View as PDF Chicago—Taxpayers United of America (TUA) released five analyses of the ongoing Illinois budget dispute over the past two weeks, outlining various ways the Illinois General Assembly and Governor Bruce Rauner (R) could implement reforms to pass the state’s first balanced budget since 2001.
“Taxpayers need Illinois’ political class to properly address the current budget impasse by enacting meaningful reforms,” said Jared Labell, TUA’s director of operations. “But if the bureaucrats in Springfield insist on upholding the status quo, which has brought the state to financial ruin, then a continued budget deadlock is preferable to higher taxes, new state income and sales taxes, more debt, and increased spending.”
“Illinois’ state pension systems total nearly $200 billion in unfunded liabilities and the whole racket is inevitably unsustainable, as we discuss in Part I of TUA’s budget analyses. The politicians have shown for years that they cannot be trusted to manage other peoples’ money, let alone their savings for retirement, nor should this be the role of government,” said Labell. “Each day that passes without transitioning new government employees from the current defined benefit plans to 401(k)-styled defined contribution plans is another lost opportunity to manage this ever-growing economic catastrophe. Not only would this change shield taxpayers from great financial risk, but it enables government employees to better manage their finances for their retirement needs and allows portability as they save for their own retirement.”
“Spending reform must be made a priority, as is clear in Part II of TUA’s budget series,” continued Labell. “The proposed level of appropriations for all state funds in fiscal year 2016 tops $60 billion. As TUA president Jim Tobin put it, “The political class and some media outlets frame the budget crisis as an issue of revenue, but that’s just not the case. The problem with Illinois’ budget is the result of years of profligate spending by the General Assembly and a series of governors who encouraged it.”
“The budget appropriations game is one that is played by both members of the Illinois General Assembly and the governor,” said Labell. “Even though Gov. Rauner has put forth a serious effort to make cuts to the bloated Illinois budget, in the Part III of TUA’s budget analyses, we point out that more than $15 billion in spending remains constant from fiscal year 2015’s actual appropriation totals compared to Gov. Rauner’s 2016 proposed appropriations. The time has come for more budget cuts.”
“The Illinois State Police are the Praetorian Guard for the political class and are inessential,” said Labell. “Sweeping cuts to the superfluous Illinois State Police force would save taxpayers untold billions in expected salaries, benefits, and pension costs, as outlined in Part IV of TUA’s budget series.”
“Although there appears to be a growing bipartisan consensus in Springfield to cut loose the Illinois Department of Commerce and Economic Development (DCEO) from the clutches of the state government, it’s hard for politicians to give up on old habits,” said Labell. “So they are only proposing to turn some of its functions into ‘public-private partnerships,’ instead of abolishing the agency altogether. Part V of TUA’s budget overview encourages the complete privatization of this department’s operations, rightfully leaving the economic prosperity of Illinois and its businesses to the market, not the whims of bureaucrats. The government should not be in the business of doling out corporate welfare or subsidizing politically connected firms with our tax dollars as Illinois faces such grave financial difficulties.”
“The state of Illinois has been without an operating budget for nearly a month, and the sky has not fallen. The members of the Illinois General Assembly and Gov. Rauner can work together to protect taxpayers from further economic calamity, or the political gridlock should persist. The government cannot expect Illinoisans to continue to send their tax dollars to Springfield if the political class is intent on fiddling while Rome burns, all the while using taxpayers’ hard-earned money as kindling,” concluded Labell.
View as PDF Chicago—The president of Taxpayers United of America (TUA) today urged the Illinois General Assembly to abolish the Illinois Department of Commerce and Economic Opportunity (DCEO), rather than adopt ineffectual measures that would only perpetuate what he called “a corporate welfare institution of monstrous proportions.”
“While the Ill. House of Representatives passed House Bill 574 on June 23, 2015, and sent it to the Illinois Senate, which would allow the Illinois Department of Commerce and Economic Opportunity to turn some of its functions into a ‘public-private partnership,’ such a move is inadequate and will not make a dent in Illinois’ fiscal emergency,” said Jim Tobin, TUA president.
“The State of Illinois is broke; it is going down the drain, and it’s time to put entire bureaucratic state programs on the chopping block,” said Tobin.
“House Speaker Mike Madigan, Senate President John Cullerton and their caucuses passed a budget for the 2016 fiscal year beginning July 1 that is at least $4 billion in the hole. The upcoming budget deficit would be more than double that of last year.”
“The DCEO is responsible mainly for disbursing funds to local businesses and local governments. In addition to $528 million in state funds, the DCEO also disburses about $1.25 billion in federal funds.”
“These are nothing but welfare payments to politically connected business firms. All corporate welfare should be immediately ended. But if the members of the Illinois General Assembly insist on handing the federal loot to their corporate friends, the federal funds should be collected and disbursed by the Illinois Department of Public Aid as welfare checks. That would at least be honest.”
View as PDF Chicago—Taxpayers United of America (TUA) today released its analysis of the impact of the Illinois State Police on the state’s budget.
“Illinois has the most bloated state police force in the region,” stated president of TUA, Jim Tobin.
“According to the most recent BLS Census of State and Local Law Enforcement Agencies, Illinois has 2,105 sworn officers, by far the most in the Midwest. Trailing Illinois are Michigan with 1,732; Ohio 1,560; Indiana 1,350; Missouri 1,028; Iowa 669; Minnesota 530; and Wisconsin with 492.”
“The vast majority of these sworn officers do nothing but generate revenue for their own overly-generous salaries and pensions by issuing expensive traffic tickets with unreasonable fines while the rest run illegal road blocks and checkpoints for local police. Many Illinois State Police even work the precincts for powerful politicians,” added Tobin.
“According to the Illinois State Police Merit Board, trooper trainees get a starting annual salary of $32,076 while in the training academy and jump to a whopping starting salary of $57,708!”
“It’s ludicrous that we would hire so many ticket writers, but then to pay them so lavishly really shows the lack of common sense and concern for the taxpayers’ money and the state budget.”
“Time magazine reports that the national average salary, for all police officers, is $56,980 and yet here in Illinois we start state police pay well above the national average.”
“Our most recent study of the ISP pensions revealed that all of the top 200 state police pensions were over $102,000! And that rich pension starts around the age of 52 and comes with fully paid Cadillac-healthcare.”
“Here are some numbers all of us can understand and why the pension system is bankrupt: John Lofton, of the Ill. State Police, retired at a ripe old age of 58. His annual pension is a stunning $134,026, which will accumulate to about $4.2 million over a normal lifetime. Not a bad return for a 3.6% personal investment!”
“Timothy Becker’s annual pension is $120,672. Over a normal lifetime, his total payout will exceed $7.3 million because he retired at only 50 years of age. His personal investment in his estimated lifetime payout is only 2.8%.”
“We could save billions by putting the Illinois State Police in line, both in numbers and in pay, with the majority of state police departments.”
“And of course, we need to end the defined benefit pension system for ISP and all state employees,” concluded Tobin.
