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Failing Our Children By Starving Our Schools; Senate Passes Pension Reform: Success or Failure?

Today's news post - School teacher layoffs and closings, the Illinois Senate passes small pension reforms, and more.

SQUEEZING OUR SCHOOLS, RISKING OUR FUTURE

Today in our Daily Tip-Off section, you'll find a link to a Daily Herald story on the suburban Grayslake elementary school district's decision to lay off 15 teachers in the coming school year. Yesterday we had news from the Metro East that the Collinsville and Belleville school districts were sending pink slips to teachers. Springfield plans to shut down a college preparatory academy program. Chicago, of course, is making national headlines as it plans to close a reported 50 elementary schools next year. And we also featured an article yesterday about the ratings agency Moody's downgrading the credit ratings of four public universities in Illinois because of their reliance on very unreliable state funding.

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In every part of Illinois and at all education levels, the story is the same: The state's horrific financial condition, driven by a failing pension system that consumes ever-greater chunks of the state budget (an additional $1 billion in fiscal 2014), is eroding the quality of schools in Illinois. Education funding has fallen for five straight years, and another $300 million is likely to come off in the next state budget. What does that say about this state? We give our opinion in today's editorial. Read it here and let us know what you think. (In case you missed it, we offered former Gov. Jim Thompson's opinion on this -- "Crazy. Just crazy" -- in a transcript of a speech he delivered last week. It's posted here and well worth reading.)

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FOLLOW THE JOBS

Illinois didn't lose population in the last decade, but its 3.3 percent growth was dwarfed by its neighbors. Missouri, for example, gained 7 percent. Illinois Chamber of Commerce CEO Doug Whitley says the reason comes down to one word: jobs. While our neighbors invest in their schools, have predictable income tax structures and pay their bills on time, Illinois has done the opposite. Whitley elaborates in his op-ed piece today. (For a snapshot of how our neighbors are taking advantage, take a look at our infographic.)

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AVOIDING ANOTHER DIXON

Former Dixon Comptroller Rita Crundwell will go down in history as Illinois' Queen of Corruption (apologies to Betty Loren Maltese of Cicero). Stealing more than $50 million over 20 years from a town with an annual budget of only $8 million is quite a feat. How did she manage it? Lack of transparency, says State Rep. Ron Sandack, R-Downers Grove. He writes today about a package of bills that comprise the Taxpayer Accountability Transparency Act, which would give taxpayers a better way to see where their tax dollars go. Read it here.

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DEMAND ACTION

On Wednesday the Illinois Senate passed a pension bill that we believe risks putting Illinois in even greater financial peril should it become law. Click here and help us send a message to our leaders that we demand pension reform and an end to the financial instability that has given Illinois the lowest credit rating in the country.

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REBOOTING BATAVIA

Want to learn more about Reboot Illinois and its mission? Come hear from editor Matt Dietrich, Chief Operating Officer Madeleine Doubek and Director of Digital Strategy Anthony Knierem at 7 p.m. April 4 in Meeting Room A of the Batavia Public Library, 10 S. Batavia Ave. (Route 31 and Wilson Street) in Batavia. We want to hear your thoughts on improving Illinois' government, state finances, schools and business climate.

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DAILY TIP-OFF

The Chicago Tribune and Chicago Sun-Times editorial pages don't often agree with one another, but both are sounding the same message today. They believe the Illinois Senate did the wrong thing yesterday by passing a two-in-one pension reform bill that potentially could net the state very little savings over a much stronger bill that promises to trim $167 billion from pension costs over the next 30 years. The Tribune, whose editorial dudgeon knows no setting below "super high," is especially emphatic: "They failed you," says its headline.

Actually, we agree with both those papers. The Senate chose an option that, should it become law, could allow public employees to continue collecting the 3 percent compounded annual raises for life that have turned our public pension system into a budget-devouring, credit-wrecking, $100 billion nightmare. Whoa. Our dudgeon meter is nearing "high."

As mentioned above, the biggest news in Chicago is word that Chicago Public Schools likely will soon announce that about 50 elementary schools (the Sun-Times says possibly more) will close next year as it struggles with a budget deficit of $1 billion. The schools are in poor, African-American neighborhoods, and tempers are flaring.

We still don't know if Attorney General Lisa Madigan will run for governor, but U.S. Sen. Dick Durbin, who will seek a fourth Senate term in 2014, says he thinks Madigan will decide soon on a possible challenge to Gov. Pat Quinn for the Democratic nomination. But if Madigan does run, Durbin believes former White House Chief of Staff and Commerce Secretary Bill Daley will not. (Keep in mind that the last time the Democrats challenged a Democratic incumbent -- Dan Walker in 1976 -- they lost the governor's office for 26 years.)

Find links to these and other Illinois news stories in our Daily Tip-Off section.

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WANT TO TAKE ACTION? LOOK HERE

As Illinois continues to meander in addressing its dire financial problems, U.S. Sen. Mark Kirk is concerned that his home state and others might eventually give up and turn to the federal government for a lifeline. No way, says Kirk. He's introduced a resolution to prohibit bailouts of states that created their own financial problems. We've created a petition where you can show your support for Kirk's effort. Click here and sign on.

While you're at it, why not let Cook County government know that it's time to downsize and remove some of the temptation that comes with unnecessary elected offices? Last week, Andy Shaw of the Better Government Association wrote about some fairly crazy personnel dealings in the office of Cook County Recorder of Deeds Karen Yarbrough. It was a reminder to him, and us, of the need to combine offices to improve efficiency and discourage the bad behavior that comes with the political clout of an elected office. (Be sure to read it if you missed it last week. It's an egregious example of "only in Illinois" political culture.) Sign our petition here.

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WE'RE HIRING! We are looking for a director of outreach to work with our partners both on social media platforms and in the communities. See the job description here. Know anyone who would be a great fit? Pass on this post!

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We're tired of Illinois government being a national laughingstock. Aren't you? Visit our website and make a difference.

What are we all about? Find out in our video!

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Rudi P March 23, 2013 at 06:26 pm
Let's keep all the democrats please. We have a good track record and need to build on that going forward.
Walt Hines March 23, 2013 at 07:17 pm
Both Democrats and Republicans are getting state pensions, Yes? We did have a Republican Governor for how many years? This problem didn't happen over night and we can thank both sides as far as I'm concerned. The entire state is a bunch of crooks who spend everyone else's dime.
Oswego School District will be a $500,000,000.00 or a half a BILLION dollars in the hole in 3 1/2 years and they're going to put WiFi in 4 of the school buses (pilot program). We're looking at major cuts to ever single program in the district along with having to ask taxpayers for more money to open 2 new H.S. additions. 1100 sqft home ( older home, 65yrs) and I'm paying $6300.00 in taxes now. We're looking at the real possibility that the state will come in because we're broke. It's not so much the teachers as it's the spending for all the wants we can't afford. It's a sick joke and so many are going to loose their homes. It's time we have a flat tax across the board and no more throwing your money in the Cayman Islands while I'm holding the bag. Enough Already!!!
Elle M March 23, 2013 at 07:24 pm
TBone has it right
The system is broken elle
Ann Kerbs March 23, 2013 at 07:36 pm
I don't understand why pension reform doesn't start with a cap on the total pension $/year that 1 person can receive? This should include all people currently receiving Illinois state pensions. All those reports about people triple dipping into the pension funds. Just put a cap on the total $/year anyone can get from the state pension funds, say $80,000 or some other number. If someone says they can't live on a pension of $80,000, I feel no pity for them. IMHO, this is the most logical place to start.
Rudi P March 23, 2013 at 07:59 pm
@ Ann
The democrats have a far better track record so go with them this election.
Tbone March 23, 2013 at 09:01 pm
Read on the Tribune front page an Editorial regarding Chicago Schools, post some staggering numbers....THE SYSTEM IS A FAILURE...if it were me, I would do everything in my power to get my kid in a Charter School.
Beytier Von Hugh March 23, 2013 at 09:16 pm
Walt, I agree with your issues. But a flat tax isn't gonna help you. It actually hit those at the lower end of the economic ladder harder than those at the top. Even groups promoting a flat tax have acknowledged this.
Sully March 23, 2013 at 09:32 pm
I would encourage him to learn more about Greece.
Walt Hines March 23, 2013 at 09:56 pm
Beytier Von Hugh, whether a flat tax helps or hurts me is not the issue I guess I'm trying to make. We can all shop at the stores and we're paying the same amount in taxes so they should be the same at the federal level. I'm not a wealthy man so I'd probably feel it more than someone who make 10x's what I do but at least we'd all be on the same playing field.
What makes me ill is all these "Americans" who do nothing but support the Cayman Islands and anywhere else they're hiding their money to avoid paying taxes. There will be a civil war on our soil, it's coming!
Ellie March 23, 2013 at 10:02 pm
Government-run entities that work? Hmm, well there's the postal service, Medicare. Medicaid, Social Security, the TSA, the FDA, the FAA, the FCC, the NSF, the Secret Service (with a few sexy exceptions), various military branches (although that's debatable), the Mint, Amtrak (in the northeast, anyway), Endangered Species program, national & local libraries, National Weather Service, many, many local fire & police departments, many school districts & state universities, national parks & forests, Geological Survey, Peace Corps, Smithsonian . . . and a whole bunch more that are pretty rockin'.
But, sure, Tbone, keep repeating your tired, meaningless catchphrases. You keep thinking that your life is comfortable despite the government, not because of it.
Ellie March 23, 2013 at 10:02 pm
How, exactly, has Obamacare accumulated debt?
my opinion March 23, 2013 at 10:03 pm
Really???
What are you smoking? Micheal "the weasel" Madigan and the democrats have been running this state for years. The Governor doesn't do squat. The hse and senate do everything, Madigan and his goons have been running both for decades. They are so beholden to the teachers and City/state workers unions that they really can't come up with the type of solution Ann describes.
Ellie March 23, 2013 at 10:08 pm
Tbone, I hate to break it to you, but charter schools are public schools. (And you know what you say about gov't entities not working.)
McCloud March 23, 2013 at 11:13 pm
So you think Obamacare will not add to the deficit? Good grief, read how the bill was passed, and now reality is just starting.
Gene Kalley March 23, 2013 at 11:25 pm
To: my opinion,
You are correct and anyone who is even causally objective will agree. The politicians give the schools over to unions in order to get the union support. This has amounted to throwing children under the bus in order to get elected. Far too many children have dropped out of school or learned little in school and then had wasted lives. And then the politicians say that money is the problem and that we need to raise taxes. I have seen this for 50 years and it never changes. One thing that could help is vouchers where parents instead of unions would look out for the children.
BKM March 24, 2013 at 12:10 am
The original intention of unions is looooooong gone.
It was all about safe work places, honest wages, protecting the worker. Now it protects slackers from being accountable for their production. Yeh, T R Y to fire a union member. Work ethic, a thing of the past.
Sarah P March 24, 2013 at 12:59 am
I agree a 100% with the flat tax. Look up dr Ben Carson's national prayer breakfast speech, he explains it perfectly. Basically, the bible gives us the perfect example of tax, it's called tithe of 10%... So a person who makes 10 billion will put 1 billion in the pot and the person who makes $10 will put in a $1. Fair and balanced. Even Obama can't say the guy putting a billion dollars in isn't paying his "fair share"
Vortex March 24, 2013 at 04:13 pm
Wow, really? Ellie, you made this way too easy:
- US Postal Service? Possibly in worse financial condition than Illinois state government. Wasted millions sponsoring a drug abusing cycling team. - Medicare? Full of fraud, scheduled to go broke in 20 years. Just got its budget cut by hundreds of billions to partially fund Obamacare. - Medicaid? That's now mostly an unfunded mandate that the states pay for. - Social Security? Nearly broke. Turned into a long-term welfare program by bogus "disability" claims by people who ran out of unemployment, and went from a safety net to an entitlement. - FDA? Salmonella outbreaks, ridiculous regulations and subsidies that artificially depress prices to put small family farms out of business to support mega farm agribusiness. - FCC? A hyper-political agency that picks winners and losers in TV and internet service. I'll save everyone the litany of other rebuttals (nice cheap shot at the military, by the way, your true stripes are showing). But you've clearly been brainwashed if you think these are all examples of how things ought to be.
DHD March 26, 2013 at 05:33 pm
Illinois has a flat tax Walt.
Karen March 26, 2013 at 05:57 pm
Illinois currently holds a flat income tax rate of 5%. The federal government does not have a flat tax. So no, if a person paying billion dollars isn't the same tax rate as that person paying $1, they are not paying their fair share.
Vortex March 26, 2013 at 06:01 pm
I agree, the 47% of Americans who pay no taxes whatsoever (the "poor") need to pay their fair share. The rich people are certain paying the freight for everyone..
(Oh, and Illinois's 5% isn't really a flat tax, because it allows for many of the same deductions as the federal income tax, and of course special tax credit carve-outs from time to time for pet projects like energy efficient furnaces, windows, and other social agendas.)
Karen March 26, 2013 at 06:07 pm
I'm sorry, you think 47% of Americans do not pay income tax at all?
Arthur Huff March 26, 2013 at 06:13 pm
Vortex, I'm with you in principle but you have to state your point more accurately. 47% pay no federal income tax. But they do pay other taxes like state income tax, sales tax, and other things like that.
Karen, in your response to Sarah P's example you said those two people aren't paying the same "rate." Can you explain please? As far as I can tell her example is a very simple one of two people paying the same rate of 10%.
Vortex March 26, 2013 at 06:16 pm
Yes Karen, that's the 47 percent that Romney was talking about during the election, remember? They're using itemized deductions and dependency exemptions to zero out their tax form -- and in many cases, getting a big refund because of the Earned Income Credit. That's right, many are getting a tax refund that's more $ than was withheld throughout the year.
The top 1% of earners in the country pay 37% of the total tab (the corresponding AGI for that 1% begins at $343,000 a year -- not just billionaires). The top 50% of earners (that's half, no one could lump half of the people into "rich") pay 97.7% of the taxes.
Karen March 26, 2013 at 06:21 pm
They also pay payroll taxes. Also, the reason it was at 47% on 2011 was in part to recession and slow recovery. Many low-income workers don’t pay federal income taxes thanks, in part, to a series of tax cuts endorsed by Republicans over the years.
In response to Sarah, I read it as Obama would say he wasn't paying his fair share.
Vortex March 26, 2013 at 06:22 pm
Sure Arthur, they pay the same medicare and FICA (social security) taxes -- those are actually regressive taxes.
Of course factoring in the 45% of Americans who receive public assistance in the form of a check from government (which does include Social Security and Medicare for elderly) there's still way too many takers and not enough contributors. Latest figures indicate that Medicare recipients are receiving 3x more in benefits than they paid into the system -- a recipe for collapse.
Arthur Huff March 26, 2013 at 06:31 pm
I'm with you on all that. It's just that saying they pay "no taxes whatsoever" kinda leaves you open to people who will seize on that.
Reboot Illinois March 26, 2013 at 06:38 pm
If you are curious about whether Illinois should/can/will/won't switch from its current flat tax system (which is required in the state constitution) to a graduated system in which tax rates go up with income levels, Reboot Illinois published two thorough pieces in December from both sides. For the pro-flat tax side: http://rebootillinois.com/?opinion=173
For the pro-graduated tax side: http://rebootillinois.com/?opinion=73
Reboot Illinois March 26, 2013 at 06:41 pm
Also, this explains what needs to happen before Illinois could change from its flat income tax to a graduated tax.
http://rebootillinois.com/?opinion=2186
Gary March 26, 2013 at 06:52 pm
What's really failing our children is that we have set up the growing unfunded union pension plans, Social Security, and Medicare as Ponzi schemes where we make promises to ourselves so we can retire comfortably while we force our children to pay for it.
We enslave our own children and call it compassion. It's disgusting.

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