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Politics
Reasoned discourse is always a rare political commodity, so it's not surprising to find more heat than light being generated in the public debate over Gov. Jim Edgar's proposed $29.2 billion budget for fiscal 1994. Even by Statehouse standards, however, the intellectual dishonesty accompanying the partisan rhetoric is striking. Moreover, the false imagery and shrill tones could well obscure the real issues of public policy that need to be addressed in fashioning a spending plan for the fiscal year starting July 1. Even more troublesome is the suspicion that the budget debate only foreshadows a truth-be-damned, no-holds-barred gubernatorial campaign next year. The assault on accuracy is largely in connection with Edgar's proposal to make permanent the temporary income tax surcharge, but redirect all its proceeds to state coffers for education and child care programs. Cities and counties now glean more than $200 million from the higher rate, due to expire June 30. The governor fired the first shot when he portrayed the option facing lawmakers as "a choice between kids and concrete." While the slogan may be catchy, the message is deceptive. Sure, some local governments used surcharge dollars for capital projects. But many — including Chicago — plugged much of the state largesse into cash-strapped operating budgets, paying for vital services like police and fire protection. Others used the money to roll back real estate taxes, as candidate Edgar suggested they do during the 1990 campaign. Even more egregious, though, were the half-truths and hyperbole served up in response to the Republican governor's plan by Democratic lawmakers led by House Speaker Michael J. Madigan (D-22, Chicago), by Chicago Mayor Richard M. Daley and other local government officials, and by some well-intentioned, though misinformed, editorial writers. Here's a sampling:
In fact, the current tax rates would not go up. Before anyone spends too much time pondering whether no change is really an increase, it might be helpful to recall exactly what candidate Edgar promised three years ago. His pledge then was to continue the surcharge, keeping income tax rates at the same level. And that's what his budget message proposed.
In fact, Edgar proposed some $2.1 billion in new construction for fiscal 1994. Less than 3 percent of the building program, though, would be paid with general revenue funds, dollars that could be used for education, child care, or other human services. About a third of the construction is to be financed through sales of long-term bonds. Presumably, none of the governor's critics would be rash enough to suggest the state borrow money over 20 years to cover school aid, foster care payments or day-to-day government operations. Another half would be bankrolled through highway-related funds derived largely from gasoline taxes, vehicle registrations, and driver's license fees. Some Chicago Democrats long have coveted road funds, generally for the Chicago Transit Authority, but suburban and downstate lawmakers of both parties have always jealously guarded the highway kitty, and it's hard to imagine that situation changing anytime soon. Most of the rest of the state's capital program is federal grants, the bulk of which, ironically, are pass-through funds for construction at Chicago airports. Thus, in reality, only a small portion of the state's "concrete" could be redirected to other purposes.
6/April 1993/Illinois Issues
In fact, while the budget calls for adding about 620 workers to the general fund payroll, more than 400 will be child abuse caseworkers and investigators needed to meet reduced caseloads under a federal court decree. The new hires also include 77 full-time direct care workers at three veterans' homes, 50 new state troopers and 40 new tax collectors, investigators and attorneys for the Revenue Department — hardly your typical bureaucrats. Moreover, the two largest program increases Edgar is seeking — $147 million for education and $123 million for state employee health care costs — outstrip the $211 million local governments would lose if the current surcharge apportionment formula were continued next year. None of that money is earmarked for state hires; the $110 million allotment for elementary and secondary education, for example, would be sent directly to local schools. Indeed, most state general fund spending involves buying health care and social services for individual Illinoisans (for example, Medicaid, foster care and in-home care for the elderly and the disabled) or making grants to local government units, like school districts. Last fiscal year, about two-thirds of the $14.7 billion spent from general funds went for awards and grants; less than 20 percent was for payroll.
In fact, the surcharge is a state tax, passed by the legislature and signed into law by the governor. Cities and counties have no more right to the funds than any other state grantee; indeed, some might argue, their plight is nowhere as dire as the 70,000 or so folks kicked off the welfare rolls in the last two years. Thus, the locals' desires should be weighed against other, competing state programs as lawmakers set priorities for using too few state dollars for all the good purposes to which they could be put. The balancing act will be painful, of course, but that's no excuse for Edgar or his Democratic critics to make truthfulness the first casualty. * Charles N. Wheeler III is a correspondent in the Springfield Bureau of the Chicago Sun-Times.
April 1993/Illinois Issues/7 |
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