PeoriaStory

Illinois Democrats sell out their base

PEORIA -- A woman I know has a piece of paper that promises to pay  her medical insurance premiums as a state of Illinois retiree.  It's not just a promise, it's in contracts, she said, bargained for by her union, awarded instead of pay raises.

Now the Illinois General Assembly has passed a measure to make her pay the insurance premium, which could be hundreds of dollars monthly.  She's already retired, and as a former teacher had not worked long enough in the private sector to qualify for Social Security and Medicare. These benefits are the state equivalent of those programs for her.

See the PJS story on this, together with a list of those area legislators who voted to approve it.

There is so much wrong with this legislation it's hard to list the ways, mostly ignored by the news media.  But here they are:

1.  It's likely unconstitutional.  The Illinois constitution says state retiree benefits cannot be reduced.That means big dollars in lawsuit costs.  The unions are going to sue to defend their bargaining, as they should.

2. It's going to be means tested, a terrible idea.  To means test anything is to diminish public support for it, as it's soon seen as something only for the poor.  The legislators of the past knew that, and that's why Social Security and Medicare are not means tested.  The Illinois health benefits for retirees are the equivalent of Medicare for them. 

3. It eliminates incentives for the state to hold down costs on medical insurance, as they can pass along the premiums to retirees.  Given the history and culture of Illinois, this is a recipe for corruption. (Bribes? Kickbacks?)

4.  It takes millions out of the pockets of retirees and sends it to medical providers, many out of state.  That will seriously harm small college towns, and perhaps larger cities as well, as retirees cut back spending on charities, local businesses, restaurants and stores to pay their medical premiums.  Those premiums will be deducted from their retiree checks, so they have no choice but to pay.

What on earth were the Democrats who voted for this measure thinking? This is their base of support in elections.  Suddenly they have turned on their own base, instead of finding other sources of revenue to pay the state's deficits. 

Republicans who controlled state government for years refused to fully fund pensions, partly causing this crisis.  Now the Demos have fallen into their trap, agreeing that the state deficit must be fixed, and turning on their own base to fix it.

It's disgraceful, and those legislators of both parties who voted for this are STUPID and should be thrown out of office.  If Gov. Quinn signs this, as he has indicated, he should follow them on the way out.

 -- Elaine Hopkins

 

In their desperate search for money Illinois Democrats decide to penalize their own supporters

PEORIA -- Pensioners. People who use state parks.  They're not the 1 percent.

These are likely Democratic voters, but Democrats in the Illinois General Assembly have turned on them as they consider making state pensioners pay for their medical benefits promised to them in retirement.  The pension bill, SB1313, passed the House on May 9, and will be voted on in the Illinois Senate soon.

It's a bad bill, lacking checks and balances among other problems. It renigs on promises made to retirees, and may be unconstitutional in Illinois.

And now, some in the GA are proposing to charge user fees in state parks.

What a terrible idea!  And all the more shocking in that groups who should know better, including the Illinois Sierra Club, are backing this poorly drawn legislation.  They held a news conference on May 7. I was unable to attend, so all we have is the PJS story on that event. 

Afterwards, I complained to someone who offered support, George Burrier, legendary head of the Friends of the Rock Island Trail. Here's what he and his wife then wrote to state legislators, reprinted with his permission:

 

"My wife and I would like to support House Bill 5789 that would provide a reasonable annual admission charge and a daily admission charge to Illinois state parks.

 

I have been the president of the Friends of the Rock Island Trail State Park for many years.  I also volunteer weekly at Wildlife Prairie State Park.  We have personally experienced the effects of deferred maintenance at both parks over the past ten years.  While no one enjoys paying to visit natural sites a reasonable charge would be acceptable in our opinion provided any funds collected would be fully restricted to the State Parks Fund or the Wildlife and Fish Fund.  Naturally, we feel the General Revenue Fund allocation to the IDNR should not be reduced by any entrance fees collected.

 

We are hesitant to support the House Bill 5789 in its present form because of the following reasons or failure to address these points :

1.  There is no amount suggested for the cost of a daily or annual pass.

2.  Will there be self registration (honor system)?

3.  Will there be toll booths to collect the fees?

4.  Won't the cost of the construction and manning of toll booths use up a lot of the fees collected?

5.  Will there be car stickers?

6.  Will bicycles, hikers and horseback riders have to pay a fee if they are not in a vehicle?

7.  Will there be a fine for those caught in a park failing to display a daily or annual sticker?

8.  Will people over 65 or handicapped have to pay the full amount?

9. Hunters and fishermen have already objected to the fees saying they are already taxed on ammo and licenses.

 

I understand the bill needs to be passed before May 31st to help to address the immediate crisis our state parks are facing.  Please let me know if these issues have been or will be addressed. 

 

Sincerely,

 

 Sandra and George Burrier"

 

My take:  I am opposed to any park fees.

Once in place they will never go away, and will generate a bureaucracy to support them, as in toll roads and prisons.

If the parks need money, and apparently they do,  I would prefer a foundation to support the parks, to take tax deductible donations from users, and signs asking them to donate. Try that first. 

I have noticed that in other states, toll booths are often empty, as I guess the revenue doesn't pay enough to staff them. Illinois should study the results in other states before taking this step.

The bigger question is what to do about the state budget deficits.  Democrats should not be turning on their own supporters, the people who use parks (the rich don't use them) to close the deficit they did not create.

There are other possible sources of money. Close prisons, tax IRA withdrawals, raise taxes on the rich by using tax credits for the poor and middle classes, which can be done without a constitutional amendment.

Illinois voters did not elect Republicans, but perhaps they should have, as attacking state workers and retirees and park users are Republican solutions to deficit problems.

 -- Elaine Hopkins

Will Illinois ever have real tax reform? The $8 billion question.

PEORIA -- Economist Ralph Martire of the Chicago-based Center for Tax and Budget Accountability crunches the math to reveal the reality behind the finances of the state of Illinois. 

"The state budget is entertaining if you like Steven King" he said, to begin a Sept. 27 talk to the Peoria Area League of Women Voters. 

Martire said that in January 2011, the state's revenue shortfall for the 2012 fiscal year (that began on June 1, 2011) would be $16 billion.  Only $26 billion was expected in revenue, but $42 billion was needed to meet the state's many obligations.

So what can be cut? "You can't solve it by cutting education, and there's not that much waste, fraud and abuse in the state budget," he said.  Illinois is spending 5 percent less than it spent a decade ago.

Illinois is the fifth largest state but 49th in the number of state workers per population, down from 72,000 in 1980 to 55,000 now.

Without enough revenue to meet the needs of a growing population and inflation, the state has a structural deficit, he said, and "revenue won't grow at levels to maintain serices."

Politicians have reacted to the lack of revenue by underfunding pensions for years, he said, made worse when the stock market collapsed in 2008. Now the shortfall is $85 million.

Medicaid cannot and should not be cut, he said, because it generates matching federal dollars, more than the state spends. "This is good fiscal policy," he said.  "If we cut Medicaid we lose the federal match."

So in the spring, the General Assembly increased taxes, he said. "I drafted the bill. It was modified" but "did generate more revenue."

Was it a 'job killing' tax bill? he asked.  No, he said. Illinois still a low tax state compared with its Midwestern neighbors and the other states, such as New Jersey, that tried to lure Illinois businesses shortly after the tax increase.

 "If you raise taxes progressively (taxing the higher earners) there's no negative impacts on the economy," he said, because it relies on consumer spending.  The well off go right on spending, though they may save or invest less, he said.

Raising taxes does not kill jobs, he said. "It just doesn't fly with the data."

"Our low tax states have not produced any economic growth," he said.

"We just do the math," he said which is peer reviewed by independent economists.

"To tax and spend is neither liberal or conservative.  To borrow is irresponsible," he said.

So now, thanks to the tax increase, Illinois has an $8 billion deficit.  Human services are taking the brunt of the cuts, but public education needs more, not fewer, dollars.   It really needs $3 billion more to adequately fund all the schools, he said.

"When you have a problem do you solve it by taking resources away?" he asked.  Educational levels impact wages, he said. "Without a (strong) foundation (from school) you are destined to have a low pay, little or no benefit job." 

Tax polices are the key, he said. Illinois is a "low tax but high property tax" state, but there are limits to property taxes.

So what should Illinois do?  Martire suggested raising revenue by taxing services, as other states do. "All neighboring states tax services" including Iowa and Wisconsin.

"We can't solve our problems without thoughtful reform of tax policy for a modern economy."

Within three years, Illinois could have a surplus with enough money to properly fund education, he said. "People are looking for quality schools. Business looks for skilled workers."

"We need new revenue raised the right way."  Illinois is one of only five or six states with a flat income tax. Most states have progressive income taxes, where the rich pay more. 

Will state officials reform tax policies in Illinois?

Unfortunately politics is "a sound bite game," he said, and people are busy and lack adequate information on the complexities of taxation.But people do change their minds when exposed to facts, he said.

A video of Martire's talk was made by the Peoria Citizens Committee for Economic Opportunity, and will play on cable TV in October.  His slides will be available on the League of Women Voters website.

  -- Elaine Hopkins

Martire's speech will be televised on Comcast cable channel 22 on Sunday Oct. 16 at 5 p.m. and on Wed. Oct. 19 at 7 p.m. and midnight. The telecasts will be available in Peoria County, East Peoria, Washington and Creve Coeur, Il.  It will be on YouTube and FaceBook by Oct. 19.

Hey business whiners: Illinois the best US state in which to make a living

PEORIA -- Illinois is the best state in the USA in which to make a living, with an adjusted average income of almost $42,000 annually.  That's the conclusion of Money.com, which cites high pay and low living expenses to reach its conclusion.

Now will all the giant corporations, whose executives earn multi-millions, just shut up about Illinois and its government and tax policies! Its liberal government must be doing something right, and taxes are just a part of the mix.

Want to hear more?  Economist Ralph Martire of the Center for Tax and Budget Accountability in Chicago, speaks to the Peoria Area League of Women Voters at 6:30 p.m. on Thursday, April 28 in the conference room at Lakeview Museum in Peoria.   He will argue that higher taxes lead to prosperity, and not the reverse.

Or as some have said, money is like fertilizer -- it must be spread around.

 -- Elaine Hopkins

 

Peoria redistricting hearing: more hearings when maps are done, maybe

PEORIA -- The Illinois Senate committee overseeing redistricting of the General Assembly and Congressional districts took public comments in Peoria on April 16. The event attracted about 50 people and some interesting comments.

Roberta Parks, president of the Peoria Area Chamber of Commerce, led by echoing the Illinois League of Women Voters language for its failed Fair Map Amendment, calling for transparency and intact geographic boundaries.

But then, she added comments about the "business climate" in Illinois (code for 'we want lower taxes'), and said "how we redraw the map will send a strong signal about confidence in government."

Hummm -- does that mean giving Republicans and other low-tax advocates a better shot at winning elections with maps favorable for them?  

Union advocates at the meeting took the opposite approach. John Shallenberger of the United Auto Workers said Peoria now has two representatives and two senators, split between the political parties.  (They have safe seats, due to the way the districts are drawn/gerrymandered.)

"The system we have today works well.  We prefer to keep it.  That way you have access to everyone, he said.

Dave Chapman president of Local 974 of the UAW, with 24,000 workers and retirees, said: "I can call any representative and get a quick response," and slyly contrasted that situation with "the federal level."  (Apparently his calls to Cong. Aaron Schock, R-Peoria, are not as eagerly returned.)

Susan O'Neal, a Decatur attorney, said that city of less than 90,000 people is split into three Congressional districts and two districts for the Illinois House and Senate. "No one knows who their representative is," she said.

Her disabled clients are especially disadvantaged, she said.  "My people don't have the Internet," and may not be able to make a phone call due to the confusion. "I don't think they get good representation."

The Illinois Senators acknowledged that there are several cities and towns, some quite small, split into several districts. 

James Polk of the Illinois Central College Board and 18th District Democratic Central Committeeman, warned the committee that using a computer model to draw the lines may not work."There are traditions, cultures, a way of life," that make minority communities different, he said.

Peoria activist General Parker said Peoria is 30 percent black with a school district that is around 65 percent black, yet black representatives don't meet those percentages.  "We need people who will advocate for us and be sensitive to the needs of ethnicity," he said.

Illinois Sen. Kwame Raoul, who chairs the committee, responded that the Iowa computerized plan will not work in Illinois because Iowa is not subject to the federal Voting Rights Act. It protects minorities by keeping them together as a voting block. "We have diversity," he said.

In addition the recently passed Illinois Voting Rights Act requires that other, smaller minority groups be kept together. It was passed for Chinatown in Chicago, he said, which had been split into several districts."They couldn't hold anybody acccountable," he said.

Steve Adams, a Local 974 retiree, said more meetings will be needed after the maps are drawn.

Illinois Sen. Darrin LaHood pressed for a date when the new maps will be released for comment. But Raoul  said he didn't know when that would take place, since both the House and Senate will be drawing them, and they will become legislation to be passed.

Raoul said meetings on the maps likely will be in Chicago and Springfield. Meanwhile, "we need information prior to drawing the maps."

Illinois Sen. Dave Koehler  said," we will have hearings once the (map) is done."

The Illinois House and Senate have released websites with redistricting information.

The General Assembly is scheduled to adjourn at the end of May.

 -- Elaine Hopkins

 

 

Tired of gerrymandered districts? Attend these hearings

PEORIA -- Two public hearings on redistricting have been scheduled in Peoria.

The first, sponsored by the Illinois Senate, takes place on Sat., April 16 at 10:00 a.m., Peoria Red Cross Building, 311 West John Gwynn, Jr. Avenue.

The second, sponsored by the Illinois House, takes place on Thursday, April 21at 4:00 p.m. in the Peoria County Courthouse, County Board Room, 324 Main St.

If you're tired of gerrymandered districts which always elect a candidate from the same party, here's a chance to demand change -- districts that allow real elections, not rubber stamped candidates.

It's likely that neither political party wants this -- they've been known to split up the state, just as the Peoria districts are set up to provide safe districts for Democrats and Republicans.

Trouble is, if you're loyal to the party that's not in power in your district, you have little chance of running for office or seeing your favorite candidate get elected.  No wonder people don't vote -- it seems pointless with gerrymandered districts. 

All political districts will be redrawn this year, after the census.  Here's a chance to speak out.

 -- Elaine Hopkins

Illinois budget issues: taxes are good, speakers say

CHICAGO -- For a change, how about some straight talk on Illinois budget issues.  Not propaganda or ideology -- the truth based on facts and figures!

The Illinois League of Women Voters at its statewide issues meeting on Feb. 5 listened to Ralph Martire, executive director of the Center for Budget and Tax Accountability who promised and delivered a lively talk on a dull subject:  the state budget. 

You can listen to his talk below. It's worth hearing.

Martire said that the recent tax increases will generate $7.2 billion in new revenue, but that's only 1.5 percent of the state's $640 billion economy. 

He debunked propaganda by anti-tax advocates that businesses will move out of state, saying their arguments are not "fact based." 

Surrounding states still have high tax rates, and actually have had better growth rates than Illinois, he said, so slightly higher taxes won't inhibit growth. He presented actual numbers to prove his contention.

He attacked supply side economics, the ideology underlying tax cuts for those at the top that supposedly allows economic benefits to "trickle down."  From the end of World War II to 1980, tax rates were 70-90 percent, he said, and the growth rate was 3.8 percent per year.  After President Ronald Reagan began supply side policies and cut taxes to 38 percent, the average growth rate dropped to 2.8 percent, he said.

"It hasn't worked well and trickled down," he said, pointing to now well known statistics that show wealth moving upward and a widening income gap between rich and poor. "Supply side economics has not worked in any way. This tax increase is not going to hurt Illinois's economy," he said. But it's only a start at what needs to be done.

The tax increase legislation also contained spending caps, he said. But it does not include Senate Bill 3, a proposal to borrow and restructure Illinois debt to save money in the long run. He supports that measure.

Meanwhile the tax increase included no new spending for education, health care, public safety or other state services. "That shows how bankrupt Illinois is," he said. "We don't have enough revenue to spend to the caps," he added.

"Illinois is in a difficult place from years of fiscal malfeasance.  This is disheartening," he said.

The answer, he said, is to tax services, as other nearby states do, and pensions over $50,000, which Illinois does not now tax.

"We have to expand the sales tax base," he said, adding that will be "a brutal political fight."  But "if we don't expand it, it's game over for public education."

He suggested that when elected officials start to talk about tax cuts, they should be pinned down. "Ask how much and which programs," he said. "If you can't identify cuts as a legislator you're a phony."

He said, "state government is (already) lean and mean," and can't sustain more cuts. What's needed is a fairer, more progressive tax system in Illinois, he said.

"Regressive taxes are better than cuts," and tax increases are better (for the economy) than spending cuts. It makes sense to raise taxes and maintain spending.  For every one dollar of tax increases you generate 30 cents in private spending." 

Another speaker, Kathy Ryg, a former Illinois state representative and now president of Voices for Illinois Children, also studies budgets and tax policy.  She noted that the media "portrays the (minor) abuses" in government, and people say 'no taxes' and "have emotion on their side."   But the reality has become devastating, she said.

"Children are the hidden casualties of the economic crisis," since child poverty has long term impacts, and may doom the children to a lifetime of struggles.

The federal poverty guidelines set poverty at $21,750 a year for a family of four.  That puts one-fourth of all Illinois residents, and one-third of its children in poverty, she said. That's over 700,000 children.

Illinois has good programs to mitigate childhood poverty, but they are taking budget cuts, she said.

Child poverty "is an issue that can't be solved by a silver bullet. You can't eliminate enough waste to make a difference. The idea that people can talk about spending cuts and not understand what that means is ludicrous," she said.

Advocates need to find ways to reignite confidence in the taxing systems, she said.  "We all have a stake in this."

 -- Elaine Hopkins

Here's the audio of Martire's talk. 

LWV Feb 5

Illinois redistricting: feeding Schilling to Schock

PEORIA -- Here's a fascinating piece on the upcoming Congressional redistricting -- which suggests Democrats, who control the process, might merge the 18th (Peoria) and the 17th (Quad Cities) districts to create a "supermajority" for a Democrat.

Republican Bobby Schilling, who defeated Phil Hare in Nov., in the 17th District would be forced to run in the primary against Republican Aaron Schock, who was reelected to a second term in the 18th District. 

And the winner would face a Democrat in a newly designed Democratic district.

 --  Elaine Hopkins

 

Illinois transparency: not great

PEORIA -- Here's an interesting news release:

 

National Report Ranks Illinois ‘B’ on Transparency of Economic Subsidies

 

Chicago, IL – Online disclosure of the names of companies receiving state and local tax breaks, cash grants and other subsidies for job creation is in high demand across the country. According to a report published today by Good Jobs First, a non-profit, non-partisan research center based in Washington, DC, Illinois is leading the way as an example of transparency and accessibility. However, even with the highest rating in the country – Illinois still has a long way to go.

 In the report, Show Us the Subsidies, Good Jobs First ranks Illinois number one relative to other states’ on-line economic development disclosure practices.  Wisconsin, North Carolina, and Ohio were also praised for their efforts towards increased transparency, while thirteen other states were identified as lacking any form of disclosure at all.

“Illinois can’t afford spending big dollars without tracking where they go and whether taxpayers are getting a good bang for their buck,” said Sonia Ashe, Advocate with the Illinois Public Interest Research Group (Illinois PIRG). “In a state notorious for corruption, government transparency is a way to restore public confidence.” 

“With states being forced to make painful budget decisions, taxpayers expect economic development spending to be fair and transparent,” said Good Jobs First Executive Director Greg LeRoy. “Claims that sunshine would hurt a state's business climate have been discredited, trumped by people's rising expectations about government information being online.”

 Illinois is ahead of the pack with a searchable database that provides up-to-date reports from recipients detailing subsidy amounts, job creation and retention data, average salaries, and location. While Illinois is a positive example for others to follow, the report still only awards the state a ‘B’ in its final analysis because of the absence of disclosure within Illinois’ film tax credit program.

 “The outpouring of job-subsidy data is a breakthrough for state government transparency and accountability,” said Good Jobs First Research Director Philip Mattera, leader of the six-person team that produced the study and web tools. “Enhanced disclosure makes it much easier to monitor the tens of billions of dollars in taxpayer revenues that are being diverted to private parties each year.”

 Show Us the Subsidies rates the reporting practices of 245 key economic development subsidy programs from around the country on the inclusion and access of information such as company-specific dollar amounts, job-creation and the geographic location of subsidized facilities. Each program is rated on a scale of 0 to 100 (with extra credit for including advanced features). Scores for the programs in each state are then averaged to derive a state score.

 Some of the report’s key findings include:

• Thirty-seven states disclose on-line the recipients of at least one key subsidy program. 
• Since 2005, half a dozen states have enacted legislation mandating subsidy recipient reporting in one or more program, the most recent being Massachusetts. Several other states have moved toward transparency through administrative action alone. 
• Of the 245 subsidy programs examined, 104 of the (42%) report recipients on-line. The average program score across the country is 25, but it rises to 59 when ignoring those with no disclosure. Nineteen programs score about 75, including three in Illinois that scored over 100, thanks to extra credit.

•    “Our findings tell two different stories,” LeRoy said. “The first is one of the steady spread of transparency across the nation. The other is that some states still inexplicably keep taxpayers completely or partially in the dark.”

 “Every dollar spent on subsidies means a dollar less available for programs like schools or a dollar more that citizens must pick up the tab for in higher taxes,” said Sonia. In March Illinois PIRG will again issue a 50-state scorecard on overall state spending transparency, Following the Money: How the 50 States Rate in Providing Online Access to Government Spending Data. -30-

 

 

Coming Soon to a Government Near You: Redistricting

PEORIA -- The coalition of good government groups, led by the Illinois League of Women Voters, failed last spring to get a Fair Map Amendment on the Nov. 2 Illinois ballot.  But the issue is far from dead.

The Illinois General Assembly and local governments such as county boards and cities will be redistricting next spring, as soon as US Census figures are certified.  And the League will be watching the process and pressuring legislators to do the right thing.

The Illinois League's Mary Schaafsma, its Redistricting Project Manager, spoke to the Greater Peoria League on Nov. 20 about the redistricting process.  The League supports an open and transparent process that avoid partisan deadlock and keeps communities of interest intact, she said.

Despite a few Republican victories on Nov. 2, Illinois remains a Democratic Party state, she said.

Ninety percent of the Illinois Senate districts and 86 percent of the Illinois House districts had no contests, showing they may be gerrymandered to favor one party or the other.

When that happens, elected officials are less responsive to the voters, and partisan gridlock and even corruption become more likely, she said.  Voters become turned off.  Illinois is 29th of all states in voter turnout.

The General Assembly redistricts itself and the Congressional districts, she said.

Previously the General Assembly allowed Congress members to set up their own districts, but that's unlikely this year, because Republicans made gains in Congress.  So Democrats in the General Assembly will likely control that process, she predicted. "The Democratic Party will be more involved. They have more to lose in two years."

This year there likely will be 750,000 voters in each Congressional district, she said. Illinois could lose one or two seats, because of population shifts to the sunbelt.

The map deadline for the General Assembly is June 30, 2011.

Local boards also will redistrict. League members and citizens can find out the process and monitor it, she said. Peoria League members at the meeting are planning to follow through on this advice.

The Illinois League is discussing whether to pursue another Fair Map Ammendment project, which would affect the way the General Assembly is redistricted in 2021. It may tweek its original proposal to thwart objections, she said.

A similar amendment passed in Florida on Nov. 2, but took four years to build at a cost of $30 million. (But see correction below.)

The League's plan failed in Illinois when it lacked enough signatures to be placed on the ballot. The project ran out of time, and had little funding. It was opposed by Democrats who feared a loss of voters.

Other good government measures needed, she said, are campaign finance reform, stronger ethics rules and better civics education in schools.

 -- Elaine Hopkins

11/20/10 E-mailed comment:

Hi. Just to set the record straight, the Florida
effort took $9 million -- not 30! 
And $4 million of that was to gather the 
requisite 1.7 million signatures.
Thanks for the mention though. 
Happy to provide more info if you wish.
Ellen Freidin
Campaign Chair
FairDistrictsFlorida.org