by Kristina Rasmussen

Feeling blue about state government? You're not alone:

CHICAGO (AP) — Illinois voters don't have a lot of confidence in state government, and their outlook about the federal government isn't much better.

That's according to a new Chicago Tribune/WGN-TV poll.

The poll found that more than 6 in 10 of those surveyed lack confidence in Illinois' government. And 55 percent of voters say they don't have much or any confidence that the federal government will make the right decisions.

• A plurality of voters (49%) want to cut state spending on important programs rather than having their taxes raised.
• A majority of voters would choose a candidate that will cut spending.
• Over 50% of voters across party lines favor amending the Illinois state constitution to place a limit on state spending growth.
• A majority of Soft GOPers and Inds support a candidate lowering state employee compensation to the level of the private sector during the state’s budget crisis.
• A large majority of voters regardless of party want a candidate who supports making it easier to start and operate a small business.

by Kristina Rasmussen

Not one to stop good money from going after bad, President Obama announced plans for a new stimulus spending spree, this time to the tune of $50 billion for roads, rail boondoggles, and the like.

I don't think the American people will buy into it. Over the past year, chances are you've driven by more than a few "Putting America to Work" propaganda signs touting stimulus infrastructure projects. The thing is -- America hasn't been put back to work. As the numbers show, Illinois has fewer jobs this summer than last.

Illinois Employment (BLS: statewide, total nonfarm, not seasonally adjusted):

• June 2009: 5,700,200
• June 2010: 5,677,500

WSJ: Washington and the "Recovery Summer" that Wasn't

While fiscally conservative politicians are out there promoting responsible government-much like our Turnaround Tour-President Obama is being told to stay away.

Chicago Tribune: Chicago Hopes to Borrow Another $1 Billion for O'Hare Expansion

"Like a poker player who has gone all in on a bet that is too big to lose..."

The Teacher's Retirement System is selling off assets to pay its obligations.

A bi-partisan agreement on school vouchers.

The Chicago Tribune contemplates the squandering of $551 million by Chicago politicians.

by Kate Piercy

DuPage County Board Chairman Bob Schillerstrom has unveiled a $70 million capital plan with bond projects ranging from improvements to roads and campus grounds, creating bike trails and planting trees. The 30-year plan will cost taxpayers nearly $125 million.

Although the projects may sound nice, is this fiscally responsible or fair to taxpayers?

Some don't think so. State Senator Dan Cronin, who is running for DuPage County Board Chairman, released a press release with his reactions to the plan, stating that "Only five projects will fund road improvements and more than half of the total amount - $38 million – will pay for various needs at the County government campus."

Cronin continued, "Upgrading county buildings will not improve our infrastructure or help the economy. While some of these projects may be desirable, we must make due under these strenuous economic circumstances. For example, this is not the time to borrow $1 million to pay for shrub and tree replanting along the Illinois Prairie Path.”

Good point, and putting an additional $125 million of debt on the backs of taxpayers sounds like anything but fiscally responsible spending. 

The Chicago Tribune reported today that although the plan is expected to go through, Cronin will keep fighting it, "We fought it in Springfield. I've seen this movie before, and we've all seen it in Washington, D.C. — it's just 'kick the can down the road, cut the deal now and fix it with taxpayers later.' We're not supposed to do that in DuPage County. That's not the way I do it."

by Kristina Rasmussen

With the state billions of dollars in the hole, Illinois's network of state parks is facing budget cuts:

The Wildlife Prairie Park subsidy is being wiped out as part of a $2.4 million reduction in lump sums at the Department of Natural Resources. DNR will also reduce vacant positions and defer “non-critical” maintenance at state parks.

Cheryl Chumley writes at American.com that various states are coming up with unique approaches to keeping their parks open during budget troubles, including privatization and corporate sponsorship:

With no economic boon in sight, perhaps it’s time to consider different operating models. One idea that meets stiff political resistance is privatization. Utah’s Privatization Policy Board is currently looking at recommendations to give the state legislature about privatizing some of the state’s 43 parks.

...

Another possible solution is brewing in Georgia and New Hampshire: corporate sponsorships. Verizon is reportedly joining forces with the Boy Scouts to fix up trails and bridges in Georgia’s state parks. Verizon provides the tools; the Boy Scouts, the labor.

Chumley notes that charging higher user fees might be easier for pols to stomach:

Not all are on board with the idea of commercializing public parks, however. For them, an easier solution to stomach might be adjusting user fees. Some parks have already taken this path. Hawaii, for instance, only collected $2.4 million in user fees between 2008 and 2009, but its parks’ operating expenses came in at $9 million. Legislators must have seen the unsustainability of this fiscal situation, and several parks that weren’t even charging entrance or parking fees recently announced the intent to start. Other states have followed suit, and within the past few weeks parks in Louisana started charging $4 entrance fees, up from $2, while those in Idaho added a $3 fee to take a shower and a $10 fee for an overnight stay.

More states should do the same.

Happy Labor Day.

by Ashley Muchow

The economy has proved to be the most important topic in politics today.  Rightfully so.  Come the end of last month, U.S. unemployment stood at 9.6%.  Economic activity left much to be desired as GDP rose 1.6% in the second quarter of 2010, compared to a 3.6% increase in the first. 

Naturally, Washington feels obliged to do more.  The sunset provision on the Bush-era tax cuts is set to expire the end of this year and much debate has beset our nation's capital with questions of what should be done.  Do we pull back?  Let the cuts that have provided relief to the American public for the past decade expire?  Or rather, do we extend them?  Thus easing the burden the economic crisis has inflicted on the majority of Americans.

Aha!  Why not play it safe and appease as many constituents as possible by cutting off the wealthiest Americans.  But wait one second.  One would have to assume increasing the 35% rate to 39.6% would likely impact small businesses, who often take in more than $200,000 annually.

Nancy Pelosi denies such deductions, claiming only 3% of small businesses would fit into such bracket.  But IRS data shows otherwise.  Kevin Hassett and Alan Viard, in a recent WSJ article, cited various studies and performed their own analysis to show, quite vividly, the injurious impact tax hikes on "wealthy Americans" will likely have on small businesses and unemployment numbers.

• According to IRS data, 48% of the net income of sole proprietorships, partnerships, and S corporations went to households with incomes above $200,000 in 2007.
  
• A 2000 academic study showed the increasing progressivity of the tax code discouraged entrepreneurs from starting new businesses.
• A 2000 National Bureau of Economic Research study showed high responsiveness of sole-proprietor business activity to tax rates.
  
• A National Federation of Independent Business (NFIB) survey unveiled that small business owners placed taxes as the second most important problem they face, after weak sales.

by Kate Piercy

The Illinois Policy Institute sent a Freedom of Information Request into the state asking for state employee salary information, and it came back with some puzzling data:

Illinois taxpayers gave former governor Rod Blagojevich $28,880.07 in 2009. His "monthly salary" was $14,784.33, so it appears he received two months of pay in 2009. 

But, Blago was impeached at the end of January 2009, so why the two months worth of pay?

by Collin Hitt

In more serious news, the federal government announced the final $350M in awards that it'll be handing out for Race to the Top.  This time, the Department of Education is funding multi-state initiatives to develop better standardized testing models.  Illinois belongs to one of the winning groups, which features Florida as the lead state.  If things go as proposed, Illinois will be implementing a new series of tests that track students' progress over the course of the school year, beginning in grade 3 and running every year to grade 11.

by Collin Hitt

The Illinois Policy Institute has received yet more recognition for our timely, incisive work in education reform. Yesterday, the prestigious Thomas B. Fordham Institute notified me that I had won the caption contest on their blog. Though not released officially, I've been told that my quote's vote tally lapped the competition. Steven Hawking, Nelson Mandela, Daniel Tosh, Bob Dylan and Arne Duncan are all rumored to have been rumored to have also submitted entries.

Clear here to read more about the contest.