Grow Up Guys! This isn't kindergarten where you can take your toys and go home--this is our state--start governing.
Blagojevich scales back construction plan
Associated Press
1:34 PM CDT, July 31, 2008
CHICAGO - Lawmakers say Governor Rod Blagojevich has proposed ratcheting down the price tag of a statewide construction program and is abandoning a proposal to expand gambling to pay for it.
Top lawmakers who attended Thursday's meeting at Blagojevich's Chicago office say the capital plan would shrink from $34 billion to $25 billion.
It would be paid for in part by a partial lease of the state lottery rather than a large gambling expansion.
Representative Barbara Flynn Currie is already expressing skepticism about the lottery lease. She's a surrogate for House Speaker Michael Madigan, who skipped the meeting.
But House Republican leader Tom Cross says he thinks there's support for this latest plan, and he says he'll take it back to his caucus members.
Thursday, July 31, 2008
Tuesday, July 29, 2008
Tim Stratton Lays Out Ethics Reform for State of Illinois
Stratton Plan to Enact Tough Government Ethics Laws
For Immediate Release Contact:
Tim Stratton
(312)505-3599
Kevin Artl
July 25, 2008 (815) 577-1400
Stratton Announces Agenda to Enact Nation’s Toughest Anti-Corruption Laws
Glencoe…Equipped with a commitment to regain public trust in government and reform the way Illinois conducts business, Republican candidate for State Representative of the 58th District Tim Stratton has a plan to enact the nation’s toughest anti-corruption laws. As part of the House Republican “Agenda for Action,” Stratton wants to end pay-to-play politics and provide greater transparency and oversight to state government.
“Illinois has become a playground of political corruption and U.S. Attorney Patrick Fitzgerald has referred to the current administration as pay-to-play on steroids. Tax payers deserve a state government that finds pride in operating under the most honest and ethical principles,” Stratton said.
If elected, Stratton plans to put an end to pay-to-play politics and increase transparency by:
banning government officials from soliciting contributions from contractors conducting business with their office
preventing elected officials and other state appointees and employees from receiving fees related to legal, banking and consulting work with state bonds
increasing disclosures for investment advisors and consultants with work before a State board or commission
“As a frequent speaker across the state on government finance, I believe Illinois must conduct business like a corporation with appropriate checks and balances. It is simply wrong to trade jobs for campaign contributions. Instead companies who do business with the state should have to earn their work based on their quality of service and competitive costs,” Stratton said.
“If elected, I will work to ensure that state government is accountable to the people and not to special interest groups,” Stratton said.
###
For Immediate Release Contact:
Tim Stratton
(312)505-3599
Kevin Artl
July 25, 2008 (815) 577-1400
Stratton Announces Agenda to Enact Nation’s Toughest Anti-Corruption Laws
Glencoe…Equipped with a commitment to regain public trust in government and reform the way Illinois conducts business, Republican candidate for State Representative of the 58th District Tim Stratton has a plan to enact the nation’s toughest anti-corruption laws. As part of the House Republican “Agenda for Action,” Stratton wants to end pay-to-play politics and provide greater transparency and oversight to state government.
“Illinois has become a playground of political corruption and U.S. Attorney Patrick Fitzgerald has referred to the current administration as pay-to-play on steroids. Tax payers deserve a state government that finds pride in operating under the most honest and ethical principles,” Stratton said.
If elected, Stratton plans to put an end to pay-to-play politics and increase transparency by:
banning government officials from soliciting contributions from contractors conducting business with their office
preventing elected officials and other state appointees and employees from receiving fees related to legal, banking and consulting work with state bonds
increasing disclosures for investment advisors and consultants with work before a State board or commission
“As a frequent speaker across the state on government finance, I believe Illinois must conduct business like a corporation with appropriate checks and balances. It is simply wrong to trade jobs for campaign contributions. Instead companies who do business with the state should have to earn their work based on their quality of service and competitive costs,” Stratton said.
“If elected, I will work to ensure that state government is accountable to the people and not to special interest groups,” Stratton said.
###
Thursday, July 24, 2008
Wednesday, July 23, 2008
Stratton for Property Tax Relief
For Immediate Release Contact: Kevin Artl
July 23, 2008 (815) 577-1400
State Rep. Candidate Tim Stratton Announces Plan to Produce Relief for Skyrocketing Property Taxes
Glencoe…Skyrocketing property taxes are putting an added financial burden on Lake County families and seniors. Republican candidate for State Representative of the 58th District Tim Stratton demonstrated his commitment to secure property tax relief by rolling out an Agenda for Action that will keep money in the bank accounts of Illinois residents.
Included as part of their Agenda for Action, Stratton and House Republicans propose:
• Increasing the Homestead Exemption from $6,000 to $7,500 and increasing the Senior Homestead Exemption from $4,000 to $5,500
• Doubling the Income Tax Credit from 5% to 10% to Increase the Property Tax Rebate
“Families and seniors in Lake County are enduring enough financial hardships with prices at the pump consistently climbing above $4 per gallon, escalating college tuitions rates, and the increasing costs of everyday necessities like food and medicine. During today’s troubling economy, we have a real opportunity to offer residents relief by helping them save on their property tax bills,” Stratton said.
The Homestead Exemption is applied against the assessed value of a home to reduce the assessment. Seniors can utilize both the General and Senior Homestead Exemptions; and families can utilize only the General Homestead Exemption. Under Stratton’s plan, a senior’s $200,000 home assessment would be lowered to $187,000 and their property taxes would be reduced.
“Many seniors are on fixed incomes and this type of savings would allow them to keep their homes. We also don’t want young families to be turned away from our community because they can’t afford the taxes,” Stratton said.
-More-
Page 2
Additionally, all Illinois homeowners receive a 5% credit on their income taxes for property taxes paid. A homeowner who pays $5,500 in property taxes currently receives a $275 tax credit; but under Wait’s plan, the credit would double to $550.
Stratton, a Glencoe resident, is running to replace State Representative Karen May and draws a clear distinction between his commitments to fight taxes and her willingness to raise taxes.
“If elected, securing immediate property tax relief will be among my highest priorities. This is an issue that people care about because it’s affecting their quality of life and financial well-being,” Stratton said.
###
July 23, 2008 (815) 577-1400
State Rep. Candidate Tim Stratton Announces Plan to Produce Relief for Skyrocketing Property Taxes
Glencoe…Skyrocketing property taxes are putting an added financial burden on Lake County families and seniors. Republican candidate for State Representative of the 58th District Tim Stratton demonstrated his commitment to secure property tax relief by rolling out an Agenda for Action that will keep money in the bank accounts of Illinois residents.
Included as part of their Agenda for Action, Stratton and House Republicans propose:
• Increasing the Homestead Exemption from $6,000 to $7,500 and increasing the Senior Homestead Exemption from $4,000 to $5,500
• Doubling the Income Tax Credit from 5% to 10% to Increase the Property Tax Rebate
“Families and seniors in Lake County are enduring enough financial hardships with prices at the pump consistently climbing above $4 per gallon, escalating college tuitions rates, and the increasing costs of everyday necessities like food and medicine. During today’s troubling economy, we have a real opportunity to offer residents relief by helping them save on their property tax bills,” Stratton said.
The Homestead Exemption is applied against the assessed value of a home to reduce the assessment. Seniors can utilize both the General and Senior Homestead Exemptions; and families can utilize only the General Homestead Exemption. Under Stratton’s plan, a senior’s $200,000 home assessment would be lowered to $187,000 and their property taxes would be reduced.
“Many seniors are on fixed incomes and this type of savings would allow them to keep their homes. We also don’t want young families to be turned away from our community because they can’t afford the taxes,” Stratton said.
-More-
Page 2
Additionally, all Illinois homeowners receive a 5% credit on their income taxes for property taxes paid. A homeowner who pays $5,500 in property taxes currently receives a $275 tax credit; but under Wait’s plan, the credit would double to $550.
Stratton, a Glencoe resident, is running to replace State Representative Karen May and draws a clear distinction between his commitments to fight taxes and her willingness to raise taxes.
“If elected, securing immediate property tax relief will be among my highest priorities. This is an issue that people care about because it’s affecting their quality of life and financial well-being,” Stratton said.
###
Thursday, July 17, 2008
Daily Herald Embraces Illinois House Republican Agenda
GOP presents its case for reform
Daily Herald Editorial Board
Published: 7/17/2008 12:08 AM
Illinois House Republicans are saying the right things on what the state must do to honor its commitments to the public to be ethically and fiscally responsible in managing tax dollars and providing services.
The question is if a public that is disgusted with the state of affairs in Springfield will warm to these reforms. And, in turn, to the state Republicans proposing them. In that regard, there is not an item on the Republicans' agenda that the public should have trouble embracing.
House Republicans vow to fight for stronger anti-corruption measures - including supportt for an end to the pay-to-play scheming in which those who contribute to campaigns get the benefit of state contracts. Certainly the public is weary of seeing the wretched consequences of such in full display in federal corruption trials. It is satisfying to see the crooks nabbed and imprisoned. But better to have it all stopped before it lands on the desks of federal prosecutors.
The public should be pleased that House Republicans are hitting hard at the Democrats' penchant for expanding state government without a means of paying for it. The most recent and best evidence of this is the budget passed by a Democratic-controlled legislature, that by some Republican estimates is close to $3 billion out of balance. A continuation of such reckless disregard for fiscal discipline is going to hurt taxpayers for generations to come. House Republicans say they won't let that happen.
They also say they will ease the tax burden by offering more tax property relief. They also want to require that proposed state budgets be made available for public scrutiny. This way, taxpayers have a say in how much money should be spent before a vote is taken that leaves them no choice.
The Republicans' agenda goes beyond dollars and cents and ethical use of them. They support programs that taxpayers truly need the state to provide, such as a construction program to repair battered roads and bridges. They want to make higher education more affordable.
But if Republicans aren't having much luck getting their platform endorsed in the legislative chambers, where their power is diluted by their minority party status, they are hoping to make a good impression in the public arena. They are presenting their "Agenda for Action" in town hall meetings. One was held in Arlington Heights on Tuesday night.
The public should care about what Republicans are saying. Of course, Republicans have to back up their agenda by their own actions. These agendas come and go. And it sure wouldn't hurt if they were able to run a candidate for governor on a reform platform who would actually present voters with a real choice and a competitive race.
Voters would do well to end business-as-usual balloting by supporting those who are genuinely committed to reform. Republicans vow to offer such. For that matter, so should Democrats.
Daily Herald Editorial Board
Published: 7/17/2008 12:08 AM
Illinois House Republicans are saying the right things on what the state must do to honor its commitments to the public to be ethically and fiscally responsible in managing tax dollars and providing services.
The question is if a public that is disgusted with the state of affairs in Springfield will warm to these reforms. And, in turn, to the state Republicans proposing them. In that regard, there is not an item on the Republicans' agenda that the public should have trouble embracing.
House Republicans vow to fight for stronger anti-corruption measures - including supportt for an end to the pay-to-play scheming in which those who contribute to campaigns get the benefit of state contracts. Certainly the public is weary of seeing the wretched consequences of such in full display in federal corruption trials. It is satisfying to see the crooks nabbed and imprisoned. But better to have it all stopped before it lands on the desks of federal prosecutors.
The public should be pleased that House Republicans are hitting hard at the Democrats' penchant for expanding state government without a means of paying for it. The most recent and best evidence of this is the budget passed by a Democratic-controlled legislature, that by some Republican estimates is close to $3 billion out of balance. A continuation of such reckless disregard for fiscal discipline is going to hurt taxpayers for generations to come. House Republicans say they won't let that happen.
They also say they will ease the tax burden by offering more tax property relief. They also want to require that proposed state budgets be made available for public scrutiny. This way, taxpayers have a say in how much money should be spent before a vote is taken that leaves them no choice.
The Republicans' agenda goes beyond dollars and cents and ethical use of them. They support programs that taxpayers truly need the state to provide, such as a construction program to repair battered roads and bridges. They want to make higher education more affordable.
But if Republicans aren't having much luck getting their platform endorsed in the legislative chambers, where their power is diluted by their minority party status, they are hoping to make a good impression in the public arena. They are presenting their "Agenda for Action" in town hall meetings. One was held in Arlington Heights on Tuesday night.
The public should care about what Republicans are saying. Of course, Republicans have to back up their agenda by their own actions. These agendas come and go. And it sure wouldn't hurt if they were able to run a candidate for governor on a reform platform who would actually present voters with a real choice and a competitive race.
Voters would do well to end business-as-usual balloting by supporting those who are genuinely committed to reform. Republicans vow to offer such. For that matter, so should Democrats.
Friday, July 11, 2008
We Need More Republicans in Springfield
I think this says it all.
We need more Republicans in Springfield
July 11, 2008Recommend
STEVE HUNTLEY shuntley.cst@gmail.com
They're at it again. This time, a special session of the General Assembly is providing the spectacle of the battling, bickering Democrats slugging it out in the family feud that passes for government in Illinois these days.
Why anyone would cast a Democratic ballot in a legislative race is beyond me. Gov. Blagojevich, not on the ballot this year, is the prime culprit in the Springfield meltdown, but House Speaker Michael Madigan and Senate President Emil Jones are far from blameless. Still, a Barack Obama avalanche in the fall in a state already becoming ever more blue could pad the Democratic majorities.
I've written that voting Republican in legislative contests, no matter how worthy the Democratic candidate, is the only way you can protest the failure of one-party rule in Illinois. I also have suggested that the GOP needed to come up with its version of a Contract with America to give voters a reason to believe in Republicans again. It turns out that House Minority Leader Tom Cross (R-Kendall) was already working on that. He will unveil a House GOP "Agenda for Action" Tuesday. The seven-point agenda advocates:
• • A capital program to fix roads and bridges, build schools and hospitals, and create 700,000 jobs.
• • A balanced budget, ending carryover of unpaid bills into the next year, and a minimum "sunshine" period for everyone to examine budget bills.
• • Property tax relief.
• • Ethics legislation to end the state's "pay-to-play" scandals.
• • Reversing Blagojevich's years of cutting higher ed funding.
• • Electronic monitoring of abusive men to protect victims of domestic violence.
• • Cyber-safety laws to protect children from online sex offenders.
"There are no quick fixes or gimmicks here, just proposals reflecting the concerns the voters have about fiscal responsibility, job creation, lower taxes and ethics," Cross said. These are issues stuck in legislative limbo or passed but not acted on by Blagojevich.
The agenda's political goal is to "localize" the election and remind voters -- independents, Obamacans (Republicans in favor of the Democratic presidential contender) and Democrats disaffected by the Springfield antics -- that there's a reason to cast split-ticket ballots. That's not to say Republicans are abandoning John McCain. The agenda only recognizes that the enthusiasm for McCain is, in Cross' words, "tempered a little bit by the assumption" Obama will carry Illinois.
Polling in six battleground legislative districts in the northwest suburbs commissioned by Cross found the Democratic-led General Assembly earning only a 24 percent approval rating, with 62 percent of voters disapproving.
Blagojevich fared even worse at 20 percent approval vs. 76 percent disapproving. "Suburban voters are very aware of the lack of state government, that the Democratic leadership can't do anything of substance," Cross said.
In these six districts, the GOP is defending four seats (one open because of a retirement) and trying to retake the other two, the 44th District lost to Rep. Fred Crespo of Streamwood in 2006 and the 56th District lost last year when Rep. Paul Froehlich of Schaumburg switched to the Democratic side of the aisle. Cross said Republicans are "playing offense" to win those back with two strong candidates. Peggy Brothman, former Schaumburg District 54 Board of Education president is running against Crespo, and Anita Forte-Scott, owner of an early childhood education school, is trying to unseat Froehlich.
In the once solidly Republican suburbs, the poll found only a 1-percentage-point advantage for Republicans on the generic ballot.
"It's going to be a very tough year with Obama, the hometown guy with lots of appeal, at the head of their ticket," Cross acknowledged. "But I don't know why the voters would reward the Democrats [in Springfield] with more members." Amen.
We need more Republicans in Springfield
July 11, 2008Recommend
STEVE HUNTLEY shuntley.cst@gmail.com
They're at it again. This time, a special session of the General Assembly is providing the spectacle of the battling, bickering Democrats slugging it out in the family feud that passes for government in Illinois these days.
Why anyone would cast a Democratic ballot in a legislative race is beyond me. Gov. Blagojevich, not on the ballot this year, is the prime culprit in the Springfield meltdown, but House Speaker Michael Madigan and Senate President Emil Jones are far from blameless. Still, a Barack Obama avalanche in the fall in a state already becoming ever more blue could pad the Democratic majorities.
I've written that voting Republican in legislative contests, no matter how worthy the Democratic candidate, is the only way you can protest the failure of one-party rule in Illinois. I also have suggested that the GOP needed to come up with its version of a Contract with America to give voters a reason to believe in Republicans again. It turns out that House Minority Leader Tom Cross (R-Kendall) was already working on that. He will unveil a House GOP "Agenda for Action" Tuesday. The seven-point agenda advocates:
• • A capital program to fix roads and bridges, build schools and hospitals, and create 700,000 jobs.
• • A balanced budget, ending carryover of unpaid bills into the next year, and a minimum "sunshine" period for everyone to examine budget bills.
• • Property tax relief.
• • Ethics legislation to end the state's "pay-to-play" scandals.
• • Reversing Blagojevich's years of cutting higher ed funding.
• • Electronic monitoring of abusive men to protect victims of domestic violence.
• • Cyber-safety laws to protect children from online sex offenders.
"There are no quick fixes or gimmicks here, just proposals reflecting the concerns the voters have about fiscal responsibility, job creation, lower taxes and ethics," Cross said. These are issues stuck in legislative limbo or passed but not acted on by Blagojevich.
The agenda's political goal is to "localize" the election and remind voters -- independents, Obamacans (Republicans in favor of the Democratic presidential contender) and Democrats disaffected by the Springfield antics -- that there's a reason to cast split-ticket ballots. That's not to say Republicans are abandoning John McCain. The agenda only recognizes that the enthusiasm for McCain is, in Cross' words, "tempered a little bit by the assumption" Obama will carry Illinois.
Polling in six battleground legislative districts in the northwest suburbs commissioned by Cross found the Democratic-led General Assembly earning only a 24 percent approval rating, with 62 percent of voters disapproving.
Blagojevich fared even worse at 20 percent approval vs. 76 percent disapproving. "Suburban voters are very aware of the lack of state government, that the Democratic leadership can't do anything of substance," Cross said.
In these six districts, the GOP is defending four seats (one open because of a retirement) and trying to retake the other two, the 44th District lost to Rep. Fred Crespo of Streamwood in 2006 and the 56th District lost last year when Rep. Paul Froehlich of Schaumburg switched to the Democratic side of the aisle. Cross said Republicans are "playing offense" to win those back with two strong candidates. Peggy Brothman, former Schaumburg District 54 Board of Education president is running against Crespo, and Anita Forte-Scott, owner of an early childhood education school, is trying to unseat Froehlich.
In the once solidly Republican suburbs, the poll found only a 1-percentage-point advantage for Republicans on the generic ballot.
"It's going to be a very tough year with Obama, the hometown guy with lots of appeal, at the head of their ticket," Cross acknowledged. "But I don't know why the voters would reward the Democrats [in Springfield] with more members." Amen.
Tuesday, July 8, 2008
Message to the Illinois General Assembly---Pass the Capital Bill!
Indecision In Springfield Puts $9B In Federal Funds At Risk
CHICAGO (WBBM) -- On the eve of the General Assemby's special session in Springfield, two prominent Illinoisans who helped draft a 31 billion dollar capital spending plan are pleading for its passage.
WBBM's Regine Schlesinger reports that otherwise, Illinois stands to lose 9-billion dollars in federal money.
Governor Blagojevich enlisted former US House Speaker Denny Hastert and Southern Illinois University president Glenn Poshard to help write the infrastructure repair bill. The bill they came up with easily passed the Senate but stalled in the House.
Now, they're pleading for state representatives to pass it in the 2-day special session. Hastert says the political feud between the Governor and some of his fellow Democrats shouldn't get in the way.
The spending plan would be funded by building a new Chicago casino, expanding gambling and leasing the Illinois lottery. Poshard and Hastert warn that if lawmakers don't approve their bill, Illinois will lose 9 billion dollars in federal money for transportation, highways and other vital needs.
CHICAGO (WBBM) -- On the eve of the General Assemby's special session in Springfield, two prominent Illinoisans who helped draft a 31 billion dollar capital spending plan are pleading for its passage.
WBBM's Regine Schlesinger reports that otherwise, Illinois stands to lose 9-billion dollars in federal money.
Governor Blagojevich enlisted former US House Speaker Denny Hastert and Southern Illinois University president Glenn Poshard to help write the infrastructure repair bill. The bill they came up with easily passed the Senate but stalled in the House.
Now, they're pleading for state representatives to pass it in the 2-day special session. Hastert says the political feud between the Governor and some of his fellow Democrats shouldn't get in the way.
The spending plan would be funded by building a new Chicago casino, expanding gambling and leasing the Illinois lottery. Poshard and Hastert warn that if lawmakers don't approve their bill, Illinois will lose 9 billion dollars in federal money for transportation, highways and other vital needs.
Wednesday, July 2, 2008
Illinois $42 Billion in Debt! What is Karen May's plan to Save Illinois?
See this interesting article from the Bond Buyer, an influential financial publication in the bond and investment world. Illinois has problems folks and the finance gurus are starting to notice. This will mean higher interest rates for the state and a possible downgrade in our bond rating. While incumbent State Rep Karen May arranges deck chairs on a sinking ship, what is the General Assembly doing to avert this crisis? I propose legislation to create an emergency pension oversight board of recognized pension and finance experts to make recommendations to the General Assembly. Raiding monies from the pension funds should be outlawed and we must pay our obligations on time and in full first before we spend money we don't have.
Illinois Governor Outlines Possible Cuts As Budget Stalemate Continues - June 25, 2008
Illinois Budget Imbroglio - June 3, 2008 CHICAGO - Two days into a new fiscal year without a budget in place, Illinois Gov. Rod Blagojevich yesterday announced a two-day special session of the General Assembly for next week aimed at winning passage of revenue measures that would trim about $850 million from a $2 billion deficit in the $59 billion operating budget approved by lawmakers. "Yesterday we started another fiscal year without a state budget. Last week I told the General Assembly that I would not sign a budget bill with a $2 billion shortfall - Illinoisans must be able to trust that our checks will not bounce," he said at a news conference. The governor's action is aimed at the state House, as the Senate did approve a series of revenue-generating measures in May when they signed off on a 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 $1 billion. Yesterday, the governor backed off his push for the pension bond issue and did not provide another idea for how to replace the $400 million it would have saved in the fiscal 2009 budget. Blagojevich 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. The governor last week outlined a series of potential cuts as he urged the House to return on its own. Democratic House Speaker Michael Madigan's spokesman Steve Brown said there's not sufficient support for the various measures to win passage. The already strained relationship between the two Democrats has grown only more hostile in recent months.Yesterday, Brown said Madigan would "go to Springfield next week" as requested by the governor, but added there was "no way of knowing what happens after that. "The special session is set for July 9 and 10th. The governor said if the House fails to approve the needed-revenue measures during the first day, he would issue a proclamation on the secondenacting the cuts. "I will not take those actions lightly, and will only act when it becomes abundantly clear that the House can't or won't act responsibly on its own," said Blagojevich. Without a budget in place, Comptroller Dan Hynes has warned that bill payment could be delayed along with employee paychecks. Because of a drafting error in the budget, about 39 capital projects are being idled, but the governor said that would be fixed during the session next week. Support is strong for a capital budget, but differences remain among lawmakers on how to pay for it. The proposed capital budget relies on about $7 billion from a partial leasing of the Illinois Lottery, $800 million in upfront funds from the issuance of new gaming 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 gaming expansion revenues and $1.6 billion from transportation-related taxes and fees. The state has lacked a major infusion of capital dollars since the $12 billion Illinois Works program approved in 1999 and congressional officials have warned that without new funding the state risks the loss of federal matching dollars. With support for the pension borrowing plan more tenuous in the House among both Democratic and Republican members, the governor yesterday dropped his push to win its passage. The proposal calls for the restructuring of the 50-year payment schedule approved in 1995, increasing future year payments while trimming about $400 million off the fiscal 2009 payment. The infusion into the pension system of the funds raised through a new pension borrowing would help bring the funded ratio of the system up to 75% from 62%.
The current unfunded liability is $42 billion. The governor has promoted the pension plan as one that would ultimately trim 12 years off the time needed to reach a 90% funded ratio. Blagojevich said the pension plan overall would result in a savings of $34 billion in contributions. Yesterday, Moody's Investors Service issued a special report saying it was monitoring the situation in four states - California, Illinois, Massachusetts, and Pennsylvania - that have entered new fiscal years without a budget in place. The delay is not expected to impact debt service payments, but it does have the potential to disrupt the flow of a state's payment to vendors and employees, as well as to the cities, public universities and other municipalities that receive state funds. "Moody's views repeated delays, or those causing government shutdowns, as signs of political polarization, and for those reasons, the timing of state budget enactment can affect the ratings Moody's assigns to state issued general obligation bonds and other debt," analyst and author of the report Ted Hampton wrote.
Illinois Governor Outlines Possible Cuts As Budget Stalemate Continues - June 25, 2008
Illinois Budget Imbroglio - June 3, 2008 CHICAGO - Two days into a new fiscal year without a budget in place, Illinois Gov. Rod Blagojevich yesterday announced a two-day special session of the General Assembly for next week aimed at winning passage of revenue measures that would trim about $850 million from a $2 billion deficit in the $59 billion operating budget approved by lawmakers. "Yesterday we started another fiscal year without a state budget. Last week I told the General Assembly that I would not sign a budget bill with a $2 billion shortfall - Illinoisans must be able to trust that our checks will not bounce," he said at a news conference. The governor's action is aimed at the state House, as the Senate did approve a series of revenue-generating measures in May when they signed off on a 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 $1 billion. Yesterday, the governor backed off his push for the pension bond issue and did not provide another idea for how to replace the $400 million it would have saved in the fiscal 2009 budget. Blagojevich 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. The governor last week outlined a series of potential cuts as he urged the House to return on its own. Democratic House Speaker Michael Madigan's spokesman Steve Brown said there's not sufficient support for the various measures to win passage. The already strained relationship between the two Democrats has grown only more hostile in recent months.Yesterday, Brown said Madigan would "go to Springfield next week" as requested by the governor, but added there was "no way of knowing what happens after that. "The special session is set for July 9 and 10th. The governor said if the House fails to approve the needed-revenue measures during the first day, he would issue a proclamation on the secondenacting the cuts. "I will not take those actions lightly, and will only act when it becomes abundantly clear that the House can't or won't act responsibly on its own," said Blagojevich. Without a budget in place, Comptroller Dan Hynes has warned that bill payment could be delayed along with employee paychecks. Because of a drafting error in the budget, about 39 capital projects are being idled, but the governor said that would be fixed during the session next week. Support is strong for a capital budget, but differences remain among lawmakers on how to pay for it. The proposed capital budget relies on about $7 billion from a partial leasing of the Illinois Lottery, $800 million in upfront funds from the issuance of new gaming 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 gaming expansion revenues and $1.6 billion from transportation-related taxes and fees. The state has lacked a major infusion of capital dollars since the $12 billion Illinois Works program approved in 1999 and congressional officials have warned that without new funding the state risks the loss of federal matching dollars. With support for the pension borrowing plan more tenuous in the House among both Democratic and Republican members, the governor yesterday dropped his push to win its passage. The proposal calls for the restructuring of the 50-year payment schedule approved in 1995, increasing future year payments while trimming about $400 million off the fiscal 2009 payment. The infusion into the pension system of the funds raised through a new pension borrowing would help bring the funded ratio of the system up to 75% from 62%.
The current unfunded liability is $42 billion. The governor has promoted the pension plan as one that would ultimately trim 12 years off the time needed to reach a 90% funded ratio. Blagojevich said the pension plan overall would result in a savings of $34 billion in contributions. Yesterday, Moody's Investors Service issued a special report saying it was monitoring the situation in four states - California, Illinois, Massachusetts, and Pennsylvania - that have entered new fiscal years without a budget in place. The delay is not expected to impact debt service payments, but it does have the potential to disrupt the flow of a state's payment to vendors and employees, as well as to the cities, public universities and other municipalities that receive state funds. "Moody's views repeated delays, or those causing government shutdowns, as signs of political polarization, and for those reasons, the timing of state budget enactment can affect the ratings Moody's assigns to state issued general obligation bonds and other debt," analyst and author of the report Ted Hampton wrote.
Back to Springfield for the General Assembly
The GA's failure to come up with a balanced budget has resulted in the start of a second straight fiscal year without a state budget. The Governor today has ordered lawmakers back to Springfield to work on a budget. The Democrats can't work together and all have pet projects so we'll see how long this special session lasts. Given all the infighting last year I think it is safe to say they will be in Springfield a long, long time.
Governor calls lawmakers back to Springfield
Posted by David Mendell at 12:35 p.m.
Gov. Rod Blagojevich on Wednesday called state lawmakers back to Springfield for a session next week to make changes to a state budget that he has so far refused to sign.
Blagojevich is trying to take political advantage of the House and Senate decision to send him a budget that may be $2 billion out of balance.
The governor called the special session for the House and Senate for July 9 and 10. But he is clearly aiming his pressure at House Speaker Michael Madigan (D-Chicago).
Madigan's House Democrats have refused to pass legislation that Blagojevich wants. That includes selling $16 billion in bonds to shore up pension plans and free up spending pressure in the new fiscal year that started July 1. He also wants them to pass a multi-billion dollar public works program.
Unlike 2007's yearlong budget impasse, this spring the House and Senate Democrats joined together to pass the shaky budget. But the House refused to go along with the Senate on a variety of proposals to help cover the proposed spending.
Madigan has said the governor should use his amendatory veto power to cut the budget if he thinks there is not enough revenue for it. Blagojevich does not want to take the political pain that would come from making huge spending cuts
Governor calls lawmakers back to Springfield
Posted by David Mendell at 12:35 p.m.
Gov. Rod Blagojevich on Wednesday called state lawmakers back to Springfield for a session next week to make changes to a state budget that he has so far refused to sign.
Blagojevich is trying to take political advantage of the House and Senate decision to send him a budget that may be $2 billion out of balance.
The governor called the special session for the House and Senate for July 9 and 10. But he is clearly aiming his pressure at House Speaker Michael Madigan (D-Chicago).
Madigan's House Democrats have refused to pass legislation that Blagojevich wants. That includes selling $16 billion in bonds to shore up pension plans and free up spending pressure in the new fiscal year that started July 1. He also wants them to pass a multi-billion dollar public works program.
Unlike 2007's yearlong budget impasse, this spring the House and Senate Democrats joined together to pass the shaky budget. But the House refused to go along with the Senate on a variety of proposals to help cover the proposed spending.
Madigan has said the governor should use his amendatory veto power to cut the budget if he thinks there is not enough revenue for it. Blagojevich does not want to take the political pain that would come from making huge spending cuts
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