Court Saves Illinois from Itself
Sun 30 Jan 2011 08:51

Guest Commentary
By Mark Batinick

Last week, an appellate court made a dramatic decision when it ruled the $31 Billion Illinois Capital Bill unconstitutional. The court ruled that the General Assembly violated the constitution’s “single subject” clause. The challenge to the bill was brought by Chicago Blackhawk’s owner Rocky Wirtz. He was concerned by the taxes on liquor that affect his family’s liquor distribution business. The case has already been appealed to the Illinois Supreme Court. Should the decision stand, we should be extremely grateful for narrowly avoiding the waste in this completely misguided bill.

I have previously written about the pork in this Capital Bill (click here). But, here is another way to demonstrate how wasteful the bill is. The last Capital Bill was passed quickly after the election of George Ryan. The former governor was hardly known for being thrifty when comes to government. That massive bill was $12 Billion in 1999. Adjusting for inflation would bring the total in today’s dollars to about $16 Billion. So, the current Capital Bill is about double the last one.

In 1999, the economy was humming. While the Illinois budget probably wasn’t perfectly balanced then, it was in much better shape than it is now. It was certainly better than it was when the bill was passed in 2009. That is a more reasonable time for taxpayers to take on the burden of the cost of major infrastructure improvements.

Fast forward to today. The economy is in shambles. The state budget is worse. Yet, lawmakers believe this is the right time to pass a Capital Bill that is twice as large as the last? That’s foolish. This is a time for only projects that are absolutely necessary. This is not even a time for “should do” projects. It certainly isn’t a time for “want to do”, and “should never do, but I am a lawmaker in Illinois and can get away with it” projects. We chose to do everything. A quick comparative analysis of the numbers between 1999 and now tells me that an appropriately sized Capital Bill would be between $5 Billion – $10 Billion.

While the bill has been labeled “Illinois Jobs Now”, the truth is that the bill will actually cost Illinois jobs for decades to come. The taxes, fees, and other revenue sources will merely be a drag on the economy. Unless you don’t drive a car, don’t buy shampoo, and don’t buy many beverages like pop and coffee, your disposable income will be reduced. That reduction in disposable income means less money that will be spent going to the movies, going out to eat, buying vehicles, etc. When we don’t do as much of these activities, everyone is hurt. For example, if we go out to eat less, restaurants and their workers are hurt. But, so are the union construction workers who build restaurants. So are the school districts that count on commercial property tax income. We will still be paying for this bill for 20-30 years. We are still paying for the last Capital Bill.

A proper name for the bill would be “Illinois Temporary Work Now”. It is so misleading when a politician says a given project will create a given number of jobs. In the Capital Bill, is money for roof improvements at a local church. A dozen workers might spend a few weeks or even a month roofing the church. The politician will say this created twelve jobs. But it doesn’t. It creates no more jobs than I do when I hire a plumber to work at my house for a day. It merely creates temporary work. Jobs are created when businesses choose to expand or locate in Illinois. The taxes, fees, and other revenue sources in this current Capital Bill is only a drag on that formula.

One State Senator told me that although the bill wasn’t perfect, it was important to the constituents of the district. They wanted an improved interchange. I countered with this. This bill costs a family of four over $10,000 plus interest. Do they want an interchange that bad? Don’t think this is something the “rich” are going to pay for. The sales tax increases and the fees are regressive. They hit the middle and lower class the most.

But, the most unintelligent aspect of this bill is the legalization of Video Poker. From an ECONOMIC standpoint, it is a disaster. I wrote about it extensively here. Video poker will siphon money out of local economies. Hurt small businesses. Increase foreclosures and bankruptcies. Help to decrease property values. It is such a poor way to raise revenue, that several states have removed the machines after legalizing them. How bad must a voluntary revenue source be for a government to reverse itself?

Now the bill sits before the Illinois Supreme Court. They may reverse the appellate court decision. But unfortunately, this isn’t the only way the Capital Bill could come back to life. On WLS on Friday, Minority Leader Tom Cross said that he didn’t know what would happen if Rocky Wirtz were to “withdraw the lawsuit”. Unions have threatened to boycott the Blackhawks. It appears that some negotiations are afoot. I recommend that intelligent thinking Illinoisans go to the Blackhawks’ Facebook page and let him know that we thank him, and support his actions. Otherwise, we this villain may come back to life.