut them.”
He indicated that finding more to cut could be difficult, and any large spending reduction could result in slashing the state’s education budget. “We’ve already closed prisons, closed mental health facilities and other centers, cut payroll, head count is down thousands from years ago. So when someone says, 'Well, just eliminate the waste and fraud,' you have to cross-examine them and ask them what they’re really talking about.” While budget cuts have been made, the tax increase, which was approved with only Democratic support in 2011, also provided billions in revenue that helped Illinois partially climb out of the estimated $13 billion deficit it faced just a few years ago.
Republicans see this week’s hearing as another political maneuver in an election year. Senate GOP spokeswoman Patty Schuh said the hearing seems to be intended to provide the governor some “cover” for presenting his budget late. “Our members will be looking to see what the Democratic majority plans to do to keep the promises they have made.”
Wednesday, February 05, 2014
Budget address delayed until after primary election
By Jamey Dunn
Gov. Pat Quinn will be giving his budget address later than originally planned this year.
The Illinois Senate today approved Senate Bill 1227, which moves the date of the budget address from February 19 to March 26. The House passed the bill Tuesday, and Quinn plans to sign it when it arrives on his desk. That means that he will wait until after the March primary election to present his vision for the state’s budget for Fiscal Year 2015 and beyond. Quinn’s office says he needs the extra time because he intends to present a five-year plan instead of the traditional one-year proposal. “In addition to presenting his budget on March 26, the governor will also present a five-year budget blueprint. Now that the budget picture is more stabilized — with pension reform, Medicaid overhaul, spending cuts, contract negotiations, collective bargaining agreement, etc. in place — we need to look at the bigger budget picture as we craft this year’s budget,and account for upcoming savings in order to develop the necessary solution that provides taxpayers and businesses with long-term certainty,” said a statement from Quinn’s office.
“I appreciate and applaud the approach by the governor’s office. This is what people are asking for when it comes to financial accountability,” said Democratic Sen. Dan Kotowski of Park Ridge, chair of one of the Senate’s budgeting committees. Kotowski said businesses in Illinois want to see long-term budget planning from state government. Supporters of the bill also noted that FY 2015 would be a difficult budget year because the temporary income tax increase will begin to sunset, taking more than $1 billion in revenue with it.
But Republicans say they aren’t buying it. “This is a total political sham,” said Palatine Republican Sen. Matt Murphy. He said it was insulting to frame the issue as a step toward good government. “Today’s request is purely political,” said GOP gubernatorial hopeful Sen. Kirk Dillard of Hinsdale. “The governor is waiting to see who his Republican opponent is.”
Bloomington Sen. Bill Brady, one of Dillard’s challengers in the Republican primary, agreed. “He needs to deliver his budget address, so the people of Illinois can know what is in it and we can debate that.”
Senate President John Cullerton said that moving the budget address is something lawmakers have done several times, including moving it for Republican Gov. Jim Edgar. Cullerton took a swipe at Brady and Dillard, who both ran for governor in 2010, when he suggested that members of the Senate use the original date as a time to present their own budget ideas. “Surely people who have been running for governor for five years have some idea about what their budget should be,” he said. “For those who are disappointed in this, February 19th is the day to have your budgets ready.” Brady beat Dillard in the 2010 primary and went on to lose the general election to Quinn. Brady, Dillard and the other Republicans running for governor — Bruce Rauner and Illinois Treasurer Dan Rutherford — have all avoided giving many specifics on how they would handle the state’s budget.
Both chambers plan to begin their budgeting process, even though Quinn’s speech will be delayed. “The governor is asking for a delay, but here in the House we aren’t asking for a delay. We’re going to move forward expeditiously,” House Speaker Michael Madigan said during Tuesday’s floor debate.
The House’s Revenue and Finance committee has already begun holding hearings on its revenue estimate for FY 2015. In recent years, the final budget approved by lawmakers has been based on the estimated produced by the committee. Marion Democratic Rep. John Bradley, who chairs the committee, said that he thought Quinn’s request is “deferential” to lawmakers, who have already started working on the budget. “The House is really the driver of the state budget,” Bradley said. “The last few years, the governor has attempted to make budgets and to put out numbers and disregarded the House Revenue and Finance Committee and this chamber, and it didn’t go well for him.”
Gov. Pat Quinn will be giving his budget address later than originally planned this year.
The Illinois Senate today approved Senate Bill 1227, which moves the date of the budget address from February 19 to March 26. The House passed the bill Tuesday, and Quinn plans to sign it when it arrives on his desk. That means that he will wait until after the March primary election to present his vision for the state’s budget for Fiscal Year 2015 and beyond. Quinn’s office says he needs the extra time because he intends to present a five-year plan instead of the traditional one-year proposal. “In addition to presenting his budget on March 26, the governor will also present a five-year budget blueprint. Now that the budget picture is more stabilized — with pension reform, Medicaid overhaul, spending cuts, contract negotiations, collective bargaining agreement, etc. in place — we need to look at the bigger budget picture as we craft this year’s budget,and account for upcoming savings in order to develop the necessary solution that provides taxpayers and businesses with long-term certainty,” said a statement from Quinn’s office.
“I appreciate and applaud the approach by the governor’s office. This is what people are asking for when it comes to financial accountability,” said Democratic Sen. Dan Kotowski of Park Ridge, chair of one of the Senate’s budgeting committees. Kotowski said businesses in Illinois want to see long-term budget planning from state government. Supporters of the bill also noted that FY 2015 would be a difficult budget year because the temporary income tax increase will begin to sunset, taking more than $1 billion in revenue with it.
But Republicans say they aren’t buying it. “This is a total political sham,” said Palatine Republican Sen. Matt Murphy. He said it was insulting to frame the issue as a step toward good government. “Today’s request is purely political,” said GOP gubernatorial hopeful Sen. Kirk Dillard of Hinsdale. “The governor is waiting to see who his Republican opponent is.”
Bloomington Sen. Bill Brady, one of Dillard’s challengers in the Republican primary, agreed. “He needs to deliver his budget address, so the people of Illinois can know what is in it and we can debate that.”
Senate President John Cullerton said that moving the budget address is something lawmakers have done several times, including moving it for Republican Gov. Jim Edgar. Cullerton took a swipe at Brady and Dillard, who both ran for governor in 2010, when he suggested that members of the Senate use the original date as a time to present their own budget ideas. “Surely people who have been running for governor for five years have some idea about what their budget should be,” he said. “For those who are disappointed in this, February 19th is the day to have your budgets ready.” Brady beat Dillard in the 2010 primary and went on to lose the general election to Quinn. Brady, Dillard and the other Republicans running for governor — Bruce Rauner and Illinois Treasurer Dan Rutherford — have all avoided giving many specifics on how they would handle the state’s budget.
Both chambers plan to begin their budgeting process, even though Quinn’s speech will be delayed. “The governor is asking for a delay, but here in the House we aren’t asking for a delay. We’re going to move forward expeditiously,” House Speaker Michael Madigan said during Tuesday’s floor debate.
The House’s Revenue and Finance committee has already begun holding hearings on its revenue estimate for FY 2015. In recent years, the final budget approved by lawmakers has been based on the estimated produced by the committee. Marion Democratic Rep. John Bradley, who chairs the committee, said that he thought Quinn’s request is “deferential” to lawmakers, who have already started working on the budget. “The House is really the driver of the state budget,” Bradley said. “The last few years, the governor has attempted to make budgets and to put out numbers and disregarded the House Revenue and Finance Committee and this chamber, and it didn’t go well for him.”
Wednesday, January 29, 2014
Quinn lays out five-year plan in State of the State address
Gov. Pat Quinn gave an upbeat State of the State address today, touting his accomplishments and laying out a five-year plan for economic recovery.
Quinn, who was sworn in as governor after former Gov. Rod Blagojevich was impeached and removed from office, recounted the problems he faced when he became governor and the progress he said the state had made in the interim. “Exactly five years ago this day, I was sworn in as governor, at Illinois’ darkest moment. We were facing an unprecedented triple crisis of government corruption, economic collapse and financial instability,” Quinn said. “It was a perfect storm, and it left destruction in its path. We all knew that repairing the damage that had been done over decades would not happen overnight. But over the past five years, we’ve rebuilt one hard step at a time. And we’ve been getting the job done. Illinois is making a comeback.”
Quinn presented broad strokes of a plan that focused on education programs and economic issues. “It’s a blueprint that recognizes that a truly strong economy relies not just on jobs, but also on fairness and inclusion,” he said. “If we follow this blueprint, we’ll do three things: create more jobs, deliver stronger education and build an economy that works for everyone.” Not surprisingly, Republicans vying for the chance to challenge Quinn in this year’s general election were not impressed by the speech. Their criticisms were similar.
“This afternoon, we heard an election year campaign speech from a governor who’s failing the people of Illinois,” said Bruce Rauner. “We’re one of the worst-run states in America. We have entered an economic death spiral, and Gov. Quinn is trying to cover it up and put a rosy picture on it.” Rauner brushed off questions from reporters regarding negative stories that have recently surfaced about his former investment firm, GTCR Golder Rauner. The company has been linked to neglect cases at nursing homes it invested in.
The venture capitalist from Winnetka today borrowed a line from President Barack Obama. “The attacks, we’ll have plenty of time to talk about them. ‘There’s no there there.’ We’ll be attacked every day in the race. That’s part of politics.” Obama used the “There’s no there there” quote from Gertrude Stein when questions about his administration’s handling of a terrorist attack in Benghazi, Libya, continued to hound him. “There's no there there. The fact that this keeps on getting churned up, frankly, has a whole lot to do with political motivations,” Obama said at a White House news conference.
Sen. Kirk Dillard, who is from Hinsdale, said Quinn should have addressed the state’s temporary income tax increase, which is set to begin stepping down in 2015, taking billion of dollars of revenue with it. “We’re overtaxed. We are greatly overregulated,” he said to the ideas Quinn put forward.
“That’s not a playbook for success,” Bloomington Sen. Bill Brady said of Quinn’s speech. “Ranking among the worst in the nation is the record of the current administration and the Democrats’ hostility toward the private sector. I didn’t hear any talk about reducing burdensome regulations or lowering the cost of doing business in Illinois through further reforms in our workers' compensation program. I certainly didn’t hear anything about his commitment to cut taxes by allowing his 67 percent income tax increase to expire next year.”
State Treasurer Dan Rutherford, who is from Chenoa, said Quinn’s speech was about what he had expected. “It was what an incumbent governor’s State of the State should be in an election year. It was very optimistic, very positive.” He said that creating a long-term plan is not a bad thing. “I don’t fault long-term planning. As I’ve said more than once on the circuit out there, strategic long-term planning for our state facilities, our capital assets, is extremely important.” However, he said Quinn should have focused more on creating an environment that would encourage private-sector job growth.
While responses to Quinn’s speech were generally tepid. Some Democrats were enthusiastic about the governor’s ideas. “I thought it was an excellent speech,” said Sen. Dan Kotowski of Park Ridge. “I thought the governor did a great job of communicating a vision of what it’s going to take in our state to make sure we address these challenges that are out there, so that we can create jobs and maintain the ones that we have. But also make sure we prepare our young people for a future. He’s identified the challenges we face in our state, and I agree with him. He’s taking them head on.”
But the verdict from other Democrats was less glowing. “It’s just talk. So the legislature will begin the process of crafting the budget and trying to work through these issues. We’ve already started. The people of the state of Illinois are tired of talk. They want action,” said Rep. John Bradley, a Democrat from Marion. Bradley is chair of the House Revenue and Finance Committee, which has preempted Quinn in the past on fiscal issues by proposing a spending cap for the budget before the governor gives his budget address.
Economic Issues
By Jamey Dunn
Quinn pitched several measures targeting businesses and workers, including a proposal to increase the state’s minimum wage. “This year, we really need to get the job done for our fellow citizens who are making the minimum wage of $8.25 per hour. Our minimum wage workers are doing hard work. They’re putting in long hours. Yet in too many instances, they are living in poverty,” he said. “That’s not right. That’s not an Illinois value. And that’s not a fair shake. This is all about dignity and decency. So I said it last year. and I’ll say it again: It’s time to raise Illinois’ minimum wage to at least $10 an hour.”
Quinn called for an increase to the minimum wage last year during his State of the State address. “I’m pleased that the governor is continuing his message on the minimum wage,” said Maywood Democratic Sen. Kimberly Lightford, who sponsors legislation that would increase the minimum wage. She said she has been negotiating the issue for month with business groups.
Lightford said she knows that it is nearly impossible to expect that the business lobby will support the proposal. “There’s nothing that we can do for a corporation to agree with a minimum wage increase. There will be nothing that you can do. There is no happy medium on an increase.” But she said she has worked to revamp her legislation to give some consideration to businesses. In perhaps the only surprise in the speech, Quinn also called for workers to get at least two paid sick days. Quinn also said he wants to double the Earned Income Tax Credit, which goes to low-income working families, over the next five years.
Doug Whitley, president and chief executive officer of the Illinois Chamber of Commerce, said he was glad the governor’s speech focused on the economy. But he said that adding more business regulations would not help job growth. “I was pleased with the themes [of the governor’s speech], but I was not impressed with the details,” he said. Whitley said the minimum wage is not meant to sustain a family. He said those jobs are intended to be for young people, students and those looking to supplement their incomes with part-time work. He said he is concerned that if Illinois increases its minimum wage, which is already greater than many other states, it will hurt its ability to compete. “I would rather see the [U.S.] Congress do it than individual states do it,” Whitley said.
Republican leaders agreed. “The minimum wage doesn’t lift people out of poverty. I think the minimum wage is the wrong discussion,” said Senate Minority Leader Christine Radogno. “We’re not unsympathetic to the fact that people are making very low wages, but the questions are: Why aren’t people moving into higher wage jobs? How do we create those jobs? And how do we match the talent to get those jobs? So I think focusing only on the minimum wage is a distraction from the real work we need to be doing.”
But proponents say that those living on low wages often also receive help from safety net programs, so taxpayers are in effect being asked to subsidize the cost of workers for private businesses. “Those people will be on government benefits. And they will be relying more on government, and they’ll be relying more on government for services and that costs everybody money,” Kotowski said. “I think people recognize that if you’re working full-time hours but making wages that don’t allow you to feed your family and take care of yourself and pay for the basic necessities of life, there’s something fundamentally wrong.”
Quinn also called for cutting the cost for incorporating a limited liability corporation from $500 to $39. Whitley called that idea “creative and fresh.” But he said: “I’m sure that small businesses will appreciate that. But the magnitude of an increase in the minimum wage and additional required days off will dwarf any savings that that LLC might actually have from a reduction in the fee.”
Some lawmakers said the change might not be realistic, given the state’s budget situation. “What’s the cost to the state of doing that? It’s a great thing to say in a speech, but what’s it going to cost the state?” asked Bradley. “I mean, we’re staring at a really ugly budget scenario coming up and a really difficult fiscal and revenue situation coming up in the near future, and he’s talking about getting rid of money that’s coming in.”
Education initiatives
By Caitlin Rydinski
As part of his address today, Quinn proposed expanding early childhood programs and a college scholarship program, but lawmakers question where the funding for his plans would come from.
Quinn’s “Birth to Five Initiative” looks to provide prenatal care to low-income families, increase access to childhood early education and offer programs that provide parental support. Quinn said his initiative would help taxpayers avoid paying for the cost of medical needs, early intervention, remedial education and grade repetition.
Lightford said Illinois already focuses on early childhood programs from age 3 to 5, so adding prenatal care to age 3 may not be difficult. “It’s really not as difficult of a challenge getting there,” Lightford said. “I think that the area of the wrap-around services that [Quinn has] included with the prenatal care and the parent involvement piece — I think those are good areas to focus on.”
But Lebanon Republican Sen. Kyle McCarter and other legislators are concerned with where funding will come from. “I think it’s a great idea, but if you can buy parental support, we would have bought it decades ago. I don’t know how you buy that. That’s a cultural problem,” McCarter said. “Given the situation we are in with the tight budget, he is going to have to cut something else in order to pay for this.”
Wheaton Republican Sen. Michael Connelly said education is important, but he wants to focus on the economy to give students access to better jobs. “I’ve got a constituent that has a child that is going into a graduate program, and other states … are basically saying Illinois is done. Come to our state. … This is where the future is,” Connelly said of states not only persuading jobs to leave Illinois but also college students. Quinn also proposed to double the funding for Monetary Award Program scholarships that currently about 140,000 students receive.
Many lawmakers want to see both of those programs funded but are concerned they may lose out to other competing budget interests. “I hope that we can find a way to fund that program, as well as the MAP grant,” Lightford said, adding that the MAP program helps keep Illinois competitive with other states in having an educated workforce. While Quinn’s initiative is a five-year plan, Lightford said she hopes the MAP funding increase can happen sooner.
With Western Illinois University and several community and private colleges in his district, Sen. John Sullivan said he supports the doubling of MAP grants. “We know that there’s huge demand there. We talked about actually doubling the scholarships. ... I think most people are supportive of that, but I think the next speech that the governor gives will be the budget address. And so, how is he going to pay for some of these new initiatives like the prenatal program,” he said of the budget issue with the state and the ending of the temporary income tax increase. “The governor has introduced some new perspective and new programs, and I’m going to be interested in how he is going to pay for them.”
Many lawmakers and advocates said they want to know more about how the state will be able to provide the finances for Quinn's education proposals and still maintain the programs Illinois has now. “I think it’s really encouraging to have the governor advocating early childhood education,” said Emily Miller, policy and advocacy director for Voices for Illinois Children. But she said she is waiting for the budget address in February to find out how much funding Quinn will propose for education and early childhood programs.
Quinn, who was sworn in as governor after former Gov. Rod Blagojevich was impeached and removed from office, recounted the problems he faced when he became governor and the progress he said the state had made in the interim. “Exactly five years ago this day, I was sworn in as governor, at Illinois’ darkest moment. We were facing an unprecedented triple crisis of government corruption, economic collapse and financial instability,” Quinn said. “It was a perfect storm, and it left destruction in its path. We all knew that repairing the damage that had been done over decades would not happen overnight. But over the past five years, we’ve rebuilt one hard step at a time. And we’ve been getting the job done. Illinois is making a comeback.”
Quinn presented broad strokes of a plan that focused on education programs and economic issues. “It’s a blueprint that recognizes that a truly strong economy relies not just on jobs, but also on fairness and inclusion,” he said. “If we follow this blueprint, we’ll do three things: create more jobs, deliver stronger education and build an economy that works for everyone.” Not surprisingly, Republicans vying for the chance to challenge Quinn in this year’s general election were not impressed by the speech. Their criticisms were similar.
“This afternoon, we heard an election year campaign speech from a governor who’s failing the people of Illinois,” said Bruce Rauner. “We’re one of the worst-run states in America. We have entered an economic death spiral, and Gov. Quinn is trying to cover it up and put a rosy picture on it.” Rauner brushed off questions from reporters regarding negative stories that have recently surfaced about his former investment firm, GTCR Golder Rauner. The company has been linked to neglect cases at nursing homes it invested in.
The venture capitalist from Winnetka today borrowed a line from President Barack Obama. “The attacks, we’ll have plenty of time to talk about them. ‘There’s no there there.’ We’ll be attacked every day in the race. That’s part of politics.” Obama used the “There’s no there there” quote from Gertrude Stein when questions about his administration’s handling of a terrorist attack in Benghazi, Libya, continued to hound him. “There's no there there. The fact that this keeps on getting churned up, frankly, has a whole lot to do with political motivations,” Obama said at a White House news conference.
Sen. Kirk Dillard, who is from Hinsdale, said Quinn should have addressed the state’s temporary income tax increase, which is set to begin stepping down in 2015, taking billion of dollars of revenue with it. “We’re overtaxed. We are greatly overregulated,” he said to the ideas Quinn put forward.
“That’s not a playbook for success,” Bloomington Sen. Bill Brady said of Quinn’s speech. “Ranking among the worst in the nation is the record of the current administration and the Democrats’ hostility toward the private sector. I didn’t hear any talk about reducing burdensome regulations or lowering the cost of doing business in Illinois through further reforms in our workers' compensation program. I certainly didn’t hear anything about his commitment to cut taxes by allowing his 67 percent income tax increase to expire next year.”
State Treasurer Dan Rutherford, who is from Chenoa, said Quinn’s speech was about what he had expected. “It was what an incumbent governor’s State of the State should be in an election year. It was very optimistic, very positive.” He said that creating a long-term plan is not a bad thing. “I don’t fault long-term planning. As I’ve said more than once on the circuit out there, strategic long-term planning for our state facilities, our capital assets, is extremely important.” However, he said Quinn should have focused more on creating an environment that would encourage private-sector job growth.
While responses to Quinn’s speech were generally tepid. Some Democrats were enthusiastic about the governor’s ideas. “I thought it was an excellent speech,” said Sen. Dan Kotowski of Park Ridge. “I thought the governor did a great job of communicating a vision of what it’s going to take in our state to make sure we address these challenges that are out there, so that we can create jobs and maintain the ones that we have. But also make sure we prepare our young people for a future. He’s identified the challenges we face in our state, and I agree with him. He’s taking them head on.”
But the verdict from other Democrats was less glowing. “It’s just talk. So the legislature will begin the process of crafting the budget and trying to work through these issues. We’ve already started. The people of the state of Illinois are tired of talk. They want action,” said Rep. John Bradley, a Democrat from Marion. Bradley is chair of the House Revenue and Finance Committee, which has preempted Quinn in the past on fiscal issues by proposing a spending cap for the budget before the governor gives his budget address.
Economic Issues
By Jamey Dunn
Quinn pitched several measures targeting businesses and workers, including a proposal to increase the state’s minimum wage. “This year, we really need to get the job done for our fellow citizens who are making the minimum wage of $8.25 per hour. Our minimum wage workers are doing hard work. They’re putting in long hours. Yet in too many instances, they are living in poverty,” he said. “That’s not right. That’s not an Illinois value. And that’s not a fair shake. This is all about dignity and decency. So I said it last year. and I’ll say it again: It’s time to raise Illinois’ minimum wage to at least $10 an hour.”
Quinn called for an increase to the minimum wage last year during his State of the State address. “I’m pleased that the governor is continuing his message on the minimum wage,” said Maywood Democratic Sen. Kimberly Lightford, who sponsors legislation that would increase the minimum wage. She said she has been negotiating the issue for month with business groups.
Lightford said she knows that it is nearly impossible to expect that the business lobby will support the proposal. “There’s nothing that we can do for a corporation to agree with a minimum wage increase. There will be nothing that you can do. There is no happy medium on an increase.” But she said she has worked to revamp her legislation to give some consideration to businesses. In perhaps the only surprise in the speech, Quinn also called for workers to get at least two paid sick days. Quinn also said he wants to double the Earned Income Tax Credit, which goes to low-income working families, over the next five years.
Doug Whitley, president and chief executive officer of the Illinois Chamber of Commerce, said he was glad the governor’s speech focused on the economy. But he said that adding more business regulations would not help job growth. “I was pleased with the themes [of the governor’s speech], but I was not impressed with the details,” he said. Whitley said the minimum wage is not meant to sustain a family. He said those jobs are intended to be for young people, students and those looking to supplement their incomes with part-time work. He said he is concerned that if Illinois increases its minimum wage, which is already greater than many other states, it will hurt its ability to compete. “I would rather see the [U.S.] Congress do it than individual states do it,” Whitley said.
Republican leaders agreed. “The minimum wage doesn’t lift people out of poverty. I think the minimum wage is the wrong discussion,” said Senate Minority Leader Christine Radogno. “We’re not unsympathetic to the fact that people are making very low wages, but the questions are: Why aren’t people moving into higher wage jobs? How do we create those jobs? And how do we match the talent to get those jobs? So I think focusing only on the minimum wage is a distraction from the real work we need to be doing.”
But proponents say that those living on low wages often also receive help from safety net programs, so taxpayers are in effect being asked to subsidize the cost of workers for private businesses. “Those people will be on government benefits. And they will be relying more on government, and they’ll be relying more on government for services and that costs everybody money,” Kotowski said. “I think people recognize that if you’re working full-time hours but making wages that don’t allow you to feed your family and take care of yourself and pay for the basic necessities of life, there’s something fundamentally wrong.”
Quinn also called for cutting the cost for incorporating a limited liability corporation from $500 to $39. Whitley called that idea “creative and fresh.” But he said: “I’m sure that small businesses will appreciate that. But the magnitude of an increase in the minimum wage and additional required days off will dwarf any savings that that LLC might actually have from a reduction in the fee.”
Some lawmakers said the change might not be realistic, given the state’s budget situation. “What’s the cost to the state of doing that? It’s a great thing to say in a speech, but what’s it going to cost the state?” asked Bradley. “I mean, we’re staring at a really ugly budget scenario coming up and a really difficult fiscal and revenue situation coming up in the near future, and he’s talking about getting rid of money that’s coming in.”
Education initiatives
By Caitlin Rydinski
As part of his address today, Quinn proposed expanding early childhood programs and a college scholarship program, but lawmakers question where the funding for his plans would come from.
Quinn’s “Birth to Five Initiative” looks to provide prenatal care to low-income families, increase access to childhood early education and offer programs that provide parental support. Quinn said his initiative would help taxpayers avoid paying for the cost of medical needs, early intervention, remedial education and grade repetition.
Lightford said Illinois already focuses on early childhood programs from age 3 to 5, so adding prenatal care to age 3 may not be difficult. “It’s really not as difficult of a challenge getting there,” Lightford said. “I think that the area of the wrap-around services that [Quinn has] included with the prenatal care and the parent involvement piece — I think those are good areas to focus on.”
But Lebanon Republican Sen. Kyle McCarter and other legislators are concerned with where funding will come from. “I think it’s a great idea, but if you can buy parental support, we would have bought it decades ago. I don’t know how you buy that. That’s a cultural problem,” McCarter said. “Given the situation we are in with the tight budget, he is going to have to cut something else in order to pay for this.”
Wheaton Republican Sen. Michael Connelly said education is important, but he wants to focus on the economy to give students access to better jobs. “I’ve got a constituent that has a child that is going into a graduate program, and other states … are basically saying Illinois is done. Come to our state. … This is where the future is,” Connelly said of states not only persuading jobs to leave Illinois but also college students. Quinn also proposed to double the funding for Monetary Award Program scholarships that currently about 140,000 students receive.
Many lawmakers want to see both of those programs funded but are concerned they may lose out to other competing budget interests. “I hope that we can find a way to fund that program, as well as the MAP grant,” Lightford said, adding that the MAP program helps keep Illinois competitive with other states in having an educated workforce. While Quinn’s initiative is a five-year plan, Lightford said she hopes the MAP funding increase can happen sooner.
With Western Illinois University and several community and private colleges in his district, Sen. John Sullivan said he supports the doubling of MAP grants. “We know that there’s huge demand there. We talked about actually doubling the scholarships. ... I think most people are supportive of that, but I think the next speech that the governor gives will be the budget address. And so, how is he going to pay for some of these new initiatives like the prenatal program,” he said of the budget issue with the state and the ending of the temporary income tax increase. “The governor has introduced some new perspective and new programs, and I’m going to be interested in how he is going to pay for them.”
Many lawmakers and advocates said they want to know more about how the state will be able to provide the finances for Quinn's education proposals and still maintain the programs Illinois has now. “I think it’s really encouraging to have the governor advocating early childhood education,” said Emily Miller, policy and advocacy director for Voices for Illinois Children. But she said she is waiting for the budget address in February to find out how much funding Quinn will propose for education and early childhood programs.
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