New Budget Developments—Let’s Have Some Fireworks on the Fourth!

Brothers and Sisters,

*“No tax” budget is a “no solution” budget – The latest phony solution to the state’s budget crisis is a plan being circulated by some House Democrats that claims that issuing pension notes, sweeping some special funds, and changing some revenue assumptions in combination can “solve” the budget crisis without raising taxes. This is baloney, pure and simple. AFSCME budget analysts don’t believe that the revenue assumptions the House plan makes are correct. But even if they were, that plan still leaves a $3 billion budget hole—that’s the cost of the entire annual payroll for state employees. In other words, you’d have to basically shut down state government to fill a budget hole that big.

*Pension fund borrowing AGAIN? – The pension notes plan now under consideration is preferable to previous pension bonding or to just outright shorting the pension funds because it requires that all of the money be paid back within five years. However, this kind of short-term borrowing only makes sense if there’s reason to believe there will be additional revenues in the out years so that the debt can be repaid. And the only way that will happen is if taxes are raised now. The pension notes plan doesn’t make any sense unless it’s part of an overall revenue package that includes an income tax increase.

*Senate led the way with HB174 – The Senate has already stepped up to the plate and passed a revenue bill that would go a long way toward fixing the state’s fiscal mess now and in the years to come. It raises the income tax, expands the sales tax base and lowers property taxes. The key question now is: Why doesn’t the House do the same? And that means both Democrats and Republicans in the House because any bill now needs a 3/5 vote to pass.

*Don’t come home without it! – That has to be our message to our legislators. The danger now is that they will claim they can fix the problem without a tax increase—and then we’ll be facing big service cuts and layoffs just months down the road. We have to make clear to our state representatives that we know the problem can’t be fixed without a tax increase—and demand that they support it.

*Getting our message across – We’ve got to keep the heat on House Democrats and Republicans non-stop. We know that many of you are weary of the battle—but that is just what they want, to tire us out and make us go away. If we do that, we’ll be paying the price for years to come. So, please, get that second wind and head back into the ring.
Here’s what you can do:
**It is critical that you as the leader of your local immediately call the state representatives in your area whom you’ve met with in the past. Tell their office that it’s important that you speak personally with the representative. When you get him or her on the phone, let them know that you’ve heard about the new plan that’s circulating in the House (see above). Tell them it’s a non-solution and will still put thousands of jobs at risk and close down vital services. Tell the representatives you want them to support a tax increase plan like HB 174, as already passed by the Senate.
**Greet your state representative at the Fourth of July Parade in your communities. Legislators love parades—they like to smile and wave and think about all the good will they’re earning. This is our opportunity to let them know that we’re not going to let them go out and garner good will while they’re wiping out our jobs and the services we provide. Council 31 will provide you with signs to carry and flyers to distribute. The flyers will specifically focus on the state representatives likely to be in your local parades.
**If you can’t make it to the Fourth of July parade, look for other opportunities to leaflet at public events your state representatives will be attending. Council 31 can help you identify where they will be in the coming week or two.
Here are some of the things that Council 31 will be doing:
**At AFSCME’s request the State Federation of Labor is making robocalls to every union member in the districts of many of the House Democrats and Republicans who haven’t committed to support a tax increase. Mike Carrigan, State Fed President, told union members that jobs are the number one issue for working families in Illinois—and that without a tax increase, tens of thousand more jobs will be lost, weakening our state’s economy even further. He urged them to contact their representative (and gave the name) in support of a tax increase.
**AFSCME is sending out a “get active” email to a list of more than 10,000 citizens who have previously indicated their support for a tax increase to urge them to contact their legislators again.
**AFSCME will be running newspaper ads detailing the harm the cuts will do to appear in the paper in areas where the representatives have not yet committed to support a tax increase.

*”Sources” in Governor’s Office are misleading the press -- Last week, sources in the Governor’s office told the press that they were in ongoing negotiations with the Union regarding a demand for twelve furlough days and a wage freeze. All of you were at the only “negotiations” that have taken place thus far with this Administration. As you know, they lasted less than a day and did not include a specific request regarding either furlough days or a wage freeze. We will let you know if any further requests are made to the Union (as opposed to announced in the press).

*Keep on fighting!

Sincerely,
Henry Bayer, Executive Director
Roberta Lynch, Deputy Director