Monday, May 04, 2009

Better than Mary Ann Ahearn w/Mayor Daley: Berkowitz w/Senator Steans on Pensions, Taxes and more; Cable and Streaming

Updated at 1:30 pm on Monday to correct some typos in the partial transcript, below, of the show with Senator Steans.

State Sen. Steans:... One thing I can say is that thirty of the Democratic Senators, actually it was thirty-six of us that organized getting thirty folks to sign on that if we are going to see a tax increase, we also would like to have some longer term public policy problems solved in doing so, such as getting some property tax relief, and solving some of the education funding problems that we've had in the state, historically, for many, many years.
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The "Public Affairs," show, featuring State Senator Heather Steans airs tonight in its regular cable scheduled slots throughout the City of Chicago at 8:30 pm on Cable Ch. 21(CANTV, aka Chicago Access Network TV) and in Aurora and surrounding areas at 7:30 pm on ACTV-10. The Aurora station, ACTV-10, aka Aurora Community Television, Comcast Cable Ch. 10, reaches all of Aurora, Bristol, Big Rock and parts of Oswego, Sandwich, Sugar Grove and Montgomery.
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You can also watch the show with Senator Steans on your computer.
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The show with Senator Steans was taped on April 19, 2009.
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The "Public Affairs," show, featuring State Senator Steans(D-Chicago) also airs throughout the City of Rockford (and in surrounding areas) this Thursday night, May 7 at 8:00 pm on Cable Ch. 17. Surrounding areas reached by Ch. 17 include Byron, Cedarville, Cherry Valley, Loves Park, Machesney Park, Mount Morris, New Milford, Portions of Ogle County, Oregon, Polo, Stillman Valley, Winnebago, Portions of Boone County and Poplar Grove.
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Quinn's Tax Proposal

Jeff Berkowitz: Do you support Pat Quinn, Gov. Quinn on that tax proposal?

State Sen. Steans[D-Chicago]: Well, listen, I think he is courageous in what he's putting out there. I don't think this is exactly the way I would structure it. I don't think that we're going to be able to come up with enough cuts to entirely get rid of needing to do some form of tax increase. I don't think this is probably what we'll end up passing, though, towards the end of June[May ?]. I don't think we'll probably end up seeing a fifty percent increase in the income tax. And, I suspect the personal-

Jeff Berkowitz: So you don't think-

State Sen. Steans: I don't think it will end up being-

A 25% increas in the Illinois income tax?

Jeff Berkowitz: What do you think it'll be?

State Sen. Steans: Maybe one percent. We're reading tea leaves here. It's hard to know exactly how things will get structured.

Jeff Berkowitz: What about on the corporate tax side? Will that tax increase go through?

Property tax relief and education funding changes

State Sen. Steans: I think there will be a tax increase, but not as much. I think probably they'll stay proportionate to each other. One thing I can say is that thirty of the Democratic Senators, actually it was thirty-six of us that organized getting thirty folks to sign on that if we are going to see a tax increase, we also would like to have some longer term public policy problems solved in doing so, such as getting some property tax relief, and looking at solving some of the education funding problems that we've had in the state, historically, for many, many years.

Jeff Berkowitz: Thirty of the thirty-seven Democratic senators signed on to that?

State Sen. Steans: Correct. Right. So I do think we'll probably see something change in the way we structure this.

Jeff Berkowitz: Does that mean the exemptions that Pat Quinn wants will be reduced?

State Sen. Steans [D-Chicago]: Yes, and/or more targeted towards needy families. I mean, this can apply to everybody, so there's potential also of taking a look at doing something more along the lines of the earned income tax credit, and increasing that-- which is more tied towards … requirements and/or maybe doing something more along the lines of a property tax credit instead of an increase in the personal exemption to the same extent, because we've had such high property taxes in the state, and that's been an ongoing challenge as well.

Jeff Berkowitz: At the end of the day, with that proposal, what do you think the net increase in revenue would be for the State? From the income tax that unfolds from this with the various changes you've been discussing? What's the bottom line, as they like to say?

State Sen. Steans: Probably around the four billion dollar mark.
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Jeff Berkowitz: But you could have a constitutional amendment, could you not-- that did reduce the pension obligations for past employees? You could do that, because-

State Sen. Steans: Change the benefits for current employees?

Jeff Berkowitz: The Constitution says that you can't reduce them, but does that mean if you changed the Constitution to say you could, would you actually be able to go back and do that?

State Sen. Steans: Retroactively? That seems to me that it would be very problematic, to retroactively try to change that. I'm not sure anybody's really suggesting that, that I've heard.

Jeff Berkowitz: It's a big problem for the state. Some people say these pensions for state employees are out of hand, and they're way higher than they are for their private counterparts. As you know, they're defined benefits, as opposed to defined contribution.

State Sen. Steans: Right.

Jeff Berkowitz: Most in the private sector have switched over long ago to defined contributions, not defined benefits. So, could you envision a lot of people, taxpayers in Illinois, grumbling that one reason they’re paying higher taxes is to pay pensions that they view as undeserved?

State Sen. Steans: I do understand. I think there is a sense about that. I do support going to that system where we do change the benefits for employees who have not yet been hired. I myself don't think--because of our constitutional requirements on not changing the benefits—I don’t think that’s a good idea
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Public Affairs thanks Amy Allen, one of its interns, for preparing a draft of the above partial transcript of our show with State Senator Heather Steans (D-Chicago).
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For more about State Senator Heather Steans, the topics covered in our show with Senator Steans (and another partial transcript of the show with Sen. Steans), please go here. .
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Jeff Berkowitz, Show Host/Producer of "Public Affairs," and Executive Legal Recruiter doing legal search can be reached at JBCG@aol.com. *************************************************************
"Public Affairs," is a weekly political interview show airing in Chicago on CANTV, in the Chicago metro area, Aurora and Rockford on Comcast and also often on the Illinois Channel. You can watch the shows, including archived shows going back to 2005, here.
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Recently posted shows on the Public Affairs YouTube page include the fastest five minutes on the web- a New York Times video about Obama-Berkowitz, a show with Senator Steans about budget deficits and education reform, a show with conservative activist Joe Morris about SB600 as a litmus test for reformers, a show with Senator Rickey Hendon (D-Chicago) about hot state legislative issues and politics, a show with Bill Brady, State Senator and 2010 Republican Primary candidate for Governor, a show with State Senator and likely 2010 10th CD candidate Susan Garrett(D-Lake Forest), the second fastest five minutes on the web- a segment of Bill O'Reilly with Berkowitz discussing a clip of Obama from 2002 on Blagojevich and many more shows.
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