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* Pretty sure we’ve discussed this before, but it’s worth repeating every now and then. From Finke’s column…
The National Conference of State Legislatures recently took a look at rainy day funds, money state’s put aside to help cushion the blow in the event of an economic downturn.
The organization said only two states don’t have an official rainy day fund, although one of them, Colorado, has a “required reserve” fund. That leaves only Illinois without one, NCSL said.
That’s a bit misleading. Illinois has a “Budget Stabilization Fund,” which is essentially a rainy day fund under a different name. Right now, it has $60,000 in it, which the comptroller’s office said will pay less than 30 seconds worth of state bills.
Rest easy.
*Hard sigh*
…Adding… As noted in comments, it makes little sense to establish a large rainy day fund while the state has so much debt. However, building in a bit of fiscal flexibility would still be a decent idea.
posted by Rich Miller
Monday, Sep 30, 19 @ 9:55 am
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We don’t need no Stinking Funds.
Comment by Give Me A Break Monday, Sep 30, 19 @ 9:59 am
Hard to save when you’re paying off debt.
Quinn was at least sincere at paying down the backlog, signing legislation that helped unseat him.
Then came Rauner. Hard to imagine more damage could be done in four years even with a doable plan.
Comment by efudd Monday, Sep 30, 19 @ 10:00 am
Well if we had more than that $60 grand we should all be mad. I’d much rather pay down bills especially the ones we have to pay interest on. I doubt any money that would be sitting in a rainy day account would earn as much as those high interest rates that we pay.
Comment by Been There Monday, Sep 30, 19 @ 10:02 am
#belikeIllinois
Comment by Red Ranger Monday, Sep 30, 19 @ 10:05 am
The problem with Rainy Day Funds is it is always raining somewhere to someone.
The biggest problem with Illinois’ Rainy Day Fund is it literally transfers out of GRF on Monday and then transfers back into it on Tuesday. It’s budgetary window dressing at its finest.
Comment by Bertrum Cates Monday, Sep 30, 19 @ 10:05 am
Most of my neighbors have that in their checking accounts.
Comment by Stones Monday, Sep 30, 19 @ 10:07 am
More spending and higher taxes is the answer to this problem.
Comment by Steve Monday, Sep 30, 19 @ 10:13 am
In a rare moment of non-sarcasm:
I don’t pay taxes for the government to build reserves.
I pay taxes to support programs, personnel and pay bills/debts. If you’ve got more than you need, give the excess back and I’ll put it in my rainy day fund.
Comment by Michelle Flaherty Monday, Sep 30, 19 @ 10:14 am
Can’t be surprised that there’s no cash when there is still a large unpaid bill backlog.
The real question is how much revenue does the state really need to get to a level of fiscal stability on par with other states. I’m not talking about being a top quartile performer, but simply in the middle of the road.
There are a lot of moving parts right now, all with a forecasted revenue impact. There’s no margin for error is there? You have to ask yourself if the state can really get there by raising taxes on the 3%.
Hope that recession holds off for a few years.
Comment by SSL Monday, Sep 30, 19 @ 10:19 am
==Steve== Where are your cuts ? We are on the edge. Recession may be 12 months away.Its our Wil E Coyote moment…before the long fall to splat.
Comment by Anotherretiree Monday, Sep 30, 19 @ 10:20 am
Steve-
Obviously, you’re right.
Rauner gave us the blueprint for a robust and vibrant future. One where businesses flourished, especially those doing business with the state. Of which there were always takers.
Comment by efudd Monday, Sep 30, 19 @ 10:21 am
We have billions of dollars of unpaid bills.
A “rainy day fund” or a budget stabilization fund is a moot point.
We already owe billions of dollars that we’re not able to timely pay.
Complaining about the lack of a “rainy day fund” when there’s several feet of water in the basement is ridiculous. We don’t need a rainy day fund.
We need a progressive income tax rate and better tax enforcement from the federal government to partner with our own enforcement actions.
Comment by Candy Dogood Monday, Sep 30, 19 @ 10:22 am
Michelle Flaherety x 100.
If Illinois did have a surplus to last 30 days or more, IPI would be ridiculing them for “hoarding” tax-payers money.
Comment by efudd Monday, Sep 30, 19 @ 10:23 am
To be fair to my Illinois state fund managers, it would be fiscal mispractice to let money sit in a rainy day fund when there are still unpaid bills accumulating interest.
Comment by DarkDante Monday, Sep 30, 19 @ 10:24 am
==Michelle Flaherety x 100.==
Seconded.
Also, remember what happened to Chicago’s rainy day fund created from the parking meter sale - Daley spent almost all of it, almost instantly.
Comment by lakeside Monday, Sep 30, 19 @ 10:27 am
Do not feed - Steve -
The drive by ridiculousness begins and ends with what’s already said; Show The Cuts.
Even Rauner didn’t want to show the cuts. That speaks volumes to it.
Comment by Oswego Willy Monday, Sep 30, 19 @ 10:27 am
- Michelle Flaherty -
Restaurant quality.
Your insightful comment, on point to so much, critically explains the differences between government and business thinking and why running any governing like a business is folly.
Comment by Oswego Willy Monday, Sep 30, 19 @ 10:29 am
= However, building in a bit of fiscal flexibility would still be a decent idea. =
Agreed. Consolidating the special funds would be a great place to start.
Comment by Bertrum Cates Monday, Sep 30, 19 @ 10:31 am
Higher spending will circulate more money in the Illinois economy . Higher taxes will mean money goes into the right hands of the policy planners. Can anyone doubt that smaller class sizes in Chicago is the road to 1600 SAT scores?
Comment by Steve Monday, Sep 30, 19 @ 10:32 am
Steve-
In honor of the late, great Wordslinger
“That’s quite the word salad”
Comment by efudd Monday, Sep 30, 19 @ 10:39 am
I should clarify when I say policy planners , I mean public spirited public servants like Marty Sandoval . How can anyone think the greedy 1% shouldn’t pay more when Marty has important government services to fund? Private sector greed is hurting this state.
Comment by Steve Monday, Sep 30, 19 @ 10:42 am
Former Gov. Brown of California, an actual fiscal conservative, helped build up a budget surplus and rainy day fund for future economic problems. Raising taxes on the rich was a key part of California’s greatly-improved finances.
There is a deafening silence these days from the likes of those who used to call themselves the Tea Party. Where is the outrage and protest over the national GOP and Trump mainly being the ones to balloon the federal deficit and national debt, like there was for the last president?
Comment by Grandson of Man Monday, Sep 30, 19 @ 10:43 am
===I mean public spirited public servants like Marty Sandoval . How can anyone think the greedy 1% shouldn’t pay more when Marty has…===
- Steve -
You can always vote for “better” folks instead of burning your breakfast burrito in the dorm room microwave before your Philosophy 403 class on the other side of the Quad.
Comment by Oswego Willy Monday, Sep 30, 19 @ 10:44 am
OW
I never lived in a dorm room in college or graduate school. I’ll defend Marty right here. He’s a misunderstood idealist. An urban reformer. A man with a vision.
Comment by Steve Monday, Sep 30, 19 @ 10:48 am
Yes indeed
Lets not have a rainy day fund. Lets do a bond deal and pay outrageous interest, bond council fees, and brokerage fees. Makes perfect sense in Illinois. The state of plenty.
Comment by Blue Dog Dem Monday, Sep 30, 19 @ 10:52 am
===I’ll defend Marty right here. He’s a misunderstood idealist. An urban reformer. A man with a vision.===
“Sir, this is a Wendy’s”
How Marty is now dragged into the 30 second surplus, probably because your ridiculous driveby is embarrassingly bad, but…
To the Post,
The backlog before Rauner, the implosion or governing during Rauner makes it impossible to think “rainy day fund”. That’s honest to the discussion. Paying bills for services and servicing debt will be the charge of the GA and governors until there’s another way to get things under a controlling budget to have a surplus.
Services should not suffer because of savings.
Cuts need to make sense while saving cents too.
Comment by Oswego Willy Monday, Sep 30, 19 @ 10:53 am
===The state of plenty===
I take it you’re now ready to support a tax hike?
Comment by Rich Miller Monday, Sep 30, 19 @ 10:59 am
OW
Marty has been part of the appropriations process. Why not be proud of his legislative output? He’s been a Chairman. Government services cost money. It’s greedy of successful individuals not to want to pay more in taxes when so much good can be done with higher taxes.
Comment by Steve Monday, Sep 30, 19 @ 11:03 am
I take it now your ready to support a tax hike? You mean the 19 cent gas tax? Or the $100 tax increase on trailer plates? Or the increased tax on beer?
Comment by Blue Dog Dem Monday, Sep 30, 19 @ 11:06 am
===has been part of the appropriations process.===
… along with 176 other legislators who voted, gubernatorial administrations that asked for and used appropriations,..,
I think Sandoval should remove himself or be removed from the chairmanship but this premise that “all” is tainted when the bipartisan votes and signature of a governor tell me lots of folks are in “process”
What’s next, you and Mr. Wehrli demanding all the evidentiary items before an indictment is secured?
Comment by Oswego Willy Monday, Sep 30, 19 @ 11:08 am
One source of income that could be used to shore up the rainy day fund would be to channel a few hundred million out of the expected billions that will annually come from pot sales. After twenty years we are talking real money.
Comment by Blue Dog Dem Monday, Sep 30, 19 @ 11:12 am
OW
Marty has been a leader. Illinois wants higher taxes, the blueprint for it is coming. All politicians shouldn’t be tainted, that’s an excellent selling point for more taxes.
Comment by Steve Monday, Sep 30, 19 @ 11:12 am
- Steve -
I fed you.
I have *no* idea what you’re trying to do but feed you own need to make all things Marty.
Good luck.
Comment by Oswego Willy Monday, Sep 30, 19 @ 11:14 am
“If Illinois did have a surplus to last 30 days or more, IPI would be ridiculing them for “hoarding” tax-payers money.”
Not sure about that - it all depends on the amount in relation to revenues. GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures
Comment by Donnie Elgin Monday, Sep 30, 19 @ 11:25 am
Delayed payments to state vendors has always been our rainy day fund.
Comment by Earnest Monday, Sep 30, 19 @ 11:43 am
OW
I apologize. It’s not just about public spirited state Senators like Marty. There are others who are equally or more public spirited like Tom Cullterton. Leaders with broad public support of the citizens and fellow colleagues.
Comment by Steve Monday, Sep 30, 19 @ 11:54 am
- Steve -
Good luck.
Comment by Oswego Willy Monday, Sep 30, 19 @ 11:56 am
thr Department of revenue is giving away millions of dollars to large corporations in tax forgiveness but no one seems to care
Comment by Anonymous Monday, Sep 30, 19 @ 12:47 pm
===Department of revenue is giving away millions of dollars to large corporations in tax forgiveness but no one seems to care===
Individuals qualify for Amnesty too. The catch is that the taxes all have to be paid. Given that the state is earning 3% on interest assessed to late taxpayers and paying higher rates on bonds and for late payments the amnesty program could wind up being a net gain for the state even with the penalties and interest being lost.
Comment by Candy Dogood Monday, Sep 30, 19 @ 1:13 pm
The State tried “flexibility”, and created a huge pension problem by flexibly not paying into pensions funds for too long. It’s time to lockbox more revenue streams for specific needs.
Comment by revvedup Monday, Sep 30, 19 @ 1:30 pm
= After twenty years we are talking real money. =
I am confident someone will feel at least a sprinkle between now and then.
= thr Department of revenue is giving away millions of dollars to large corporations in tax forgiveness but no one seems to care =
Save it for Facebook.
Comment by Bertrum Cates Monday, Sep 30, 19 @ 2:54 pm
Just raise taxes enough to pay down the debt and build a reserve in a reasonable time frame … like forever.
Comment by Looking down the Road Monday, Sep 30, 19 @ 2:56 pm
“Not sure about that”
Then you don’t follow the rampant hypocrisy of the IPI.
Comment by efudd Monday, Sep 30, 19 @ 3:18 pm
we want this government. We want this result.
Comment by park Monday, Sep 30, 19 @ 7:43 pm