GOP Senators unveil ‘Taxpayer
Bargain’
Unique state budget plan: Balanced,
Spending restraint, Taxpayer respect
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[April 05, 2017]
SPRINGFIELD
- In an attempt to end Illinois’ longest-ever budget stalemate,
Republican State Senators Kyle McCarter and Dan McConchie unveiled a
multi-point ‘Taxpayer Bargain’ plan for a balanced state budget
Tuesday, April 4. The Fiscal Year 2018 plan includes a mix of
traditional money management principles and new ideas.
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“Today, we are putting forth a bargain for the taxpayers that
does not punish them for what legislatures in the past have done,
but rather rewards them with a balanced budget that provides real
spending reductions, modernizes Illinois’ public pension systems,
improves the way Illinois government does business, and creates an
environment for job creation,” said State Sen. Kyle McCarter
(R-Lebanon). “This ‘Taxpayer Bargain’ includes a no-nonsense
spending cap and accomplishes its goals with no new taxes and no tax
increases.”
Sen. McCarter said the balance budget prioritizes spending and
requires the state to live within its means.
“Illinois didn’t get
into this problem overnight and we won’t get out of it overnight,”
said McCarter. “There are spending reductions of 10 percent at state
agencies. Universities will be asked to reduce spending by 5 percent
and retailers will see a reduction in the discount rate for sales
tax collections from 1.75 percent to one percent. Funding for
elementary and secondary education will be protected as will
Medicaid services for the most vulnerable and scheduled pension
payments.”
![](http://archives.lincolndailynews.com/2017/Apr/05/images/ads/current/agee_sda_daily_030915psd.png) McCarter said the plan requires leadership and fiscal responsibility
–
- Executive Branch must manage/Contains some of the Governor’s
own ideas/Sen. Christine Radogno’s Senate Bill 2063 - Unbalanced
Budget Response Act
- Governor must negotiate changes to employee group health
care and AFSCME contract wages
- Imposes real spending cap, which is tied to legislative
salaries. If the General Assembly violates the spending cap they
lose their pay for that fiscal year.
- Borrow $7 billion and reform Prompt Pay Act – Pay off past
due bills and reform Prompt Payment Act to Federal level. Could
realize savings of $500 million by eliminate late charges.
- Borrowing must include a spending cap guideline set at
CoGFA’s projected revenue. Any revenue increase over projected
revenue is distributed as follows: 25% to education 25% for
roads & bridges, 10% towards pension legacy costs and 40% to
payoff unpaid bills.
The ‘Taxpayer Bargain’ budget includes modernizing the
state’s public pension systems, estimated to be $130 billion
underfunded, the worst underfunded public pensions of any state.
- Ends pensions for legislators before reforming pensions
for other state employees.
- Keeps promises to current retirees and employees, and
protect taxpayers going forward.
- Moves new state employees to a modern, hybrid pension
plan. (President Cullerton’s legislation)
- Public pension cost shift to schools, universities and
local governments in exchange for financial relief from
unfunded state mandates.
- K-12 Pension Cost Shift – 5 year phase-in ($200
million/year - $1 billion after 5 years)
- Refinancing current pension bonds – interest savings
($600 million) goes to paying off old bills
While Medicaid spending for the most vulnerable is
protected, the budget plan includes basic common sense
reforms –
- Smart Card Pilot Program
- Prosecution of vendor fraud and 3rd party vendor
verification
- Drug Screening for recipients
- Ending taxpayer support for those with a criminal
warrant
- LINK Card photo
- Upgrade Medicaid Redetermination Project – Check
recipient status every 3 months instead of currently 6
months
- Managed Care Changes
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The multi-point plan is a wakeup call for government, according to
State Sen. Dan McConchie (R-Hawthorn Woods).
“For years, taxpayers
across the state have been asking us to get our financial mess in
order,” said Sen. McConchie.“It is time we start listening to them
and start living within our means. Even though making spending cuts
will be difficult and painful, it is necessary if we want to move
toward a path of prosperity. This budget proposal is the first, that
I am aware of, that reins in government spending, and is something
we need to approach on a bipartisan basis. Taxpayers are demanding
fiscal responsibility and it’s about time we give that to them.”
Sen. McConchie said the plan includes reforming how Illinois does
business –
- Reduce the Local Government Distributive Fund (money to
local governments) by about 4% in exchange for financial relief
from unfunded state mandates, government consolidation and
limited “home rule.”
- Making sense of rules for purchasing goods and services –
changing procurement
- Overtime rule changes - Increased hiring in Corrections to
reduce overtime costs
- Reorganizing state government agencies – Historic
Preservation into Natural Resources
Sen. McConchie adds that the ‘Taxpayer Bargain’ budget also
addresses Illinois’ slow-to-recover business/jobs climate by
providing certainty and predictability about rules, regulations
and taxation expected of employers.
- Workers’ Compensation Reforms – As currently being
negotiated
- New funding formula for schools
- Permanent Property Tax Freeze on Education only and
shift education funding from the property tax to state
government. – Sunshine provision requiring copy of property
tax bill to mortgagee
- Local government mandate relief
Sen. McCarter said Illinois is at a crossroads, with two
paths before it: further economic decline or renewal and
recovery.
![](http://archives.lincolndailynews.com/2017/Apr/05/images/ads/current/State_bank_lda_102214.png)
“Illinois
government must live within its means just like Illinois
families and businesses do,” said McCarter. “If Illinois
families can’t afford to overspend year after year then
state government can’t afford it. If Illinois families are
tightening their belts in order to be responsible, we should
expect no less from state government. Today, we are spending
the wealth of future generations. What legacy do we want to
leave our children and grandchildren? Prosperity or poverty?
Blessing or burden?”
There are 17 separate pieces of legislation that make up the
“Taxpayer Bargain” budget plan. Some legislation is already
working its way through the legislative process. The
remaining measures will be introduced in the coming days.
[General Assembly, Illinois State
Senate, Ray Watt] |