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Old 01-20-2012, 08:45 AM
 
29,409 posts, read 21,650,285 times
Reputation: 5450

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I guess when everybody leaves the state to avoid those higher taxes things like this happen.

"Illinois State Comptroller Judy Baar Topinka says when one factors in other bills, the figure is closer to around $8.5 billion. Those other outstanding bills include tax refunds, employee health insurance, and bills that have not yet reached her desk.
Topinka says this is extremely disappointing, since a year ago, the state sharply increased income taxes (by 67 percent) and corporate taxes."


Topinka: Illinois’ Unpaid Bill Crisis Just Keeps Getting Worse « CBS Chicago


Of course maybe this has something to do with it too.............


Apparently there is no tax money for the barren shelves at food pantries or the lack of beds at homeless shelters or to support the handicapped. But there IS enough tax money to pay for:
  • A Phys. Ed teacher $203,154 for a 9 month work year.
  • 14,866 teachers made more than $100,000 in 2011.
  • 21 who made more over $1,000/day ($170,000/yr.)
  • A Drivers Ed teacher who salary is $18,222/month to teach teenagers how to parallel park.
  • 13 teachers make more than the Governor’s $177,500.
  • Top 100 Teachers average $18,169 per month salary ($163,579/yr).
And all of that is for a 36-week work-year (182 day contracts).


Champion News | Top 100 Teacher Salaries for 2011: Phys. Ed Teacher Heads List with $203,154.
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Old 01-20-2012, 08:58 AM
 
Location: NC
6,032 posts, read 9,051,497 times
Reputation: 6377
This is unpaid bills... they owe tons of $$ in commitments that they put off to play budget games.

Lawmakers in Illinois think raising taxes is the answer and will likely run off more business.

Some commentary....

Last week, an e-mail went out to all employees in the Illinois Department of Public Health to let them know that their corporate cards will no longer work after April 22nd because Bank of America is not renewing the contract and the State cannot find a replacement.
Like most major companies, the State issues corporate cards to employees to charge travel expenses and other charges related to their work. In the case of the State, this has to be done via your typical procurement processes. The below e-mail shows that Bank of America is fed up with the State and they have yet to find a willing sucker bidder willing to deal with the State’s payment cycle.


Here is a copy of the e-mail (emphasis mine):
Folks:
Not to send panic, but just a heads up to each of you as to what’s happening.
Bank of America is cancelling the contract with the State of Illinois effective April 22, 2011. They will not do another contract extension for the State of Illinos. So what does that mean? On April 23, 2011 at 12:01 a.m., the cards currently held by IDPH employees will no longer be valid. The State has been trying to finda new vendor, encourage BoA to give us a few more months, but as of this writing has been unsuccessful on all fronts. So what does this mean to our travelers? Most establishments will not direct bill especially conferences, (prior approval needed by travel office for this process) so persons required to travel will have to put charges on their personal charge cards or set aside personal funds on prepaid travel card, or pay cash out of pocket. For those who are non-GRF [General Revenue Fund] this should be not big deal, but to those traveling on GRF, this could have an impact.
One additional details are received. I will share that information with you so that you can share with our travelers.
Unti then . . . this is just a heads up!!!!
The state has for several years run budget deficits. As Illinois can’t print money and they’ve run out of cash, they have resorted to simply paying bills later and later. Some vendors have stopped doing business with the state, some vendors simply will not do business with the state or seek state business.
Bank of America is likely tired of having a customer owe millions and insist on paying on a Net-270 (on a good month). The fact that they can’t find other bidders shows that everyone knows the score here.

Now, if you were a state employee, would you be willing to use your personal credit cards or cash for state business? Not if you didn’t want a one-way ticket to bad credit town.
What isn’t clear is whether this effects just the Department of Public Health or the State as a whole (calls to government spokespersons have yet to be returned with answers to those questions since last week).
All of this despite a 67% income tax increase has still left the State of Illinois unable to pay its bills on time and a Governor who insists cutting spending is just plain wrong.
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Old 01-20-2012, 09:22 AM
 
Location: OH->FL->NJ
16,921 posts, read 12,255,583 times
Reputation: 8853
And Texas has huge budget problems and NO state income tax. Oh wait Im sorry Im wrong. A state will only do well if they have low taxes on wealthy people so there must be no problems in TX.

IL has problems on a huge number of fronts just like CA.
OP does get some of it right. State/ local employees of ALL levels gaming OT, pensions, etc.

Going to be fun to see how many employees are willing to be reimbursed net 270. My contract employer was a dirtbag but one thing he never did was mess with MY money. "hey I need you to go buy 2 new comps for the company." (in addition to all expenses for that weeks travel my expenses for that week were like $6K) He paid me the following Fri no questions asked. I provided receipts even for stuff under a dollar and balanced it to the penny.

It amazes me how 1 side only believes that the wealthy should pay almost nothing and we should cut all safety nets regardless of abuse level. I even see talk of raising taxes on the poor to working class. This is usually disguised as "broadening the tax base". The other side wants even standards of living even for the couch potato class no matter how high they have to raise taxes.

Here is a thought.
Do both.

Since they did the tax part now its time for the cut part and cuts mean cuts; not cuts in increases. Force state employees into 401Ks like the rest of the crummy world. If employees dont have to pay at least 15% and preferably 20% of health insurance its time. No more no coinsurance no deductible policies from the governor to his janitor...
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Old 01-20-2012, 09:29 AM
 
3,498 posts, read 2,175,659 times
Reputation: 646
Not bad considering their debt was 130 billion 2 years ago. You don't decrease debt by cutting taxes.

Mish's Global Economic Trend Analysis: Illinois Pension Fund $61 Billion Underwater; State Borrows Money For 2010 Contribution; California $20 Billion in the Hole Again
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Old 01-20-2012, 09:45 AM
 
Location: Chandler, AZ
5,801 posts, read 6,437,206 times
Reputation: 3150
Chicago has also lost at least three major conventions over the past 18-24 months thanks to union intransigence, on top of handing out subsidies left and right to keep businesses (do I really have to mention Sears) from leaving for another states with a much friendlier business climate.
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Old 01-20-2012, 09:47 AM
 
Location: Sango, TN
24,869 posts, read 24,003,941 times
Reputation: 8671
You know what the sad part is? Most of the states problems come from entitlements and healthcare for the poor, conservative, southern part of the state.
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Old 01-20-2012, 09:56 AM
 
3,498 posts, read 2,175,659 times
Reputation: 646
Quote:
Originally Posted by Memphis1979 View Post
You know what the sad part is? Most of the states problems come from entitlements and healthcare for the poor, conservative, southern part of the state.
With the exception of Chicago and a few suburbs, IL is pretty much a red state
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Old 01-20-2012, 09:57 AM
 
29,409 posts, read 21,650,285 times
Reputation: 5450
Quote:
Originally Posted by ottomobeale View Post
And Texas has huge budget problems and NO state income tax. Oh wait Im sorry Im wrong. A state will only do well if they have low taxes on wealthy people so there must be no problems in TX.

IL has problems on a huge number of fronts just like CA.
OP does get some of it right. State/ local employees of ALL levels gaming OT, pensions, etc.

Going to be fun to see how many employees are willing to be reimbursed net 270. My contract employer was a dirtbag but one thing he never did was mess with MY money. "hey I need you to go buy 2 new comps for the company." (in addition to all expenses for that weeks travel my expenses for that week were like $6K) He paid me the following Fri no questions asked. I provided receipts even for stuff under a dollar and balanced it to the penny.

It amazes me how 1 side only believes that the wealthy should pay almost nothing and we should cut all safety nets regardless of abuse level. I even see talk of raising taxes on the poor to working class. This is usually disguised as "broadening the tax base". The other side wants even standards of living even for the couch potato class no matter how high they have to raise taxes.

Here is a thought.
Do both.

Since they did the tax part now its time for the cut part and cuts mean cuts; not cuts in increases. Force state employees into 401Ks like the rest of the crummy world. If employees dont have to pay at least 15% and preferably 20% of health insurance its time. No more no coinsurance no deductible policies from the governor to his janitor...
Who says that wealthy should pay nothing? I've not heard that come from anyone. Perhaps you have some examples. As for cuts all I can do is laugh. I've said many times you can raise taxes all you want on EVERYBODY but unless cuts are made they will just continue to spend the new tax dollars as fast as the old.
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Old 01-20-2012, 10:01 AM
 
Location: texas
3,129 posts, read 3,700,935 times
Reputation: 1810
Quote:
Originally Posted by ottomobeale View Post
And Texas has huge budget problems and NO state income tax. Oh wait Im sorry Im wrong. A state will only do well if they have low taxes on wealthy people so there must be no problems in TX.

IL has problems on a huge number of fronts just like CA.
OP does get some of it right. State/ local employees of ALL levels gaming OT, pensions, etc.

Going to be fun to see how many employees are willing to be reimbursed net 270. My contract employer was a dirtbag but one thing he never did was mess with MY money. "hey I need you to go buy 2 new comps for the company." (in addition to all expenses for that weeks travel my expenses for that week were like $6K) He paid me the following Fri no questions asked. I provided receipts even for stuff under a dollar and balanced it to the penny.

It amazes me how 1 side only believes that the wealthy should pay almost nothing and we should cut all safety nets regardless of abuse level. I even see talk of raising taxes on the poor to working class. This is usually disguised as "broadening the tax base". The other side wants even standards of living even for the couch potato class no matter how high they have to raise taxes.

Here is a thought.
Do both.

Since they did the tax part now its time for the cut part and cuts mean cuts; not cuts in increases. Force state employees into 401Ks like the rest of the crummy world. If employees dont have to pay at least 15% and preferably 20% of health insurance its time. No more no coinsurance no deductible policies from the governor to his janitor...


Please tell me how my state (Texas) is even in this discussion Fix your own problems before you start listing other states' issues, which in fact do not even compare.....
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Old 01-20-2012, 10:04 AM
 
75,412 posts, read 57,684,122 times
Reputation: 47219
Quote:
Originally Posted by Memphis1979 View Post
You know what the sad part is? Most of the states problems come from entitlements and healthcare for the poor, conservative, southern part of the state.
Source?

Couldn't possibly be all the graft, corruption and cronyism in Chicago eh?

Ghost jobs, trucks for hire, public employees used to fundraise?
Swimming pools filled by the fire department, free sidewalks for the connected while their neighbors get bills for 3k, Ohare director getting cement patio made by city work crews......seriously, that's just off the top of my head.....
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