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 It can be tough to comprehend Illinois’ dismal finances.
The state has the worst credit rating in the nation and has been bottom of the
barrel on that measure for quite some time. Illinois’ pension mess is one of the
nation’s worst. And the General Assembly hasn’t passed a truly balanced budget
since 2001.
Why? The answer has a lot to do with government spending outpacing growth in the
state’s economy. But recently, Illinoisans witnessed a particular and pernicious
part of that problem: basic lack of humility.
Illinois is broke. But leaders don’t act like it.
On Jan. 17, State Superintendent of Education Tony Smith unveiled a proposal to
spend an additional $7.2 billion on education in one year.
 Some context: Illinois’ student population is shrinking. Illinois’ state budget
is already out of balance by more than $1 billion, even after state lawmakers
passed a $5 billion tax hike. As of 2015, Illinois spent at least 20 percent
more on education per pupil than every neighboring state. And even when
stripping out the richest school districts, Illinois spent more per student on
average than every neighboring state.
Smith’s plan is absurd and irresponsible. But it elicited no real response from
political leadership.
Now imagine if a state schools chief called for a freeze in education funding
(which still would mean an increase in per-pupil spending, since the population
is shrinking) and a reduction in Illinois school districts’ administrative
costs, which are among the highest in the nation. One may disagree, but it’s a
reasonable proposal given the dreadful state of Illinois finances.
Ears would be ringing from Chicago to Carbondale.
Another problem is that when politicians and observers do get up in arms about
poor spending habits, they often miss the bigger picture.
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News broke Jan. 22 that Illinois paid $1 billion in
late fees last year on its unpaid bills. “An astonishing $1 billion
down the drain,” wrote one prominent editorial board.
“How often do you hear political candidates promise to spend more
than $1 billion in return for – nothing? We can’t recall ever
hearing that.”
Paying $1 billion in late fees is no doubt
infuriating. There are plenty of better uses for taxpayer money. The
bigger picture? Illinois owes more than $9 billion a year on
interest on the pension debt alone. The state can’t even cover that
interest payment, which is why the pension debt continues to grow
each year.
Illinois’ pension math can’t work out barring major changes. Pulling
Illinois out of that potential death spiral will require
restructuring those obligations.
Care to float an amendment to the Illinois Constitution to allow for
a reduction in the number of multimillion-dollar retirement payouts?
That’s heresy in Springfield.
Examples of this mentality abound.
Illinois state workers are the highest-paid in the nation after
adjusting for cost of living. They receive Cadillac health insurance
plans when the state needs a Toyota budget. But the American
Federation of State, County and Municipal Employees has held out for
a new contract for more than two years, demanding a 37.5-hour
workweek and raises of up to 29 percent.
Want a more reasonable contract? You’re anti-worker, according to
government worker unions and their political beneficiaries.
Illinois’ financial problems are solvable. Residents should feel
empowered to let their lawmakers know they can’t afford more tax
hikes to make up for poor policy choices over the decades.
But the first step to solving a problem is being humble enough to
admit the truth.
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