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Your Illinois News Radar » One of these things is not like the others – The Capitol Fax Blog

Your Illinois News Radar » One of these things is not like the others – The Capitol Fax Blog

* We’re entering parody territory here, or Tobin’s just saying the quiet part out loud that others including the Tribune are too polite to utter… As the U.S. Senate considers whether to pass a $1.9 billion stimulus package, an Illinois nonprofit is urging a no vote. Gov. J.B. Pritzker said despite a $120 million surplus

* We’re entering parody territory here, or Tobin’s just saying the quiet part out loud that others including the Tribune are too polite to utter

As the U.S. Senate considers whether to pass a $1.9 billion stimulus package, an Illinois nonprofit is urging a no vote.

Gov. J.B. Pritzker said despite a $120 million surplus in his proposed budget, the state needs an estimated $7.5 billion.

“This is a budget that is the result of a crisis that we had facing the state and the country,” Pritzker said.

Pritzker has also blamed the state’s dire fiscal condition on voters’ rejection of his progressive tax amendment and on Congress’ failure to provide unrestricted state bailouts earlier.

Jim Tobin, the founder of the Taxpayer Education Foundation, is opposed to any kind of federal bailout and said the Illinois state government needs to fail to change its irresponsible spending habits.

Kill it in order to save it. That worked so well for the Confederacy’s approach to the United States, and Tobin fancies himself an expert on that bit of history, believing the Civil War was fought over tax revenues.

* GOP Rep. Tom Demmer has some actual ideas

First, both state and local governments should refill and reopen small-business grant programs that have to date only provided assistance to a fraction of the businesses that have been dealt a blow from COVID-19-related closures and restrictions. The highly touted Business Interruption Grant program, for example, awarded grants to just 20% of the businesses that applied. Many businesses are also struggling to pay their crushingly high property tax bills from a year in which they may have seen their property closed or restricted a majority of the time — a property tax relief program could go a long way in reducing that burden. And further mortgage and rental assistance to families who have seen their income drop because of COVID-19 closures would help reduce foreclosures and housing insecurity.

Second, the current state budget relies heavily on borrowing more than $3 billion from the Federal Reserve. All of that is due to be repaid within the next 2½ years. Carrying a short-term debt load like that will put further strain on the state budget, even after the pandemic. An influx of federal aid should be used to immediately pay off that short-term debt and avoid a repayment problem that is right around the corner.

Third, Illinois is notorious for carrying billions of dollars in unpaid bills. By paying our bills and reducing the current $5 billion backlog, we put cash in the pockets of Illinois service providers and vendors who are waiting to be paid — and we also reduce our overall debt load. As businesses fight to stay afloat during the pandemic, we shouldn’t add to their problems by making them wait and wait for the state to pay its bills. Further, when the state pays Medicaid bills — which is one of the largest programs in the state budget — we get matching funds from the federal government. During the pandemic, the matching rate has been temporarily enhanced for all states, meaning that Illinois can stretch every dollar even further.

The debt and backlog ideas are already on the table, as is more relief to businesses.

* Comptroller Mendoza and Connecticut Comptroller Kevin Lembo…

The most cynical actors in Washington have portrayed pleas for aid as an undeserved “bailout” for states that don’t share their politics. The opposite is true. States don’t seek funds for legacy costs. While both Illinois and Connecticut have been addressing long-standing fiscal challenges and legacy costs within our respective state budgets in recent years, both also act as donor states, contributing more in the form of federal taxes than we receive back in federal aid.

This year, we do this dutifully, to proudly support our fellow states as they face identical challenges of their own. This crisis has provided a clear example that we are one nation, meeting a common challenge together. The federal government’s response should reflect that, and not leave anyone behind. Our states, our residents and small businesses can’t wait.

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