Illinois Taxpayers Deserve Respect
In an attempt to end Illinois’ longest-ever budget stalemate, Republican State Senators Kyle McCarter (R-Lebanon) and Dan McConchie (R-Hawthorn Woods) unveiled a multi-point "Taxpayer Bargain" plan for a balanced state budget Tuesday, April 4.
The Fiscal Year 2018 plan includes a mix of traditional money management principles and new ideas. The balance budget prioritizes spending and requires the state to live within its means. It requires leadership and fiscal responsibility.
Sign the pledge for a no Tax-hike budget
Balanced Budget –
• Prioritizes spending –
• Recognizing limited resources – acknowledging challenging cuts
• There are cuts and savings through government reorganization
• Protects elementary and secondary education – maintains 100% of General State Aid and mandated categoricals
• Protects Medicaid spending for the most vulnerable
• Maintains public pensions payments obligations
• 10% across-the-board at state agencies and departments - Exempts primary and secondary education, Medicaid for the most vulnerable and pension payments
• Simply asking for a dime of savings for every dollar spent
• Asking each university to reduce spending by 5%
• Reduce discount rate to retailers for Sales Tax collection – (from 1.75% to 1%)
Requires Fiscal Responsibility
• No tax increase
• No new taxes
• Executive Branch must manage/Contains some of the Governor’s own ideas and Republican Leader Sen. Christine Radogno’s Senate Bill 2063 – “Unbalanced Budget Response Act”
• Governor must negotiate changes to state employee group health care and AFSCME contract wages
• Imposes real spending cap, which is tied to legislative salaries. If the General Assembly violates the spending cap they lose their pay for that fiscal year.
• Borrows $7 billion to pay off past due bills. Could realize savings of $500 million in late charges.
• Borrowing must include a spending cap set at the fiscal year revenue level projected by the Illinois Commission on Government Forecasting and Accountability. Any revenue increase over this amount will be distributed as follows: 25% to education 25% for roads & bridges, 10% towards pension debt and 40% to payoff the backlog of unpaid bills.
• Ends public pensions for all new legislators going forward.
• Keeps promises to current retirees and employees, and protect taxpayers going forward.
• Moves new state employees to a modern, 401k style pension plan.
• Public pension cost shift to schools, universities and local governments in exchange for financial relief from unfunded state mandates.
• K-12 Pension Cost Shift – 5 year phase-in ($200 million/year - $1 billion after 5 years)
• Refinancing current pension bonds – interest savings of $800 million goes to paying off old bills.
• Prosecution of Vendor Fraud/3rd party vendor verification
• Drug Screening
• Discontinue taxpayer support for those with a criminal warrant
• LINK Card photo
• Upgrade Medicaid Redetermination Project – Check recipient status every 3 months instead of currently 6 months
• Managed Care Changes
• Reduce the Local Government Distributive Fund (money to local governments) by about 4% of their total budget in exchange for financial relief from unfunded state mandates, government consolidation and constitutional amendment to allow “home rule” for smaller communities
• Making sense of rules for purchasing goods and services – changing procurement
• Overtime rule changes - Increased hiring in Corrections to reduce overtime costs
• Reorganizing state government agencies – Historic Preservation into Natural Resources
Attracting Job Creators to Illinois
• Workers’ Compensation Reforms – As currently being negotiated
• New funding formula for schools
• Permanent Property Tax Freeze on Education only and shift education funding from the property tax to state government.
• Sunshine provision requiring copy of property tax bill to mortgagee
• Local government mandate relief
Call to ACTION
Let your Legislator know you want Illinois Government to live within its means just like you and your family!