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07.05.2009 9:00 pm

Everything should be on the table to solve Illinois budget crisis

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Illinois Gov. Pat Quinn. AP Photo/Seth Perlman

Illinois Gov. Pat Quinn. AP Photo/Seth Perlman

This isn’t a very polite sentiment. But here’s hoping Illinois Gov. Pat Quinn, House Speaker Michael Madigan and Senate President John Cullerton caught a serious case of indigestion from their July 4th bratwurst.

The idea of the three sharing a roll of Tums would provide a small measure of justice, given the immeasurable heartache they’ve created by their dismal failure to reach agreement on a sensible state budget.

There’s an old expression in government that “when elephants dance, ants should stay out of the grass.” A group of ants from Metro East called on us week before last, just prior to the June 30 close of the state’s fiscal year.

They were social service providers of last resort for people too poor to pay for counseling and treatment, but not poor enough to find their way into the state’s Medicaid program. They represent small not-for-profits that provide mental health and substance abuse services under state contracts.

They tried to stay away from Illinois’ dancing elephants (since Mssrs. Quinn, Madigan and Cullerton are all Democrats, perhaps the better term is dancing donkeys). But still they are getting crushed.

Now, with Illinois operating without a state budget, there’s no money for mental health services or medication. Provider organizations are furloughing and laying off employees. Many of their clients have no place to turn — except for state mental institutions or jail.

The governor and lawmakers went home for the Independence Day holiday, vowing to return for a special session set to begin July 14. But they’ve earned no time off, least of all for good behavior.

The state has a $9 billion deficit to fill — including huge debts carried over from the preceding budget year. Many state functions will continue, at least for the time being. But just before the holiday break, the governor vetoed a bill that would have continued funding state social services, albeit at dramatically lower levels.

He called the legislation “half baked.” The same term could be applied to Mr. Quinn’s ever-changing recipe for resolving the crisis.

There’s some
good news in all this: Illinois politics are smash-mouth on a political level — at times insane. But they are eerily moderate on a policy level. Extremists on both the left and right seem to have little sway.

There’s broad consensus among Democrats and Republicans, for example, that the state has been fiscally irresponsible for decades — leading to what’s become an annual ritual of crisis management.
Iris Lav of the socially progressive but fiscally fastidious Center for Budget and Policy Priorities, a private think tank, minces no words:

“Illinois spends more than it takes in even during healthy economic times . . . .To cover up these deficits it has to resort most years to budget gimmicks and trickery, ranging from shorting pension contributions to delaying payments to health care providers and nonprofits. That is no way to run a state.”

One of the big sticking points in budget negotiations has been the state’s huge obligations to public employee pension funds. Ms. Lav acknowledges the problem. But she argues that by national standards, overall state spending is moderate and that reform should focus on the state tax system — which dates back to the industrial age and places a relatively small burden on taxpayers.

Tom Johnson, a well-regarded former state budget official who now directs the fiscally conservative Illinois Federation of Taxpayers, concedes the state tax system is antiquated and should be reformed to — gasp! — reliably raise more revenue.

But he argues that most taxpayers face a heavy burden in property taxes. The big jobs at the state level, he says, are fixing the state pension system and slowing the growth in spending. Spending cuts, he emphasizes, need not be Draconian.

These are differences that can be bridged. But doing so requires Illinois political leaders to put everything on the table and focus on the state’s moderate political tradition — and to get over themselves.

5 comments

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Things are dire (Illinois and elsewhere), and huge cuts are in order - cuts in things that never should have been. Without police (especially now - when violent crime is on the climb) and [effective / rational] courts, you have no state and ought to have no expectation that anyone would want to live there, let alone pay taxes to live there.

— egoist
5:11 am July 6th, 2009

Illinois and Missouri have almost identical state tax burdens - 9.2% in Missouri, 9.3% in Illinois. In California, they are 6th in the nation at 10.5%. So why is it that Illinois and California are experiencing a fiscal crisis, while Missouri just cruises along?

— Nick Kasoff
8:35 am July 6th, 2009

Mr. Kasoff - You are exactly right on. I cite thise points to friends when we discuss this issue. The left always wants to spend money (usually other peoples money) to make themselves feel good. What they have never learned is those costs only grow and grow and never resolve anything. People, business we ALL have to cut back. Govt.??? When was the last time you ever saw any cuts other than throwing out Children, Seniors and the Mentally challenged? As an Illinois redident, I saw let Illinois shut down.

— SoCoBoy
9:51 am July 6th, 2009

So the Post Dispatch thinks Illinois should work to balance their budget??? Why would Illinois want to do that when the United States isn’t inclined to do that same? And why would the Post not support the United States having a balanced budget?

No, this is not the era of balanced budgets but the era of printing money we don’t have and throwing money at programs that don’t work. I think Illinois should continue the new American/Obama tradition!

— Logicprevails
10:43 am July 6th, 2009

Hey nameless Editorial Board, why don’t you just have them take out 1 billion in bonds and pay pack $650 million of it, like you said Missouri should do last week. They could just keep doing that until they make enough money to cover their deficit. LOL! C’mon Board, where’s your mathematical genius now???

— Tim
2:05 pm July 6th, 2009