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Popular Threads
How appropriate.
He STILL doesn't get it.
Yeah, right.
So he wants to solve today's fiscal problems by spending tomorrow's revenue. Great idea.
And one other thing... What was the purpose of saying, "I like Chicago!"
Oh, DOWNSTATE, you are depressing. I really hope you're hearing wrong, but somehow doubt you are.
And flogging off the lottery to pay for it. What happens in the next five year plan when there's nothing left to sell?
It doesn't address the fundamental problem, which is that Illinois' revenue is too low for the level of services demanded by the public. We either need taxes, or user fees, or a combination of the two. Either taxes will have to go up, or we'll have to get used to paying for something we've previously gotten for "free."
"Illinois Works - a $25 billion capital plan. Pension funding reform by refinancing high interest pension debt into low-interest pension obligation bonds , to immediately add $16 billion in assets to the state pension funds and save the state $55 billion over the next 36 years."
Can someone please explain how the issuance of apension obligation bond "POB" will save $55 bilion over te next 36 years. My undersatnding is that the "savings" from the issuance of a POB comes from having an interest cost on the POB less than the assumed earnings rate in the actuarial projections and the initial inflow of dollars reduces the unfunded liability and therefore reduces future unfunded liability amortization payments. However the bond has to paid off.
Are there elements of the transaction that I missed?
Thanks
http://www.wqad.com/global/story.asp?s=7899352
What does the governor have against the DNR? His wife has an interest in some natural resource issues.
Getting the Natural History Survey and Geological Survey out of the DNR and into the University of IL would be a good move if the University can support them. Is this part of the 40% budget cut?
The 200 headcount reduction is quite alarming.
Did he jet right back to ChiTown?
So now Glenn will work for the research library he needs and Denny for his new drive way (aka Prairie Parkway)
You must be really confused what to do now after preparing all week to fight against carbon taxes and gambling winning taxes.
Must have been someone's (really funny) practical joke.
social services. The layoffs can focus on management job titles; state management is bursting at the seams, and many of the incumbents are already eligible for the state's lavish early retirement program, which includes totally free health insurance until Medicare, so we're not talking about throwing people onto the bread lines here.
Yet scores of Illinoisians continue to weep and wail at the mere thought of reducing Illinois
civil service ranks, while sparing not a sympathetic thought for the thousands upon thousands of private sector employees who lose
their jobs each year and, gasp, have to go out
and actually find another job. No lavish pensions and free health insurance for most of them.
Are pension obligation bonds generally fixed or floating rate debt instruments?
http://www.pantagraph.com/articles/2008/02/19/n...
doc47bb700bef6a1343332131.txt
Maybe it is time to get the DNR away from the Governor and into the hands of an independent commission.
The DNR needs some new, outside blood at the top but who would want such a ravaged agency and have to report to Blagojevich?
Does anyone know what she is talking about?
The Rule of 85?
No audio, it was a written statement.
Anybody taking odds on how much of this farsical plan will actually come to fruition? And where is Dan "all complaining, no ideas" Hynes on this?
Who was that guy? Many are hoping that during this election year, we can sleepwalk through the budget process without creating new battlelines. Blagojevich is the guy not running for re-election, so he had little to lose with his polls in the near-zero range and with an empire to build. But he didn't come out and start rocking the boat, did he? He only spoke for 22 minutes!
A 20% corporate income tax break? A 3% across the board budget cut for agencies? A $300 per kid handout? So far, it sounds too good to be true!
Who was that guy?
Madigan voiced what I have been posting over the past month on this issue. No repeats of 2007. Democrats need to be re-elected and can't if voters want their heads.
Maybe there is a truce in the intraparty war?
With Blagojevich belled and behaving, a lot of folks will be more than happy to ignor this guy, which should help his poll numbers, shouldn't it?
Nice! - Now go back to Ravenswood and keep quiet.
Bost, Forby both have doubts about state budget proposals
BY BLACKWELL THOMAS, The Southern
Wednesday, February 20, 2008 1:57 PM CST
Governor Rod Blagojevich unveiled his proposed budget for the upcoming fiscal year Wednesday.
In a 22 minute address to the general assembly Blagojevich highlighted some of the details in the proposed $58 billion spending plan, including an increase of $300 million in school funding and a $300 per-child tax credit which he estimates would apply to about 1.3 million families......
State Rep. Mike Bost, R-Murphysboro, said that, in 14 years as a state representative, this is the latest he’s ever received a budget........
State Sen. Gary Forby, D-Benton, said the three percent cut did not seem feasible.
“He’s talking about taking it out of all of our system; we are down to bear bones now,†he said.
have to take the hit on the three percent cuts.
Not in my sky, it isn't. It's another one of those
state government myths that badly needs puncturing.
It is possible to do all staff cuts in management titles, and I believe this has actually been
done in the past in some agencies.
When this gov says cuts, he means cut the people who perform the day-to-dayoperations. It ain't right, but that's how he runs the state. Ask a state worker; most can even regale you with tales of the no-work people in supervisory positions for which they are not qualified and thus unable to do the job.
Good to see patronage is alive and well in state govt. The feds should take notice as well as Carl Draper.
Agencies are going to crumble -- completely. And universities?
What a mess. Blagojevich is nuts.
I was a manager -- and was managing projects I knew nothing about -- because there were NO OTHER MANAGERS!
Yikes. Would not want to be a state employee right now.
Fact; the retirement benefits are not "lavish," with the exception of those in the legislative system. The average state worker can retire at age 60 with a pension that is based on 1.67 percent times the number of years of stste employment times the average of your highest for years of your final 10 years of state employment. So if you work for the state for 30 years you get about half your final average salary. So someone with a final average salary of 40k will receive about half of that in a pension
Fact: You can retire earlier when the combination of your years of service reach 85
Fact: You can retire when you have 30 years of service
Fact: Free health care if you retire with more than 20 years of state service. The state pays the health insurance premium for thse retirees. Then,assuming it replaces that employee it does so with a younger person who in a typical union slot will be paid less because pay rates are based on years of experience
The alternative to allowing these folks to retire and paying for their health insurance is that they stay employed at their higher salaries until they reach age 65
Fact: the 2002 early retirement allowed many people the ability to retire early
Fact: most of the early retirees were not replaced so even though you pay their healthcare you aren't paying their salaries
Fact: You could have fired many of the early retirees instead of doing the early retirement. Some would have obtained jobs in the private sector with insurance benefits. Others would have ended up in the Medicaid system
It's so much easier in Cassandra's world where pesky things like the facts don't intrude
securitization=BORROWING
Here's what the administration wants to do. In order to pay for the business tax cut, they want to borrow against next year's revenues. However, Hynes, Alexi and almost all government finance experts have concluded that next year's revenues will be LOWER than anticipated. The economy is slowing, leading to less tax revenues.
If the plan goes through, Illinois will take a bunch of money up front, then will have to pay it back, PLUS INTEREST, using already shrinking tax receipts.
All this, in order to pay for a "stimulus package".
Then, let's not forget the investment bankers, bond underwriters and bond counsels (i.e. lawyers) who will collect the fees that are paid anytime a government borrows money. Usually these fees are paid for out of the money borrowed, so the state collects less.
Not to mention, the administration gets to make the insiders that comprise those entities very very happy. So, more pinstripe patronage.
All the while, plunging the state further into fiscal crisis.
This is not a fiscally responsible plan.
In fact, it's a good idea, especially if it promotes the hiring of younger people with families, those who must do the heavy lifting in our society, with precious little help from either greedy Dems or greedy Repub pols.
My point is that I'd like to know how many management employees are eligible for early retirement right now. These are the folks
who should be encouraged to move on out, to
make state jobs, which are far more attractive
than they used to be precisely because of the
health insurance, pensions, and relaxed working
conditions, available to younger members of the work force.
State government jobs should not be entertainment
for the bored elderly. Too expensive.
Isn't there at least one of you old fart state employees who'll retire so Cassie can have your job ? I am sure she will be forever grateful!
With longevity going up easily live to be 90 years old. $ 3800 x 40 years of pension equal a whopping $ 1,824,000 sitting on his backside. This doesn't even include his health insurance benefit. That folks is what is called a " golden parachute " ! No wonder the state pension system is broke !
Contrary to your impression there is no vast army of elderly overpaid slackers clogging the management positions in state government
To the extent that the slackers exist, they are most often political types hired by whatever administration is in power. As a result, they have relatively little state service time and are not eligible for retirement - as I recall 8 years is the vesting minimum for the retirement system. Most of those folks are in exempt positions and, as a result are terminated upon the end of the administration that put them in place. This has been true even as Governors are replaced by Governors of the same political party.
State jobs are attractive in those areas downstate where there may be few other private sector alternatives.
The individual case you note is in my experience atypical and is as repugnant to the average state worker I suspect as it is to the general public
The examples that I find most outrageous are legislators who move from the GA to an agency. They get to stay in the GA retirement system and get to collect 85 percent of their final salary upon retirement. So they take some B.S. Assistant Director job for a year or two at 100k the waltz off into retirement with an 85k pension
A 3% admin cut can be managed without layoffs. Layoffs constitute a serious political risk, wisely avoided.
Your wayward notion that the State should use early retirement as a way to avoid "entertainment for the bored elderly" is just pathetic.
One of the many reasons that the Blago gang can't do anything right is that they either fired, laid off, or incented to retire almost all of the "bored elderly" who actually knew something about how the agencies worked and replaced them with the Kiddie Korps. (at higher salaries in many cases..)
Do you think the writing in the sky is affecting the blood flow to your brain?
Plus, they get a cost of living % based on the average of whatever cost of living raise % regular state employees get in their contracts.
I'll just keep dreaming.
Bloated at the top, and in the places like correctional industries where they, and everyother administration, has dumped many a hacks. Another 3% cut in budget/staff will have a close to going over the edge. Nothing has been has been done about repairing buildings, or replacing vehicles and other equipment. Corrections is a DISASTER.
There is no such thing as "early retirement" in state government. The regular retirement rules are in place unless the GA votes in a special, time limited early retirement option. When the time is up, the offer expires like a coupon. As of today, no such thing exists. So stop yammering about it, OK?
But don't let the facts get in the way of your comments . . . .
1. We watched the speech over our lunch hour at work (a state agency). The biggest cheer of the day came when Tickner introduced Rich Miller to the viewer. He was informative, witty and the ladies gushed like giddly schoolgirls. Yes, I'm sucking up to Rich right now! LOL
2. Blago looked awful. He looked more nervous than usual. I can't blame him though. He was walking into a room where nearly everyone hates him.
3. The speech was a great kick-off for 2010. I thought I was listening to a Republican while he talked about cutting taxes. I knew the worm would turn soon enough.
4. He said Democrats control everything, what, 100 times. We're aware of that and you're not making friends with Senor Frank Watson by rubbing his nose in crap.
5. Lousy speech, no specifics and loved the fact that he got little to no applause. Hey, at least it didn't take up my whole lunch hour.
By the way, I'm not a state employee. I'm in the private sector, but deal with the state employees in a variety of agencies on a day-to-day basis. I left state employment many years ago, but continue to have a great deal of respect for the folks who stayed.
Try factoring in $1500 + of Social Security with its COLAs also and then argue facts. You will find I am right on! Recheck your "formula", it needs updating.
Since Gov. Filan doesn't think they need new police cars, they don't get 'em. The men and women out there on the roads saving our sorry a**** are driving crap that Larry the Cable Guy wouldn't be seen in. Besides, they spend buckets of dough fixing the old dogs at the CMS garage that would be better spent on new, safe, vehicles.
The young Trooper who was tragically killed in the line of duty near Illiopolis last year was driving a 1997 squad car. That's ridiculous if not negligent.
Of course, the Blago security phalanx has plenty of shiny, fresh Tahoes, Suburbans and whatever sitting around burning $3.25 taxpayer gas in Ravenswood.
At first glance, I don't see plans to backfill all those Trooper retirements anywhere in the budget.
Oh, what the heck, we don't need State Police after dark, right?
Idiot is too kind a word for this guy.
Bluedog, you and Cassandra make a nice pair.
You can't help but know plenty of state workers in this town, they are neighbors, fellow churchgoers, our kids play together, go to the same schools. I hang with these people. The kind of folks Blue and Cassie like to stereotype as lazy, self-serving parasites sucking tax dollars and giving little effort back.
That's not been my experience. I find their forbearance of all the management goofiness and politics going on over their heads about on a par with the biblical Job. They suffer much, mostly in silence. They long ago stopped complaining about office furniture from the 70's, heck, its almost back in fashion now, if a bit worn. Or crumbling buildings and facilities and infrastructures and systems that are patched and re-patched because there's always a more urgent and pressing need for the budget dollars and of course, it's lasted this long, it'll likely last one more year until the times get better, right? They long ago gave up wondering why seasoned experts that took years to master a subject are yanked out and replaced by kids fresh out of school or a year in private industry with no actual background in the subject but triple the salary. Why instead of asking the workers what to do to tighten belts, expensive out of state consultants are engaged to walk around and ask the staff what to do, then make an expensive report that ignores the advice and instead suggests they should, (surprise) hire those same consultants to come in and run things. For twice the money. Or private sector business "experts" that brag how they want to "run government like a business"...about like Murder, Incorporated.
They have stopped bothering to be surprised when the improvements to systems and services they've long planned are shelved, over and over, because the "excess funds" in their agency accounts have been "swept" into GRF. Funds they fought for, and justified in long, detailed reports that are apparently never read.
The people I know work hard and honestly, every day, doing the best they can to deliver a service, whatever their agency. They don't give a hang who the governor is at the time, they just want to be left alone in a stable environment to do their jobs, serve our citizens, and put bread on the home table. They used to be able to show some pride in what they did. Public service used to be considered a noble profession. Now its more like WWII English citizens hiding out in the subways waiting for the Blitz to be over. Can't talk about work over beers because inevitably some unschooled shmo will use the broad brush of the Governor and his hacks to paint one of my neighbors with. That just ain't right. Don't try to run down those fine people to justify yet more draconian cuts; pick management, pick the elected leaders and constitutionals and legislators YOU ELECTED, to dump on. That is where the problem lies. Promise all the services we want, but never charge what they cost to deliver.
I'd still like to know how many current state employees are eligible this fy for early retirement as defined above. These would be individuals whose combined age and length of service is 85. They are unlikely to be on exec staffs for the most part, because those jobs turn over when the guv changes. A significant percentage of them could be replaced by new employees making substantially less. It's the way of the world.....look at any major corporation.
And the incumbents get free health insurance and
a lifetime pension that increases by 3 percent a year, come what may.
In a global economy, this comes as close to
permanent income security as you can get. And
it is generally not available in the private sector.
When Blago gets closer to departing, or losing the primary, you will see him trying to move hundreds, even thousands of political hires into permanent
civil service jobs.....the ones he hasn't moved
already. Lifetime government employment regardless of performance is so valuable, his political troops will do anything to get those jobs. A measure of their extreme value. And we're payiing.