Sen. Brady concerned governor has wrong numbers

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[FEB. 15, 2005]  SPRINGFIELD -- State Sen. Bill Brady, R-Bloomington, says he is concerned that Gov. Rod Blagojevich's handlers are providing him with the wrong numbers, which could skew the Feb. 16 budget address in much the same manner as the Feb. 3 State of the State speech

"To some extent, the governor's State of the State assessment suggests he is living in never-never land. To say ‘the state of Illinois is strong,' is not dealing with the real world. To suggest that he has cut $3 billion in state spending is hypocrisy," Brady said. "This is the only governor in the last two years, throughout the nation, who has increased state spending in deficit proportions. Somehow we're going to have to give him a reality check."

Blagojevich also reported in his State of the State speech that Illinois has created 50,000 jobs over the last year. Yet statistics from the U.S. Department of Labor show that since Blagojevich took office in January 2003, the state of Illinois has lost 13,900 jobs.

To put this in perspective, 43 other states and the District of Columbia have increased total non-farm employment during this same time period (January 2003-November 2004). Only six other states have seen a decrease in employment since January 2003: Michigan, minus 88,700 jobs; Ohio, minus 62,800; Massachusetts, minus 33,200; Connecticut, minus 8,900; Oklahoma, minus 6,600; and Louisiana, minus 500. However, states bordering Illinois did well: Wisconsin, plus 69,200 jobs, Missouri, plus 34,900; Kentucky, plus 13,900; Iowa, plus 13,600; and Indiana, plus 7,100.

"The reality is that this administration has spent itself into yet another budget deficit, estimated at $2 billion; state job growth still lags behind the significant employment growth of other Midwestern states; and businesses continue to flee to more business-friendly states, taking jobs with them," Brady said. "I would like to know the source of the governor's numbers that show that our state is turning around, because they appear to be wrong. We can only hope the Feb. 16 budget address will present a more accurate picture of the challenges Illinois is facing."

One of Brady's main concerns is that the governor will rely heavily on yet another pension shell game to prop up his budget address.

At its meeting Feb. 4, the governor's pension commission voted to recommend a plan to free up money now by overhauling the state's pension systems. The controversial proposal would scale back pension benefits for new state hires but use the savings immediately to give the governor some relief for the fiscal 2006 budget.

"Instead of using this panel of experts to develop long-term solutions to a very real pension funding crisis, the governor's allies are using it to give him political cover." Brady said. "I'm disappointed that all those hours of meetings and lengthy review of information became nothing but political cover for the governor and an absolute farce."

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On an 8-3 vote, the Pension Funding Commission recommended that any savings from any pension reforms enacted by the General Assembly should be allocated proportionately from 2006 to 2045. Brady voted "no," as did Rep. Mark Beaubien, R-Wauconda, and a representative of the United Food and Commercial Workers union.

"As a commission member, I vehemently oppose any plan to ‘recognize' future savings that may, or may not, occur under long-term reforms. That's just another attempt to spend more today to shore up the governor's sagging budget and push the cost onto the future. No matter how you spin it, we would simply be spending money now that we don't have -- and may never have," Brady said. "I believe this plan amounts to borrowing now from questionable savings at the expense of our children and grandchildren."

On Feb. 9, the 44th District senator filed a letter with the pension commission explaining his opposition to the pension restructuring plan and asking that the letter be included with the commission's report.

Brady says the commission has made no specific recommendations for changes in the pension system, and items included on the list of suggestions to be considered for cost savings likely will not have the support of the General Assembly. Examples:

  • Limiting "end-of-career" pay increases to bump up an employee's pension, with pension benefits paid by the state, not local school districts.
  • Increasing the early retirement penalty for future employees who retire before age 65.
  • Limiting cost-of-living adjustments for pension benefits for newly hired employees.
  • Changing the alternative retirement formula for new hires only.
  • Increasing current employees' contributions.
  • Changing the money purchase option for current university system employees and eliminating it for new hires.

At Brady's insistence, the pension commission has already voted unanimously to reject any plans the governor may have had to reduce benefits for current employees, which Brady and others believe would be unconstitutional.

[Illinois Senate Republican Caucus news release]

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