Monday, September 14, 2009

Give US more money


I’m changing direction this week. Although I plan more posts on healthcare nationalized, this week I’m going to cover the State of Illinois and its new push to increase revenue by allowing gambling/video poker throughout the State.

According to the Bloomington Pantagraph, 9/7/09, page A2; the following entities are the largest employers in the State of Illinois. The short article did not give the year for the data and only gave the number of employees for the first five entities although ranking a total of ten. The largest employers in Illinois as ranked:

01) “the State of Illinois—109,752 employees

02) the federal government—102,500 employees

03) the city of Chicago—41,000 employees

04) Jewel Foods—40,600 employees

05) the Chicago School District—39,998 employees

06) Wal-Mart

07) Sears

08) Caterpillar Tractor Company

09) Cook County (Chicago is located within Cook County—my addition)

10) McDonalds”

The three top entities are all GOVERNMENTS! Four of the five top entities are all GOVERNMENTS! Five of the top ten are GOVERNMENTS. Four of the five private, free enterprise businesses are in the service sector with only Caterpillar being a manufacturing concern. And yet, the plea from governments at all levels seems to be: “‘give US more money’ so that we can grow and provide more ‘services.’”

The following information is from the “2005-2006 Illinois Handbook of Government” printed by the Secretary of State office, pages 12 and 13 and put into my format.

“Illinois State Budget

Appropriations by Major Purpose—FY 2005—Percent of Total (“FY” stands for fiscal year—my addition)

All Funds:

1) Public Aid—27.4%

2) Health and Human Services—17.2%

3) Government Services—12.3%

4) Environment & Business Regulation—3.5%

5) Education—26.2%

6) Economic Development & Infrastructure—7.9%

7) Public Safety—5.4%

Total Budget—$43.5 Billion

The purpose of State government is to protect its people. The cost of that protection for the State of Illinois is 5.4% of the budget. The largest single cost for the State of Illinois is Public Aid at 27.4%, followed by education at 26.2%, and Health and Human Services at 17.2%.

“Revenues by Source—FY 2005—Percent of Total

All Appropriated Funds

1) Federal Aid—30.7%

2) Income Taxes—18.9%

3) Sales Taxes—16.3%

4) Public Utility Taxes—2.6%

5) Lottery & Riverboat Gambling—3.8%

6) Motor Fuel Tax—3.5%

7) Other Sources—24.2% (A rather cryptic category for almost ¼ of State revenue don’t you think—my addition.)

Total revenue: $42.8 Billion

Ranked by percent of income received from each source:

1) Federal Aid—30.7%

2) Other Sources—24.2%

3) Income Taxes—18.9%

4) Sales Taxes—16.3%

5) Lottery & Riverboat Gambling—3.8%

6) Motor Fuel Tax—3.5%

7) Public Utility Taxes—2.6%

Notice that, even though the State budget is supposed to be balanced, the total revenues for fiscal year 2005 were $42.8 billion while the total expenditures for the same year were $43.5 billion resulting in a deficit of .7 billion dollars. Even in good economic times, the State of Illinois spent MORE money than it collected.

“‘give US more money’ so that we can grow and provide more ‘services.’”

The following information is from the “2007-2008 Illinois Handbook of Government” printed by the Secretary of State office, pages 12 and 13 and put into my format.

“Illinois State Budget

Appropriations by Major Purpose—Fiscal Year 2007—Percent of Total (In this year the categories were changed from the 2005 fiscal year making comparisons somewhat more difficult. The order they were listed was also changed. I’m listing them in the same order as the 2005 budget for comparison purposes—my addition.)

All Funds:

1) Medical Assistance—31% (Listed as Public Aid in 2005 at 27.4%)

2) Health and Human Services—18% (17.2% in 2005)

3) All Other—10% (Listed as Government Services in 2005 at 12.3%)

4) Environment & Business Regulation—3% (3.5% in 2005)

5) Education—24% (26.2% in 2005)

6) Transportation—9% (Listed as Economic Development & Infrastructure in 2005 at 7.9%)

7) Public Protection and Justice—5% (Listed as Public Safety in 2005 at 5.4%)

Total Budget—$51.5 Billion”

For fiscal year 2007, Medical Assistance (Listed as Public Aid in 2005) increased by 3.6%, Health and Human Services increased by .8%, Transportation (Listed as Economic Development & Infrastructure in 2005) increased by 1.1%. Meanwhile, All Other, Education, Environment & Business Regulation, and Public Protection and Justice all decreased as a percent of the budget.

Total spending increased significantly from $43.5 Billion in fiscal year 2005 to $51.5 Billion in fiscal year 2007. This was a dollar increase of $8 Billion in two years and an 18+ percent increase in two years.

“Revenues by Source—Fiscal Year 2007—Percent of Total

All Appropriated Funds

1) Federal Aid—29% (30.7% in 2005)

2) Income Taxes—23% (18.9% in 2005)

3) Sales Taxes—17% (16.3% in 2005)

4) Public Utility Taxes—3% (2.6% in 2005)

5) Lottery & Riverboat Gambling—4% (3.8% in 2005)

6) Road Taxes and Fees—6% (Listed as Motor Fuel Tax in 2005 at 3.5%)

7) All Other Sources—18% (24.2% in 2005)

Total revenue: $46.7 Billion

Ranked by percent of income received from each source:

1) Federal Aid—29%

2) Income Taxes—23%

3) All Other Sources—18%

4) Sales Taxes—17%

5) Road Taxes and Fees—6%

6) Lottery & Riverboat Gambling—4%

7) Public Utility Taxes—3%

Notice that, even though the State budget is supposed to be balanced, the total revenues for fiscal year 2007 was $46.7 billion while the total expenditures for the same year were $51.5 billion resulting in a deficit of 4.8 billion dollars. The State of Illinois in 2007 spent even MORE money than it collected.

“‘give US more money’ so that we can grow and provide more ‘services.’”

In 2009, with the economy in recession the State increased spending in a new capital outlays spending program. To cover the cost of this new spending, the State, among other things, increased the sales tax on selected items and introduced a new form of legalized gambling—video poker—within the State that will now be taxed by the State.

“‘give US more money’ so that we can grow and provide more ‘services.’”

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