Quinn speaks of 'tax reform,' not tax hikes

Gov. Quinn called it "tax reform," but made it clear Tuesday he'll be seeking an income tax hike to help Illinois chip away at its budget deficit.

Speaking this afternoon, as his Office of Management and Budget prepared to release a "blueprint" of the proposed 2011 budget online, Quinn outlined a four-part plan to confront the state's estimated $12.8 billion budget deficit: budget cuts, increased federal grants, strategic borrowing to address crises and, finally, increased revenue.

Quinn, who proposed a state income tax increase last year, made it clear that was part of what he regards as tax reform.

"I have spoken about that in the past and will in the future," he said. "I believe in tax reform. That can result in tax relief for many people."

Quinn decried the "unfair tax structure we've had in this state for many years," referring to the state's traditional reliance on property taxes over the income tax for revenue.

Quinn's push for income-tax increases was given a boost this week by Chicago's Civic Federation, a nonpartisan, but pro-business government watchdog agency that put out a report advocating a hike in the state's personal income tax from 3 to 5 percent and in the business income tax from 4.8 to 6.4 percent. Quinn called it a "provocative study," adding, "I haven't read it. I'm anxious to read it."

The OMB will post the 2011 budget "outline" online Wednesday, with Quinn seeking public feedback as he works toward presenting a formal budget to the General Assembly March 10.

He expressed sympathy for agencies - including school districts - struggling with the state's late payments, but said they were being addressed by emergency borrowing plans, including a new proposal in the General Assembly to borrow $250 million for health care and allow "modest" borrowing by state universities to deal with shortfalls.

"Borrowing is not my first preference," he said, "but you don't want to see people in Illinois lose their jobs."