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Answering Governor
Blagojevich and others that have criticized a lack of
specifics in her policy positions, Treasurer Judy Baar Topinka
unveiled her budget plan for Illinois last week - something
Blagojevich says he won't do until after the election. The unique four-year
roadmap caps a string of announcements that have fleshed out
her policy priorities.
Her $15 billion
"budget recovery plan" includes no tax increases and a
two-year cap on education property tax assessment
increases. The
plan also cuts spending - especially in the runaway Medicaid
program, ends road fund diversions, and provides for
significant increases in education
funding.
Recognizing that a
responsible plan must have the revenues to fund it, Topinka
has proposed moving the existing, unused riverboat casino
license to Chicago to maximize
its revenue potential.
"There
are options [to raise revenue], and they're pretty limited,"
she said. "I oppose an income-tax increase, and I oppose a
sales-tax increase.... I'm still not excited about additional
gaming, but I do want to give taxpayers a break and yet still
have the state of Illinois meet its demands for our people and
our schoolchildren."
In the past,
Chicago Mayor Richard Daley has asked for a city casino, but
had insisted on city ownership of the casino. Topinka rules out city
ownership, but late last week Daley said he was open to
Topinka's revenue sharing ideas.
NEW, IMPROVED TOPINKA
WEBSITE DETAILS POLICY POSITIONS
Readers can review
the Topinka budget plan, along with her other recent policy
positions, at the greatly improved Topinka for Governor
website: www.judyforgov.com.
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Governor
Blagojevich laid out an ambitious energy plan last week
promising state investment of millions of dollars to build
greater ethanol and biodiesel capacity and guaranteeing 30,000
new jobs created because of this plan. Blagojevich envisions
biofuels produced in Illinois
replacing 50% of oil consumption in Illinois by
2017.
While investment
in energy may be a good thing, Blagojevich's
plan is predicated on finding money to fund the $1.2 billion
price tag. The administration
envisions hiring 150 new auditors at the Illinois Department
of Revenue to ferret out unpaid tax money from businesses -
especially those that collect sales tax but don't submit it to
the state - and taxing "illegally" sheltered income. The revenue
target: $30
million the first year and $40 million
thereafter.
However, it
appears the Blagojevich administration has once again launched
a media blitz to support an ambitious plan with dubious
funding. A
preliminary review by the Illinois Chamber Tax Institute finds
the following flaws with the Governor's revenue
estimates:
- New auditors
typically spend their first six months on the job training
with experienced auditors, meaning they will have to find
their $30 in the remaining six months;
- Hiring 150 new
state employees will easily cost $10 million. They will have to
find that much just to pay their own salaries and
benefits;
- While there may
be a very small number of retailers that collect sales tax
but don't turn it over to the state, experience shows these
businesses are unlikely to be able to come up with the back
tax receipts and will simply close their doors, taxes
unpaid;
- Experienced tax
professionals doubt there are many tax evaders to be caught
to contribute to the $30 million pot. Is this really code
for yet more legal tax incentives the Governor would like to
eliminate?
If the Governor is
serious about generating $30 million from new, inexperienced
business auditors, expect your next visit from the Department
of Revenue to be particularly
unpleasant. |
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Secretary of State
Jess White has the reputation of being a nice guy who is above
the political fray.
He is seen as a public servant who declared early on
that he wasn't looking to use the office as a stepping stone
and was going to clean up the office. In two terms, White
has carefully cultivated the appearance that he is running a
tight ship that has recovered from the scandals of his
predecessor.
However, with a
tough campaign opponent in State Senator Dan Rutherford,
charges of nepotism are beginning to sully White's pristine
façade. Since
White became Sec. of State, numerous relatives of White and
his senior staff have received generous pay raises,
contractual positions and permanent jobs with the Sec. of
State's office.
White's
daughter has seen her salary increase from $39,000 to over
$112,000 since her dad took office, White has a
step-grandson, nephew and three nieces that have all been
hired into the protected civil-service with the state and
White's Chief of Staff, Thomas Benigno, has seen his wife
hired as a $2,000-a-month part-time
secretary.
The Sec. of
State's office contends that all of those hired took the
appropriate tests and scored high enough to be hired on their
own. |
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This past Friday
marked the beginning of medical malpractice reform when, one
year ago, Gov. Blagojevich signed legislation that capped
medical malpractice awards and placed increased regulations
upon the insurance industry. The medical industry
and business groups, including the Illinois Chamber of
Commerce, view the new statute as only the first step of the
process but others wish to see a complete overturn of last
year's land mark gains.
The Illinois Trial
Lawyers Association, Center for Justice and Democracy and USA
Action are all in the forefront of the repeal effort. Rather than capping
awards, these groups would rather see greater insurance
regulation. "What
we've always maintained is that one of the ways you bring down
rates is that you have aggressive rate regulation," said
William McNary, president of USA Action. However, it is clear
that opponents are hoping to find a way to turn back the clock
on medical malpractice reforms. "They're waiting to
find a tragic case, one where it's going to be very difficult
for a jury and for a trial court judge to award only the
capped amount of money," said Ed Murnane, president of the
Illinois Civil Justice League.
While it may take
some time to realize the full effects of the recent
legislation, Illinois is already a safer
place because of the reforms put in place. "The one thing that's
important about Med Mal, it's not just about insurance rates,"
said Susan Hofer, spokeswoman for the Illinois Department of
Financial and Professional Regulation which overseas the
insurance division. "It's also about our ability to go after
bad docs and prosecute them." |
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Following
John Stroger's stroke in March of this year, hiring at Cook
County increased dramatically, according to a report published
on Sunday.
Almost 1,300 people were added to the county's job
rolls while Stroger recovered from a debilitating stroke. Those included in the
hiring spike were Stroger's campaign manager and his chief of
staff's daughter were brought onto the public payroll. All of those added
were added while Cook County has implemented a
"hiring freeze".
Even
though the "hiring freeze" is in place and the county's
finances are in terrible shape, the County doesn't see a
problem in hiring an additional 1,300 people. "We do not see this as
an unusual spike in hiring," said county spokeswoman Chinta
Strausberg. "It is not a significant increase in hiring." However, at least one
commissioner does not think the hiring should have
occurred. "No one
was watching --they snuck people in when no one was looking,"
Commissioner Mike Quigley said. "While [Stroger] was
incapacitated, they knew they could get away with it. They
should be ashamed of themselves." |
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"Five months ago,
in the wake of the Illinois
primary election, voters had a right to feel flummoxed and
frustrated about the choice for governor of Illinois that awaits them in
November.
The main issue was, and is, obvious: In
recent decades, irresponsible Illinois lawmakers have
committed this state to a dreadful future of spending far more
money than the state can expect to collect in revenues. A
family or a business that so recklessly mortgaged its future
would consider itself broke or headed there fast. So: Given
that unfolding calamity, which gubernatorial candidate would
best address these huge burdens--in pension obligations for
public employees, to name the most onerous--that today's
Illinoisans are bequeathing to their kids?" Read
the whole thing... |
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