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* We’re entering parody territory here, or Tobin’s just saying the quiet part out loud that others including the Tribune are too polite to utter…
As the U.S. Senate considers whether to pass a $1.9 billion stimulus package, an Illinois nonprofit is urging a no vote.
Gov. J.B. Pritzker said despite a $120 million surplus in his proposed budget, the state needs an estimated $7.5 billion.
“This is a budget that is the result of a crisis that we had facing the state and the country,” Pritzker said.
Pritzker has also blamed the state’s dire fiscal condition on voters’ rejection of his progressive tax amendment and on Congress’ failure to provide unrestricted state bailouts earlier.
Jim Tobin, the founder of the Taxpayer Education Foundation, is opposed to any kind of federal bailout and said the Illinois state government needs to fail to change its irresponsible spending habits.
Kill it in order to save it. That worked so well for the Confederacy’s approach to the United States, and Tobin fancies himself an expert on that bit of history, believing the Civil War was fought over tax revenues.
* GOP Rep. Tom Demmer has some actual ideas…
First, both state and local governments should refill and reopen small-business grant programs that have to date only provided assistance to a fraction of the businesses that have been dealt a blow from COVID-19-related closures and restrictions. The highly touted Business Interruption Grant program, for example, awarded grants to just 20% of the businesses that applied. Many businesses are also struggling to pay their crushingly high property tax bills from a year in which they may have seen their property closed or restricted a majority of the time — a property tax relief program could go a long way in reducing that burden. And further mortgage and rental assistance to families who have seen their income drop because of COVID-19 closures would help reduce foreclosures and housing insecurity.
Second, the current state budget relies heavily on borrowing more than $3 billion from the Federal Reserve. All of that is due to be repaid within the next 2½ years. Carrying a short-term debt load like that will put further strain on the state budget, even after the pandemic. An influx of federal aid should be used to immediately pay off that short-term debt and avoid a repayment problem that is right around the corner.
Third, Illinois is notorious for carrying billions of dollars in unpaid bills. By paying our bills and reducing the current $5 billion backlog, we put cash in the pockets of Illinois service providers and vendors who are waiting to be paid — and we also reduce our overall debt load. As businesses fight to stay afloat during the pandemic, we shouldn’t add to their problems by making them wait and wait for the state to pay its bills. Further, when the state pays Medicaid bills — which is one of the largest programs in the state budget — we get matching funds from the federal government. During the pandemic, the matching rate has been temporarily enhanced for all states, meaning that Illinois can stretch every dollar even further.
The debt and backlog ideas are already on the table, as is more relief to businesses.
* Comptroller Mendoza and Connecticut Comptroller Kevin Lembo…
The most cynical actors in Washington have portrayed pleas for aid as an undeserved “bailout” for states that don’t share their politics. The opposite is true. States don’t seek funds for legacy costs. While both Illinois and Connecticut have been addressing long-standing fiscal challenges and legacy costs within our respective state budgets in recent years, both also act as donor states, contributing more in the form of federal taxes than we receive back in federal aid.
This year, we do this dutifully, to proudly support our fellow states as they face identical challenges of their own. This crisis has provided a clear example that we are one nation, meeting a common challenge together. The federal government’s response should reflect that, and not leave anyone behind. Our states, our residents and small businesses can’t wait.
posted by Rich Miller
Tuesday, Mar 2, 21 @ 2:58 pm
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= Tobin said . . . the Illinois state government needs to fail to change its irresponsible spending habits. =
He might want to rephrase that.
Comment by JoanP Tuesday, Mar 2, 21 @ 3:13 pm
“Illinois state government needs to fail”
This is why I stopped taking so many “small government” types seriously here. They want Illinois to crash and burn so they can prove their point about how bad Democrats are, then go retire somewhere warmer.
Comment by NIU Grad Tuesday, Mar 2, 21 @ 3:13 pm
=== Jim Tobin, the founder of the Taxpayer Education Foundation, is opposed to any kind of federal bailout and said the Illinois state government needs to fail to change its irresponsible spending habits.===
It’s like cheering the failed Rauner Years as good… now.
Making yourself a sad parody to own the libs requires having no shame. Tobin has no shame, when you say the quiet out loud to seem smart to a math that cheers a failing.
Comment by Oswego Willy Tuesday, Mar 2, 21 @ 3:17 pm
=== Illinois state government needs to fail to change ===
I’m curious how much this is applied in the personal lives of those who profess it as a solution.
Garage door doesn’t close tightly? Burn the garage down.
Child is talking back to you? Cut out their tongue.
I’m being serious here. How much of this scorched earth approach have they taken in their personal life, and what have the outcomes been.
Obviously, the only way for Tobin to be even more successful is for him to burn his house down and give away all his possessions. Or is there some reason he doesn’t want to be successful? If his approach isn’t good enough for his own life, why would anyone else listen to him?
Apologies for the heavy snark. I no longer have the patience to deal with this absurdity in the public discourse.
Comment by TheInvisibleMan Tuesday, Mar 2, 21 @ 3:21 pm
If anyone wondered what the phrase “throwing the baby out with the bath water” means, point them to Tobin’s philosophy on this as an example.
Comment by levivotedforjudy Tuesday, Mar 2, 21 @ 3:30 pm
Hoping for the state to fail….wishing for a Hurricane Katrina event to transform Chicago….starving state universities until only the strong survive. There seems to be a pattern here among folks of a certain ideological stripe.
Comment by Roman Tuesday, Mar 2, 21 @ 3:44 pm
As far as I know the Comptroller pays Medicaid claims pretty darn quickly already, for the reasons Demmer lists and others. I’d be pretty surprised if claims were staying at the Comptroller’s for any significant period of time. Even during the budget impasse those payments went out with only a (relatively) small delay. Other social services, paid for with just state funds/grants instead of Medicaid, is what took the hit there.
Basically not sure Demmer knows what he’s talking about on that score.
Comment by Perrid Tuesday, Mar 2, 21 @ 3:49 pm
The first line of the 2nd paragraph should say 1.9 Trillion COVID bill, not BILLION.
Comment by Bruce Tuesday, Mar 2, 21 @ 3:54 pm
Demmer’s proposals are probably already circulating among wonky Democrats, but to hear actual, usable policy ideas coming from a Republican is a breath of fresh air. More like this, ILGOP.
Comment by Benjamin Tuesday, Mar 2, 21 @ 3:56 pm
Judge Smails:
I’ve sentenced boys younger than you to the gas chamber. Didn’t want to do it. I felt I owed it to them.
Comment by OneMan Tuesday, Mar 2, 21 @ 4:01 pm
Does this Jim Tobin person get paid for these insights and ideas? I’ll do his job for half his salary - he clearly isn’t working that hard.
Comment by Lefty Lefty Tuesday, Mar 2, 21 @ 4:04 pm
Hello, Representative Demmer.
This is a good start.
Oswego Willy
Comment by Oswego Willy Tuesday, Mar 2, 21 @ 4:10 pm
To the post,
The debt load and paying off the short term loan(s) is a solid fiscal idea, also good to the practicing of good governance, and that’s healthy for all four caucuses to embrace, along with the governor.
The assistance to businesses, it would behoove the administration to look upon an assistance in this as the loophole budgetary wants are still out in the discussion at the same time. It does put into play an idea how working and measuring business in these times can coexist.
It’s a slam dunk to pay the backlog of bills. That helps the economy too, we need to see the state as a partner in commerce and paying bills owed is important because “cash” ain’t like service
After the senate does whatever they are going to do, whatever finally gets to the President to sign, my hope is all four caucuses embrace that monies from a $1.9 trillion bill that will help Illinois are a good thing and should be a want by those looking to govern honestly to a global pandemic
Comment by Oswego Willy Tuesday, Mar 2, 21 @ 4:16 pm
I wish we would cancel or treat people who say “the state needs to fail” the same way we do others who align with hate groups. The damage would be to the citizens and such thinking can only come from hate. If the state crashes and burns it takes a lot of good people down with it. I am sorry, but callous non-pragmatic solutions that hurt people can only be born out of hate.
Comment by friend of the family Tuesday, Mar 2, 21 @ 4:24 pm
“Taxpayer Education Foundation”
Why not just call it the “We nonsensically oppose every bit of spending every Democrat proposes no matter what foundation”…? The WNOEBSEDPNMW. It’s a great acronym, right? That is the vibe the Taxpayer Education Foundation name has.
Comment by Ducky LaMoore Tuesday, Mar 2, 21 @ 4:36 pm
It’s tiring to hear “cynical actors in Washington” criticize states struggling with their fiscal situation when “Washington” hasn’t balanced a budget in decades. It’s especially tiring to hear them criticize Illinois when Illinois is a donor state subsidizing their fiscal mismanagement.
Comment by Sir Reel Tuesday, Mar 2, 21 @ 4:37 pm
I am sure Robin is on record regarding earlier COVID relief. I’m just positive, he would be a hypocrite if he wasn’t. I just can’t find any comments. Hmmm…
Comment by JS Mill Tuesday, Mar 2, 21 @ 4:59 pm
If this is the same Jim Tobin that I knew as a village trustee 40 years ago, he wanted local governments to fail in order “save it.” Some beliefs never change.
Comment by Retired SURS Employee Tuesday, Mar 2, 21 @ 5:02 pm
Tobin has direct knowledge of deficit spending and fiscal failures.
Just look at the 2019 Taxpayer Education Foundation 990.
A loss of $5,737 on income of $38,100.
Pathetic.
Comment by Chicago 20 Tuesday, Mar 2, 21 @ 5:02 pm
Tom Demmer has taken the very easy path of pretending to be reasonable by calling out the fringe of his party no one listens to. Meanwhile, he was complicit in Rauner’s destruction of the state, silent during Trump’s four disgraceful years, and inexplicably voted against expanding absentee voting during a pandemic.
“Leadership.”
Comment by AlfondoGonz Tuesday, Mar 2, 21 @ 5:42 pm
Can we take the money if the state declares itself failed?
Comment by Anonymous Tuesday, Mar 2, 21 @ 5:56 pm
Jim Tobin in the linked article: “There are 148,654 Illinois government pension millionaires. These are people who will get over a million dollars over the course of their retirement *** and the average age of retirement is about 61.”
And the average lifespan in Illinois is 79 years.
So Tobin’s “millionaires” get an annual pension of about $56k per year.
– MrJM
Comment by @misterjayem Tuesday, Mar 2, 21 @ 6:41 pm
MrJM, please do not confuse the righteously aggrieved masses with math. Tried it - it doesn’t work. Only makes them angrier and gets you tagged as elitist.
Comment by Dysfunction Junction Wednesday, Mar 3, 21 @ 8:41 am
In the interest of fairness to the perspective shared by Mr. Tobin, I tried a thought experiment and I am having a lot of difficulty understanding what a “state government failure” looks like.
I’m not really sure what that means.
Comment by Candy Dogood Wednesday, Mar 3, 21 @ 9:19 am
We may be asking for an Illinois bailout. But a study has identified 10 other states along with Illinois that pay more in federal taxes than they get back. So does that mean we would be bailed out with our own taxpayer dollars?
Comment by Enviro Wednesday, Mar 3, 21 @ 12:02 pm