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Vaught: Sell off tobacco settlement proceeds

Friday, Mar 12, 2010

* The Quinn administration is considering selling off part of a big “asset” to pay off its debts

Part of the borrowing could be covered by selling off the state’s rights to a portion of a massive legal settlement with cigarette companies, said David Vaught, director of Quinn’s budget office.

“We haven’t finished our proposal, but we would hope it would be in the range of $1 billion,” Vaught said.

The state now collects roughly $300 million annually under the tobacco settlement. The idea would be to sell off the rights to half of that for $1 billion upfront.

* The Pantagraph asks a question on most Statehouse minds

The question remains whether [Gov. Quinn] will stick to his guns on such things as altering state employee pension plans, pay freezes and/or furloughs other cost-cutting measures. He hasn’t demonstrated that ability so far.

He backed away from the “doomsday” cuts to social service providers last year, backed away from pension cuts during a teachers’ union rally, etc., etc., etc. He has a lot to prove.

* Meanwhile, the governor had a cute little run-in with a precocious child yesterday while he was touting his tax hike for schools proposal…

Kids say the darndest things, but some times they manage to utter wise gems.

One Berwyn youngster gave Illinois Governor Pat Quinn a jolt when he asked the governor a tough political question.

“Why don’t you pay your bills?” the child asked Quinn as he met with protesters outside a Berwyn school that may cut some programs.

“I tell you we’re trying to get the money to pay the bills,” Quinn replied as the crowd chuckled.

Raw video


* Related…

* A degree in 3 years? U. of I. looking at creating program - An accelerated program might work for 1 in 5 U. of I. students: president

* Quinn aide is among 5 finalists for top tollway post: Kristi Lafleur, deputy chief of staff for economic development and recovery, is among five remaining applicants for executive director, narrowed from a field of 33.

* Quinn Calls for Billions in Cuts, Education Surcharge

* Our View: No good options left to fill state budget chasm

* Quinn picks wrong school to illustrate need for tax hike

* Quinn defends school tax despite political odds

* Quinn Defends Plan to Fund Schools with Tax Hike

- posted by Rich Miller


13 Comments
  1. - Will County Woman - Friday, Mar 12, 10 @ 10:14 am:

    “Why don’t you pay your bills?” the child asked Quinn as he met with protesters outside a Berwyn school that may cut some programs.—NBC 5

    LOL. Pricless.

    He probably can’t, but if Brady could he should use this in a camapaign ad to make a point about Dem leadership/fiscal mismanagement. Even children know that IL dems are not doing a good job. The kid could have a bright future, were it not for the fact that he lives in Illinois, where the quality of living is crap and likely to stay that way for a very long time.


  2. - well - Friday, Mar 12, 10 @ 10:14 am:

    Selling long term assets for short-term gains…

    Because it’s worked SO well for Chicago and the parking meters.


  3. - wordslinger - Friday, Mar 12, 10 @ 10:15 am:

    I wonder what the juice would be for selling off a share of the tobacco settlement. Can’t find it on the google.


  4. - VanillaMan - Friday, Mar 12, 10 @ 10:16 am:

    Uh oh Pot!
    Looks like the Governor isn’t going to follow your excellent suggestion!

    NUTS! I was hoping someone running for office could get my vote!


  5. - Da Ship Be Sinking - Friday, Mar 12, 10 @ 10:18 am:

    Kristi Lafleur has no transportation experience . . . how can she be in the running?


  6. - Yellow Dog Democrat - Friday, Mar 12, 10 @ 10:34 am:

    == Kristi Lafleur has no transportation experience . . . how can she be in the running? ==

    Well, she’s been heading up the Reinvestment Act in Illinois, so I’d say she does has some experience.

    Stacks up pretty well against Paula Wolff who was appointed by Edgar.


  7. - Downstate weed chewing hick - Friday, Mar 12, 10 @ 10:39 am:

    PQ must have been watching those late-night J.G. Wentworth commercials. Can’t wait for your structured settlement? Call 1-877-CASH Now!


  8. - vole - Friday, Mar 12, 10 @ 10:40 am:

    “The question remains whether [Gov. Quinn] will stick to his guns”

    Probably should make that singular — gun

    Like last year, Quinn may look over his shoulder and find little support among other elected executive or legislative officials. If this reflects his leadership abilities or charisma, I don’t know. Or just too many fingers to the wind among everyone in leadership positions.

    We can’t blame all this on Quinn. Seems like an atmosphere of negativity and defeatism has set in around Springfield, the media, and in general, the public. Lot of people yelling “FIRE” but very few bucket carriers.


  9. - Rambler - Friday, Mar 12, 10 @ 10:42 am:

    “Let’s be straightforward about this.”
    When MJM starts off with that, you’re probably about to get the bizness. ;-)
    Over the past year the Dem tax talk has been about a 4.5% or 5% income tax rate (except for a brief bout of clarity from Dan Hynes). Now PQ is proposing 4% — a 33% hike in the tax rate — and MJM, citing the economy, is pouring cold water on it.
    Could be that the Dems are hoping to lure voters with a 4% “teaser rate,” or if you believe MJM, no tax hike at all!
    All this will likely change in November if PQ is elected. Expect MJM to proclaim that the economy has rebounded, and watch for those 4.5% and 5% proposals — 50% and 67% rate increases, respectively — to resurface.
    Why would MJM support an income tax hike after showing little previous interest in fiscal balance? Someone may be running for guv in four years, creating an incentive to proceed with the divisive measures as soon as is practical. That likely means a substantial income tax hike will top the agenda should PQ win in November.


  10. - VanillaMan - Friday, Mar 12, 10 @ 10:50 am:

    Uh - if the Governor thought he was actually saying something in that stream-of-conscienceness clique-drivel answer, voters will stop listening to him.

    “We not going to move backwards, we’re going to move forward”

    “That’s right boys and girls!”

    “Hey kids! What time is it?”


  11. - Hank - Friday, Mar 12, 10 @ 11:00 am:

    J-E-L-L-O !!!


  12. - dupage dan - Friday, Mar 12, 10 @ 11:07 am:

    Art Linkletter was right.


  13. - cassandra - Friday, Mar 12, 10 @ 1:13 pm:

    Well, if one in five students can get through college in three years (and on to grad school, hopefully), they should make this an option for them and work on the other four to make it feasible for them as well.

    College is a nice social experience and all that but these days the expense is just too high. And what you can learn in four years, you can learn in three if you keep your focus. Plus, the more quickly you can get a graduate degree, if that’s you plan, the more quickly you can move out of academia.


Sorry, comments for this post are now closed.


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