People’s Court

There has been a lot of discussion lately regarding the Illinois and Chicago budget crisis and I felt as though this needed further consideration.  Now the media has been certainly portraying Governor Quinn’s proposed income tax increase as the worst possible scenario (back when this was still on the table, that is), and I believe most people feel that it is.  The main opinion is that an income tax increase would cause strain on the citizens of the state and that the government needs to just cut spending.  Now, besides for the fact that the proposed 2 percent increase would be barely noticeable to the majority of the population (and those in the lower-classes can receive relief through programs such as the EIC), what isn’t really being discussed is that THERE IS NO OTHER WAY OUT.

I am going to use data directly from the State of Illinois Budget Book so there is no confusion or accusation of receiving skewed information from the media.  My goal is to simply demonstrate how difficult and complicated government budgets are and to hopefully give you a small understanding of why tax increases were being proposed (which they’re not anymore due to political pressure, being in an election year and all).

At last count, the deficit for 2010 is at $11.5 BILLION.  Billion.  The total operating budget is $24.8 billion and the total capital budget is $30.4 billion.  To give you a basis for comparison, the 2009 operating budget was at $31.5 billion and revenues were $27.2 billion.

This is taken directly from the governor’s budget proposal:

“The governor’s fiscal 2010 budget proposes increasing the personal exemption from $2,000 to $6,000 [read: tax savings for you].  The budget also proposes increasing the income tax rate by 1.5 [this has since been increased to 2 percent] percentage points for individuals, and 2.4 percentage points for corporations.

This exemption means that a family of four making $24,000 per year would pay no income tax in Illinois.  Currently a family of four making that amount per year pays $480 in state taxes.

It is estimated that the increase will generate an additional $2.8 billion in individual income tax receipts in fiscal year 2010, and $350 million in corporate income tax receipts.”

The goal of the above proposal is to ensure that those that can’t afford to contribute more in income taxes won’t.  And those that are living much more comfortably, will contribute more, but in all reality, not that much more.  2 percent.  Think about that.  If your boss told you that you were getting a 2 percent pay raise, you would laugh in their face.  You know why?  Because that amounts to virtually nothing noticeable.

Now please understand that this does not mean that spending cuts should not also happen.  And they have.  Again—this is taken directly from the budget proposal.

“Spending cuts:

Requiring state employees to take four furlough days:  $36 million

Increasing healthcare contributions for state employees and state retirees: $200 million

Targeted reductions and other efficiencies throughout various agencies: $1.2 million annually

Across-the-board 2 percent reductions in grant programs: $80 million”

These are just a few of the cuts that will be made.  There are many, many more.  However, I want to play a little game entitled: You be the governor.  Here’s how it works.  Below is a snapshot of the operating appropriations for 2010.  I want you to go through and decide where cuts should be made.

Now, there are some obvious areas that I believe most people would agree can not afford any additional cuts—education and public safety come to mind.  Human services includes providing services to the disabled, mentally ill, poor (this encompasses public housing, SNAP benefits), WIC, benefits to children, homeless, and many others.  The reason why this category is so high in Illinois is because the All Kids program offering health coverage to all uninsured children in the state is considered part of this budget even though there is a separate category for healthcare and family services.

Medicare and Medicaid, as well as child support enforcement are under the Healthcare and Family Services umbrella.  Again, I think we would agree that these are important programs that are already stretched and need every dollar they can.  To be fair, perhaps you think these are exactly the programs that should be cut, but then let me paint you a picture.  Let’s say we retract the All Kids program to save funds.  Now we are left with millions of uninsured children, many of whom desperately need health care.  Not only will their parents go into severe debt from healthcare bills, causing a major strain on both families and the economy as a whole, but thousands of these children will actually die from lack of care.

Still want to cut healthcare?

How about benefits to the unemployed and poor?  So I lose my job, and I don’t receive unemployment pay, SNAP or healthcare.  Due to the struggling economy, I am not able to immediately find work.  I have to choose between paying for rent or buying dinner, but eventually, I receive the eviction notice from my landlord.  Where do I go?  If I’m lucky, I have family to take me in.  But many do not have this luxury.  So they end up on the street or perhaps in an already crowded and strained homeless shelter.

So let’s move to Economic Development and  Infrastructure.  Alright–maybe we don’t fix bridges this year, or repair aging pipelines.  Meh.  We can just take our chances and hope we don’t end up with a Minneapolis-type infrastructure disaster.  What about economic development? Seems to me that in a tough economic time, we probably need to invest in attracting businesses that will bring plentiful jobs to the state.

The Environment and Business Regulations includes the Dry Cleaner Environmental Response Trust Fund, Environmental Protection Agency, Human Rights Commission, Illinois Commerce Commission, and the Illinois Workers’ Compensation Commission.  Now I think that you probably scoffed at the Dry Cleaner Environmental Response Trust Fund, but hold on a minute.  Their purpose is to “assist Illinois drycleaner operators in the
cleanup of soil and groundwater contamination caused by dry cleaning solvents.”  I don’t know if you’re aware, but dry cleaning is actually extremely harmful to the environment.  The chemicals they use are highly toxic.  I’m pretty sure I want them to keep keepin’ on as I don’t particularly want these chemicals in my water.  And if you’re looking at this from a solely fiscal standpoint, they only get $5.3 million a year anyways, which in terms of the total budget, is basically nothing.  The Human Rights Commission protects Illinoisans from unlawful discrimination,  the EPA protects our environment, the Illinois Commerce Commission works mainly in energy and telecommunication–both of which we need.  Aaaaand I think we all agree that the Workers’ Compensation Commission is necessary to protect us from our own workplace.

Believe it or not, the Government Services section encompasses the largest amount of departments and commissions (34 in all), but receives the smallest portion of the operating budget.  (Check out page 343 of the budget to see the entire list.)  Now at about 7.5%, that means they utilize approximately $1.7 billion, which definitely is a lot of money.  HOWEVER, after taking into consideration that these funds are shared by 34 entities (1.7/34) that means if they all received the same amount (which they don’t), it would equal about $51 million for each.  Now, just for the sake of argument, let’s say we determine that we can eliminate this entire budget item (which would be impossible for various reasons), we would only have freed up $1.7 billion of an $11.5 billion deficit.  I’m no mathematician but something tells me it’s not going to be enough.

I am talking in generalities here because it would obviously take volumes of novels to go into the explicit detail needed, but the point I’m trying to make here is that we’re in trouble and while cuts and responsible spending are definitely needed, what’s also needed is a balanced budget that doesn’t risk our livelihood.  At this point, the only way out is to increase income taxes.

Of states with flat rate income taxes (which I am aware is very regressive), we have the lowest income tax in the country.  Just as a comparison, New York State has 7 tax brackets that range from 4 percent to 8.97 percent.  Even at the lowest end they are higher than us.  California has 6 brackets, ranging from 1.25 to 9.55 percent.  While the low end is very low, hang on for a minute, because their exemptions are only $98 for filing single and $198 for married.  In Illinois it is $2,000 and $4,000 respectively and if you recall, the Governor is actually looking to increase those amounts.  Let’s look quickly at our neighbors, Indiana.  They also have a flat tax rate, just slightly higher than ours at 3.4 percent.  But, their exemptions are only $1,000 and $2,000.  And it’s Indiana.  Yuck.

I really hope that you made it to the end here and have learned a little something.  I think it’s really important to have the entire picture before making a judgment, particularly when it comes to government.  The media, politicians and interwebs can get things jumbled and before you know it, you’re watching a video of a monkey mouth raping a frog.  Wait…what?  If you have differing opinions, I’d love to hear them and then I’ll slap you…keeding.

Do you know what it means to miss New Orleans?

I finally watched the first episode of the HBO series, Treme (pronounced truh-MAY). I had seen previews but in the midst of my move, finals and work, neglected to catch it when it began in April. During work yesterday, I googled the show to read reviews before starting it, although I typically find this unnecessary as I’ve never watched anything on HBO I didn’t like. Unfortunately, the reviews were mixed. The short end of it was that the show captured the incredible magical essence of New Orleans but the character’s disdain for tourist’s outward excitement towards the culture made the viewer uncomfortable for appreciating these elements.

Now as a native Chicagoan, I understand this to a point. Nothing is more irritating than a bunch of idiotic tourists stopping in the middle of a busy sidewalk to take a picture of their child in front of a sign or comment on the placement of a garbage can. That said, I also get a sense of pride and joy when outsiders openly appreciate our fine city.

As you are likely aware, my love for Chicago exceeds my love for all things with the possible exception of music. For Christ’s sake, I have it tattooed on my back. I have had the opportunity in my life to travel rather extensively (domestically anyways) and nowhere can even come close to being so wonderful…except perhaps New Orleans.

In 2008, three years after Katrina, I traveled to NOLA for a class in my undergraduate program. I immediately fell in love with the city. The first few days I was solely in the French Quarter, home to the historic Bourbon Street, St Louis Cemeteries, Jackson Square, Cafe DuMonde, among others.

St Louis Cathedral

The architecture is awe-inspiring and I immediately wished I was more than a lame point-and-shoot photographer. Even with my subpar skills and $200 Best Buy camera, I was able to capture some decent photos because like a good model, its beauty did all the work.

French Quarter

The food is also outstanding. Outside of Chicago, I’ve never been able to pick any restaurant on the block or in any neighborhood and be almost guaranteed a fantastic meal.  The po’ boy’s, the gumbo, red beans and rice, jambalaya, beignets…oh man.

Mmmm...beignets

Interestingly, I also had the best fries of my life there.

Best. Fries. Ever.

And of course,  I have to mention the music. Oh–the glorious music. Virtually every bar has a live band and all of them were exceptional. Even the typically cliché and annoying cover bands made you question how good the original recording really was. The jazz, the rock, the brass bands. I couldn’t get enough.

I would also say that like Chicago, the New Orleans natives were wonderfully friendly–even more so than my beloved city. Everyone says hello as you pass by and not in the creepy “I’m trying to disgustingly hit on you” way, but in the “I am genuinely interested in how you’re doing today” sort of fashion.  If you’re an introvert, this city is definitely not for you.

Add to all this their rich culture and history, and what you have here is one stupendous city. I love me some Chicago but if the weather weren’t so damn hot and humid year round in NOLA, New Orleans is the only other city in this country I would ever consider moving to.

While the magic and uniqueness of NOLA is something to be seen, I did make a trip out to the other neighborhoods outside of the French Quarter. I will not go into full details here, but know that the stories you’ve read and pictures you’ve seen will never prepare you for actually being there in person. Three years after the storm, much of the city was stuck in the same condition it was a week after Katrina. Desolate and destroyed cannot even begin to describe it. As we were driving through one neighborhood, there were what looked like headstones in a cemetery. My professor informed us that in fact, they were the cement blocks that once acted as the foundation for homes. In that way they were headstones commemorating the life of not just houses, but people’s homes, lives and family.

Lower 9th Ward

The stark contrast between these places and the French quarter (which was virtually untouched by the storm), is that the original city was settled in the French Quarter because it was higher ground, protecting it from storms. I will not give the whole background on the causes of this devastation now, but I recommend reading “Breach of Faith” for a narrative yet factual account of the causes and effects of the storm.

Lower 9th Ward

(The “x”‘s on homes are markings left by the rescuers.  The top quadrant indicates the date visited, the left is the organization the rescuer is with, the right says if there are any hazards in the home and the bottom states the number of dead people inside the home.)

So back to Treme. Simply put: I loved it. I have never seen such a beautiful representation of NOLA before and this show does an outstanding job. It not only captures the culture and traditions of this great city but the spirit of its people as well. Granted, I’ve only seen the first episode (which was almost an hour and a half long) but if the rest of the series builds on this then I think it’s going to be great. As with many successful shows, the city becomes one of the characters to fall in love with. Probably not surprisingly, one of the best things about the show is that it features infamous New Orleans musicians–Kermit Ruffins, Allen Toussaint, and the Dirty Dozen Brass Band to name a few. This show will definitely make you fall in love with the city if you haven’t already.