Monday, April 28, 2014

I Have A Cunning 5 Year Plan...


So it appears Governor Quinn has a cunning plan...
Gov. Pat Quinn is offering a possible new solution to Chicago’s pension crisis suggesting the state could do more to share revenue with local municipalities.


Following a City Club of Chicago luncheon today, Quinn told reporters that a discussion needs to happen over giving local municipalities a larger percentage share of the state’s revenue. That means that the percentage of state money Chicago or other municipalities receive from the state would increase. Quinn said the plan would work through his budget proposal, which called for an extension of a income tax hike as well as a $500 property tax rebate.

“I believe in that. I think that’s a good way to help local units of government and the school districts to some extent reduce their reliance on property taxes,” Quinn said. “That has to be one of our foremost missions in Illinois. The property tax collects more money every year than the income tax and sales tax combined. I want to reduce our property taxes.”

Much like those old, this is your brain, this is your brain on drugs PSAs years ago this is kind of simple....

The State Of Illinois and various local government entities (school districts, municipalities, townships, fire protection districts, mosquito abatement districts, etc) take in some amount of money every year via taxes and fees.  Lets call that amount Government Income.

These same government entities spend a given amount providing services every year, lets call that Government Spending.

Within each of these two, there are subsets that are the revenue or expenditures of the State of Illinois, lets call them

State Revenue and State Expenses....


So if you keep State Revenue relatively constant (by keeping the income tax increase around) but increase State Expenses by giving more State Revenue to local governments, you either need to reduce State Expenditures or you have a deficit.  It's still the same pizza, no matter who gets how many slices and regardless of how big the pieces are or who gets how many, you haven't increased the size of the pizza so all you manage to do in giving local governments more, is creating bigger problems for state government...

It isn't a fix, it's malarky....  You can't fix the local property tax problems without either increasing other revenues (a bigger pizza) or reducing expenditures (some folks get smaller pieces and that pizza so folks lose is not given to others)...


Perhaps we should start calling him Governor Baldrick

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