Budget Buster: Living in IL

[HHSTigerFan]

As for what I would cut would be as is being discussed currently in Illinois, pensions and raises for government officials to start.

You can't just cut pensions, first of all its against the state constitution, secondly can you ethically cut a pension program that people have planned on having and been contributing to for 30-40 years in some cases? While switching a 401K type program for new hires should be done ASAP, its not going to help with the current situation..

I read that even with this huge tax increase, its still only going to reduce the deficit by 50%, down to about $8 billion/year.. If it really is that bad, do we really have a choice but to raise taxes (and cut spending)..

As far as cutting raises for govt officials, will assume you mean elected people and thats a cry I hear often.. in reality though, we are talking less than 200 people making decent money, but hardly getting wealthy, thinking the current salary for a state senator is around $70K.. freeze their salaries and save about $400K, a decent amount but a splash in the bucket when the deficit if $16 billion, about .000025% of what needs to be offset.

 

[FINFAN]

As is always the case, the state spends too much money, but when things need to be cut people will complain.. for those living in Illinois, where would YOU cut?

A dilemma for sure, but Quinn was orig going to increase the tax by about 33% and now it is 75 ( which will still only make the smallest of dents in the 13 BILLION+ deficit) which changes budget planning, also increasing the retirement age for pensions to 67 ( making us the state with the oldest age requirement, tho it is to be implemented on new hire, not current people nearing pension collection)
my point of the thread was it is a budget buster to have to find money where there is none ( again) and the recent changes of cost of living in IL are enough to have us rethink our location for our financial survival and attempt to remain financially independent and NOT be on gov programs in our old age...but honestly, when a hit to one's income, the very thing needed to provide "tax" to all the other programs increases dramatically,( and not saying other states do not have high Income Tax) to take that $ at the same time it is being taken from other areas, well, it makes residents take notice and believe me, it is with real concern and even fear....not just frustration. Recession...inflation...migration.
Basically, our salaries( meaning my family, no idea about others) in this state, are not strong enough to withstand the financial changes , so need to make changes of our own

 

[Virgderon]

Wow. Dh and I moved to Tampa for his job, but we are renting out our house in the Chicago area and would like to sell it next year. All of this makes me wonder if anyone will even want it.

 

[HHSTigerFan]

A dilemma for sure, but Quinn was orig going to increase the tax by about 33% and now it is 75 ( which will still only make the smallest of dents in the 13 BILLION+ deficit) which changes budget planning, also increasing the retirement age for pensions to 67 ( making us the state with the oldest age requirement, tho it is to be implemented on new hire, not current people nearing pension collection)
my point of the thread was it is a budget buster to have to find money where there is none ( again) and the recent changes of cost of living in IL are enough to have us rethink our location for our financial survival and attempt to remain financially independent and NOT be on gov programs in our old age...but honestly, when a hit to one's income, the very thing needed to provide "tax" to all the other programs increases dramatically,( and not saying other states do not have high Income Tax) to take that $ at the same time it is being taken from other areas, well, it makes residents take notice and believe me, it is with real concern and even fear....not just frustration. Recession...inflation...migration.
Basically, our salaries( meaning my family, no idea about others) in this state, are not strong enough to withstand the financial changes , so need to make changes of our own

I agree, its tough right now all around, I lost my job 3 years ago and still haven't found a replacement, though to be honest haven't been looking real hard as our youngest is not yet in school.

But I know many people that were "fed up" with Illinois, have moved to places in the Sun Belt and have been back in less than 2 years, saying its worse down there.. Might be more jobs and fewer taxes, but the salaries and schools are horrible..

 

[LoveBWVVBR]

I agree, its tough right now all around, I lost my job 3 years ago and still haven't found a replacement, though to be honest haven't been looking real hard as our youngest is not yet in school.

But I know many people that were "fed up" with Illinois, have moved to places in the Sun Belt and have been back in less than 2 years, saying its worse down there.. Might be more jobs and fewer taxes, but the salaries and schools are horrible..

What is the Sun Belt...FL? Yes, the schools here aren't great, but if you have a decent education/profession the pay is comperable to anywhere else IMHO. We consider private school tuition to be our "tax" here. Private school tuition is CHEAP here, though (like $6000/year for the best schools), and the private schools really are very good. We moved to FL from MA years ago and we'd never go back. The cost of living is low and the quality of life is high.

 

[mjkacmom]

Well, if it makes you feel better, there is almost a 44 billion pension deficit in NJ!

 

[HHSTigerFan]

Sort of a funny story that I heard... a gentleman that ran a business of some kind that did most of their business with the state was on the brink of financial ruin because the state owed him over $400K, he was pulled over by a state cop for not having renewed his plates because he couldn't afford it and he was given a ticket and fine..

 

[daughtersrus]

From what I heard on WGN radio this morning, it sounds like the proposed increase in likely not to pass. That's not to say that there won't be an increase but they were saying that it wasn't going to be 75%.

 

[preschoolmom]

From what I heard on WGN radio this morning, it sounds like the proposed increase in likely not to pass. That's not to say that there won't be an increase but they were saying that it wasn't going to be 75%.

I'm praying that it doesn't pass!

 

[preschoolmom]

We officially have the highest gas prices in the nation:
http://www.myfoxchicago.com/dpp/news/metro/chicago-higest-gas-prices-country-rising-20110110

 

[HHSTigerFan]

I'm praying that it doesn't pass!

So then what gets cut? Something has to give..

 

[preschoolmom]

So then what gets cut? Something has to give..

They can cut anything they'd like, and I'd support it. The government waste and corruption goes on and on and on here.

 

[Anne34]

So then what gets cut? Something has to give..

They need to cut some of the fat in the government offices -- too many friends/relatives who have bogus jobs just because. We have soooo much waste here in IL. Social programs should be the last to go, but like a previous poster said -- you don't even have to prove recidency to get money here. Start over and make everyone reregister with correct identification.

 

[HHSTigerFan]

All sounds good, but both very general comments similiar to what we hear from our elected officials..I do think we have to have an income tax increase, but there is also a ton of fat that could be cut but its hidden so well that nobody knows what can be cut and where the waste is..

 

[angwill]

You can't just cut pensions, first of all its against the state constitution, secondly can you ethically cut a pension program that people have planned on having and been contributing to for 30-40 years in some cases? While switching a 401K type program for new hires should be done ASAP, its not going to help with the current situation..

I read that even with this huge tax increase, its still only going to reduce the deficit by 50%, down to about $8 billion/year.. If it really is that bad, do we really have a choice but to raise taxes (and cut spending)..

As far as cutting raises for govt officials, will assume you mean elected people and thats a cry I hear often.. in reality though, we are talking less than 200 people making decent money, but hardly getting wealthy, thinking the current salary for a state senator is around $70K.. freeze their salaries and save about $400K, a decent amount but a splash in the bucket when the deficit if $16 billion, about .000025% of what needs to be offset.

Well constitutional or not the state is talking about cutting pensions.
Ethical or not they need to cut those pensions just like they have in every
other job in America. Why should pensions only be available to those in the
governement when the majority of taxpayers that are paying for those
pensions do not have the option of having a pension themselves. Obviously
those employees are not paying in enough themselves to pay for their own
pensions. I don't think it is ethical that they are cutting the Social
Security benefits that I have paid into my whole life either but they did?
They will have to find a way to do it like they are with SS and have people
work a longer amount of time for less money back. What is good for everyone
else is good for the government. They do need to switch to 401K asap as
well.

Yes I did mean cutting raises for govt officials.

Well now lets here your answer to your question. Where do you think the
money should come from and what do you think should be cut?

 

[angwill]

I have a friend in a government job who can't believe the useless spending that goes. One brand new tire on his government car went flat and they refused to have just the one replaced instead they replaced all four. He said it goes on in every government job including schools where they get an allotted amount and if they don't spend that amount by years end they lose the money and then get that much less allotted to them the next year so they senselessly spend it all. There is one thing that could be looked into and money saved from.

 

[HHSTigerFan]

Well constitutional or not the state is talking about cutting pensions.
Ethical or not they need to cut those pensions just like they have in every
other job in America. Why should pensions only be available to those in the
governement when the majority of taxpayers that are paying for those
pensions do not have the option of having a pension themselves. Obviously
those employees are not paying in enough themselves to pay for their own
pensions. I don't think it is ethical that they are cutting the Social
Security benefits that I have paid into my whole life either but they did?
They will have to find a way to do it like they are with SS and have people
work a longer amount of time for less money back. What is good for everyone
else is good for the government. They do need to switch to 401K asap as
well.

Yes I did mean cutting raises for govt officials.

Well now lets here your answer to your question. Where do you think the
money should come from and what do you think should be cut?

But comparing a corporate pension and a govt pension are not the same, just as investing in corporate bonds is not the same as govt bonds, I know many teachers that have remained in teaching just because of the pension, they took less salary just so they could add stability to their retirement. Plus they have been putting 9% towards this plan since the day they began teaching, again different from a corporate pension. Cut the pension completely, those people will put an even bigger strain on Social Security as they will move over to that program..

Probably are a few things they could do to reduce the pension burden, such as making teachers work more than the current 35 years to earn a full pension or maybe making them pay more than 9% into the system.. but how willing are the unions going to be to accept this plan when it still doesn't 100% guarantee it will be there in 30 years? And having a 35 year teacher stick around for another 5 years will put a strain on the school districts..

No idea where else to cut, but if a 75% tax increase is only going to reduce the deficit from $16B to $8B, they have no choice but to increase revenue AND decrease spending.

 

[HHSTigerFan]

I have a friend in a government job who can't believe the useless spending that goes. One brand new tire on his government car went flat and they refused to have just the one replaced instead they replaced all four. He said it goes on in every government job including schools where they get an allotted amount and if they don't spend that amount by years end they lose the money and then get that much less allotted to them the next year so they senselessly spend it all. There is one thing that could be looked into and money saved from.

School districts I am involved with are very frugal, much more so than your average major company..

 

[FINFAN]

I wonder if Gov. Quinn would mind bringing me a doggie bag from the uber-posh Inaugural ball tonight?

 

[angwill]

HHSTigerFan you asked what we would cut to help the budget in IL. I have given you my suggestions and you have done nothing but tell me why they shouldn't/couldn't in your opinion be done. I have not seen any suggestions made by you other than to increase taxes. I am done giving suggestions because it seems no matter what I suggest you will find fault in it. lol