FILE - Illinois State Capitol
The Illinois State Capitol in Springfield, Illinois.
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It can be tough to comprehend Illinois’ dismal finances.
The state has the worst credit rating in the nation and has been bottom of the barrel on that measure for quite some time. Illinois’ pension mess is one of the nation’s worst. And the General Assembly hasn’t passed a truly balanced budget since 2001.
Why? The answer has a lot to do with government spending outpacing growth in the state’s economy. But recently, Illinoisans witnessed a particular and pernicious part of that problem: basic lack of humility.
Illinois is broke. But leaders don’t act like it.
On Jan. 17, State Superintendent of Education Tony Smith unveiled a proposal to spend an additional $7.2 billion on education in one year.
Some context: Illinois’ student population is shrinking. Illinois’ state budget is already out of balance by more than $1 billion, even after state lawmakers passed a $5 billion tax hike. As of 2015, Illinois spent at least 20 percent more on education per pupil than every neighboring state. And even when stripping out the richest school districts, Illinois spent more per student on average than every neighboring state.
Smith’s plan is absurd and irresponsible. But it elicited no real response from political leadership.
Now imagine if a state schools chief called for a freeze in education funding (which still would mean an increase in per-pupil spending, since the population is shrinking) and a reduction in Illinois school districts’ administrative costs, which are among the highest in the nation. One may disagree, but it’s a reasonable proposal given the dreadful state of Illinois finances.
Ears would be ringing from Chicago to Carbondale.
Another problem is that when politicians and observers do get up in arms about poor spending habits, they often miss the bigger picture.
News broke Jan. 22 that Illinois paid $1 billion in late fees last year on its unpaid bills. “An astonishing $1 billion down the drain,” wrote one prominent editorial board.
“How often do you hear political candidates promise to spend more than $1 billion in return for – nothing? We can’t recall ever hearing that.”
Paying $1 billion in late fees is no doubt infuriating. There are plenty of better uses for taxpayer money. The bigger picture? Illinois owes more than $9 billion a year on interest on the pension debt alone. The state can’t even cover that interest payment, which is why the pension debt continues to grow each year.
Illinois’ pension math can’t work out barring major changes. Pulling Illinois out of that potential death spiral will require restructuring those obligations.
Care to float an amendment to the Illinois Constitution to allow for a reduction in the number of multimillion-dollar retirement payouts? That’s heresy in Springfield.
Examples of this mentality abound.
Illinois state workers are the highest-paid in the nation after adjusting for cost of living. They receive Cadillac health insurance plans when the state needs a Toyota budget. But the American Federation of State, County and Municipal Employees has held out for a new contract for more than two years, demanding a 37.5-hour workweek and raises of up to 29 percent.
Want a more reasonable contract? You’re anti-worker, according to government worker unions and their political beneficiaries.
Illinois’ financial problems are solvable. Residents should feel empowered to let their lawmakers know they can’t afford more tax hikes to make up for poor policy choices over the decades.
But the first step to solving a problem is being humble enough to admit the truth.
Austin Berg is a writer for the Illinois Policy Institute. He wrote this column for the Illinois News Network. Austin can be reached at aberg@illinoispolicy.org.