Respectfully submitted by Lawrence E. Rafferty (rafflaw) Weekend Contributor
I have to give Governor Bruce Rauner credit for not taking long to show his hand and publicly attack the Higher Education system in Illinois. It has only been a few weeks since he was inaugurated and he recently unveiled his budget. A budget plan that slashes over $200 million just from the University of Illinois alone.
At the very time Gov. Rauner announced he wants to slash the Higher Education budget for all universities in the State of Illinois by almost a third, he claimed that his budget makes education a priority!
“Higher education is set to take a major hit in Illinois.
Following similar announcements by the Republican governors of Wisconsin and Louisiana, newly-sworn in Illinois Governor Bruce Rauner released what he called a “turnaround” budget, that would slash nearly $209 million from the University of Illinois.” Think Progress
“It’s time to make education our top priority again – and that’s what this budget does,” he told lawmakers Tuesday night, touting his plan to give about $25 million more to early childhood education. “With reform, we will be able to invest more in education and give our kids world class schools.” Think Progress
While the proposed budget increases some funding for K-12 education, the University of Illinois system will lose one-third of its state financing under this budget. This very same proposed budget makes absolutely no mention of any increased revenue sources or plans. What will happen to the University system if these cuts are retained in the final budget?
One can expect the cuts to cause increased fees being charged to students as well as the loss of many educational programs. The result of these massive reductions in state financing will be to transfer the costs to students who are already paying high tuition and fee costs. The loan balances of many students already into the 6 figures and Gov. Rauner’s actions will make sure that student debt will continue to climb in Illinois.
So often the claims that all areas of the State have to share in the burden of digging out of a financial hole ends up with some of the most vulnerable bearing the brunt of that burden. If the Governor is convinced that we all have to sacrifice in this job to balance the budget, why wouldn’t new tax sources be considered along with reasonable cuts?
Will these draconian cuts make it more difficult for students from poor and middle class families to obtain a college education? In this very same budget proposal, Gov. Rauner biggest cuts are aimed directly at those who are least able to afford them.
“Yet the state would spend $400 million less on higher education, $600 million less on local governments, and $1.5 billion less on Medicaid, which handles health care costs for poor residents. University leaders and mayors said they were worried, and advocates for the poor said they feared medical needs would go unmet under deep cuts to Medicaid.” New York Times
When the cities, counties and municipalities raise their taxes to pay for basic services for their residents, who has to pay for those increases? “In many cases, Rauner’s state budget cuts could simply end up shifting costs: local governments could choose to raise property taxes, state universities could raise tuition and the CTA could increase fares.” Chicago Tribune
For a man who spent at least $37 million of his own money to get elected governor, he sure has no problem making the middle class and poor pay more for a college education and for health care and local taxes and transportation costs.
Rauner seems to be following the economic model that worked so “well” for Gov. Brownback in Kansas and Gov. Walker in Wisconsin.
Just how has that austerity approach worked out for Kansas and Wisconsin?
Additional Sources: Examiner.com; Crains Chicago Business
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Karen,
Brownback’s Tax Cuts Prompt S&P to Reduce Kansas’s Rating
http://www.bloomberg.com/news/articles/2014-08-06/brownback-s-tax-cuts-prompt-s-p-to-reduce-kansas-s-credit-rating
Excerpt:
Aug. 6 (Bloomberg) — Kansas’s credit rating was reduced by Standard & Poor’s, which cited the effects of income-tax cuts endorsed by Republican Governor Sam Brownback that weren’t matched by less spending.
The rating fell to AA, third-highest, from AA+ and the state’s appropriation-secured debt was dropped to AA- from AA, S&P said today. The outlook on both ratings is negative, which “reflects our belief that there will be additional budget pressure as income tax cuts scheduled in future years go into effect, or if midyear revenue shortfalls resume,” credit analyst David Hitchcock said.
Moody’s Investors Service in April cut the state’s debt rating for similar reasons.
Tax reductions approved by the legislature in 2012 resulted in the state’s taking in about $340 million less than forecast during the year ended June 30. Brownback and his supporters have said lowering taxes would spur the economy.
Karen,
If a state has a budget deficit/shortfall, does it make sense to cut taxes…or to let temporary taxes expire? Should a state risk having its bond rating lowered? Check out what’s going on in Kansas and Wisconsin.
Scott Walker cut $541 million in taxes last year. Now his state will miss a $108 million debt payment.
http://www.washingtonpost.com/blogs/govbeat/wp/2015/02/18/scott-walker-cut-541-million-in-taxes-last-year-now-his-state-will-miss-a-108-million-debt-payment/
Excerpt:
To help close the state’s $283 million budget shortfall this year, Wisconsin Governor Scott Walker (R) plans to skip a $108 million debt payment scheduled for May.
Walker, a likely presidential candidate whose campaign message rooted in Wisconsin’s fiscal record, has been struggling to balance the budget in his home state before the June 30 deadline. Pushing off debt payments is one tactic that he and predecessors have used in the past.
By missing the May payment, Walker will incur about $1.1 million in additional interest fees between 2015 and 2017. The $108 million debt will continue to live on the books; Walker’s budget proposal for 2015-2017 will pay down no more than about $18 million of the principal.
*****
Does that sound fiscally responsible to you?
Karen, you don’t notice the plank in your own eye. You are known by the company you keep, as my mother wisely said. I applaud others when they see truth, if it negatively reflects on you, perhaps that is something you could change before giving advice to me. I never agree with ad hominem attacks.
“Yes indeed it is sad.”
You chip in with applause every time anyone says something negative to or about me, so you are part of the problem, not above it. Change yourself before you start complaining about the behavior of others.
And why in the world do people blame Mitt Romney for paying the legal tax rate? Like he should have just chipped in another few million just for giggles?
We pay what we owe. Don’t blame Romney for paying his legal tax rate.
Elaine:
“I’d be willing to pay extra taxes if I knew they were earmarked for education, crumbling infrastructure, new water pipes, improving mass transit, etc. I believe that the tax rate on capital gains should be higher. Why should multi-millionaires like Mitt Romney pay taxes at a much lower rate on unearned income than working people do on earned income?”
The reason why capital gains is lower than earned income taxes is because it was supposed to stimulate investment. Before, only the mega rich could be investors. Now, everyone can invest, be it in an IRA, or whatever.
If the capital gains tax increases, that means that in order to invest, you have to make a profit of, say, 30%, just to break even. What do you think that will do to investing, and hence the economy? In addition, people like Mitt Romney made a success of themselves first by making wages.
Your comment about being willing to pay more only for certain things is actually part of being a fiscal conservative. It’s the waste that is anathema. Here in CA, our roads are choked with gridlock, and pockmarked with holes. To waste $68 billion on a stupid vacation train for the leisure class that will cause a net increase in pollution infuriates me. We could use that money better elsewhere.
Apparently you, too, believe that they could use your tax money best in certain areas.
In the meantime, do you utilize every tax deduction available to you? Why do you think the rich would behave differently?
Yes indeed it is sad.
If this is what the thread looks like AFTER it’s been cleaned up, then that’s sad. This is a microcosm of politics today. We blame Congress because they can’t agree on anything, but people can’t even get through a blog thread without hurling insults.
Elaine:
That’s interesting. Were any of them calling anyone’s children names?
Also, did you ever respond to my question on why you opposed the ending of the tax when it was in fact voted for as a temporary measure, and had expired?
Olly:
“Any doubt if these state-funded institutions were viewed as corporations that they would be condemned as 1%er’s and that the compensation gap was unjustifiable?”
and Darren:
“Some of these institutions and politicians often fail to recognize the “why are we here” factor and instead focus on government for bureaucracy sake, or politics for politician’s sake.”
That about sums up the problem with politics today. This is why I yearn for a Mr Smith Goes to Washington type, unbeholden to any special interest and in no one’s pocket. But he or she would probably be ridiculed for not being a political elite.
Karen,
FYI: A number of comments have been deleted from this thread.
I’ve scanned through this thread fiasco several times, and I can’t find where anyone attacked a poster’s children. The same complaint was made after we started talking about diploma privilege in reference to the state of higher education. I admit that my eyes start to glaze over as the thread devolves, but I keep reading over and over again that someone’s children were criticized without finding it in the actual thread. From what I’ve read, the only person who brings up her children is the poster herself. Of course, I do leave threads or skim when they blow up.
When the thread derails into the literary equivalent of throwing feces, it really loses my interest. Who wants to waste their time reading Jerry Springer style comments? What does it add to the conversation?
Mespo – you share a last name with a close friend of mine who died of MS. I always had warm feelings for that name, but now I flinch when I see you’ve posted something, and try to skip past it. You only seem to write ad hominem, flailing attacks. It’s a sad waste of your time, intellect, and spirit.
Oh, and by the way, the only party who has robbed me, in the middle class, were Democrats who voted for Obamacare. It cost me thousands and thousands of dollars a year.
Karen,
I’d be willing to pay extra taxes if I knew they were earmarked for education, crumbling infrastructure, new water pipes, improving mass transit, etc. I believe that the tax rate on capital gains should be higher. Why should multi-millionaires like Mitt Romney pay taxes at a much lower rate on unearned income than working people do on earned income?
Elaine – the capital gains tax is available to everyone. If you are not using it, it is not my fault. It is the patriotic duty of all Americans to pay as little tax as possible.
Elaine:
How would you feel if voters enacted a temporary tax that hit you? It cost you a sizable amount of money, but your solace was that it was temporary. And then the tax-and-spend crowd criticized you for wanting it to end on time, as promised?
Since you belong to the tax and spend crowd, I was wondering if you instruct your CPA or tax preparer to not give you a single deduction or tax credit, to which you are entitled. If I recall correctly, you have commented on other threads about the rich not paying their fair share, or that it’s unfair that they have deductions. I was wondering if you applied that reasoning to yourself.
Because you are fully capable of abstaining from claiming any tax deductions yourself. In addition, you may write a check for an amount in addition to what you owe.
As tax season approaches, I keep seeing these commercials that promise you won’t pay a dime more than you owe, or they will maximize your deduction. But the same people who try to save as much money as possible on taxes themselves inexplicably believe it is unfair for the rich to behave exactly the same. It’s as if they think the rich should suddenly stop trying to save money, and act like it grows on trees.
” “Your honor, I will NOT, I say I Will NOT stipulate to the fact that Cook County is corrupt.”
******************
Good attorneys counter lies, silly opinions and half-truths with undisputed facts. It’s really that simple.
BTW, nick, as usual you’re demonstrating your intentional reading comprehension problems. I never said Cook County wasn’t corrupt as you seem to suggest. I said no judge would ever take judicial notice of that assertion as Paul claimed. By why let a little nuanced reasoning get in the way of your fact-free rants. Do carry on though, the jury, as ever, is watching.
Paul, Good attorneys will stipulate to facts in order to help the legal process move along. Ham n’ eggers dig their heels in and never concede anything. They then make grandiose points that mean nothing, w/ the jury having these WTF looks on their faces. That’s what he did last night. I’ve been cross examined by his ilk. That’s part of the problem w/ him. He knows, I know, his game. “Your honor, I will NOT, I say I Will NOT stipulate to the fact that Cook County is corrupt.”
There seem to be plenty of Jewish people who are liberals and Democrats in the US who think Netanyahu has no business addressing the Congress at the invitation of Republicans. Go figure. There are plenty of liberals and Democrats that would vote for a Jewish president.
Inga – you need to understand the history of Jews in the United States to understand their allegiance to the Democrats and liberalism.
Webster – historically Jews have voted Democratic. This is as a group, not as individuals.
Paul:
I’m sure you’re wrong,
mespo – you know that what I said is true everywhere but Cook County. They are in denial. 😉
Wade:
You gotta love that Nicky backpedal. Darrrelle Revis got nothing on him. First, it’s Rauner won 101 of 102 counties thus he has a clear popular mandate. Elections have consequences. Then when the facts get in the way, it’s well Cook County is corrupt and that’s why it’s close. Nobody knows Chicago politics like a guy who lived there 35 years ago. Now, it’s well at least Rauner won. And Southen lawyers are the spinners. This guy looks like a top.
mespo – I think most judges would take ‘judicial notice’ that politics in Cook County are corrupt.
Wade:
Surely you know that some folks have lived everywhere, know everybody and have done everything so they have unquestionable omniscience. Therefore they have no need for facts since they value their opinions as the same thing. It’s why I have the Spinelli Rule.