CapitolFax.com - Latest Comments in Big budget problems, no cooperation and a huge hole on the horizon

Re: Big budget problems, no cooperation and a huge hole on the horizon

Ahem...The REAL Anonymous — Tue, 18 Nov 2008 01:24:24 -0000

Rich, I've been blogging here for a very, very long time as Anonymous--and even made the Sun-Times as Anonymous when a few CapFax bloggers (who is he is?) were quoted. Couldn't we ask the new Anonymous to adopt another name?

Re: Big budget problems, no cooperation and a huge hole on the horizon

Six Degrees of Separation — Mon, 17 Nov 2008 17:22:16 -0000

Rich,

For all of Henry Bayer's bellyaching, and rightful concern about facility closures, they recently got a pretty good contract in today's labor climate:

http://www.afscme31.org/art...
Detail.asp?objectID=1296&keyword=contract

Re: Big budget problems, no cooperation and a huge hole on the horizon

Princess — Mon, 17 Nov 2008 15:56:10 -0000

Steve, not just painful, especially when it comes to DOC, but dangerous. Not just painful when it comes to DCFS, but dangerous to the children and families that so needs that frontline. Safety should not be painful. And the cuts always come from the bottom.

State union friendly? Geez, six, is it happy hour already?

Re: Big budget problems, no cooperation and a huge hole on the horizon

steve schnorf — Mon, 17 Nov 2008 15:37:07 -0000

I don't think the federal government proscribes sales taxes on internet sales at all. My recollection is it disallows charging taxes on the internet usage itself, similar to the state and local taxes we now pay on our phone bills.

VM, your suggestions are exactly the sorts of things that need to be done (though I don't know why you threw in Chicago, Cook County, and townships. Those would have a minimal and possibly negative impact on state spending or revenues).

Princess, you're right, the cuts are going to be painful and are going to have a negative effect on the services the state provides.

And, vole, there are always some waste and expenses that can be cut, but after the past several years, with 20% of the workforce already gone, its not realistic to think our current financial problems can be dealt with by cutting unnecessary spending, unless we define state parks, Medicaid, public education, etc as unnecessay spending.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Rich Miller — Mon, 17 Nov 2008 15:34:34 -0000

===with a state government that is friendly to unions===

Ask Henry Bayer about that statement.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Six Degrees of Separation — Mon, 17 Nov 2008 15:32:19 -0000

vole-

In a highly unionized work force, with a state government that is friendly to unions, it is somewhat difficult to cut staff, and nearly impossible to fire the less-than-stellar performer. Other than a change of government philosophy via the ballot box, how do you propose to cut the fat?

Re: Big budget problems, no cooperation and a huge hole on the horizon

Six Degrees of Separation — Mon, 17 Nov 2008 15:28:23 -0000

Cheswick-

Probably true, but what about IL companies that are profiting from internet sales to out-of-state customers...they are making profits and paying employees, much of which gets spent here. It's not an easy question to answer.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Cheswick — Mon, 17 Nov 2008 15:10:16 -0000

vole - You're right, it is a law. The form and instructions are on this PDF form:

http://www.revenue.state.il...

I've heard Illinois is losing a billion dollars a year by not collecting internet sales tax. Does anyone know if that's true?

Re: Big budget problems, no cooperation and a huge hole on the horizon

vole — Mon, 17 Nov 2008 13:51:28 -0000

zatoichi: I disagree with your premise that there is not a lot that the state can cut. I believe very honest and open efficacy and performance auditing would reveal a great deal of waste. There are some production functions that can best be served by the private sector. There are some state agencies that just can't seem to trim out the dead wood from the productive stock. Some departments need beefing up and some just need to be dropped. Some unqualified patronage hires need to be fired and replaced with qualified professionals. This definitely is no short term fix, but unfortunately, by non selective default mode, a lot of good stuff is going to be weeded out with the chaff in the near term.

Re: Big budget problems, no cooperation and a huge hole on the horizon

vole — Mon, 17 Nov 2008 13:42:32 -0000

Fan,
Most definitely a drain on state tax revenues considering that you might have purchased the same items in state and been charged state sales tax. Also, correct me if I am wrong here, but isn't there a state law requiring citizens of Illinois to report purchases made out of state and to pay the state sales taxes on these items? On anything other than purchases like cars or boats that must be licensed in Illinois, there is practically no way for the state to enforce this.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Fan of the Game — Mon, 17 Nov 2008 13:31:42 -0000

===Isnâ€™t it time to change that federal law exempting internet sales? This was intended to help get the industry off the ground. Now, well established, it is just a drain===

On whom is it a drain? While I agree that the business playing ground should be level, I don't perceive NOT taxing me as a drain.

Re: Big budget problems, no cooperation and a huge hole on the horizon

zatoichi — Mon, 17 Nov 2008 13:30:28 -0000

I have never worked for any company where expenses did not increase every year. Supplies go up, electricity goes up, those raises for pesky employees who want to pay their own bills go up, insurance goes up. Yeah, you do everything you can to control costs, but year after year they rise. At the same time if you do not increase the revenue to reach a profit level, you simply will no longer exist.

Does it come as a complete surprise that costs of state government have gone up? Inflation and Martire's structural deficit concept marches on. Freeze state spending all you want. Drop 50% of current state employees. Outsource all the departments. Do you really think it will change? Concrete for roads will cost more. Medicaid payments to medical and non-medical providers will cost more or they will simply stop providing. Then who provides? What cost will really go down over the long haul? Costs will shift and on paper it will look good.

If you need to provide 100 things and two years ago you could pay for 97 of those. This year you can pay for 95. Next year you can only pay for 93, but you still have to provide 100. What do you cut and not pay for? Seems Illinois is facing the exact same issues as GM, Dell, Linen and Things, Starbucks, and Citicorp. After you chop expenses to the bone (and maybe a limb), where do you get the revenue to keeping paying for the 93 things you still have to maintain.

Re: Big budget problems, no cooperation and a huge hole on the horizon

vole — Mon, 17 Nov 2008 13:14:35 -0000

Heartless:
Isn't it time to change that federal law exempting internet sales? This was intended to help get the industry off the ground. Now, well established, it is just a drain and is very unfair to those in state merchants who are forced to charge sales tax in this environment. How about a fair playing field?

Per farm related expenses, I wasn't talking about the nickle and dime stuff. I am referring to stuff like CRP expenditures such as seed seed that are not production related and are liable to state sales taxes but are rarely charged by vendors to their farm clients. These expense are mostly cost shared by the feds. The state has lost millions of dollars in revenues from this and similar tax laws that are not enforced.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Leave a light on George — Mon, 17 Nov 2008 12:54:11 -0000

Steve Schnorf how about we do away with your former stomping grounds - CMS. Since Blago they have screwed up everything they have touched.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Boscobud — Mon, 17 Nov 2008 12:51:13 -0000

My father who has his own business bought a boat two years ago and his accountant told him he can right it off as a business expense. All he has to do is take pictures of him with clients on the boat and use that as proof. He didn't do that but I wonder how many of those big yachts on Lake Michigan do that? I think we would be amazed.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Heartless Libertarian — Mon, 17 Nov 2008 12:29:20 -0000

First vole, there is a federal law banning the taxation of internet sales except in states that passed the tax before the federal bill. Second, how much money are you going to spend harassing farmers who wrote-off a dinner with the family as a business expense? To get $2 in tax money, you are going to spend $20. It is like that in any business, not just farming. You could go around auditing like crazy, the only things you will accomplish are spending more money and angering constituents.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Boscobud — Mon, 17 Nov 2008 12:27:19 -0000

I think we should tax the churches. They bring in a large amount of money on Saturdays and Sundays masses.

That would be so low. But not surprising.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Cassandra — Mon, 17 Nov 2008 12:27:18 -0000

Blago could take heed of Mayor Daley, who is reducing headcount and avoiding some layoffs by offering financial retirement incentives to unionized employees and to non-union as well.

We know that Illinois state government, despite the 2002 early retirement initiative, is still awash in employees aged fifty five and older who are taking advantage of the lifetime job security
and low-key working environment offered by the modern Illinois civil service to stay on and on. But even some of those folks, especially the ones already eligible for retirement, might respond to financial incentives (combined with their pensions and free retiree health care) to depart. It's worth a try...especially if the alternative is to lay off frontline staff. A few million in retirement incentives in exchange for savings of many more millions, plus the opportunity to replace elderly civil service employees with younger folks entering the job market or raising young families.

Re: Big budget problems, no cooperation and a huge hole on the horizon

vole — Mon, 17 Nov 2008 12:21:53 -0000

Still waiting for the state to tax ALL internet sales, not just those from IL firms. There seem to be some potential revenue sources out there that are just off limits. My guess is that there is also a lot of spending on the farms that should be taxed but is being hidden as production related expenses which are tax exempt. But, good luck getting any representative or senator to go after these! Too many sacred cows in Illinois.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Skirmisher — Mon, 17 Nov 2008 12:19:53 -0000

BEFORE the election, I was desperately hoping that the legislature would get off its collective keester and do something to prevent the catastrophe that is now starting to unfold. But then the so-called voters of this state re-elected every darned one of these hacks and gave them another 20-year pass to continue their feckless ways. So bring on the catastrophe! Illinois has got it coming, and I hope it is a dandy.

Re: Big budget problems, no cooperation and a huge hole on the horizon

VanillaMan — Mon, 17 Nov 2008 11:58:25 -0000

Someone has to break in Rezko's undies!

Re: Big budget problems, no cooperation and a huge hole on the horizon

VanillaMan — Mon, 17 Nov 2008 11:57:51 -0000

OK - then.
Close one prison and make everyone sleep in shifts.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Macbeth — Mon, 17 Nov 2008 11:57:12 -0000

All this and Emil's probably the prime candidate for Obama's seat.

I, for one, look forward to more mess. We voted these folks in, so we bear the responsibility for the continued dysfunction.

Re: Big budget problems, no cooperation and a huge hole on the horizon

Princess — Mon, 17 Nov 2008 11:54:06 -0000

Not so easy VMan. close 2 prisons and no new hires? Where are you going to send the prisoners and even with all the mandatory overtime workers now are doing, will there be enough guards in each newly imposed upon prisons to handle the increase of prisioners and crowding it would entail? Freeze the budget? In the current one prison closure, money is still needed to be spent to get the recieving prisons ready. So how does this this fraction of your suggested 'solutions' solve things?

Re: Big budget problems, no cooperation and a huge hole on the horizon

Boscobud — Mon, 17 Nov 2008 11:44:58 -0000

VM, You are awesome. You have a great way with words, and I wish I had that talent. I look forward to reading what you post on this site.

Thank You