Introduction
Rod Blagojevich’s tenure as governor of Illinois will have a lasting effect on the state’s reputation and fiscal condition. From January 2003 to January 2009, Blagojevich made headlines for his sensational comments, political feuds and backroom deals. After being arrested in December 2008 on charges of political corruption, the Legislature removed him from office the following month. He since has been convicted on federal criminal charges.
Blagojevich was a master at pairing populist rhetoric with new programs directed toward his core constituencies. That mastery, however, was confounded by incredible lapses of judgment and public grandstanding that baffled both voters and politicians. Programs such as free bus rides for seniors and free health care for children beg the question: Did he target seniors and children because it was politically expedient, or because he truly believed in these programs? In promoting new programs, did he think he was more powerful than the federal courts and U.S. Food and Drug Administration, or was he really a social entrepreneur with great resolve? Was he was a narcissist obsessed with reaching the White House, or a great man of the people? These are questions Illinoisans still are trying to answer.
What is fact, however, is that to pursue his highly visible programs and agendas, Blagojevich needed money. He found it by diverting billions from the state’s pension system. By taking “holidays” from required pension system contributions and by nearly doubling Illinois’s debt, he burdened future generations to support favored groups in the present.
Offered in this report are 10 programs, policies and issues that capture the essence of the Blagojevich administration. The first two are structural issues, which had a significant effect on the state’s financial condition. The next four are signature programs, focused on Blagojevich’s core constituencies; these programs were not effective and overextended Illinois’s spending capabilities. The final four are smaller initiatives that exemplify Blagojevich’s predilection to use taxpayer money to make political statements rather than improve the lives of Illinoisans.
Perhaps worst of all, as CEO of Illinois, Blagojevich institutionalized a culture of deficit spending. He accomplished this so effectively that Blagojevich’s successor, Gov. Pat Quinn, and today’s lawmakers feel comfortable perpetuating the ruinous habits of spending and borrowing more than the state can afford. Fiscal ineptitude is the new norm.
Blagojevich was Illinois’s leader for six years. His legacy will last for a generation and possibly longer. He left Illinois on a dysfunctional path toward fiscal ruin. Fixing his mess is not just an issue of cleaning up the state’s financial position; it also is about restoring faith in an honest and constructive government that works for the people of Illinois.
No. 1: Disregarded obligations to state pensioners
Policy: Blagojevich diverted billions of dollars from the pension funds of future government retirees to pay for his own spending priorities.Problem: Blagojevich ballooned existing spending programs, ignoring his responsibility to ensure the health of the state’s pension systems. Retirees and taxpayers are on the hook for his political expediency.Program cost: Excess of $3 billion for future taxpayers
No. 2: A culture of deficits
Policy: Grow spending to appease Blagojevich’s core constituencies.Problem: While Blagojevich was creating and expanding unaffordable programs, the state’s financial position deteriorated year after year.Program cost: Worst rating of net assets in the nation.
No. 3: All Kids
Policy: Expand Medicaid to all children in Illinois regardless of citizenship or family incomeProblem: Blagojevich traded the future of state pensioners for middle class entitlements in the present. Even though the program significantly spent more money per child than predicted, still it was ineffective at accomplishing its goals.Program cost: $316.5 million over five years
No. 4: Illinois Cares Rx
Policy: Expand prescription drug coverage beyond Medicare eligibilityProblem: Blagojevich spent money the state did not have to expand a program that could not be sustained, creating dependency among one of the state’s most vulnerable populations.Program cost: $750 million since 2006
No. 5: Preschool for All
Policy: Expand government-paid preschool programs beyond those at risk for academic failureProblem: Another example of Blagojevich unnecessarily expanding middle-class entitlements, even though state resources already were stretched too thinProgram cost: $107 million over three years
No. 6: Seniors Ride Free
Policy: Provide free rides for all seniors on the Chicago-area regional transportation system, regardless of the rider’s ability to payProblem: Blagojevich created another unsustainable, feel-good program for seniors that ignored the financial condition of both the Regional Transportation Authority and general government finances.Program cost: $100 million over three years
No. 7: Flu vaccines
Policy: Bypass the FDA and federal law to acquire flu vaccines during vaccine shortageProblem: Blagojevich ignored the federal government and spent $2.6 million on unnecessary vaccines that could not be imported to the U.S. The vaccines eventually were destroyed in Pakistan.Program cost: $2.6 million
No. 8: I-SaveRx
Policy: In another attempt to bypass the FDA, Blagojevich set up a prescription drug importation program from Canada and other countries.Problem: Blagojevich promoted a program that encouraged residents to flaunt federal law, resulting in more wasted taxpayer money.
Program cost:
$1 million
No. 9: Video game lawsuit
Policy: Protect children by banning the sale of certain video games to minorsProblem: Blagojevich ignored existing court decisions that established the bans violated the First Amendment. He challenged the courts at taxpayers’ expense.Program cost: $520,000
No. 10: Tollway road signs
Policy: Putting the governor’s name on tollway signs Problem: Taxpayers shouldn’t be on the hook for signs promoting a politician on public areas, especially if the signs egregiously are expensive.Program cost: $480,000