The in box. John Dillon on Nekritz’s Three Card Monte.

Here are some considerations that Rep. Nekritz omits in her response to Ralph Matire’s suggestions. The General Assembly is already acting on borrowed time for the 2% increase the Democrats forced through an earlier lame duck session, an increase designed to sunset in 2015. With the current state of affairs in Illinois, the fiscal irresponsibility and scapegoating of nearly 600,000+ public sector employees; an assurance of a “next” Democratic governor is certainly questionable. Would-be governors are already gearing up for their runs in 2014. Are we all so sure that the end result will be a Democratic governor? Attacking the public sector workers will certainly make for a different election process in 2014.

Perhaps Rep. Nekritz might consider some other methods. By making the 2% tax increase a permanent fix dedicated for the state’s unfunded liability is to provide $7 billion for an initial payment to a bond issue for the unfunded liability – one for $96+ billion which could be paid back in 25 years. While Rep. Nekritz wonders at the possibility of selling such an amount of debt, the guarantee of a dedicated stream of revenue to pay back the $96+ billion in debt will undoubtedly make bond rating companies sit up and take notice. The movement from soft debt to a hard debt commitment will assure a consistent numerical payment on a yearly basis, one which will decline in impact over the 25 years it is being paid off. Such a delineated schedule might bring more purchasers than one would expect, especially in our current economy.

Let’s remember, unlike the current 1995 ramp, at which Rep. Nekritz would have us all continue throwing exponentially increasing amounts of money, the payment on dedicated unfunded liability debt would remain flat over the next 25 years. And, assuredly, the current economic flat line will not remain for that period of time. Finally, given the possibility of a Republican governor or in an attempt to find across-the-aisle agreement, why not have a bi-partisan commitment to correcting the fiscal malfeasance taken out on the pension systems for so many years by the General Assembly? The solution would be morally correct and Constitutionally correct. More importantly, it would stop this Democratic refrain to manufacture some small responsibility in the public sector a reason to cause all the pain for those in the State of Illinois who did all that was asked and planned on futures based upon promises given and payments made.

– John Dillon