Quinn: Illinois faces greatest crisis of modern times
Gov. Pat Quinn dared opponents of his income tax hike to point out which government programs they will cut instead, as he opened his budget campaign today in a speech before lawmakers.
"We will pass a budget that will put us on a road to recovery," Quinn said to applause during his joint House and Senate speech this afternoon.
In his first legislative speech since taking over after the ousted Gov. Rod Blagojevich, Quinn said Illinois needs major fiscal and ethics reform to move beyond some of its darkest days in modern times.
"For too long this state has suffered," he said.
Quinn proposed revamping public pensions for new hires to save billions while also raising the state income tax rate by 50 percent from 3 percent to 4.5 percent. His plan also would raise taxes on companies to 7.2 percent from 4.8 percent, and fees for driver's licenses and license plates.
Quinn told lawmakers the $1.3 billion in cuts his budget plans, which includes four furlough days for state workers, is "only the beginning" of the belt tightening.
He said his budget plan "speaks honestly" to residents about the budget crisis that threatens to bring state government to its knees without additional tax revenue.
On ethics, Quinn pointed to a commission he set up before in the wake of Blagojevich's arrest on corruption charges. The panel is set to make official recommendations on campaign finance reform and other laws in the coming weeks.
"It is time to make our government the model of service," Quinn said to applause from lawmakers.
Quinn proposed giving voters the power to recall state elected officials "if they betray the public trust" by referendum and opening up state business with broader "sunshine" laws.
On the budget, Quinn said the state faces an $11.6 billion budget deficit he labeled "destructive."
"The people of Illinois will not take from our children by forcing them to pay our debts," he said. "There is a fair and honest way to pay our bills and meet our obligations."
Quinn portrayed his tax hike plan as "tax relief" for "middle income and working families."
The plan would reduce overall income taxes for families of four making no more than about $60,900 a year by increasing tax exemptions. It also provides for a sales tax holiday for back-to-school items in late summer.
"It is a principal as old as the bible," Quinn said. "Taxes should be based on ability to pay."
Acknowledging growing opposition to his tax hike plans, Quinn warned his foes that they need to come up with better solutions to the state's damaging shortfall.
"You must tell the people of Illinois what you will do instead," Quinn said to cheers from lawmakers, adding later, "Saying 'No' is not enough unless you are willing to speak the truth and offer real alternatives."
The state's shortfall amounts to about a third of the total budget.
"A budget that only offers mean spirited tactics will hurt all of our citizens and further damage our economy," Quinn said of drastic cuts.
Without tax hikes, Quinn said class sizes will rise by 25 percent as more than 30,000 teachers are fired and thousands of residents will lose health care. Quinn also said hundreds of police officers will get a pink slip.
"We are not a collection of 13 million individuals who don't care about their neighbor," Quin said.
Quinn's budget calls for increasing education funding by more than $100 million and hiking higher education funding by $40 million.
On Tuesday, before his speech, Quinn offered no apologies to the suburban families who'd be hit by his proposed income tax increase, saying someone's got to sacrifice in these times of economic turmoil.
"I grew up in the suburbs," said the Chicago Democrat was raised in Hinsdale continued. "There's all kinds of people that live everywhere in Illinois. Five million people under our plan will receive tax cuts - lower taxes. I think we need to lower taxes on people who are most vulnerable to this recession to help them out, to get through, and to also have consumer purchasing power drive our economy forward."
Quinn's top tax official said roughly half the nearly 5.7 million income tax filers in Illinois would come out ahead, which means the other half won't.
"Reducing the tax burden on moms and dads who are raising kids and living from paycheck to paycheck, giving them a sales tax holiday for buying school supplies, as well as an income-tax cut, holding the line on a gas tax increase, I think those are all good things for families," Quinn said.
In addition to higher income taxes, Quinn will seek a $1-per-pack increase in the tax on cigarettes, which now stands at 98 cents a pack.
Meanwhile, Quinn pushed long-awaited, $26 billion statewide construction plan with a $20 increase for license plates, up from $78, and doubling the $10 price of a driver's license to pay for roads and bridges. Mass transit construction would get a boost from an increase in the vehicle transfer fee and local construction spending would be financed by not sharing $287 million with local governments.
Schaumburg Village Manager Ken Fritz has said the state move toward possibly cutting local governments out comes as many communities are struggling with their own budgets and could "exacerbate the problem." But Quinn budget aides said several suburban schools that were long ago promised state construction dollars would get top priority for any new spending. Statewide, nearly two dozen districts are owed roughly $150 million for projects they either completed and never got state help or were unable to finish because state money ran out.
Local districts on the waiting list include Winfield Elementary District 34, Carol Stream Elementary District 93, Villa Park Elementary District 45, Westchester School District 92-1/2, Big Hollow School District 38, Northbrook Elementary District 27 and Westmont Unit District 201.
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