Showing posts with label blagojevich. Show all posts
Showing posts with label blagojevich. Show all posts
8:20 AM
pay raises revisited
Unknown
blagojevich , jones , pat quinn , pay raises , special session
Have you heard that pay raises have become the focal point of this special session? Originally Governor Blagojevich called it for a capital works plan, but the shift has taken place. That's because taxpayers in Illinois are fed up. The House and Senate Republicans were opposed to the raises from the start and Lt. Governor Pat Quinn has posted a website so citizens can sign a petition and e-mail it to Governor Blagojevich and State Senate President Emil Jones. You can also just sign the petition. I signed it and e-mailed it.
I heard this morning from a news item on the Illinois Radio Network that the governor is now opposed to the raises. He didn't say a word about them during the last special session. Emil Jones remains adamant on the issue, and sounded like he won't budge. Will Senate Democrats try to persuade their leader to bring up a rejection vote? This might be a mute point because State Comptroller Dan Hynes says the raises won't be paid because the money wasn't appropriated.
Do you notice that the legislative business at hand gets put on the back burner with the Democrats? Will one wonder why the special session was called in the first place?
I heard this morning from a news item on the Illinois Radio Network that the governor is now opposed to the raises. He didn't say a word about them during the last special session. Emil Jones remains adamant on the issue, and sounded like he won't budge. Will Senate Democrats try to persuade their leader to bring up a rejection vote? This might be a mute point because State Comptroller Dan Hynes says the raises won't be paid because the money wasn't appropriated.
Do you notice that the legislative business at hand gets put on the back burner with the Democrats? Will one wonder why the special session was called in the first place?
11:01 AM
blagojevich attacking his own
Unknown
blagojevich , daley , illinois jobs , madigan
Governor Blagojevich blamed 10 Democrat legislators from Chicago for "double-dipping" and also for killing his construction plan because Mayor Richard Daley said to do it. The legislators, according to the governor also for work for the City of Chicago or Cook County. Earlier last week Blagojevich asked Daley to intervene between himself and House Speaker Madigan, who doesn't trust the governor to deliver on his promises. House Democrats, who also work for other public entities in Chicago or Cook County think the governor can threaten them with their jobs if they don't cooperate. Some legislators have been on unpaid leave or get about half the salary because they are now in the state legislature. Blagojevich has said that these legislators need to "stop killing jobs" for downstate.
8:21 AM
maybe more money for schools
Unknown
An article in the Daily Herald reports that Governor Balgojevich wants education funding fixed , and fixed now, before the November elections. The article mentions that he wants this done WITHOUT a tax increase. If a tax increase is in the bill, the governor would veto it.
This isn't sitting well with legislators (especially Democrats), since Governor Blagojevich wants to call a special session in September to address this. That is right during the heart of campaign season, and the special session could renew talk of a recall amendment to the State Constitution and impeachment.
Education funding is now a hot issue, thanks to State Senator James Meeks, who brought up the disparity in property tax funding between Chicago inner city and suburban school districts. This could be the focal point of next week's special session. Meeks also said that if Blagojevich will run for re-election, he will run against him in the Democrat primary in 2010.
This isn't sitting well with legislators (especially Democrats), since Governor Blagojevich wants to call a special session in September to address this. That is right during the heart of campaign season, and the special session could renew talk of a recall amendment to the State Constitution and impeachment.
Education funding is now a hot issue, thanks to State Senator James Meeks, who brought up the disparity in property tax funding between Chicago inner city and suburban school districts. This could be the focal point of next week's special session. Meeks also said that if Blagojevich will run for re-election, he will run against him in the Democrat primary in 2010.
1:53 PM
if the capital plan was not enough
Unknown
blagojevich , capital plan , emil jones , income tax , james meeks , pay raises , property tax , schools , special session
Governor Rod Blagojevich has called a special session of the legislature next week. One thing I thought of is the state legislature may find enough time to enjoy the Illinois State Fair and thus help sagging attendance. But back to business. They will go at the bequest of the governor to look at the scaled-down version (from 34 to 25 billion dollars) of the capital plan and public school funding.
First the public school funding issue was brought up by the Illinois Legislative Black Caucus, who demanded a special session. The ILBC wants to put school funding to the forefront because of the disparity of school district funding based on property taxes versus a tax dollar boost from income taxes. Recently Senator James Meeks (D-Chicago) called for parents to register their children for the upcoming school year at the New Trier Township school district, a wealthy suburban district. This is to be done to protest the funding disparities between intercity and suburban school districts.
Meeks and other African-American legislators have called for a property tax/income tax swap to equalize funding among school districts. Several have said that this plan would raise income taxes. This notion is nothing new. I can remember when Jim Edgar was in office as governor, he tried twice for at least some sort of reduction of the property tax for schools, but he could get no real, serious support and the initiatives failed. Once the plan was dead before any real talk on the issue could get going. Remember Edgar left office in January 1999. That's how long this has been. In Chicago, Meeks said he hoped to see a vote next week on a bill to allow students to go to whatever school district they wished. He also called for a vote on legislation to dismantle the state’s school funding system in 2010, forcing a rewrite of the funding system during the next gubernatorial election year.
I personally don't criticize the idea of this (I've shot the idea out in plenty of tax discussions for the last 12 years), but I have a difficulty accepting that this should be attempted in a special session without so much as a hearing on the issue. What do school administrators have to say? Or even county treasurers (of which I am one)? Since we collect and distribute school district property tax monies, I am a bit curious how an income tax system would operate. Plus how would this effect the property tax levy process? Would income taxes have to be increased? Get my concern? Logistics are a bit involved here!
Well if that's not enough, the capital plan revenue is still up in the air, since the major portion of the revenue is the sale or lease of the lottery. Meeks wanted the sale or lease of the lottery to go to education, but that plan failed. Meeks said he would not vote for the lottery sale or lease to fund construction. Will Senator Meeks appeal for a sale or lease of the lottery for his school tax swap plan? Tune in to find out. Will there be the votes in the House to use the lottery to fund the capital plan. A "test run" in the last special session said no (the vote was for the expansion of gambling licenses), but more House Republicans than who'd thought, voted for the expansion of gambling licenses as a source of revenue. Were they just practicing for what was yet to come? By the way, that initiative failed mainly due to a three-fifths vote needed.
If that's not enough, bring State Senate President Emil Jones into the mix. Jones faces the prospect of the legislative pay raises taking effect while the Senate is in session, opening him and other Democrats to criticism, or should I say more criticism? Jones & Co. have an "out" and that is to reject the raises in this special session. How bad does Mr. Jones and the Senate Democrats want that raise? We'll soon see.
Chicago Tribune Clout Street was a source article for this entry
First the public school funding issue was brought up by the Illinois Legislative Black Caucus, who demanded a special session. The ILBC wants to put school funding to the forefront because of the disparity of school district funding based on property taxes versus a tax dollar boost from income taxes. Recently Senator James Meeks (D-Chicago) called for parents to register their children for the upcoming school year at the New Trier Township school district, a wealthy suburban district. This is to be done to protest the funding disparities between intercity and suburban school districts.
Meeks and other African-American legislators have called for a property tax/income tax swap to equalize funding among school districts. Several have said that this plan would raise income taxes. This notion is nothing new. I can remember when Jim Edgar was in office as governor, he tried twice for at least some sort of reduction of the property tax for schools, but he could get no real, serious support and the initiatives failed. Once the plan was dead before any real talk on the issue could get going. Remember Edgar left office in January 1999. That's how long this has been. In Chicago, Meeks said he hoped to see a vote next week on a bill to allow students to go to whatever school district they wished. He also called for a vote on legislation to dismantle the state’s school funding system in 2010, forcing a rewrite of the funding system during the next gubernatorial election year.
I personally don't criticize the idea of this (I've shot the idea out in plenty of tax discussions for the last 12 years), but I have a difficulty accepting that this should be attempted in a special session without so much as a hearing on the issue. What do school administrators have to say? Or even county treasurers (of which I am one)? Since we collect and distribute school district property tax monies, I am a bit curious how an income tax system would operate. Plus how would this effect the property tax levy process? Would income taxes have to be increased? Get my concern? Logistics are a bit involved here!
Well if that's not enough, the capital plan revenue is still up in the air, since the major portion of the revenue is the sale or lease of the lottery. Meeks wanted the sale or lease of the lottery to go to education, but that plan failed. Meeks said he would not vote for the lottery sale or lease to fund construction. Will Senator Meeks appeal for a sale or lease of the lottery for his school tax swap plan? Tune in to find out. Will there be the votes in the House to use the lottery to fund the capital plan. A "test run" in the last special session said no (the vote was for the expansion of gambling licenses), but more House Republicans than who'd thought, voted for the expansion of gambling licenses as a source of revenue. Were they just practicing for what was yet to come? By the way, that initiative failed mainly due to a three-fifths vote needed.
If that's not enough, bring State Senate President Emil Jones into the mix. Jones faces the prospect of the legislative pay raises taking effect while the Senate is in session, opening him and other Democrats to criticism, or should I say more criticism? Jones & Co. have an "out" and that is to reject the raises in this special session. How bad does Mr. Jones and the Senate Democrats want that raise? We'll soon see.
Chicago Tribune Clout Street was a source article for this entry
1:05 PM
judicial watch lawsuit postscript
Unknown
blagojevich , house of representatives , jones , judicial watch , state senate
As reported earlier, Judicial Watch filed a lawsuit against the governor, senate president and state senate for open records violations. Judicial Watch claims that information is being withheld about pork-barrel spending which is often hidden inside the budget as "lump-sum" appropriations. Specific details about the projects and how much each project costs are not available to taxpayers.
Freedom of Information Act requests filed by Judicial Watch were ignored by Blagojevich and Jones. Requests made to the State House of Representatives were NOT ignored and hence they were not named in the suit.
Please note that SB1601, sponsored by Republican Senator Gary Dahl would stop this practice. But the bill got stuck in rules by the Democrat led committee and went nowhere.
Freedom of Information Act requests filed by Judicial Watch were ignored by Blagojevich and Jones. Requests made to the State House of Representatives were NOT ignored and hence they were not named in the suit.
Please note that SB1601, sponsored by Republican Senator Gary Dahl would stop this practice. But the bill got stuck in rules by the Democrat led committee and went nowhere.
12:49 PM
Senate Republican Leader Frank Watson called on Governor Blagojevich to sign the current ethics bill into law. Mr. Watson made his appeal to the governor on Thursday, July 31st at a discussion of a state construction plan.
The bill is HB824, the ethics bill that would curb the state's "pay-to-play" political contributions and clean up state government. The measure passed the state legislature overwhelmingly and is now awaiting the governor's signature. Governor Blagojevich did say he would make ethics reform part of a new construction plan.
The bill is HB824, the ethics bill that would curb the state's "pay-to-play" political contributions and clean up state government. The measure passed the state legislature overwhelmingly and is now awaiting the governor's signature. Governor Blagojevich did say he would make ethics reform part of a new construction plan.
8:23 AM
judicial watch files lawsuit
Unknown
americans for prosperity , blagojevich , emil jones , illinois senate , judicial watch
Judicial Watch has filed lawsuits against Governor Rod Blagojevich, the Illinois Senate and State Senate President Emil Jones. The lawsuits were filed in Sangamon County Circuit Court in Springfield. The suits are part of an investigation by Judicial Watch which involve private deals between Governor Blagojevich and Democrat lawmakers. Judicial Watch is also reviewing public spending in general in Illinois.
Open record requests filed with the Governor's Office and the State Senate on February 20 and March 25, 2008 were ignored, prompting the lawsuits. The lawsuits were necessary, according to Judicial Watch, to force compliance with Illinois open records law.
Judicial Watch and Americans for Prosperity launched an investigation of public spending policies in the State of Illinois after multiple press reports documented "secret side deals" between Governor Blagojevich and Illinois lawmakers "for items ranging from police cars and tornado sirens to millions of dollars for after-school programs..." (The Chicago Tribune estimated these pork barrel projects cost Illinois taxpayers at least $70.8 million in 2006 alone.)
A detailed review of public spending practices in Illinois is being conducted by Judicial Watch and Americans for Prosperity, including member initiatives and/or earmarked appropriations, about which substantial questions have been raised," Judicial Watch wrote in its original open records request filed with the Illinois Senate.
I have said that if elected I would call for a major, independent accounting firm to conduct a thorough audit of Illinois government spending. This might well be happening now with the Judicial Watch investigation.
Open record requests filed with the Governor's Office and the State Senate on February 20 and March 25, 2008 were ignored, prompting the lawsuits. The lawsuits were necessary, according to Judicial Watch, to force compliance with Illinois open records law.
Judicial Watch and Americans for Prosperity launched an investigation of public spending policies in the State of Illinois after multiple press reports documented "secret side deals" between Governor Blagojevich and Illinois lawmakers "for items ranging from police cars and tornado sirens to millions of dollars for after-school programs..." (The Chicago Tribune estimated these pork barrel projects cost Illinois taxpayers at least $70.8 million in 2006 alone.)
A detailed review of public spending practices in Illinois is being conducted by Judicial Watch and Americans for Prosperity, including member initiatives and/or earmarked appropriations, about which substantial questions have been raised," Judicial Watch wrote in its original open records request filed with the Illinois Senate.
I have said that if elected I would call for a major, independent accounting firm to conduct a thorough audit of Illinois government spending. This might well be happening now with the Judicial Watch investigation.
12:44 PM
no longer
Unknown
blagojevich , budget , emil jones , madigan
I've been in public service for just over 13 1/2 years as an elected public official. I am a state constitutional officer since the local government section of the state constitution states that a county shall have at least three officers: the county clerk, the county treasurer and the county sheriff. I come to the courthouse as a public servant to serve.
Do I make mistakes? Yes. Hopefully my mistakes aren't too big to handle and when I do make a mistake I first admit it to myself and then tell someone about it and then I go on to correct what I've done wrong. Simple enough. I've been fortunate enough that I haven't made too many of the same mistakes twice. Good for me and good for the people I serve. I don't get too many compliments, but I'm not in public service for those..I am in public service to help people and to fix their problems. Have I always been successful helping people? No, but that doesn't mean that I didn't try.
Why am I writing about this? Because I read something today that really bothered me. The entry in the Capital Fax Blog for today frankly made me ashamed that we have those in the roles of leadership in the legislative and executive branches of government that don't have the people at heart. After all they are in the role of public servants too. They were elected to help people, but with their current attitudes they give the impression that they only care about themselves and are using the people that need state funding to their own advantage.
Is this merely coincidence, or is this evidence that one-party rule is not working in Illinois? Why then did State Senate President Emil Jones demand a pay raise and Senator Mike Jacobs say that he deserves a pay raise and he is worth every penny? Are they truly getting the job done or is this an example of one-party rule?
On a personal note, I don't know if I deserve what I am paid. I like to think that I earn what I am paid, but I am not the judge of that, the taxpayers are. As a a taxpayer ask if the state legislature and the governor are earning what they make. Do they really deserve a raise in light of the problems they helped to create?
Mr. Blagojevich, Madigan and Jones need to admit to themselves that they made a mistake.
They then need to tell each other that they made a mistake, and when they are done they need to tell the citizens of Illinois they made a mistake. That would enable them to get back to work and balance a budget, or in other words, correct a mistake. I propose the legislature get back in session on August 5th to hammer out the budget problems and allow for enough revenue streams to balance the budget. I want them to show some leadership and get the job done. According to Rich Miller, Illinois used to be a rough and tumble get the job done state, but no longer. Is there enough leadership in the one-party rule Democrat Party to see this through? I doubt it.
Do I make mistakes? Yes. Hopefully my mistakes aren't too big to handle and when I do make a mistake I first admit it to myself and then tell someone about it and then I go on to correct what I've done wrong. Simple enough. I've been fortunate enough that I haven't made too many of the same mistakes twice. Good for me and good for the people I serve. I don't get too many compliments, but I'm not in public service for those..I am in public service to help people and to fix their problems. Have I always been successful helping people? No, but that doesn't mean that I didn't try.
Why am I writing about this? Because I read something today that really bothered me. The entry in the Capital Fax Blog for today frankly made me ashamed that we have those in the roles of leadership in the legislative and executive branches of government that don't have the people at heart. After all they are in the role of public servants too. They were elected to help people, but with their current attitudes they give the impression that they only care about themselves and are using the people that need state funding to their own advantage.
Is this merely coincidence, or is this evidence that one-party rule is not working in Illinois? Why then did State Senate President Emil Jones demand a pay raise and Senator Mike Jacobs say that he deserves a pay raise and he is worth every penny? Are they truly getting the job done or is this an example of one-party rule?
On a personal note, I don't know if I deserve what I am paid. I like to think that I earn what I am paid, but I am not the judge of that, the taxpayers are. As a a taxpayer ask if the state legislature and the governor are earning what they make. Do they really deserve a raise in light of the problems they helped to create?
Mr. Blagojevich, Madigan and Jones need to admit to themselves that they made a mistake.
They then need to tell each other that they made a mistake, and when they are done they need to tell the citizens of Illinois they made a mistake. That would enable them to get back to work and balance a budget, or in other words, correct a mistake. I propose the legislature get back in session on August 5th to hammer out the budget problems and allow for enough revenue streams to balance the budget. I want them to show some leadership and get the job done. According to Rich Miller, Illinois used to be a rough and tumble get the job done state, but no longer. Is there enough leadership in the one-party rule Democrat Party to see this through? I doubt it.
7:42 AM
the beat goes on
Unknown
Governor Blagojevich ramped up fund raising in the last 30 days with people who do business with the State of Illinois. He collected just more than $250,000. The fund raising bill, moved to the governor on May 30th, would prevent contractors with the State contributing to political action committees.
Governor Blagojevich said on Tuesday, July 29th that the bill wasn't tough enough and he wouldn't sign it into law. The legislation would prohibit contractors who have at least $50,000 worth of business with the State from contributing to political campaigns of state-wide elected officials.
link to the Chicago Tribune story
Governor Blagojevich said on Tuesday, July 29th that the bill wasn't tough enough and he wouldn't sign it into law. The legislation would prohibit contractors who have at least $50,000 worth of business with the State from contributing to political campaigns of state-wide elected officials.
link to the Chicago Tribune story
8:20 AM
Governor Rod Blagojevich is not on the good side of prosecutors and defense attorneys because he has decided to veto millions of dollars to fight wrongful convictions and help with death penalty reforms. One veto blocked funds for videotaping interrogations in murder cases under a law Barack Obama supported when he was in the state senate.
Originally $5.5 million was approved by lawmakers. The cut included money to support reforms Governor Blagojevich signed five years ago to help shore up integrity issues with the capital punishment process. Here's a link to the story.
Originally $5.5 million was approved by lawmakers. The cut included money to support reforms Governor Blagojevich signed five years ago to help shore up integrity issues with the capital punishment process. Here's a link to the story.
10:06 AM
A message came from State Senate Republican Leader Frank Watson and he had this to tell. The pay raise issue didn't come up in the special session. The State Senate would have had to reject the pay raises to keep them from kicking in automatically. No such luck since the Senate Democrats were adamant on not rejecting them a few weeks back. Governor Blagojevich was not vocal on the issue at all during this last special session.
“The Speaker of the House won’t sit in the same room with the Governor. The Governor and Lieutenant Governor haven’t spoken in months.The party that is in control is out of control.”
- State Senator Tim Bivins (R-Dixon, 45th District), as quoted in the Freeport Journal-Standard on July 14, speaking about the political bickering and gamesmanship between the state’s Chicago Democrat leadership.
5:53 AM
pay raises saved
Unknown
Governor Blagojevich cut the budget to balance it, but kept the pay raises intact. With those increases, his salary goes from $170,917 to $184,035. A spokesman for the Governor referenced state statute for his decision. In 2003 Governor Blagojevich vetoed raises.
Tom Cross, House Republican leader mentioned that the idea of a pay raise is "mind-boggling" in this economic climate.
Tom Cross, House Republican leader mentioned that the idea of a pay raise is "mind-boggling" in this economic climate.
1:10 PM
budget, budget, who has the budget?
Unknown
blagojevich , budget , Illinois works , legislature , madigan
Lawmakers will be back in Springfield next week to talk about the budget. But what is it all about? The Bond Buyer, a publication about public finance has an article that explains the situation very well. Here's a breakdown:
- The Senate approved a series of revenue-generating measures when they signed off on the spending plan.
- The House approved the spending side of the package, but DID NOT vote on a $16 billion pension obligation bond issue, the transfer of various funds and a CAPITAL BUDGET that combined would have trimmed the deficit by more than a $1 billion.
- The Governor has called on the House to approve the ILLINOIS WORKS capital budget that would free up about $320 million in the operating budget and the transfer of $530 million from various non-general fund accounts.
- House Speaker Mike Madigan's spokesman said there's not sufficient support for the various measures to win passage.
- Without a budget, State Comptroller Dan Hynes has warned that bill payment could be delayed along with employee paychecks.
- The proposed CAPITAL BUDGET relies on about $7 billion from a partial leasing of the State Lottery, $800 million in upfront funds from the issuance of new gambling licenses, $7.8 billion in new general obligation borrowing and local and federal matching dollars.
- About $6.2 billion of the bonding would be repaid with recurring gambling expansion revenues and $1.6 billion from transportation-related taxes and fees.
- The pension borrowing plan has been dropped by the Governor due to lack of support.
- The current unfunded pension laibility is $42 billion.
- On Wednesday the 2nd, Moody's Investment Service issued a special report which monitors four states - California, Illinois, Massachusetts and Pennsylvania - that have entered new fiscal years without a budget in place.
- The timing of state budget enactment can affect the ratings Moody's assigns to state issued general obligation bonds and other debt.
9:02 AM
back to springfield
Unknown
blagojevich , budget , madigan
Governor Blagojevich has decided to call state legislators back in session for July 9th and 10th. The topic will be the out-of-balance budget. The new state fiscal year began on July 1st, and no new budget. Governor Blagojevich is calling on lawmakers to pass a $600 million construction revenue plan and to allow "fund sweeps", the term used so that accounts with cash can be used for the general fund. There is about $3 billion out there. The state senate has already passed the revenue measures. The Governor has said the House leadership was stalling.
According to House Speaker Mike Madigan's office, support most likely will be luke warm at best, just like in May. Madigan has ruled out tax increases.
technorati: politics
According to House Speaker Mike Madigan's office, support most likely will be luke warm at best, just like in May. Madigan has ruled out tax increases.
technorati: politics
8:29 AM
According to a story in the Chicago Tribune, Governor Rod Blagojevich had met with federal investigators twice nearly two years ago. In fall 2005, Blagojevich's office acknowledged that the governor had been interviewed by federal investigators about allegations raised by his father-in-law, Ald. Richard Mell (33d), that the administration had traded appointments to state boards and commissions in exchange for campaign contributions.
At a major fund raiser on Thursday night, Blagojevich said, "We can't just rely on all this good press we've been getting these days." In March 2007, Blagojevich failed to answer if he had been interviewed by federal investigators after 2005. Blagojevich's campaign fund has disclosed it has been billed more than $2 million in legal fees.
At a major fund raiser on Thursday night, Blagojevich said, "We can't just rely on all this good press we've been getting these days." In March 2007, Blagojevich failed to answer if he had been interviewed by federal investigators after 2005. Blagojevich's campaign fund has disclosed it has been billed more than $2 million in legal fees.
8:46 AM
budget in limbo
Unknown
As it stands, revenue is still needed. If that can't be found, cuts will have to be made.
These cuts include:
These cuts include:
- Reductions in staffing
- Increased workload for DCFS employees
- 110 million dollar reduction in education spending
- Nearly a 260 million dollar reduction in social services
- 257 million dollar reduction in economic development and transit
- More than 600 million dollars in health care reductions
- 106 million dollar reductions for Seniors and Veterans
- Illinois Works
- Fund transfers
- Pension restructuring
8:05 AM
not a pretty picture
Unknown
The Auditor General of the State of Illinois released a scathing report on the Department of Healthcare and Family Services. The report states that there are 15 problems with the agency, up from 10 problems in the last report. One item was the delay in reporting the financial data to the Auditor General. Also there was an overstatement of general tax revenues of 600 million dollars.
Health care coverage funds were used to pay out 20 million dollars in worker compensation claims. The funds were originally set aside by lawmakers. The report also stated that delays in the payments of Medicaid to providers were blamed by lack of funding from lawmakers.This was after lawmakers requested a special report.
The Auditor General said the complete financial reports were made available to him in March 2008.
Health care coverage funds were used to pay out 20 million dollars in worker compensation claims. The funds were originally set aside by lawmakers. The report also stated that delays in the payments of Medicaid to providers were blamed by lack of funding from lawmakers.This was after lawmakers requested a special report.
The Auditor General said the complete financial reports were made available to him in March 2008.
12:54 PM
Woefully bad. That's what is said to describe the Illinois government state pension problems. The major problem is debt. The entire state budget is 59 billion dollars, so 44 billion dollars of long-tern debt to the pension systems is a big liability.
What did lawmakers do? Nothing. The Blagojevich Administration and the Senate Democrats wants another 16 billion dollar bond issue to pay down the debt. That would then free up money destined for pensions to be spent elsewhere: education, health care and the like. The idea is to put the borrowed money into the pension systems. This would cut the debt and reduce interest costs. The Governor is hoping that the bond debt interest would be 6%, compared to the pension debt of 8.5%, thus saving money.
Well and good you say? There was a catch....the Senate Democrats, and only the Democrats voted for it, but when it went to the House, Speaker Madigan didn't call it for a vote. Keep in mind that some House Republicans would have to vote for this if it's to pass the House.
So what's the problem? Well for starters, converting pension debt (which can be paid off any time) into bond debt puts the payment plan on a strict schedule. With the state financial situation on shaky ground, with help from the volatile stock market, should Illinois be obligated to such a plan? Those for it see that the required pension systems payment would be knocked down to 300 million dollars from 800 million dollars, thus giving the state an additional 500 million dollars to spend elsewhere. That's the money I mentioned in the second paragraph that would be freed up. That's not all.... the proposed FY 09 budget the Governor submitted assumed that the pension bond issue would have passed, thus leaving the 500 million hole that's part of the 2.1 billion dollar deficit total.
I would advise to cut 500 million dollars of spending out of the budget along with the matching revenue stream (the leftover). That still leaves us with 1.6 billion dollars to cut. Oh well....it's a start!
What did lawmakers do? Nothing. The Blagojevich Administration and the Senate Democrats wants another 16 billion dollar bond issue to pay down the debt. That would then free up money destined for pensions to be spent elsewhere: education, health care and the like. The idea is to put the borrowed money into the pension systems. This would cut the debt and reduce interest costs. The Governor is hoping that the bond debt interest would be 6%, compared to the pension debt of 8.5%, thus saving money.
Well and good you say? There was a catch....the Senate Democrats, and only the Democrats voted for it, but when it went to the House, Speaker Madigan didn't call it for a vote. Keep in mind that some House Republicans would have to vote for this if it's to pass the House.
So what's the problem? Well for starters, converting pension debt (which can be paid off any time) into bond debt puts the payment plan on a strict schedule. With the state financial situation on shaky ground, with help from the volatile stock market, should Illinois be obligated to such a plan? Those for it see that the required pension systems payment would be knocked down to 300 million dollars from 800 million dollars, thus giving the state an additional 500 million dollars to spend elsewhere. That's the money I mentioned in the second paragraph that would be freed up. That's not all.... the proposed FY 09 budget the Governor submitted assumed that the pension bond issue would have passed, thus leaving the 500 million hole that's part of the 2.1 billion dollar deficit total.
I would advise to cut 500 million dollars of spending out of the budget along with the matching revenue stream (the leftover). That still leaves us with 1.6 billion dollars to cut. Oh well....it's a start!
1:03 PM
is the multi-year highway program being held hostage?
Unknown
blagojevich , budget , capital plan , idot , Illinois works , road program
Illinois Governor Rod Blagojevich announced the $10.9 billion road program for fiscal years 2009 through 2014.In IDOT’s proposed multi-year plan, $7.79 billion will be for the state’s highway system while $3.08 billion will be for local roads. On the state system, $5.6 billion – or almost three-fourths – will be for roadway maintenance, safety and bridge repair.
However is this program being held hostage so that the Illinois Works capital bill goes through? Milton Sees, Illinois Department of Transportation Secretary stated that without the additional infrastructure investment provided by the Illinois Works program, the transportation plan would remain on the shelf. The capital plan is much talked about, however the two revenue streams remain very controversial. Those are sale or lease of the state lottery and the expansion of gambling.
All the people I have talked to are not in favor of gambling expansion. The sale or lease of the lottery is also very unpopular. What to do? The capital plan allies are moving the pieces on the chessboard. The capital plan proponents may use other programs to help sell it. The consensus I get is that without the capital plan, the State of Illinois will come to a complete standstill. This shouldn't have to be.
Budget components should include enough highway and bridge projects to keep Illinois moving forward. Match money of $1.5 billion should be appropriated so that Illinois can receive $6 billion in federal road and bridge money. As far as I know, this match money is not in the current FY 09 budget.
Opponents to the capital plan are on ice that's getting thinner by the moment if the Governor keeps saying that certain programs aren't going to fly without the Illinois Works capital plan.
technorati search: illinois
However is this program being held hostage so that the Illinois Works capital bill goes through? Milton Sees, Illinois Department of Transportation Secretary stated that without the additional infrastructure investment provided by the Illinois Works program, the transportation plan would remain on the shelf. The capital plan is much talked about, however the two revenue streams remain very controversial. Those are sale or lease of the state lottery and the expansion of gambling.
All the people I have talked to are not in favor of gambling expansion. The sale or lease of the lottery is also very unpopular. What to do? The capital plan allies are moving the pieces on the chessboard. The capital plan proponents may use other programs to help sell it. The consensus I get is that without the capital plan, the State of Illinois will come to a complete standstill. This shouldn't have to be.
Budget components should include enough highway and bridge projects to keep Illinois moving forward. Match money of $1.5 billion should be appropriated so that Illinois can receive $6 billion in federal road and bridge money. As far as I know, this match money is not in the current FY 09 budget.
Opponents to the capital plan are on ice that's getting thinner by the moment if the Governor keeps saying that certain programs aren't going to fly without the Illinois Works capital plan.
technorati search: illinois
10:53 AM
budget talks a bust
Unknown
blagojevich , budget , impeachment , madigan , watson
On June 11th three out of the four legislative leaders met in Chicago to discuss the out of balance Illinois FY09 budget. Republican Snate Leader called this meeting unproductive, overshadowed by the impeachment talk.
Senate Republicans have advocated bringing spending under control. Mr. Watson did say that there was agreement to transmit a passed budget to the Governor and he has sixty days to sign it or line item veto parts of the budget.
The capital plan, which is a massive public works program, has been stalled. Some have viewed it as "dead on arrival" when it got to the State House of Representatives. Some have also contended that Mike Madigan's "impeachment memo" (see madigan demo memo link on this blog) is a distraction for lawmakers. Some accuse Madigan of relishing in the distraction.
The Governor has been seen as one to keep the spending alive enriched from revenues garnered by fund raiding.
Senate Republicans have advocated bringing spending under control. Mr. Watson did say that there was agreement to transmit a passed budget to the Governor and he has sixty days to sign it or line item veto parts of the budget.
The capital plan, which is a massive public works program, has been stalled. Some have viewed it as "dead on arrival" when it got to the State House of Representatives. Some have also contended that Mike Madigan's "impeachment memo" (see madigan demo memo link on this blog) is a distraction for lawmakers. Some accuse Madigan of relishing in the distraction.
The Governor has been seen as one to keep the spending alive enriched from revenues garnered by fund raiding.