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Illinois Can Learn From Wisconsin’s Success

Some Wisconsinites have been pointing to our neighbors to the south as an example of fiscal responsibility hoping to follow their model.  Those who think that Illinois is the way to go should think again and take a page out of Wisconsin’s book.

The Illinois budgetary record is not pretty.  Heading into 2011, Illinois faced a budget deficit of over $13 billion and passed a massive tax increase both to personal income and corporate income tax rates.  They’re still broke.  With a pension system in shambles, Illinois also borrowed massive amounts of money to make this year’s pension payment.

In September, Illinois laid off 1,900 public employees and closed seven state facilities. Also, much to the chagrin of Wisconsinites who drive to or through Illinois, toll rates in the state have increased on average by 88%.

Illinois’ budgetary moves failed miserably to solve their problems and the state is still projected to end this fiscal year on June 30th with a budget gap upwards of half a billion dollars and unfunded obligations of up to $8 billion.

As a result, this past week, Moody’s lowered Illinois’ credit rating, giving the Prairie State the lowest rating of any state in the nation.

Contrast that failure with Wisconsin’s recent successes.  Wisconsin’s budgetary reforms have set the state up for growth and prosperity.  Heading into 2011, Wisconsin faced a budget deficit of $3.6 billion. Wisconsin boldly passed its now famous Budget Repair Bill that required public employee contributions for healthcare and pensions.  Like it or not, the Budget Repair Bill and other measures eliminated Wisconsin’s $3.6 billion deficit without one-time budget fixes or accounting gimmicks.

Perhaps more importantly, the Budget Repair Bill also gave local governments more flexibility to deal with their budget challenges.  As a result, property taxes are flat or down across the state of Wisconsin.

Because of real, systemic fiscal reform, Wisconsin did not raise taxes, has its pension fully funded, and has a solid credit rating. Thanks to the contributions for healthcare and pensions, Wisconsin did not have to lay off public employees.

It is clear that Wisconsin is on the right track, while Illinois is giving Greece a run for their money when it comes to economic calamity.  The fiscal roadmap ahead for Illinois actually leads north.  Taxpayers in Illinois would do well to push for similar reforms to help grow their economy and pull it back from the brink of disaster.

Matt Batzel is the Executive Director for Wisconsin of American Majority, the nation’s leading national conservative grassroots training organization.  To learn more about American Majority visit www.AmericanMajority.org.

COMMENTS

  • lastgopinillinois

    If I remember correctly during the campaign 2010 race for governor, Bill Brady and Jason Plummer worked on a budget proposal that would have been similar to Wisconsins budget repair. During the campaign, Brady painted Quinn as a tax-and-spend liberal and used his budget proposal to contrast him against Quinn.
    As usual, chicago shot us down again, and all of Illinois suffers for it.

    • carolina

      I hope you post this everywhere around the www.

      • forperry

        No answer from mods — email deleted from “contact” without being read. Simply do not want my username to imply that I still support the Governor. That’s all. What’s a poster to do?

        • oneconservative

          And as bad as its reported, it is actually much worse. Unemployment is a big problem as companies who operate in other states are not expanding in Illinois. The state now has an unemployment rate much higher than Wisconsin and higher than the national average.

          As someone else has pointed out, the pension system is a mess and the state now has the lowest bond rating for any state in the country including California. The state doesn’t pay its bills for anywhere from 4 to 8 months at a time.

          The tax increase has hurt many Illinois families and businesses. The reality is that more people are leaving the state.

          Life is grand under Lib RULE (note sarcasm).

  • http://908StraightSt.wordpress.com/ mbecker908

    nt.

    • http://www.therightbistro.com ScottSenffner

      Our problems down here stem from the biggest corrupt politicians in the country. We have had, I think three or four Governors go to prison. The last two were Gov Ryan and Gov Blagojevich.

      Secondly, we have a lot of progressive democrats and republicans.

      Thirdly, we have the “state” of Chicago. It has been run by the Dailey’s for decades and is now run by the Mayor Emanuel.

      Don’t forget President Obama came from Chicago.

      What we need here is to really clean house and get PEOPLE who have PRINCIPALS and VALUES.

      Gov. Quinn, Michael Madigan, James Clayborne, Jr and the rest of the Democrat leadership need to go.

      I am not saying we need the standard Republican politician. We need to get Conservative and (I know, politically incorrect) God Fearing people into our State Government. BTW, we should do the same for the Federal Gov. (God Fearing People).

      • adair

        Blago -D, Ryan -R, Koerner -D, Stratton -R, Walker -D, and a couple in the 1800′s.

        We’re an example of rotting from the head and tail, as many of our school administrators, aldermen, country board members, made-up-position-holders have also been indicted or have “retired” without having to repay embezzlement or restitution of largesse provided to relatives or “friends.’

        Even the small-time pols amass $13million fortunes over their 20- and 30-year terms. That insider trading game is way more challenging than just being paid off by lobbyists.

        Pathetically, the Illinois Republican Party is so accustomed to getting along to go along (since the elections will likely be stolen anyway), they don’t back the conservative candidates who might actually push for changes.

        • adair

          was found, after his sudden death, to have deposited to the State account all the driver’s license and car license tag checks which were made out to “Secretary of State.”

          But hundreds, made out to “Paul Powell” had been stuffed into shoe boxes at his home … his private stash, which he cashed and used for his own personal needs.

          Obviously, he was a hands-on bureaucrat, doing much of the money handling himself, not one of them-there figurehead bosses!

        • poillini

          was tried and ACQUITTED of tax evasion!

  • Matt Batzel

    Wisconsin Public Sector Unions would like the Wisconsin voters to ignore this comparison.

  • GeneralAl

    Illinois will never learn anything as long as stupid people are allowed to vote! Illinois is controlled by the City of Chicago which is controlled by a bunch of thugs who are just one step below Al Capone on the corruption ladder. They are enabled by the mass of voters who depend on them for their monthly handouts. It matters not to this ignorant crowd of diseased brain matter that their entitlements are confiscated from the hard working taxpayer. In their own words, “Its owed to us”! Until the the Chicago crooked machine is destroyed, we will learn nothing from Wisconsin except how to demonize a governor who actually succeeded in balancing a state budjet!

    • http://www.political-woman.com politicalwoman

      Chicago Alderman Paddy Bauler said in 1955 after the first Mayor Daley won his first term in office, “Chicago ain’t ready for reform”. Fast forward 57 years, and change Chicago to Illinois. I’m born and raised in IL, and the last decent governor we had in this State, who left a surplus when he left office was Jim Edgar.

      Here in Illinois we have five state-funded pension systems, 631 police and fire pension systems, and the locally funded Illinois Municipal Retirement Fund (IMRF). These systems are funded by a combination of employee contributions, employer contributions, and investment income. The contributions that union members pay to these funds for retirement benefits are well below what their private sector counterparts pay toward their retirement and health benefits. And keep in mind, that pensions are not state-taxed in IL.

      We’re going to going to the market for another $800 million in bonds, and based upon our lowered credit rating will have to pay more in interest.

      Our incompetent governor whined about wanting to be governor for all of his political life, and couldn’t believe his good fortune when Blago was indicted. We have a House Speaker whose also been the actual governor for at least the last 10 years, and the last piece of the triangle was Richard M. Daley, who retired because of his wife’s health, and because Rahm wanted to start laying the pathway to his own Presidental aspirations, and what better way to do so than a big city mayor.

      Combine all of the above with union vote, the black vote, and the idiot vote every election cycle, and you can see that IL is and will remain in the circuitous cycle of fiscal insanity.

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