Gov. Rauner |
Taking a softened tone in his annual State of the State address, Illinois governor, Bruce Rauner, on Wednesday, made the case for a stronger, better, and united Illinois one that might make other states envious of its schools and economic success. To reach that enviable status the Republican governor, of this very blue state, said that all Illinoisans had to participate, but also to make the state competitive. And, to achieve this, he said, “Through bipartisan cooperation, Illinois can once again be the economic engine of the Midwest and the home of innovation and prosperity for everyone.”
If the tone seemed rosy and even optimistic, then the last 18 month long absence of a budget, complete with name calling, mudslinging, accusations, and stonewalling made some wonder if this is the same governor that has held out against a budget unless his so-called “Turnaround Agenda” was incorporated, made up of reution on workmen's compensation benefits, term limits, and deregulation of unions.
To no one’s great surprise he said, “We haven’t had a full year budget of some kind in a year-and-a-half– and we haven’t had a state budget that is truly balanced in decades. We have more than $11 billion in unpaid bills, a $130 billion unfunded pension liability, and the worst credit rating in the nation. We have the 5th highest overall tax burden and one of the lowest rates of job creation of any state.”
All true, but the stalemate and the standoff especially between the powerful Speaker of the House MIchael Madigan, was not mentioned, nor the frustration that residents have experienced, and their exasperation at the continued fights and name calling, between he and the Speaker; nor the pleas to stop the insanity, and to start governing were acknowledged.
At one point, he nearly pleaded with the majority Democratic lawmakers, who control both sides of the General Assembly, when he asked, “I ask you today, on behalf of all the people of Illinois – Democrats and Republicans – please do the right thing and pass the bills to put term limits and fair maps on the ballot. Let the people decide these issues for themselves. End the power of incumbency and special interest groups, and give power back to the people of our state. Illinois turns 200 in 2018.
In a nod to the new direction in Washington, Rauner’s populist tone, was again a departure from his normal focus on business empowerment.
Pointing to past successes, Rauner gave a laundry list of successes, and said, “We closed the revolving door on Executive Branch employees leaving government to become administration lobbyists. We tightened the gift ban loopholes that lobbyists and contractors used to influence regulators and win favor with decision makers. We increased transparency, so that any resident of the state can now go online and review state spending on contracts and at-will hires. “
If it seemed like a campaign speech for re election, then the observations of both critics, and fans, were joined in their assessment. A millionaire, Rauner is also aided by some of the state’s wealthiest persons such as financier Ken Griffin. So, if this is the rallying point, it also might be a warning, that all things being equal he is in the game to win.
With President Trump threatening Chicago city government to “stop the carnage” of violence, or he would send in the Feds, Rauner hitched onto the tag line when he noted, The violence occurring in Chicago every night is intolerable; we’ve got to bring it to an end,” but also acknowledged as many lawmakers, Chicago police leadership, and others have noted the multiple causes, when he acknowledged, that “Violence experts say there’s no single cause and no single solution. But with the right mix of policies – with a joint commitment between the city, the county, the state and the federal government – we can and must find solutions to curb the violence.”
While offering assistance to Mayor Rahm Emanuel in that effort, he also said that “Law enforcement plays a critical role in violence reduction – but in the end, it’s a treatment, not a cure. Addressing the roots of this plague will take much more: to restore hope where hope has been lost, to build a long-term future of quality education and good jobs for communities that need it most. Tearing down the barriers to good jobs and economic opportunity. Getting rid of blight and incentivizing redevelopment.”
Meanwhile hovering in the background was the effort by State Sen. John Cullerton and Minority Leader Christine Radogno to get their package of tax increases, reduction, and other compromises off the table and to to a floor vote, but despite the days and weeks of their efforts, it all came to nought on Wednesday, with not a single vote recorded, but Cullerton said that next month, "Then it's going to come time to make a decision," and furthermore, during a brief session, "The problems we face are not going to disappear; they're going to get more difficult every day. When we return Feb. 7, everybody should be ready and prepared to vote."
"It's incredibly complicated, and the more you try to refine it, the more things crop up," Radogno said. Their plan raises the income tax and creates a service tax to beat down the deficit; includes cost-saving measures to the workers' compensation program and a property-tax freeze sought by Rauner; pension- and school-funding overhauls; expanded casino gambling and more,” reported the Beloit Daily News.
While the Chicago Tribune noted that “Supporters furiously tried to make last-minute changes to keep the measure alive, but prospects for quick action dimmed on the complex package of tax increases and pro-business changes.”
As they neatly noted, “Business groups usually aligned with Rauner and his Republicans and unions normally allied with Democrats went to work against the plan. Retailers argued they could not support tax increases without major cuts in spending, manufacturers contended changes to workers' compensation rules were superficial, teacher unions said property tax freezes would starve local school districts, and education groups warned that outsourcing janitorial jobs could jeopardize student safety.”
All in all, a package that while designed to hang together, could also fall together, despite the heroic efforts of Cullerton and Radogno.
Here are some of the details: A raise the income tax rate from 3.75 percent to 4.95 percent was altered, with new plans resetting the personal rate at 4.99 percent —just under the 5 percent rate that was in place when Rauner was elected. Deleted was the penny-per-ounce tax on sweetened beverages, replaced by a so-called “opportunity tax” that would “charge companies for the "privilege" of doing business in the state, and a new tax on various services such as car repairs and dry cleaning. A plan to raise the minimum wage to $11 by 2021 also was set aside.”
“Underscoring the uphill nature of the Senate proposal, the House canceled Thursday's session, announcing it would head home a day early as lawmakers there focused their attention not on the budget but bickering over the partisan rules Democrats, led by Speaker Michael Madigan, use to maintain control over the chamber,” was also noted making some observers wonder what the focus of the legislators were.
Rauner did say, despite his lack of input, or approval, that “It’s heartening to see the Senate coming together on a bipartisan basis to acknowledge these changes are needed. Let’s build on that cooperation to achieve a truly balanced budget and changes that really move the needle on job creation and property tax relief.”