Tribune Questionnaire
#1: Jobs
What should Illinois do- via tax policy, spending or other policy means- to promote job creation? Do you support tax relief and other forms of state or local incentives for major employers such as Motorola and Navistar? If so, how would you cover the revenue loss to the state budget? Offer three ideas of your own and, if they would cost the state money, explain how you would pay for them. Wisconsin and Indiana have curtailed the college bargaining rights of public employees. Do you support such changes and if so, how would you design them?
In 2011 I introduced the Job Creation Finance Act. This bill would allow municipalities to negotiate incentives based on the number of specific jobs a project would create. The more jobs created, the higher the incentives would be until seven different tax liabilities could be reduced. It also would require accountability with the Illinois Department of Revenue, which would audit those jobs every three years. The incentives would retire after 15 years. This would be available for use only in counties where the unemployment rate was higher than 6.5%. Additionally, Illinois must have workers compensation costs comparable to neighboring states and we must continue to pursue other additional reforms. I believe there is a skilled labor shortage for high-tech manufacturing jobs and that we are beginning to see a rebound of these types of jobs. We need to commit resources to promote job training to adequately meet the needs of the manufacturing industry. I believe there should be available within negotiations a provision for “ability to pay.” I also believe that unionized workers should not have the ability to negotiate improvements to their pensions.
#2: Retirement
Illinois’ pension system has unfunded obligations of $86 billion or more. Unfunded retiree health obligations total many additional billions. How would you resolve these shortfalls? SB 512 would give state workers three options going forward, including paying more into the system to maintain their scheduled benefits; paying the same for a smaller defined benefit; or moving to a 401 (k)-style defined contribution plan. Would you vote for this bill?
I do support Republican House Leader Tom Cross’ efforts for pension reform. With proper amendments, I could be in full support of his bill. However, in its current form this bill does not solve Illinois’ $80 billion-plus pension deficit, which equates to a liability of more than $25,000 per Illinois household. For Illinois to be financially secure, this deficit must be eliminated. I believe the State should establish a pension stabilization fund, and commit 50% of any new gaming revenue to that fund. Additionally, as pension bonds are retired, those revenues should be recommitted to the pension stabilization fund and Illinois should tax all income, except for Social Security income, until the age 65. This would generate $2.5 billion annually for the pension stabilization fund and would allow for the pension obligation to be fully funded in less than 30 years.
#3: Medicaid:
How can the state contain Medicaid spending? Should Illinois expand managed care to Medicaid recipients? Should the state tell hospitals how much charity care they must provide to qualify for a property tax exemption? If so, how should that level be determined?
Health care spending across the country will be changing under the Affordable Care Act. Most citizens in the general population will fall under a private managed care plan. Illinois most definitely should move the Medicaid population to managed care services. By doing this, the state could realize as much as a 20% savings.
The issue with the Attorney General’s opinion regarding charity care is that it does not take into account the unpaid bills from the medically indigent and underinsured. Hundreds of millions in unpaid medical liability is absorbed by hospitals through their payer mix. The state must accept that these unpaid, uncollectable liabilities are part of charity care services provided by hospitals. If the state desires to provide a definition for charity care, this must be included, and with those numbers, any non-profit hospital would qualify for a property tax exemption under the current tax code.
#4: Taxes:
Last year, the General Assembly passed a 67% increase in the personal income tax rate. The increase has not solved the state’s budget problems- all of the new revenue is being spent to pay pension obligations or debt service. What steps must the General Assembly take to balance its budget? Would you extend the tax, increase it further, allow it to expire, or repeal it? What other changes would you consider? Should Illinois adopt a graduated income tax? Apply the sales tax to services? Impose other taxes? Can Illinois balance its budget without more taxes? What impact would your tax policy have on job creation in Illinois?
Legislators took a good first step toward budget reform last year when we passed a balanced budget and supporting legislation that mandated that any revenues over and above what was anticipated would be used to pay down bills. There are many other ways that Illinois could reduce spending to balance future budgets. For example, I would support the privatization of management of some state facilities and institutions, and placing some developmentally disabled people into community-based programs (but I do not support closing the facilities for the developmentally disabled). These two initiatives would create significant savings. We must also revise labor contracts to reduce the level of pay raises that State employees are now getting. I would also support a line item reduction applied to every agency at 4%. Additionally, I would support managing State assets in a more efficient manner, such as not using airplanes and reducing the number of fleet vehicles used by State employees. Illinois has to stop living by the mentality that the way to balance budgets and pay bills is through raising taxes. I believe the General Assembly needs to refocus itself on promoting a market-driven economy and on jobs. When a worker is hired that individual starts to pay taxes. When we create an overall larger workforce, the tax burden can be spread out among more people and the individual portion can decrease. With regard to the 67% tax increase that was pushed through in the waning hours of the 96th general assembly in a lame duck session, I support a full repeal of that tax hike.
Illinoisans are not under-taxed. The state is overspending. I think the best way to balance the state’s budget is through economic activity provided through job creation. I recommend eliminating the corporate income tax, fully restoring the net operating loss deductions that Illinois businesses used to receive, and approving workers compensation reform that aligns Illinois with other states. With these improvements, Illinois would become very completive with regard to current business expansion, retention and our ability to attract new jobs/businesses from other states. The solution is to increase income, not income taxes.
#5: Spending Cuts
List and explain five specific areas in which you would cut state spending. Want to suggest more? Be our guest.
Illinois leaders must reform spending and manage the remaining deficit until the job and consumer markets improve. There are many areas where cuts and reforms can and must be made. Great steps were made last year with Medicaid reform, but full savings will not be realized because the federal government said Illinois could not require Medicaid users to provide proof of citizenship. With a President who hails from the State of Illinois, I would have liked to have seen the Democrats in Springfield push that issue harder.
1. We must revise labor contracts to reduce the level of pay raises that State employees are now getting.
2. We should make a blanket budget reduction of 4% for every agency in Illinois.
3. We must start managing State assets in a more efficient manner, such as not using airplanes and reducing the number of fleet vehicles used by State employees.
4. We should engage in an audit similar to a forensic audit that was done in Kansas, which found $1 billion in savings, and in Texas, which found $8 billion in savings.
5. Pension reform must be a priority in 2012. We have to work with all affected parties to create a new, sustainable system that protects benefits earned up to a determined date, and realigns benefits moving forward to affordable levels.
These cuts, while not easy, will provide for the majority of the State’s structural deficit. The remainder of the debt must be strategically managed through short term borrowing and intra-fund management.
#6: Education:
How can Illinois improve the performance of public schools? Should the state eliminate the cap on the number of charter schools? Do you support proposals to provide tuition vouchers for 30,000 children in Chicago’s weakest schools? Do you favor or oppose eliminating tenure for teachers? How could Illinois increase compensation for its best teachers? Should Illinois eliminate regional superintendents of education? Do you support calls to consolidate nearly 870 Illinois school districts? If so, how would you do it?
It is unrealistic to expect the State to mandate performance improvement for schools. That discussion takes place at the school board and community level through expectations set by those who elect their school board. However, merit pay, which I favor, is a good tool that can encourage teachers to hit educational outcome milestones. I support the voucher program for children in Chicago’s weakest schools because I can’t imagine sending my kids to a school system where only about half of the students graduate. I supported legislation last year that made it more difficult for teachers to attain tenure and which ended the practice of “last one hired, first one fired” practice. The Elementary and Secondary Education Appropriations Committee spent a great deal of time last year studying the issue of funding for Regional Offices of Education. The committee’s recommendation was very clear that these offices provide very necessary and state mandated services and therefore funding needed to stay in the general fund budget. However, I am not opposed to authorizing a study to determine if some offices can be consolidated so that efficiencies can be realized. Consolidation of school districts would require an in-depth study of cost vs. benefit. While there may be cases when it makes financial sense to consolidate smaller districts that feed into the same high school district, there are also cases where financial benefits do not exist.
#7: Legislative Scholarships:
Should this program be abolished? Why or why not? Do you/would you award these scholarships? If so, how do/would you select the recipients? If not, why not?
There are currently 45,000 tuition waivers granted to Illinois college students. Most of them are given to children of University employees. While I can support the elimination of most of these waivers, it is difficult for me to say “no” to the students who live in my own district when the children of some of our wealthiest public employees who happen to be University Presidents are sending their children to college on waivers. Until the entire waiver system is reformed, I plan to continue to participate in the scholarship program. The process utilized in my district includes application reviews by many committee members from across my district. They look at academic achievement, community involvement and financial need. In the end, waivers are spread out equally in the communities I represent. It is a fair and impartial process which in some cases makes the difference between a child going to college or not going to college.
#8: Local governments.
Illinois has nearly 7,000 local governments, more than any other state. What governments could be consolidated or abolished? What should lawmakers do to make this happen? Cite specific examples.
We need to continue to look at which units could be consolidated, but as mentioned in #6 above, until a true cost benefit analysis has been completed, it would be premature and irresponsible to cite specific examples.
#9: Campaign Finance:
Two years ago, the General Assembly passed a law that limits contributions by individuals, corporations, unions and political action committees- but not those made by political parties or House and Senate leaders. Would you vote to impose comparable limits on parties and leaders? Why or why not? Are there other ways in which Illinois should regulate or require more disclosure of contributions?
I voted against the legislation that was labeled “campaign finance reform” because I didn’t think it went far enough. I believe Speaker Madigan’s proposal codified current practices and gave too much power to political leaders and party bosses. I support campaign finance caps for individual General Assembly candidates of $2,500 and $5,000 for state-wide candidates. I would also support an initiative to make campaign contributions more accessible on-line though tying the campaign contributions to the new transparency portal.
#10: Independence:
What have you done to change the status quo of Illinois politics and government?
I was the chief sponsor of the bill that created the transparency in government portal, and have continued to bring forward efforts to expand government transparency. I recently filed a bill to require all units of government that pick up any part of an employees’ pension cost to disclose the amount on property tax bills.
#11: Accountability:
Do citizens have adequate means to hold their elected officials accountable? Do you believe the new legislative map provides voters with an opportunity for fair representation? Do you support term limits on statewide officials, legislators, committee chairmen, House and Senate leaders? What county, state or municipal officeholders, if any, should be subject to recall? Explain your answers.
I believe the legislative map that was recently passed accommodated the interests of the majority party without properly considering community boundaries, diversity, socio-economic issues, or cost of providing constituent services out of legislative offices. I believe that Illinoisans should demand of their elected officials a more inclusive process that includes citizen input, a multi-month review period, and an open and fair process. With regard to term limits, I believe in a 12- year term limit for the House and Senate and believe overall that periodic transfers of power are healthy for all elected groups.
#12: Personal:
Tell us something we would be surprised to learn about you.
In 2004 I was diagnosed with Type II Diabetes. In my legislative pursuits I have found that Illinois has one of the highest incidences of Diabetes per capita of any of the 50 states. The Centers for Disease Control (CDC) predicts that 30% of the Illinois population will be diabetic by 2035, and by 2025 our citizens will be spending $20 billion annually to treat the disease. Realizing that our state is not equipped with proper public polices to deal with an epidemic of this proportion, myself and six of my colleagues formed the Illinois Legislative Diabetes Caucus. It is first comprehensive legislative diabetes caucus in the country.
