Quinn touts tax breaks for families, not how to fund them
SPRINGFIELD — Gov. Pat Quinn insisted Wednesday that Illinois is “moving forward” by cutting business costs, repairing roads and bridges, and offering tax relief to the neediest.
He proposed modest new programs to help create jobs and provided no details about how Illinois should tackle financial problems that threaten to overwhelm state government.
Taxes played a major role in the 34-minute State of the State speech, with the governor calling for an end to Illinois' tax on natural gas, the creation of a new tax credit for parents with children, which he said will save $100 a year for the average family of four, and the expansion of an existing tax credit for companies that hire unemployed veterans.
In his speech, Quinn also set a goal of higher education for 60 percent of adults by 2025.
He said Illinois is a better place to do business today, despite frequent complaints about taxes, regulations and other costs. By overhauling workers' compensation, lowering unemployment insurance costs and improving roads and bridges, the state has improved the business climate, Quinn said.
It wasn't clear how much the tax measures might cost the state, and Quinn didn't say how he'd pay for the tax cuts when the state is deep in the red.
That rankled some suburban lawmakers.
“We have a lot of difficult problems to solve that we're going to need the people involved in and understanding, and if you give them happy talk and gloss over those problems, you're going to make it more difficult to sell them on hard solution to the problems,” said state Sen. Matt Murphy, a Palatine Republican.
Some Democrats wanted to hear more about that, too.
“Tell me how you're going to execute these plans you introduced,” said Rep. Carol Sente, a Vernon Hills Democrat. “You're the leader of the state and I wanted a little more depth, and that was missing.”
Quinn unveiled the tax cut proposals as part of what he called “the Illinois Jobs Agenda for 2012.” He said that ending the natural gas utility tax would make Illinois the only one state without one in the Midwest, and would help businesses and families alike.
“This tax is an unfair, regressive tax that is not based on the ability to pay,” Quinn said. “By abolishing it entirely, we can provide targeted tax relief to both consumers and businesses. Illinois will be the only state in the Midwest without a natural gas utility tax on manufacturers, retailers and everyday families.”
He introduced the idea of tax incentives to create jobs for veterans. He proposed letting businesses reduce their income tax bills by up to $5,000 if they hire an unemployed veteran. The plan also calls for giving businesses a credit equal to 20 percent of the wages they pay to a veteran, up to a maximum credit of $5,000. Currently, Illinois offers a credit of 10 percent, up to a maximum of $1,200.
Education reform was emphasized in the speech. Quinn said he wants to boost the number of adults who get college degrees or career certificates, and suggested setting a goal of having 60 percent of adults getting that training by 2025. Today, he said, only 43 percent are finishing some sort of post-high school education. Quinn asked lawmakers to spend more money on college scholarships, but he did not propose a specific figure.
In the continuing fallout from the mortgage crisis, Quinn intends to help struggling homeowners find resources to avoid foreclosure, including setting up an “Illinois Foreclosure Prevention Network.” He said it will connect families with legal assistance, mortgage relief and other tools that could help them keep their homes, but didn't offer specifics on how it would work or how much it'd cost.
Quinn also said he'll soon announce a plan to make use of vacant property.
Wednesday's speech was light on Illinois' budget problems, though Quinn called for reforming government pensions and the Medicaid health care program. He didn't offer any hint of how he wants to do it, and painful details on the state's bleak finances will wait until his budget proposal is unveiled on Feb. 22.
Quinn also said any pension changes must be “meaningful, constitutional and fair to employees.” A major question in Springfield is whether it would be constitutional to reduce benefits for current government workers.
Ÿ Daily Herald Staff Writer Ryan Voyles contributed.
Highlights of Gov. Quinn's State of the State
— UTILITY TAX: Proposed eliminating natural gas utility tax, calling it "unfair, regressive."
— FAMILIES: Proposed establishing Child Tax Credit for parents raising children; would provide $100 relief for family of four.
— VETERANS: Proposed Hiring Veterans Tax Credit for employers who employ returning veterans.
— EDUCATION: Sets goal of higher education for 60 percent of Illinois adults by 2025; now 43 percent.
— EXPORTS: Illinois exports have risen 30 percent; Navistar CEO Dan Ustian will lead new Export Advisory Council with goal of doubling exports by 2014.
— HOUSING: Announces Illinois Foreclosure Prevention Network.
— TECHNOLOGY: Announces $2.3 million for new technology center at Merchandise Mart in Chicago for digital start-ups; $6 million statewide competition to build ultra-high speed broadband in Illinois neighborhoods.
— GREEN: Illinois has more than 400 wind turbines, and is working with universities to develop energy efficient batteries.