Legislators Talk Pensions, Health Care, Jobs
Dold, Garrett stress cooperation at Chamber breakfast.
Whether they were discussing how to tackle health care, pension reform or unemployment, legislators at last Friday's Legislative Outlook kept returning to the same solution: more cooperation.
Rep. Robert Dold (R-Kenilworth) said elected officials need to reach across party lines more frequently to pass job legislation. State Sen. Susan Garrett (D-Lake Forest) said legislators need to sit down with unions to deal with rising pension costs. And Illinois Department of Healthcare and Family Services Director Julie Hamos encouraged small business owners to offer suggestions for the institution of the Affordable Care Act.
"The number one issue that we face not only in Illinois but across the country is jobs and the economy," Dold said to the crowd gathered at the Highland Park Country Club early last Friday morning. "The good news is that when I talk to my colleagues on the other side of the aisle, the number one issue is jobs and the economy as well."
The Chamber of Commerces from Highland Park, Highwood and Glencoe organized the event, which was presented by NorthShore University HealthSystem. Highland Park Chamber of Commerce Executive Director Ginny Glasner moderated a panel that included Dold, Garrett and Hamos as well as Illinois Department of Commerce and Economic Opportunity Chief of Staff Andrew Moyer. State Rep. Karen May (D-Highland Park) was supposed to speak but did not attend.
Escalating pension crisis
Garrett discussed the state's rising pension obligations at last year's Legislative Outlook as well as this year's. Although the problem is not a new one, she said the time to address it is now.
"The pension issue has not just been a carryover from last year, it's been a carryover for the past decade," Garrett said. "This is the year I call 'Now or Never.'"
Garrett pointed out that local schools and universities "don't contribute much" to teacher's pensions, suggesting that increasing those contributions could help ease the state's financial burden.
"We do think that schools and universities have to have a dog in this fight," Garrett said.
The state senator also suggested that union leaders and legislators meet to tackle pension reform together. Highland Park resident and event attendee Pete Koukas said he didn't think this would work.
"The idea of getting unions and state regulators and legislators all to work together to resolve the pension problems is whistling dixie," Koukas said.
Creating jobs
The recently published jobs report showed that the country created over 240,000 jobs in January, making the topic of unemployment less morose than it was a year ago.
"We need to build on that," Dold said.
The congressman said that Illinois needed to create an environment that encouraged small businesses to hire more. He stressed the importance of bipartisanship and business regulations.
"We need regulations, but the regulations need to be smart regulations, not just more of them," Dold said.
Dold also lamented that some jobs bills are currently stuck in the Senate and said he shared a goal with President Barack Obama to double U.S. exports by 2014.
State vs. local financial burdens
Highland Park Mayor Nancy Rotering asked the first question at the event, focusing on the state's budget problems. She asked the panel not to put the state's debt on municipalities that have already made difficult cuts to operate more affordably.
"We've done the heavy lifting," Rotering said. "Please don't turn around and add your burdens to our burdens."
After the event, attendee and Highland Park Chamber of Commerce Executive Committee Vice President Gurv Anand said he planned to take Hamos up on her invitation to small business owners for feedback on health care reform. Anand said he was happy to get input from and ask questions of his legislators.
"I find it very productive to get the ideas across," Anand said.
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Daniel Krudop
7:06 am on Monday, February 13, 2012
During her decade-and-a-half as an incumbent politician in Springfield, Garrett has cast a number of controversial votes including (but not limited to): 2003: Voting for Gov. Rod Blagojevich's $10 billion borrowing plan (HB2660) 2005: Voting for the $2.3 Billion underfunding of the State's pension plans (SB27) 2007: Voting for 9.6% and 3.9% raises for members of the Illinois legislature (SB241 and HB3866) 2008: Voting for a 3.8% raise for members of the Illinois legislature (SB1102) 2008: Voting for Gov. Rod Blagojevich's $16 billion borrowing plan (SB788) 2010: Voting to increase Illinois legislative health care benefits by $11 million (HB3747).
Now that she's leaving she decides "someone" should do something. I say we amend our State Constitution to remove Article XIII — General Provisions, Section 5. Pension and Retirement Rights: Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.
The GM and Chrysler Bond holders had contractual rights that were supposedly protected by the US Constitution and look what good that did them.
Gary
10:58 am on Monday, February 13, 2012
"I say we amend our State Constitution to remove Article XIII"
- I second that motion.
All this talk about underfunded education is ridiculous. This is about financial survival for the State of Illinois.
There is a technical term for the structure of our Illinois Pension Plan. It's called a "positive feedback loop". Those are bad and will eventually destroy whatever system they are running on.
For example, when speakers start screeching during a speech... that's a positive feedback loop.
The speaker talks -> the amplifier makes it louder -> the microphone picks up the louder noise -> the amplifier makes that noise even louder -> continue until either the amplifier, the speakers, or our ear drums fail
The Illinois Pension Plan works the same way and will fail just as surely.
Politicians make pension promises to the unions -> the unions use that money to buy political influence -> more promises get made to the unions -> the unions get even more powerful -> This continues until the unions get so wealthy and powerful that no one dares challenge them -> outrageous promises get made to the pension plan which can not be honored by the people stuck paying the bill -> the financial system screeches right before it fails
Amend the Constitution, get government out of the pension business, and break the loop.
Daniel Krudop
7:15 am on Monday, February 13, 2012
"Garrett pointed out that local schools and universities 'don't contribute much' to teacher's pensions, suggesting that increasing those contributions could help ease the state's financial burden. 'We do think that schools and universities have to have a dog in this fight,' Garrett said."
Sure! Let's take the burden off the State and put it on the local school levies. That way our Real Estate taxes will go up to pay for pensions and benefits the State guarantees.
Deadcatbounce
9:16 pm on Tuesday, February 14, 2012
The school districts have been complicit in creating this pension mess with their end of career boost in teacher and administrator salaries of over 30%. Maybe if the district had to pay the pension, pension padding would stop.
RB
10:02 pm on Tuesday, February 14, 2012
This district pay padding has been going on for years. It has benefited the teachers and is costing the taxpayers. Perhaps current Union/management negotiations in 109 could address this issue. None of it for either Admin or Teachers in the future...that's a start.
Dold Cockroach
7:45 am on Monday, February 13, 2012
I guess Daniel believes in no taxes. He doesn't want nice things. He wants to be Greece. Why pay taxes? Let's have Illinois and the USA go to Hell.
Daniel Krudop
8:51 am on Monday, February 13, 2012
We moved to Deerfield from another Illinois community back in 1983. In part because the residents in the other community didn't see a need to improve the schools and refused to pass any new levies. It was initially difficult for us financially but we saw the benefit of a quality education for our children. We would be paying much more in taxes but our viewpoint was return on investment, not the nominal cost. Our last child graduated from Deerfield High School in 1993 and both of our children are doing very well, their education from Districts 109 and 113 being in part responsible for that. We are not ones who don't want to support those districts because we no longer have children there. As a matter of fact we have one grandchild at Wilmot with another starting next year. We don't mind the taxes we pay to support the schools here or the park district. As I said, it's a return on investment issue.
My pension and our SS payments are not taxed by the State of Illinois even though the amount is fairly high. I once suggested to Karen May that there should be a means test for exemptions from State Income Tax. I would prefer that they get spending under control first but it doesn't make sense that working individuals making less income per year should have to pay taxes and we don't. Unfortunately, I'm quite sure that the current legislators would use any new income from that to increase spending and not to reduce debt, including the unfunded pension liabilities.
Gary
11:04 am on Monday, February 13, 2012
Apparently you don't know that it is exactly the unfunded promises made by the Greek government that are bringing them down. Illinois is failing for the same reasons.
Want nice things? What are you talking about? When I want nice things, I go EARN THEM! I don't look to the government to take them from someone else and give them to me.
I want a government that makes sense and won't enslave my children with cheap promises made today that will lead to bone crushing taxes in the future. Illinois is definitely going to hell, but Dan isn't leading the way.
grandpa
9:57 am on Monday, February 13, 2012
Just as Mr. Krudop voted with is feet when he disagreed with the tax decisions of his neighbors, thousands of Illinois businesses and residents are voting with their feet and moving out of the state because of crushing taxes, overwhelming governmental debt and poor management. Comparing the use of taxes to an investment is like saying that early pregnancy termination is birth control... faulty premise equals faulty conclusion. I congratulate Mr. Krudop for being in a financial position where he is comfortable with paying higher taxes. Many of us are not that fortunate and it is time the politicians got their grubby hands out of our pockets.
Daniel Krudop
11:34 am on Monday, February 13, 2012
"Comparing the use of taxes to an investment is like saying that early pregnancy termination is birth control... faulty premise equals faulty conclusion."
If higher taxes lead to a higher level of education, a higher chance of success for my children and grandchildren, plus higher real estate values, I see that as a positive return on my tax dollars. The same with quality of life in a community based on the availability of leisure activities. Those things have to be paid for. They also add to the value of real estate in the community.
M. Kim Jr.
12:06 pm on Monday, February 13, 2012
Paying taxes improve levels of education and is an obligation and investment that helps add value to real estate. But paying taxes blindly without making sure that money is wisely spent is wasteful and does little to achieve this goal. To often the response heard here is the emotional one "it is for our children", but we should not lose sight that our aspirations for them can be accomplished without causing a burden on others by paying for a service without comparing price. A wise man said "Good people are generous without being wasteful; they are hard-working without being resentful; they desire without being greedy; they are at ease without being haughty; they are dignified without being fierce." Can we truly say it is fair to all involved that obtaining the best is done by simply writing blank checks?
Deadcatbounce
9:01 pm on Tuesday, February 14, 2012
Mr Krudop is there an amount of taxes you feel would be too high or an amount the school district spends per student you feel is too much? When someone says they like to pay high taxes because it's a positive return, I see it as an emotional response that lacks logic. Did you ever think that your kids did well because they were surrounded by high achieving students and adults. My son went to high school in this area and had plenty of awful teachers. Thanks to websites like Khan Academy he had no problem getting good grades and scoring high on standardized tests.
Hmmmm6
12:43 pm on Monday, February 13, 2012
Mr. Kim, that is a beautiful quote. Can you source it for us? Truly, words to live by.
Gary, run for State Office. Frankly, there is much more ability to do things in Springfield than locally, where you are essentially limited to supervising implementation and you are subject to state and federal mandates or even as a federal office holder, where you are one among very many. In Springfield, you can write laws and watch and expose cronyism. I agree that the State Constitution is a significant barrier but its worse, frankly. Any repeal will be challenged in state court, and the presiding judge is receiving a state pension. When you get it passed, don't forget to go directly to federal court and file for declaratory relief that it is constitutional.
M. Kim Jr.
1:56 pm on Monday, February 13, 2012
The quote was from Confucius (552-479 B.C.)
grandpa
2:29 pm on Monday, February 13, 2012
Regarding investments, a good investment leads to production and increased wealth. A bad investment leads to consumption and a loss of wealth. Governments, no matter what level, produce nothing but confiscatory taxation which results in reduction of wealth and consumption of individual resources. Mr. Krudop may be convinced that government is better positioned and more knowledgeable regarding how MY money should be spent... I disagree. As I said before, it is time the politicians kept their grubby hands out of my pocket.
Gary
2:45 pm on Monday, February 13, 2012
Hear that folks? Listen to your elders.
Daniel Krudop
2:48 pm on Monday, February 13, 2012
My daughter has a Masters Degree in Physical Therapy from Marquette University and my Son has a Masters in Employee and Labor Relations from the U of I.
Unfortunately, I was not in a position the home-school either of them to those levels. Neither was I in a position to hire tutors to provide them with their educations. I had to depend on the Public School systems in Deerfield to provide their base educations. I believe those schools did very well by them.
If "grandpa" reflects that you have children and grandchildren, I congratulate you on being or having been in a position that you didn't need Public education for you or the rest of your family. I guess we should apologize that you home schooled or hired tutors for your children's education and still had to pay real estate taxes or payroll taxes for others' educations.
Hmmmm6
3:00 pm on Monday, February 13, 2012
Actually Grandpa, it depends. National Security requires joint effort, a successful national defense requires collective action. I don't advise that you directly take on the Taliban, and a more successful intelligence apparatus may have prevented 9/11, who knows. The interstate highway system was a significant investment, and it required government action. So too, have certain recent investments in Detroit, and even on Wall Street, looked to have panned out though it may still be too early to tell, and the bankruptcy laws helped for GM (which will not be available on the repeal of the state constitution, though we may have to head there, but apparently, Rhode Island has had some recent success in reforming state pensions).. All or nothing statements aren't particularly insightful or helpful, but clearly, government is not the only answer, and frequently, not the best answer. Yet, I think its not helpful to view all taxes as confiscatory. Its always a question of the sweet spot--what is the right amount of government. Government should be the mechanism for us to do what we can't do for ourselves. And Grandpa, the part of government costing the most and rising most rapidly is Medicare, and I do believe we should get rid of major parts of that, particularly the drug benefits and benefits for those who have the means to pay.
grandpa
3:23 pm on Monday, February 13, 2012
In his State of the Union speech, President Obama said; "“I believe what Republican Abraham Lincoln believed: That government should do for people only what they cannot do better by themselves, and no more.” Whether you believe Mr. Obama's desire for smaller government is a subject for another discussion.
When you ask people if they want government to be smaller, they usually say yes. But what people say they want and what they really want is often very different, and this dishonesty within ourselves is where the debate gets hung up.
The argument regarding taking on the Taliban "one-on-one" is called reductio ad absurdum. No individual citizen is going to provide individual national defense, (besides, that is one of the enumerated powers of the Federal Government in the Constitution). What is also absurd, although not discussed nearly enough, are the numerous powers ceded to government by the citizenry by default. The fact is, the Constitution addresses this but is often ignored. The 10th amendment clearly states; "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." We have become so used to the Feds, or the State or the town doing everything short of wiping our noses, that we have become soft, lazy and dependent... and in our dependence, we have become servants to our government rather than the masters of it.
Deadcatbounce
8:27 pm on Tuesday, February 14, 2012
The crisis of government in America is that it does too many things badly instead of doing a few things well.
Hmmmm6
4:44 pm on Monday, February 13, 2012
We have become ungovernable because we are all looking at what is in it for ourselves, instead of what is best for the country and for our children. We need to understand, however, that taxes are the cost of civilization, and are not confiscatory if they are necessary. (So taxes for enumerated powers aren't confiscatory? Shouldn't use inflammatory language for arguments so readily conceded,) Taxes are the price of citizenship in the best country in the world.. Yesterday, the New York Times published a survey that said that most people would prefer the government to cut services, even if they are recipients of those services. I think we should take people at their word,and we need to start making some big cuts. But some government spending is investment, and we need to be making more of those expenditures. We spend too much across the board, in entitlements but through deductions as well, subsidizing home mortgages and other deductions utilized by interests that pay lobbyists. Simpson-Bowles should have been an opportunity to lower rates across the board and get to work on these issues, but it has not.
We should go after some big ones, where progress can be made: Medicare and corporate deductions. Medicare is not investment in the future; too much is being spent on seniors, through pensions and entitlements like Medicare and Social Security. Whether its state pensions or ordinary senior citizens, we are spending too much on that demographic. Chop, chop.
grandpa
9:34 am on Tuesday, February 14, 2012
You may be surprised to learn I agree with you about entitlement programs, including Medicare. Where we part company is in calling taxation "investment". Jean Baptiste Colbert is quoted as saying; "The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the least possible amount of hissing." Either way, the goose, (we the taxpayers), get plucked. There is a necessity for people to be allowed to enjoy the fruits of their labors and dispose of their surplus in a manner they see fit. Governmental "charity" is no charity at all but instead the confiscation of wealth from those who have it to redistribute it to those that the government, (not the wealth producer), finds worthy. In doing this, government taxation IS confiscatory on one hand while creating a dependent "slave class" on the other.
josearnoldz
3:46 am on Tuesday, February 14, 2012
Unemployment in construction is 21.2%, I wish these guys would tell the truth. We all need to education ourself in this tough market only way is a degree or change your career.. search online for High Speed Universities for career advice
Hmmmm6
11:53 am on Tuesday, February 14, 2012
Grandpa, I love the Colbert quote. Wonderful to use a French quote on Valentine's Day; how gallant.
No one likes taxes, but would you fly on a plane without the FAA and air traffic controllers? You focus only on redistribution, and government does much more. Surprisingly, its redistribution efforts are a much smaller portion of government spending than most people who toss around the word "confiscate" ever choose to admit. My observation on the North Shore is that many who toss around the word confiscate benefit from the fruits of their successful parents' labors or at the very least, their parents' very ordered lives. Again, it is the sweet spot. How do we create fair taxation systems that promote fruitful labor? In some ways, the military is a wonderful mechanism for redistribution. Under our all volunteer system, the overwhelming majority of recruits come from the working class and all sorts of great skills are conferred and confers generous pensions, where this all started. Redistribution or vital government service? Black and white world views are not helpful in very grey worlds. I prefer the world view of the Bible story in which the owner of the vineyard pays the same to all the workers, no matter when they arrived. I believe my portion is fair. What others' receive shall not diminish my enjoyment of my fair portion or my obligation to support my country..
Gary
11:27 am on Wednesday, February 15, 2012
"Surprisingly, its redistribution efforts are a much smaller portion of government spending than most people who toss around the word "confiscate" ever choose to admit. "
2011 Federal Spending
19.6% Social Security
16.1% Unemployment/Welfare
12.8% Medicare
8.2% Medicaid
Total 56.7% , not counting the hundreds of other smaller social programs, and give-aways that masquerade as "green energy" programs, etc.
18.7% Dept of Defense
We spend more than 3 times as much on redistributionist schemes than we spend on national defense.
How much redistribution and confiscation are you willing to admit to?