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Addressing today’s top two GOP objections

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* Rep. Tim Butler (R-Springfield)…

The people of this state are smart enough to see he is using one-time election-year gimmicks to cover up the fact he has gone back on his word and done nothing to change the structural problems facing our state’s finances.

This one’s pretty easy. Proposing to use revenue windfalls this year and next to put $500 million extra into pensions (which saves $1.8 billion down the road), pay off the $900 million debt that’s been carried for maybe a decade by the state employee/retiree group health insurance program, zero out the $230 million College Illinois debt that people had swept under the rug for years, stash $800 million in a previously empty rainy day fund are all part of addressing the state’s structural problems.

Is it enough? Nope. If it were up to me, I’d take all of that $1 billion tax cut and put it into paying down longterm debt, but I don’t have to run for office to keep my job. And what’s the Republican alternative? Well, the House GOPs have been a little light on details (as in, none at all), but the Senate Republicans want permanent tax cuts. Talk about making the structural problems worse.

* I’m not trying to pick on Tim, by the way. This was a common refrain today by Republicans. House GOP Leader Durkin…

The budget laid out by Governor Pritzker today is packed with gimmicks and one-time tricks, but no structural reforms.

* Rep. Dan Ugaste…

Now, without a graduated income tax, he’s painting a rosy picture of our state’s fiscal health while ignoring the structural causes of Illinois’ fiscal instability.

There were more, but you get the drift.

* Let’s move on to another objection. Rep. Avery Bourne…

When you dig into Pritzker’s budget proposal, our state revenue is projected to decrease by almost half a billion dollars next year, while spending is going up by over $2 billion. This kind of spending growth is irresponsible and unsustainable.

It’s not quite that simple. From GOMB…

That shows expenditures will fall by $1.6 billion.

* Here’s Sen. Win Stoller…

In fact, this budget increases spending. It creates new and permanent spending of $2.5 billion, potentially leaving us in a precarious financial position once our temporary federal revenue is exhausted

* From the Senate Republicans…

The Republicans are certain that revenues will crash in the future and fear that Pritzker would lock them in to spending hikes. The governor’s office thinks we’re heading back to more “normal” revenue growth after this next year.

* Anyway, I asked the governor’s office about this and was told: “We balanced a budget with realistic revenue for next year. Not fantasy revenue. And if we have to make cuts because revenue goes down lower we will. Because we’ve done it before. We believe in balanced budgets.”

posted by Rich Miller
Wednesday, Feb 2, 22 @ 3:36 pm

Comments

  1. So… GOP…

    “Normal governing and normalcy is a slippery slope. Govern by fear, failure, and negativity”

    The GOP fears… normalcy… and… that cuts won’t happen?

    No, that was Rauner who said he’d take the arrows, but seemingly hid behind his costumes doing so.

    If the GOP campaign vision is a long term doom, why should they govern?

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 3:44 pm

  2. The Republicans were united in opposition to the Fair Tax - the greatest “structural reform” in a generation. Their disingenuous nonsense is just so tiring.

    Comment by Bud's Bar Stool Wednesday, Feb 2, 22 @ 3:52 pm

  3. ==Now, without a graduated income tax, he’s painting a rosy picture of our state’s fiscal health while ignoring the structural causes of Illinois’ fiscal instability==

    Sen. Ugaste inadvertently making the case for a progressive income tax is delightful.

    Comment by The Doc Wednesday, Feb 2, 22 @ 3:55 pm

  4. It’s also quite rich watching various state GOP types label tax cuts and paying down debt as gimmicks.

    Comment by The Doc Wednesday, Feb 2, 22 @ 3:59 pm

  5. Whether you call it “structural reforms” or “structural causes” the words are meaningless. To the extent that the GOP feels that spending cuts are needed they should be clear to the what and why. And perhaps acknowledge that they would be willing to make cuts that agency heads wouldn’t advance under the prior administration.

    The reality is that these “structural reforms” already happened over a long period of time. Under both Republican and Democratic administrations we did a fine job of hollowing out government. And what we didn’t touch we couldn’t because of federal mandates and/or consent decrees. And if the suggestion is that “structural reforms” lie in reducing pension obligations, well we’ve been there and done that too. Beyond the implementation of Tier 2 all that’s left is paying the debt.

    So what exactly is the GOP serving up beyond word salad?

    Comment by Pundent Wednesday, Feb 2, 22 @ 3:59 pm

  6. When confronted with the facts, the ILGOPs are left standing naked. Tax cuts is all they’ve got, which means digging the hole deeper. True fiscal conservatives can find a lot to like about this budget and they don’t even have to look too hard to see it. We’re not out of the woods yet, but we’re headed in the right direction and Governor Pritzker’s budget is a responsible, adult plan for the state.

    Comment by 47th Ward Wednesday, Feb 2, 22 @ 4:00 pm

  7. Rich and OW +1

    Comment by Norseman Wednesday, Feb 2, 22 @ 4:01 pm

  8. ===the greatest “structural reform” in a generation===

    More than that. I’d argue 1969, when the state income tax was enacted here.

    Comment by Rich Miller Wednesday, Feb 2, 22 @ 4:03 pm

  9. If folks wanted world changing structural reform, get behind a call for a constitutional convention, both parties, and hash this out in a way to make it world changing.

    The GOP wants ballot initiative things to change the constitution that can’t get 71 and 36, so it’s “good” politics to “they won’t let us”

    The Dems might see a convention as a frontal assault, going forward, on pensions, organized labor, and possibly tax structures (no income tax?)

    Welp, “let’s play the feud”… call for a convention.

    They won’t, so I see no earth shattering changes for “decades”.

    That’s how that “Fair Tax Flop” played out. It’s now stymied any possible change, politically

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 4:11 pm

  10. One question for the Republicans: Where is your budget?

    They have the answers, please share. Let’s see the balanced budget that includes their precious tax cuts and keeps everybody happy with the services they expect.

    This has been the case for too long. My biggest beef with the Dems is the tacit acceptance of the “taxes are too high” proposition that has been foundational to Republicans since Reagan. Given people’s expectations for a certain level of government services (from police to parks to schools to roads), the taxes are not too high, if anything, they are too low. (Hence, the structural deficit.)

    Comment by Pot calling kettle Wednesday, Feb 2, 22 @ 4:12 pm

  11. If we learned anything from the Rauner years, it’s that “structural problems” are code for social service spending, union protections, and fulfilling promised payments to vendors and pension recipients.

    There’s a reason they’re not defining the ideas here.

    Comment by NIU Grad Wednesday, Feb 2, 22 @ 4:17 pm

  12. So as I understand it, it’s like I pay off my mortgage so now I can buy a car, so I’ve got new car payments (but less than my mortgage). But according to Republicans I’ve taken on new structural debt and ignore what I’ve paid off. Is that it?

    Comment by Banish Misfortune Wednesday, Feb 2, 22 @ 4:17 pm

  13. I’m hopeful the ratings agencies take note, and revisit their evaluation of Illinois debt ratings. I’m hoping the administration already is or already has reviewed the projected budget and what it means with those rating agencies.

    Comment by Lincoln Lad Wednesday, Feb 2, 22 @ 4:18 pm

  14. Gimmick, hunker down folks this is the ILGOP’s new…wait for it…gimmick.

    The budget practices are legit. And the gov’s team has actually balanced a budget and ended up with a surplus. Something this group of goper’s has never done even after gutting social services and education for the better part of four years.

    What is a “grand bargain” and twice counting the sale of JRTC if not a “gimmick”?

    I am tired of the ILGOP and their nonsense and gimmicks.

    Comment by JS Mill Wednesday, Feb 2, 22 @ 4:22 pm

  15. All this criticism of Republicans being flung around here dismiss facts that not all revenues being used for a glowing budget this year are not guaranteed into the future, but federal funds from several relief bills.

    Instead of asking Republicans what their plans are and where are their budgets, how about inviting them to sit at the table instead of limiting plans hatched during Democratic caucuses. Otherwise, be prepared to own up to your actions the past two years.

    And when those funds dry up, what happens next? More tax increases? The Democratic Party is clearly rattled over developments they never foresaw post Covid-19, namely the spiking in violent crime and the general feeling of lawlessness.

    They own that too, whether they like it or not.

    Comment by Louis G Atsaves Wednesday, Feb 2, 22 @ 4:23 pm

  16. - Pot calling kettle - Wednesday, Feb 2, 22 @ 4:12 pm:

    The same place their legislative map was

    Comment by Precinct Captain Wednesday, Feb 2, 22 @ 4:24 pm

  17. ==Instead of asking Republicans what their plans are and where are their budgets==

    It’s a fair question. Republicans do nothing but criticize, criticize, criticize and then whine (like you are now) that nobody will listen to them. When you start being constructive then maybe someone will listen to you. Until then you are relegated to the fringe which is exactly where you should be until you want to act like adults and be constructive participants in the process.

    Comment by Demoralized Wednesday, Feb 2, 22 @ 4:30 pm

  18. ===All this criticism of Republicans being flung around here dismiss facts that not all revenues being used for a glowing budget this year are not guaranteed into the future, but federal funds from several relief bills.===

    Oh, - Louis G Atsaves -

    ===“We balanced a budget with realistic revenue for next year. Not fantasy revenue. And if we have to make cuts because revenue goes down lower we will. Because we’ve done it before. We believe in balanced budgets.”===

    Keep up, it’s not like your patron Rauner with phony reforms and no taking the arrows. Your “fear” isn’t about leadership, you’re fear is if they are right and you’re wrong.

    === Instead of asking Republicans what their plans are and where are their budgets, how about inviting them to sit at the table instead of limiting plans hatched during Democratic caucuses.===

    So, lemme get this straight, LOL… “no, unless you invite us, we won’t share anything publicly that might even be good politics for us, the GOP”? That’s hysterically sad. When you have nothing you bluff and say, “yeah, we’ll, no one asked us”. Pathetic.

    ===Otherwise, be prepared to own up to your actions the past two years.===

    So, if Pritzker gives $1 billion in tax relief, paying down debt, more higher ed funding, more state troopers, better infrastructure…

    “That ain’t us”

    - the GOP

    … I mean… are you 9 years old? That’s a terrible idea. “We’ll just sit it out.”

    ===namely the spiking in violent crime and the general feeling of lawlessness.===

    Meh.

    Wait till Abortion comes down the pike and the GOP is gonna tell children they need to have children, or like in Texas where they outlawed rape. Suburban women will be quite interested in that.

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 4:31 pm

  19. ==be prepared to own up to your actions the past two years==

    Given how much state finances have been turned around I’d be proud to own up to those. That’s the problem Republicans are facing right now, at least in terms of finances. The state is doing well right now. Their complaints about state finances right now are laughable.

    Comment by Demoralized Wednesday, Feb 2, 22 @ 4:32 pm

  20. And so I am crystal clear, even for - Louis G Atsaves -

    ===Wait till Abortion comes down the pike===

    It’s February 2nd.

    The November election is 9 months away.

    Who exactly knows what will be *the* critical issue? So much can happen in these 9 months. Then there’s Trump too.

    I dunno what March will bring, let alone February… but, it’ll be interesting

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 4:34 pm

  21. ===And when those funds dry up, what happens next? ===

    Well then, we’ll just make the required pension payment, won’t give any tax relief and make no further contributions to the rainy day fund. You see, Louis, those are all one-time expenditures. They don’t necessarily recur. Budgeting 101. You should know that.

    Comment by 47th Ward Wednesday, Feb 2, 22 @ 4:36 pm

  22. Doesn’t seem the Governor’s Office disagrees with the characterization that the budget spends $2.5 billion more next year (not including debt or one time expenses), while revenue is expected to decrease by $460 million.

    I think the plan to pay down debt is great. But consideration should definitely be given to the fact that If the trend laid out above continues then Illinois could find itself in a tricky situation in the future.

    Comment by Phenomynous Wednesday, Feb 2, 22 @ 4:46 pm

  23. I have a relative who is a staunch conservative but she acknowledges his successes in paying down debts that have been left to him. She is voting for him. Fiscally, it’s very hard for anyone to say with a straight face that this Governor doesn’t know how to act in a fiscally responsible manner.

    Comment by Stormsw7706 Wednesday, Feb 2, 22 @ 4:49 pm

  24. For the first time in about 20 years we have a Governor moving us in the right direction. We are digging ourselves out of a hole. The GOP candidates are shooting blanks.

    Comment by The Dude Abides Wednesday, Feb 2, 22 @ 4:52 pm

  25. ===And when those funds dry up, what happens next?===

    You think that’s all the money flowing in? They’ve done a pretty good job of not building that money into the base.

    Comment by Rich Miller Wednesday, Feb 2, 22 @ 4:52 pm

  26. “Reforms are more important than a budget”, where did I hear that before

    Comment by Rabid Wednesday, Feb 2, 22 @ 4:53 pm

  27. Does that chart mean that 20% of expenditures are for pensions. If so what a disaster. Show me a well run government or business with that type of spending.

    Pension payments are almost as much as spent on education every year and more than any other line item.

    Can someone confirm that Illinois has agreed to stop employees from earning more pension credit going forward like nearly every private company in the country. And that any new employee will not receive a pension.

    Comment by Notclear Wednesday, Feb 2, 22 @ 4:58 pm

  28. ===Can someone confirm that Illinois has agreed to stop employees from earning more pension credit going forward like nearly every private company in the country. And that any new employee will not receive a pension.===

    Wirepoints is down the dial, you’ll find it.

    Explain Tier 2. Thanks.

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 5:01 pm

  29. As to OW’s point on the issue of a woman’s right to choice being an important issue in the fall, I always hope to not be a one issue voter, but I really can not ever remember knowingly voting for a candidate that was not pro choice.
    As to the post, with one candidate not being able to find a running mate, one candidate speaking for God and another candidate hiding out, I think the comments by the GOPers on the budget are about in line with their overall approach to this election.
    Come on folks let’s at least try to give a run at winning something this time around.

    Comment by Back to the Future Wednesday, Feb 2, 22 @ 5:02 pm

  30. **Can someone confirm that Illinois has agreed to stop employees from earning more pension credit going forward like nearly every private company in the country. And that any new employee will not receive a pension.**

    This isn’t google… do your own research.

    Start with Tier 2 and 3 pensions.
    Then look at what is possible under the state constitution.

    Then come back and have an adult conversation.

    Comment by SaulGoodman Wednesday, Feb 2, 22 @ 5:03 pm

  31. The GOP criticism is that these are one-time gimmicks.
    Their response is to demand permanent gimmicks.

    The GOP fears the one-time gimmicks will crash the budget in the near future.
    So the GOP wants permanent gimmicks to guarantee the budget will crash in the near future.

    And they wonder why they don’t get taken seriously.

    Comment by Leigh John-Ella Wednesday, Feb 2, 22 @ 5:44 pm

  32. ===Show me a well run government or business with that type of spending.===

    The Feds would have assumed control of the State of Illinois pension systems long before Dan Walker’s pension funding shenanigans.

    Comment by Anyone Remember Wednesday, Feb 2, 22 @ 5:45 pm

  33. That “gimmick” popped up on their Word A Day calendars is really silly since this budget address went over famously sexy stuff like “paying pension obligations early” and “pumping more money into the Rainy Day fund”. Just gimmicks, I’m sure.

    Comment by Arsenal Wednesday, Feb 2, 22 @ 5:49 pm

  34. == not all revenues being used for a glowing budget this year are not guaranteed into the future==

    And we write a new budget each fiscal year, so if revenue changes, we can change, too.

    ==Instead of asking Republicans what their plans are and where are their budgets, how about inviting them to sit at the table==

    So, the idea is that Republicans have so much contempt for the people of Illinois that they won’t just directly tell them their plans? Or are their plans so toxic that they can only be mentioned in backroom deals?

    ==The Democratic Party is clearly rattled over developments they never foresaw post Covid-19, namely the spiking in violent crime and the general feeling of lawlessness.==

    “Clearly”, huh? I thought Pritzker was really poised in talking about crime today. It’s a vulnerability for Dems to be sure, but Pritzker’s message, with his warchest, can shore it up a lot.

    Comment by Arsenal Wednesday, Feb 2, 22 @ 6:03 pm

  35. ==Can someone confirm that Illinois has agreed to stop employees from earning more pension credit going forward like nearly every private company in the country.==

    State government isn’t like nearly every private company in the country. Different things should be treated differently.

    And I, for one, would just as soon my state government not participate in the corporate race to the bottom. We shouldn’t be demanding that it make life harder for the people who work for it.

    Comment by Arsenal Wednesday, Feb 2, 22 @ 6:09 pm

  36. Sounds like a budget from someone who could be a presidential contender…

    Comment by JSI Wednesday, Feb 2, 22 @ 6:16 pm

  37. –Can someone confirm that Illinois has agreed to stop employees from earning more pension credit going forward like nearly every private company in the country. And that any new employee will not receive a pension. –

    Hey, ‘Not Clear’ next time the GOP has an anti-crime presser with their police friends, why don’t you show up and ask the GOP why they aren’t still harping about the need to get rid of excessive and expensive public sector pensions, you know, like the ones their police friends are about to enjoy.

    Comment by Leigh John-Ella Wednesday, Feb 2, 22 @ 6:23 pm

  38. ==We shouldn’t be demanding that it make life harder for the people who work for it.

    I don’t call treating state workers the same as the people who pay taxes to fund the state government “make(ing) life harder”.

    I am all in favor of paying down the debt since it help the state in the long run. But I wish some politician had the guts to drastically change how state workers are compensated for retirement.

    Just think how much better the state would be if it could spend its money on services for the people of the state instead of 20% of spending on pensions.

    Comment by ElginAlum Wednesday, Feb 2, 22 @ 6:25 pm

  39. ===The GOP fears the one-time gimmicks will crash the budget in the near future.
    So the GOP wants permanent gimmicks to guarantee the budget will crash in the near future.===

    GOPers, tell me you don’t know how to budget without telling me you don’t know how to budget.

    Comment by thechampaignlife Wednesday, Feb 2, 22 @ 6:26 pm

  40. “Just think how much better the state would be if it could spend its money on services for the people of the state instead of 20% of spending on pensions.”

    The ILSC has been very clear on this issue. See Tier 2. See Edgar Ramp. I agree that a 401k style system would eventually be cheaper to facilitate. But not for decades. You still have to honor current employee and retiree pensions. It is non-negotiable.

    Comment by Ducky LaMoore Wednesday, Feb 2, 22 @ 6:41 pm

  41. ===But I wish some politician had the guts to drastically change how state workers are compensated for retirement.===

    You don’t grasp that pesky constitution, the ILSC ruling, and what is owed… is owed.

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 6:42 pm

  42. = treating state workers the same as the people who pay taxes to fund the state government =-

    State workers are taxpayers, too, you know.

    = wish some politician had the guts to drastically change how state workers are compensated for retirement. =

    In what way? Explain.

    Comment by JoanP Wednesday, Feb 2, 22 @ 6:49 pm

  43. ===State workers are taxpayers, too, you know.===

    They know… they like the idea that they can seem “above” this.

    Good on calling it out, it’s tiring how memories are more about angst than honesty

    Comment by Oswego Willy Wednesday, Feb 2, 22 @ 6:53 pm

  44. ===Just think how much better the state would be if it could spend its money on services for the people of the state instead of 20% of spending on pensions.===

    Change “20%” to “the required amount” and you’ve just defined how the State operated under Dan Walker, Jim Thompson, and Jim Edgar.

    Comment by Anyone Remember Wednesday, Feb 2, 22 @ 7:06 pm

  45. ==I don’t call treating state workers the same as the people who pay taxes to fund the state government “make(ing) life harder”.==

    You can call it a piece of strawberry rhubarb pie if you like, but it’s making state workers’ lives harder. You’re demanding that they be given worse retirement plans. That’s making their life harder, right? Exactly right.

    To say nothing of the fact that state workers pay taxes, too.

    ==Just think how much better the state would be if it could spend its money on services for the people of the state instead of 20% of spending on pensions. ==

    Well, talk to Thompson and Edgar and Blago for letting the bills pile up, but now we’re stuck with it, and we owe the money even if we could force state workers to accept a smile and a song for compensation.

    Comment by Arsenal Wednesday, Feb 2, 22 @ 7:10 pm

  46. ==I agree that a 401k style system would eventually be cheaper to facilitate.==

    And they’re cheaper because the workers take a haircut. And that’s bad enough in the private sector with it’s profit motive. I’d rather everyone get a defined benefit pension, not just state workers. But we’re not going to get any closer to that by taking it away from state workers.

    Comment by Arsenal Wednesday, Feb 2, 22 @ 7:15 pm

  47. GOP opposes $2.5 billion in increase in spending that increases funding for Public Safety sounds like Avery Bourne wants to Defund the Police…is that right?

    I mean, i just want to make sure I have that correct.

    Comment by Yellow Dog Democrat Wednesday, Feb 2, 22 @ 9:04 pm

  48. Speaking of wishing politicians had guts: Go ahead, run on slashing public employee pensions while taking Griffin millions.

    Public employee pay and benefits must keep right wing billionaires up at night. Sad.

    Comment by Grandson of Man Wednesday, Feb 2, 22 @ 9:17 pm

  49. =The Democratic Party is clearly rattled over developments they never foresaw post Covid-19, namely the spiking in violent crime and the general feeling of lawlessness.=

    All crimes matter and I’m just as rattled by Republicans who would choose to ignore that. And that’s not whataboutism. It’s merely recognizing that you can’t claim the law and order mantle while freely accepting some crimes and condemning others.

    Comment by Pundent Thursday, Feb 3, 22 @ 8:14 am

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