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Archive for the ‘Budget Crisis’

The Joe Walsh That Is Not Intimidated by MSNBS’s Laurence O’Donnell

April 05, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Dennis Miller, Jack Franks, Joe Walsh, Laurence O'Donnell, The Last Word

Congressman Joe Walsh gives not an inch under intensive grilling by MSNBC's Laruence O'Donnell.

Look at this March 31st video billed by MSNBC as

“MSNBC’s Lawrence O’Donnell goes toe-to-toe with Tea Party Republican Rep. Joe Walsh (Illinois) about the so-called Government Shutdown Prevention Act”

and you’ll know why Democrat Melissa Bean’s handlers would not let her debate Joe Walsh more than once during last year’s campaign and why she insisted the only candidates’ night (the one in Grayslake sponsored by the non-Flag Pledging League of Women Voters) not be recorded.

Again and again O’Donell tries to make Walsh look stupid by asking if he knew that the House’s passing its budget bill did not mean it became law.

Again and again on O’Donnel’s “Last Word” Walsh says the House is passing an appropriations bill with budget cuts its favors in order to get the U.S. Senate to respond.

Videos like this are going to make potential 2010 Democratic Party opponents think long and hard about challenging the 291-vote general election victor.

One potential opponent, State Rep. Jack Franks has had nothing but soft ball interviews on national TV. In fact, the only interview in which he was forced to squirm was when WIND’s Dennis Miller pinned him on Term Limits.

See

Jack Franks “Bridles” at Dennis Miller’s Suggestion of Term Limits

Franks is now in his sixth term–well beyond anyone’s definition of the length a term limit supporter should serve.

Senate Republicans Outline Budget Cuts

March 17, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Illinois, Pam Althoff, Senate Republicans

Pam Althoff speaks at Springfield press conference. Senate Republican Leader Christine Radogno is seen in the background. Photo credit: Senate Republican Staff Photographer Jay Barnard.

Illinois Senate Republicans have rolled out their suggested budget cuts and challenge Democrats to do likewise in the press release below:

Sen. Althoff, Republicans unveil budget plan

SPRINGFIELD – State Sen. Pamela Althoff (R-McHenry) joined Senate Republicans today in unveiling a series of spending and revenue adjustments that would put Illinois on firm financial footing.

“We’re not here today proposing these spending reductions because we’re happy about cutting services,” Althoff said. “Many worthy programs – programs I strongly believe in – could be cut. The fact is we have no choice. The alternative would be the fiscal ruin of Illinois for generations to come, and that is simply unacceptable.”

Last week, Althoff and Republican lawmakers unveiled a report showing that unless immediate action was taken to curb government spending, Illinois would see a $22 billion deficit in five years – numbers Gov. Quinn and Democratic lawmakers haven’t disputed.

“Everyone realizes Illinois’ fiscal crisis has turned into a fiscal disaster,” Althoff said. “The question is what we do about it. The one thing we cannot do is continue the “spend and borrow” practices that got us into this mess in the first place. We need serious and meaningful spending reductions and we need them now.”

Image from a video Senate Repblicans put up two days ago.

Althoff said the plan unveiled on Thursday would total about $6.7 billion in reductions and financial improvements. At least $4 billion would be needed to bring the budget into line by the time the Governor’s temporary tax hike is set to expire and $5 billion would be needed to allow an earlier stepped reduction in the tax increases.

“Our plan phases out the Governor’s 67 percent income tax hike, because we strongly believe Illinois’ economic renewal must be a key state priority in the coming years, along with fiscal renewal,” Althoff said. “By repealing it, we will give some relief to families – many of who saw their taxes increase by hundreds of dollars per year – as well as small businesses that were already struggling to make ends meet in this tough economic climate.”

To see the Senate Republican’s full report, please visit the Senator’s Web site at http://www.senatoralthoff.com/images/stories/Fiscal_Reality_web_final.pdf.

Find the video here.

Walsh Urges GOP House Leadership to be Bolder

March 15, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Don Manzullo, Joe Walsh

Joe Walsh on the floor of Congress.

U.S. Representative Joe Walsh was joined by 157 other Congressmen when he voted against the continuing budget resolution to allow government to spend as much as it during the last budget year. His press release follows:

The resolution didn’t defund Planned Parenthood or Obamacare.

Congressman Walsh Issues Statement on his vote against the Continuing Resolution

“We must think bigger and bolder”

Washington, D.C. – Today, Congressman Joe Walsh (IL-08) voted against a three week continuing resolution.

The plan which passed by a vote of 271-158 would continue to fund the government for another three weeks, while cutting an additional $6 billion dollar from the 2011 budget.

Following the Democrats failure to pass a budget in 2010, the Continuing Resolution is necessary to fund the government.

Of his vote, Walsh stated,

“While I commend Republican leadership for continuing to cut spending in these short term resolutions, this measure does not go far enough. Under President Obama’s leadership, this country is now in dire straits, with record deficits. In February alone the country added another $225 Billion dollars to the federal debt, and yet we are only debating a $6 billion dollar cut.”This temporary spending resolution doesn’t come close to doing what the American people want Congress doing. We were sent to Washington to dramatically cut spending, defund Obamacare, and stop the rise in government regulations so that the private sector could create jobs.

“President Obama has punted on this issue, and refuses to be part of the dialogue.

“I encourage Republican Leadership to take advantage of this lack of leadership from the White house. The American people want bigger and bolder than what Congress put forth today. We Republicans have a great opportunity to seize this moment.”

16th District Congressman Don Manzullo voted with the majority.

Althoff Calls for Spending Cuts

March 10, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Pam Althoff, Pat Quinn

Images are taken from the Illinois Republican State Senate analysis, which can be accessed with a link found at the bottom of the press release.

Althoff: Illinois racing toward fiscal cataclysm, urges immediate spending cuts

Springfield, Ill — Even with Gov. Pat Quinn’s recent 67 percent tax hike, Illinois continues to race toward a fiscal cataclysm that will leave the state with an annual deficit of $8 billion and a cumulative deficit of more than $22 billion within five years, warns State Sen. Pamela Althoff (R-McHenry).

“Unless we act now to actively reduce state spending, in a substantial way, Illinois taxpayers will see enormous tax hikes in the future,” warned Althoff, the Republican Spokesperson on the Senate Appropriations Committee.

“As a result, families will see their household incomes drop sharply, and the skyrocketing cost of doing business in Illinois will drive away companies and jobs. Tackling the deficit isn’t just about our state’s fiscal future, it’s about our economic future, as well.”

Senate Republicans project $22 billion in total deficits over the next five years under Governor Pat Quinn's budget proposal.

Althoff said a Senate Republican review of spending and revenue trends makes it apparent that Illinois will take between $4 to $6 billion in additional spending reductions to the Governor’s proposed budget in order to put the state back on track.

That means without matching budget cuts, the “temporary” income tax hike passed by Gov. Pat Quinn and the legislative majority this year will need to become permanent in order to keep the state financially afloat, and even larger tax hikes would be necessary down the road to put Illinois back on a firm fiscal path.

The McHenry senator said a careful analysis of state spending and revenues shows that massive deficits will occur if lawmakers adopt the Governor’s proposed budget and adhere to “spending caps” that are in fact, far too generous and optimistic than the state’s revenues can sustain.

The senator is working with colleagues to identify realistic reductions, but before a discussion of cuts can occur, there needs to be a “reality check” so that the public understands how serious the situation is.

Senate Republicans predict $3 billion more in expenditures than revenues during the next several years, despite the 67% income tax hike.

“Before you can move on to a solution, you need to define the problem. Unfortunately, too few people in the Statehouse are willing to face up to the problem,” Althoff said.

“The spending plan that the Governor put before us would create a deficit every single year for the next five years – and that’s with the 67% tax increase.”

At a Statehouse press conference on Wednesday, Althoff joined Senate Republican Leader Christine Radogno (R-Lemont) and other colleagues to highlight the severe fiscal challenges facing Illinois and call on a bipartisan solution to the problem.

“I’m working with my caucus to meet two marks in the coming weeks,” Radogno (said. “First, to identify, genuine reductions and savings that will achieve a minimum of $4 billion in savings. And second, to line up sufficient support within my caucus so that we can put at least 15 votes on any proposal.”

Radogno acknowledged that it is much easier to talk about reductions than to actually line up the votes to make them happen, especially because “within my caucus, there is strong feeling that we did not create this problem over the past eight years.”

“I understand that sentiment and I’m sympathetic to it, but the reality is the situation is so severe that we have no choice. These are going to be tough, tough decisions. I am working to persuade my caucus that we have to meet the majority halfway in order to work our way out of this crisis,” Radogno said.

Those interested in viewing the Senate Republicans’ full analysis of the budget crisis can visit:
http://www.senategop.state.il.us/images/stories/2011/Quinn_path_web_bookletdraft1.pdf.

Click to enlagre the Senate Republcian Budget Plan.

Mike Madigan Allows Legislators to Follow Constitution

March 08, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Mike Tryon

In sixteen years in the Illinois General Assembly, I don’t remember voting on how much money we thought would be available.

That’s a necessary element if one is to follow the State Constitution’s balanced budget requirement.

There would be some language inserted in the budget bill that revenues were deemed to be sufficient to cover expenditures.

Something real general.

This year, with Senate President John Cullerton floating the same trial balloon that State Rep. Mark Beaubien mentioned in Crystal Lake before his unopposed re-election–the taxing of retirement income for the first time in the state’s history–revenue estimating is getting more attention.

Consider the following press release from State Rep. Mike Tryon:

Mike Tryon

SPRINGFIELD….. State Representative Mike Tryon (R-Crystal Lake) joined colleagues on both sides of the isle Tuesday in voting in favor of House Resolution 110, which estimates the State of Illinois’ revenues for 2011-2012 at levels that are 21% lower than what Governor Pat Quinn estimated in his recent budget address. The House vote was unanimous.

“We believe Governor Quinn overestimated next year’s revenues by as much as 21%,” said Tryon. “He is refusing to face the financial realities of this State and he continues to promote the spending of money that we simply don’t have. By setting a realistic and fiscally responsible revenue baseline, we can better prioritize our resources, stop the borrowing, and finally reduce State spending in a meaningful way.”

The resolution, co-sponsored by Republican House Minority Leader Tom Cross and Speaker of the House Michael Madigan, estimates that revenues for the next fiscal year will be $33.2 billion, which is $700 million lower than what Governor Quinn said in February when he presented his draft budget to a combined session of the Illinois House of Representatives and Senate.

“House Republicans have led the charge on reducing spending and today that persistence has paid off,” said Tryon. “House Resolution 110 adopts the same simple budgeting philosophy families use every day–start with conservative estimates for how much money you’ll be bringing in, then create a spending plan to pay bills and meets other expenses without spending more money than you have.”

According to Tryon, the resolution will guide upcoming budget discussions based on an Illinois Constitutional requirement that appropriations for any fiscal year not exceed estimated revenues for that year.

“The first step in balancing our budget is making sure our revenue projections are accurate,” said Tryon. “Only when we have confidence in the revenue side of the budget can we properly appropriate funds.”

Post-Budget Cutting Session Statement from Joe Walsh: “Good First Step”

February 21, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Joe Walsh, Nick Provenzano

Last week the Freshmen class of House Republicans forced its will upon the longer term members, including the Leaders, and cut more from the budget than the more established Republicans desired. Here is Joe Walsh’s press release on the session that ended at 4:40 AM Saturday morning.

Congressman Walsh Issues Statement on Passage of Continuing Resolution
A necessary first step toward saving this country for our kids and grandkids

WASHINGTON, D.C. – By passing last week’s continuing resolution, the Republican Congress took a first step to put our country back on a path to fiscal responsibility and a balanced budget.

“Today’s action was the largest reduction in government spending in the history of the United States Congress, but the CR (Continuing Resolution) was only a good first step in a long and arduous process to reach a balanced budget,” said Congressman Walsh.

“There is much more to do and we need to be straight with the American people about what lies ahead. We need to eliminate unnecessary government spending, cut defense and other mandatory spending programs and reform the entitlement programs –

  • Medicare,
  • Medicaid and
  • Social Security.”

“What we did this week wasn’t easy, but it was necessary.

“:America is broke.

“I was sent to Washington to remove this unforgivable debt we’ve placed on our kids and grandkids and what we did this week was begin to preserve their futures.

Before the McHenry County Republican Central Committee's Lincoln Day Dinner, Congressman Joe Walsh chats with his Campaign Manager Nick Provenzano and Michelle Carter, the wife of Congressman Rick Carter's press guy. The photo was taken Saturday night about 25 hours after Congress adjourned.

“The President should be ashamed of himself. Through his budget, he continues to be dishonest with the American people about the difficult decisions ahead.

“Unlike the President, Congress needs to have the courage to tackle this crisis head on.

“We are through playing politics. The American people are ready.”

Alternatives to Pat Quinn’s Short-Term Bond Suggestion

February 19, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Federal Reserve, Illinois, North Dakota, Pat Quinn

Federal Reserve Building

Talking about his proposal to borrow $8.75 billion ($6 billion or so to pay off overdue bills, the rest for what Democrats do best, new spending, I guess), Governor Pat Quinn said,

“Saying ‘No’ is not enough unless you are willing to offer real alternatives.”

Well, I’ve got a possibility.

Why not charter a state bank as North Dakota has?

As I understand the arrangement that the Federal Reserve has with banks is that it loans money to banks for very low interest rates.

Quinn and his budget advisers argue that paying 1% per month to vendors that cannot be paid on time is an expense that should be lowered.

Illinois State Capitol

He suggests doing so by floating a bond issue for the amount owed.  My guess is the interest rate would be cut approximately in half.

Why not try to cut it by closer to 99%?

That’s if the Fed Funds Rate is 0.25% and Illinois can access money at that rate.

I don’t know the ins and outs of banking.

Maybe there is a fatal flaw in this idea.

Another idea would be to lower the interest rate paid to vendors on overdue bills from 1% per month to one or two percentage points above the prime rate.  The prime rate is 3.75%.

That could be done by changing state law.

So, here are two ideas to chew on.

Anyone want a bite?

Tryon Reacts to Governor’s Budget Message

February 16, 2011 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Mike Tryon, Pat Quinn

Here is State Rep. Mike Tryon’s latest message to constituents:

Friends,

Mike Tryon

Governor Pat Quinn delivered an annual budget address today which includes $8.75 billion in new borrowing and $1.7 billion in new spending for the fiscal year that will begin on July 1.

It was just one month ago when this governor forced upon Illinois families and businesses the largest tax increase in Illinois history.

I was incredibly disappointed to learn today that he is following that up with a budget plan that calls for even more borrowing and even more spending.

He isn’t getting the message of fiscal responsibility through less spending and smaller government.

Instead he is continuing his irresponsible practice of running up a balance on one credit card to pay off another.

According to the budget address, Governor Quinn plans to spend $35.38 billion during the next fiscal year while revenues are only expected to be $33.9 billion.

The unbalanced budget includes a deficit of $1.48 billion

Governor Quinn’s budget proposal assumes that we will borrow nearly $9 billion this fiscal year.

While I believe we must pay our service providers in a timely manner, borrowing this money would cost the taxpayers another $3 billion in interest, thereby adding to the state’s debt.

Illinois needs to live within its means and legislators need to make the required difficult decisions that will allow that to happen.

Just as House Republicans have driven discussions on Medicaid reform, job creation, budget transparency and controlled spending in the past, we will continue driving difficult discussions on budget cuts and pension reform so that the budget can be stabilized.

As your State Representative, I will continue to push for line-by-line reviews of state programs and services so that waste can be eliminated, and I will also continue to push for line item budgeting so that the taxpayers of Illinois can truly know how much money is being spent on what programs.

As always, do not hesitate to call or email me if you have additional questions on this or any other issue. I can be reached at (815) 459-6453 or via e-mail at mike@miketryon.com.

Best Regards,

Michael W. Tryon, State Representative, District 64

What Might Illinois Sell Off?

December 21, 2010 By: Cal Skinner Category: Budget, Budget Crisis, Budget Cuts, Deficit, Prison, Surplus Property

90% of the Royal Mail is to be sold in Great Britain.

The Conservative government in Great Britain is selling off 90% of the Royal Mail.

That prompted me to think of what the State of Illinois could sell.

Tollways, of course, were targeted by former Governor Rod Blagojevich.  I think the Thompson Center was also on his menu.

We are selling the Thomson Maximum Security Correctional Center to the Federal government.  I still wonder why it could not have been rented out since it was completed early this decade.

What about the other newer prisons?

A private company could depreciate them for tax advantages.

Governor Pat Quinn is already looking into ways to get income out of land near prisons.

Any other ideas?

Tryon Sends Email Budget Letter to Constituents

May 20, 2010 By: Cal Skinner Category: Budget Crisis, Chicago Tonight, Jack Franks, Mike Tryon, Randy Hultgren, Rickey Hendon, WTTW

April 12th, State Reps. Mike Tryon and Jack Franks, both from McHenry County, joined State Senators Randy Hultgren, who is running for Congress against Democrat incumbent Bill Foster in the 14th District south of the McHenry-Kane County line, and Chicago State Senator Ricky Hendon in discussing the state budget.

The following email just arrived from State Rep. Mike Tryon. He includes a link to an April 20, 2010, WTTW Chicago Tonight show on which he, State Rep. Jack Franks and State Senators Randy Hultgren and Ricky Hendron discuss the budge crisis facing Illinois. I think the Republicans called it a “spending” crisis.

Dear friends,

Many residents of Illinois may be asking themselves how is it Illinois is over $13 billion dollars in the red when our state is not constitutionally allowed to run a deficit.

The simple answer to this question is the inability of the entrenched Chicago political interests that currently run the State of Illinois to fundamentally change the way we appropriate money.

In homes across Illinois, family budgets are being managed everyday.   Most of us who have had to balance our own household budget know full well the unpleasant realities and tough decisions that need to be made when doing so.

Mike Tryon discussed budget problems on WTTW April 12, 2010.

The fact of the matter is that our economy is contracting, while government continues to expand.  Our leaders need to recognize that government can’t be all things to all people.We need to roll back spending in the form of reducing our Medicaid eligibility which is one of the most liberal in the country.

We need to enact creative solutions by consolidating Illinois services, agencies and programs to maximize resources and reduce costs.

We need to start our budgetary process with revenue, not with existing spending.

Entrenched public labor interests in Illinois this year alone will be receiving nearly $336 million in wage increases, all the while fighting tooth and nail against the most modest pension reforms.

The Governor refuses to reopen contracts to bring down labor costs for fear of angering special interests.  Legislative leaders have refused to consider significant reform measures while protecting their political fiefdoms from which they have made their careers.

This type of short-sided approach to governing is not capable of digging us out of this mess.

Decisions can be made; its just legislative leaders are refusing to make them.

So as we head down to Springfield next week to see what Governor Quinn, Speaker Madigan and President Cullerton have in store for us in regards to the upcoming state budget, please know that I will be fighting to bring some accountability into the discussion.

Take a moment to watch myself and several other area legislators discuss the state budget on a recent [April 12, 2010] episode of Chicago Tonight by clicking on the link below.
http://video.wttw.com/video/1467200511/

As always, do not hesitate to contact me with any questions or concerns regarding state issues.  It is an honor to serve you in Springfield.

Sincerely,

Michael Tryon
State Representative – 64th District