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Capitol Fax

Rich Miller's commentary on State Government

The budget - if you can call it that - which passed the General Assembly last week has as much as a $5 billion hole in it, borrows over $7 billion from Wall Street and state vendors, disguises huge cuts to some private social service agencies with 87 percent funding for others and sets up the state for a surefire disaster next fiscal year.

Break out the party hats.

There is just no way on Earth that you can call that budget "balanced," or "serious-minded." It is, at best, a punt until next year. Actually, it's more like a blocked punt with a big loss of yardage.

Senate President John Cullerton said last week that he wants to help balance the budget by renewing a push for a tax increase in January, when a simple majority will again be required to pass it. But a tax hike midway through the fiscal year won't provide nearly enough revenues to heal this budget's gaping hole unless the increase is far larger than anything proposed to date.

The governor held a press conference shortly after the budget passed to tout his alleged success. He surrounded himself with employees of his budget office and praised their work, but he refused to directly answer reporters' questions about any budget details.

How many state employee layoffs would be required? No answer. What sort of cuts was he planning to make to manage his way through this gaping hole? No answer. Instead, every question was addressed with a meandering, filibustering, non-answering style. He wanted to project an upbeat mood, but this budget is as close to a fiscal nightmare as one can get.

Quinn did finally say that he was issuing 2,500 layoff notices, which is 100 less than the number of layoffs he said would be required even if a tax hike passed. He wouldn't say if more were on the way, but said he wanted to talk with the unions about freezing their pay and taking furloughs. That's just not facing reality. If he truly believes that AFSCME will roll over and play dead, he ought to look at Chicago, where the union has been standing firm against give-backs.

Quinn's office privately guesstimates the hole in this budget to be somewhere between $4 billion and $5 billion, which goes to show just how little anybody really knows about the bills that passed. It relies on about $3.5 billion in borrowing to cover the state's payment to the pension systems, and does not even touch the $3.6 billion in debt owed to vendors and providers. From what I was told last week, the state will actually extend the time it takes to pay back those vendors and providers, making their situations even worse.

If you count the hole in the current budget, the new debt which hides base spending obligations, the debt service payment for next fiscal year (somewhere around $800 million), the $500 million increased pension payment for next year, the one-time federal stimulus cash that won't be replenished and other one-off items (like debt restructuring), you are looking at a starting deficit for Fiscal Year 2011 of maybe $10 billion. Or maybe more. And that doesn't even include unforeseeable problems like continued revenue troubles.

Some private social services agencies were frantic last week because they were unable to counter the spin from the governor and the legislative leaders that their programs would be funded at 87 percent of last fiscal year. Some programs, including community-based health services for things like rape treatment, battered spouses, etc., were already looking at steep cuts in Gov. Quinn's original budget. The "50 percent" budget proposal from several weeks ago actually slashed their funding by 75 percent. As of late last week, they still had no idea how bad the final damage would be, but they weren't optimistic.

And now the credit ratings agencies are starting to move against Illinois the way they have against California. Moody's lowered its California general obligation bond rating to just two steps above junk status last week, then announced they were putting Illinois' debt under review.

"The state has essentially kicked the can down the road in terms of making decisions," a Moody's analyst told Bloomberg News. That's pretty much exactly what Moody's decreed about California before whacking its debt rating.

If Illinois gets the California treatment, another big hole will be punched in this budget.

Wonderful.

Rich Miller also publishes Capitol Fax, a daily political newsletter, and thecapitolfaxblog.com

Ron Lawfer Responds to IEPA Article

Your recent article about the activities of the Illinois Environmental Protection Agency concerning a farm near Nora is typical of other livestock farmers in Northwest Illinois. Many farmers have had "visits" by a representative if the IEPA, mostly as a result of drive-by observations.

This can and has been of great concern to these farmers who have been visited. Some of them have made costly changes to their operations and others have been forced to discontinue their livestock enterprises.

Efforts have been made to help these individuals that are subject to these "visits". What are the rights of the farmers and how can the visit be elevated above "they said, I said" event?

Recently the IEPA agreed to answer questions submitted through the Farmweek publication of the Illinois Farm Bureau. This question and answer exchange set in motion a chance of individual farmers to engage outside or third party individuals to be part of any IEPA visit. This I believe could be helpful in both parties understanding any problems that may or may not exist.

Hopefully the farmers near Nora could find these questions and answers and this procedure helpful in his case.

The questions and answers are outlined below.

I. Ronald Lawfer, Stockton, IL

Re-printed with permission from FarmWeek, March 23, 2009:

Editor's Note: Several FarmWeek readers have sent in questions about livestock rules for responses from the Illinois Environmental Protection Agency (IEPA). Below are reader questions and IEPA responses. Other questions and responses will be published later.

Reader: If my livestock operation is visited by a representative of the IEPA, can I have a third party join the visit? The third party might be my lawyer, my financial officer, an Extension employee, National Resources Conservation Service official, or a member of a local farm organization.

IEPA: Yes. Those attending on your behalf are there at your request and may be of assistance to both you and the IEPA staff by providing technical, financial, or other advice.

Reader: For biosecurity reasons, can I ask that any IEPA employee who has been on another livestock farm in the last 24 hours to reschedule his or her visit?

IEPA: Yes. IEPA inspectors are required to follow an Illinois EPA biosecurity protocol and adhere to routine and practical biosecurity procedures at the farms we visit.

For example, agency staff will routinely wear clean, protective footware and can use vehicles that have not been to other livestock facilities in an extended period. The agency inspector should discuss the types of livestock facilities he or she visited recently and whether precautions are necessary, such as rescheduling the visit.

Reader: If a visit by an IEPA employee results in no violations, will I get a letter to that effect?

IEPA: Yes, the IEPA will follow up with a letter documenting the visit even if no violations were observed.

Reader: Is an IEPA representative required to explain why he or she is visiting my farm?

IEPA: Inspections are normally made to address water quality or odor issues. Why we arrived at a particular farm, what the visit will include, where we intend to go on the farm, and what we need to see and discuss with the operator should all be addressed at the outset of the visit.

In the event the visit is due to a complaint we received, the IEPA inspector will let the operator know. We do, however, protect the identity of any complainant who asks to remain anonymous or have his identity protected.

Complainants are advised that their testimony may be required, regardless of their request for identity protection, if the investigation results in an enforcement action and ultimately is taken to the Pollution Control Board or the circuit court.

Memorial

Brotherhood of Locomotive Engineers and Trainmen Division 266 has set up a memorial account to help the families of Conductor Andrew Reed and Engineer Joshua Osborn who were taken from us on July 14, 2009 while on duty.

Donations may be dropped off at any THE National Bank location, or mailed to:

BLE&T Local 266 Memorial Fund

c/o THE National Bank

229 Main St.

Savanna, IL 61074

Thank you,

Todd Poffenberger

Secretary-Treasurer

BLE&T Local 266

Two Responses to Sacia's Column

7/16/09

In regards to a letter written by State Representative Jim Sacia, he wrote about how they passed an operating budget, but not the best budget. And there will be cuts, but not as bad as the draconian cuts. And you state that you and other members of the House spent hours discussing the crisis. I wonder why then the House was in session on days for only ten minutes.

This budget is not the solution to our state problems. This is a problem trying to fix a problem, when you have to borrow large sums of money to fund this new budget, then have to pay it back after many years is not a solution. Then you stated that members of the General Assembly will have to take twelve unpaid furlough days and financially it will sting a bit. What about the people in our state that have been fired or lost their jobs due to businesses closing? I wonder if they are only stinging a bit?

The General Assembly knew it had to have a balanced budget by June 30th, and failed the people of the state. You had to pass a budget (no matter what it was) because a major election is coming up soon for the entire House.

7/19/09

In regards to a letter written by State Representative Jim Sacia, he wrote about welfare and that he introduced bills on welfare, etc. Mr. Sacia states that the Medicaid system is out of control, which I know it is. Then he stated that part of the problem is Illegal immigrants, people abusing the system, etc.

My question is, if you know there has been a problem with welfare and Medicaid so long, why have you not worked on this and fixed the problem?

Then you talk about how great a humanitarian you are with bringing many food trucks to Freeport, IL.

But, there is also the need for food trucks in other parts of your district. You state "your heart aches for those in need", does your heart ache when you have not passed an operating budget for the state and some of the people in the lines to get food are from being laid off or fired from their job due to no balanced budget? I wonder if this is real or just an act since an election is coming next year.

And you know of the problem with illegal immigrants in our state and have not done anything on this.

I have to disagree with your comment that "A society going from I CAN TAKE CARE OF MYSELF TO IF THE GOVERNMENT WILL FUND IT, I AM HERE FOR HANDOUT". I believe people want to work and provide for their families, that most people are honest. I know for a fact that a lot of people on welfare and getting food at food pantries or food drop off sites feel ashamed to be getting help, but a lot of this is not the person's fault but they are forced to provide for their family the best way they can.

Walter M. Johnson

Galena, IL

Land of the Free No More

After reading Mr. Wemstrom's letter, "Don't Blame the Democrats" (7/15/09 issue) I had to respond. This long-winded article was nothing but disinformation.

I'm not sure about anyone else, but it doesn't matter which party is in office. My taxes are going up and we're headed in the wrong direction. This is no longer the Land of the Free and Home of the Brave. When my elected official tells me I'm not taxed enough, and I think I'm paying too much, I am no longer represented.

So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so, for tyrants are active and ardent, and will devote themselves in the name of any number of gods, religions, and otherwise, to put shackles on the sleeping people.

The Federal government is taking apart our infrastructure and giving it away. The states are broke.

Wake up, people. We are in serious trouble.

Norman Volkert

Shannon, IL

Economic Ills & Illegal Aliens

In the week of July 13th issue of the Advocate, Rep. Sacia tries to now blame the ills of the economy on the illegal aliens. How convenient for Rep. Sacia to try and blame people who can't defend themselves. Typical of the Republican Party to try and deflect blame some place else for their failed policies. I guess Rep. Sacia is running out of people to blame. He used to blame the Chicago Democrats for the problems in Illinois.

While it is true that most of the people being compensated under the table may not pay taxes, this is the same for anyone working under the table, not just for illegal aliens. For those illegal aliens who work and are on Companies' payroll, taxes are deducted from their pay just like from every other employee. And, in many cases, the companies also provide health insurance. Illegal aliens who own homes pay Real State taxes just like everyone else. For those Illegal aliens who rent, Real State taxes are paid by the landlord. Illegal aliens, who shop, pay sales tax just like everyone else. I haven't heard of any illegal alien who has not paid sales tax simply because they were illegal. This is the biggest Republican myth about illegal aliens. In addition, Rep. Sacia fails to hold Companies accountable for breaking the immigration law.

Rep. Sacia also fails to mention that in most cases, Illegal aliens who have paid into Social Security and Medicare do not receive any benefits later on as they retire ­ if they retire ­ or as in many cases, they are caught and deported. That money is never collected.

I guess Rep. Sacia is now blaming illegal immigrants for the high unemployment in northwest Illinois. I didn't know that we were being over run by Illegal immigrants in this part of the State. The Illegal immigrants will get the blame for the economy at least until President Obama starts' getting the blame ­ and it has stared at the National level. Only 50 to 60 Billion dollars of the stimulus money has been sent out to the States and the party of "no" is already crying out that the program has failed. Of course, the Republican Party has no responsibility since, with the exception of three Senators from the Northeast, they all voted against the stimulus program.

Paul Gonzalez

Lake Carroll, IL

Economic Ills & Illegal Aliens - Part 2

It's surprising that an intelligent elected representative would quote an email that he received without checking its accuracy. I asked Jim Sacia to send me a copy of the email about a hypothetical "Joe Illegal," who was receiving all kinds of government aid and thus actually earning more than "Joe Citizen." Mr. Sacia sent me the email promptly.

But the email is anti-immigrant, anti-government (of course!) and subtly anti-Hispanic. Most important, it is full of inaccuracies. According to an Associated Press article in USA Today (July 11, 2008), illegal immigrants would pay billions of dollars in federal income, Social Security and Medicare taxes in 2008. An estimate puts Social Security taxes alone from illegals at around $9 billion per year. And since illegal immigrants do not actually collect Social Security, the money helps cover retirement funds for legal workers.

According to the article, hundreds of thousands of illegal immigrants actually pay more taxes than they owe. Fearful of deportation, they do not want to attract attention by asking the government for a refund. The article states that most economists agree that "illegal immigrants are a net benefit for the US economy" and quotes Economist William Ford of Middle Tennessee State University as saying that we need more immigrants, not less.

If there are any real "Joe Illegals" milking the system, they are the exception. To imply that the US government is supporting these people to the detriment of US citizens is false. The only benefits illegal aliens can get are emergency medical care and K-12 education.

The email ends with a dig at Hispanics, asking us to make English the official language. The writer forgets that America is a melting pot. We have room in this great country for many ethnic groups and many languages, and studies show that Hispanics are learning English as fast, or faster, than previous immigrant groups.

Jim Sacia is obviously angry that a bill he introduced requiring a drug test to receive welfare was defeated. But one reason many drug addicts need welfare is that drug rehabilitation programs are inadequate. Sacia needs to stop exaggerating and obsessing on minor issues and quitblaming the "opposition" for everything that's wrong with the state. He should work to restore funding for needed programs.

Patricia Wemstrom

Mount Carroll, IL

Thank You Savanna Lions

We would like to take this opportunity to thank the Savanna Loins Club for hosting the free family event on June 13th at Old Mill Park. It was encouraging to see a family centered "alcohol-free" event for families happening in our community.

As parents/grandparents, we have seen the decline of these types of events and unfortunately the message sent to parents and youth is that without alcohol there can be no fun. While the businesses in Savanna and several organizations supported this event through monetary donations and door prizes, we as citizens and parents need to take time to support these types of events. Perhaps one of the best ways to support is to attend with our families.

If we hope to reduce the number of youth consuming alcohol in our communities, which is well over 50%, we need to increase the number of alcohol-free events, both public and in our homes. The message is, no matter what age you may be, alcohol does not have to be part of a good time.

For information on how to reduce underage drinking and effects alcohol has on the teen-age brain, or to have a program for your organization, contact Carol Geary or Freddie Preston at the University of IL Extension office at 815/244-9444 or contact Geary at cgeary@illinois.edu.

Carol Geary and Freddie Preston

Carroll County Substance Education Coalition

Capitol Report

By Jim Sacia, State Representative, 89th District

July 15, 2009, is the last day of the last pay period for fiscal year 2009. Thousands of state workers did not receive a pay check today. It is our second day of special session as we struggle to craft an acceptable budget. If we do our job, state workers will get paid tomorrow, our social service agencies will breathe a bit easier and, though oversimplified, the State of Illinois will have a budget. The Governor's request of $29.5 billion in state spending has been reduced to about $26 billion, but overall, I think it's as good as it will get.

As I write, it's 7:00pm and the House is debating several bills that will comprise the budget. The discussion is heated at times, but the bills are passing by the 3/5^th "supermajority" required in overtime (71 votes are needed to pass instead of the 60 vote simple majority required before May 31^st.)

I again take my hat off to Governor Quinn. He inherited a monster: a state with a total $59 billion budget that has a $9-$12 billion hole in it. Though he has been criticized by many, there is no doubt in my mind that his heart is where it needs to be. His honor and integrity are without question.

I traveled to Springfield last Thursday at the Governor's request, as did about thirty of my colleagues from both parties in both the House and Senate, and for several hours we discussed our crisis. What a breath of fresh air: a Governor who actually wants our opinion. I'm told this is the way it always used to be, but remember, since being elected the only other Governor I have dealt with was Rod Blagojevich and he certainly was not interested in our thoughts.

What all of this means is that there is once again a degree of trust.

The budget, we in the House passed tonight, is not a good budget. What it is is as good as it gets with the funds that are available. I supported the budget bills, as did the vast majority of Republicans and Democrats in both the House and Senate. There will be cuts, but not the draconian cuts that had been anticipated, especially in the areas of social services, education and general revenue.

The bills we acted on were Senate Bill 1216, Senate bill 1292 and Senate Bill 1912. Space limitations here won't allow me to go into great detail, but it is fair to say that the entire budget across the board will be funded at 86% to 92% of last year's funding.

We, in the General Assembly, also will take twelve unpaid furlough days. Financially, that will sting a bit, but there will be plenty of sting to go around and I certainly believe it needs to begin with us.

As always, you can reach me, Sally or Barb at 815/232-0774 or e-mail us at jimsacia@aeroinc.net. You can also visit my website at www.jimsacia.com. It's always a pleasure to hear from you.

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