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Republican lawmakers say no need for taxes

Several suburban Republican senators say they've found ways to cut $3.4 billion from the state's $11.6 billion hole and avert an income tax increase.

"We didn't get into to this problem overnight, and we don't have to solve it all at once in one year," said Sen. Carole Pankau, an Itasca Republican. "But what we have to do is put the State of Illinois on a diet. We have to say to ourselves we are going to run government leaner than it is right now and restructure to make wise use of every dollar."

Pankau and other GOP members of the Senate's Deficit Reduction Committee appeared at a Capitol news conference, stressing this is not the time to raise taxes.

Instead they proposed a litany of program cuts and expanded gambling to both trim the budget and spur the economy in hopes of putting Illinoisans to work and keep dollars flowing to state coffers.

The GOP lawmakers suggested streamlining several Medicaid programs to save millions if not billions and making state retirees pay more for their retirement benefits. They said it would not reduce eligibility for Medicaid and therefore wouldn't jeopardize billions in federal stimulus money.

Other cost-saving suggestions include raising the state cap on the number of charter schools and limiting new education mandates.

"There is a public expectation out there that we get serious about tightening government's belt like people are having to tighten their belts at home and to do it without raising taxes," said Palatine Republican state Sen. Murphy said.

Sen. Dave Syverson, a Rockford Republican, also said the huge, $11.6 billion deficit figure is misleading, as it doesn't include billions in federal stimulus money that'll significantly reduce the size of the problem that must be corrected.

Republican lawmakers also recommended expanding gambling to finance billions worth of state-sponsored construction. The expansion would include more gambling positions at casinos, a new Chicago casino, slot machines at horse tracks and professional management of the Illinois Lottery.

Gov. Pat Quinn has proposed using part of an income tax increase to pay for construction, while some Democratic lawmakers want to raise gasoline taxes.

When asked for reaction to the GOP budget ideas, a Quinn spokeswoman sent the following statement.

"Governor Pat Quinn is aware of the Senate Republican lawmakers' report and will review its recommendations. However, Governor Quinn believes his proposed budget will solve Illinois' fiscal crisis. His budget significantly pays down the state's $11.5 billion deficit, which will enable Illinois to pay bills in a timely manner to hospitals, nursing homes, pharmacies and thousands of small companies that employ Illinois workers.

"At the same time, Gov. Quinn's budget also includes significant tax reform by improving the personal exemptions and providing unprecedented tax relief to five million taxpayers."