44th District update from Sen. Bill Brady

'Worst fiscal crisis in history,'
yet governor increases spending

[APRIL 14, 2003]  Despite his claims that Illinois is faced with the worst fiscal crisis in the state’s history, Gov. Rod Blagojevich has proposed a state budget that will spend $715 million more next fiscal year than the current fiscal year.

Blagojevich outlined his budget proposal for fiscal 2004 to a joint session of the General Assembly on April 9 -- two months after the traditional date for the gubernatorial budget address. Fiscal 2004 runs from July 1, 2003, through June 30, 2004.

Months of dire budget predictions are now ringing hollow with the presentation of a budget plan that increases general revenue spending by $715 million. This is a difficult budget year -- revenues are down and spending pressures are up -- but this budget plan does nothing to address those problems. It increases spending.

The plan would increase next year’s spending by $715 million, generated by increases in user fees for state regulatory services and licenses and the closing of tax loopholes -- neither of which the governor has fully explained to lawmakers. It also relies heavily on one-time infusions of cash. Under Blagojevich’s plan, $2.3 billion of the $3.5 billion in new revenue next year would come from one-time measures, such as the sale of a 10th riverboat gaming license -- which faces at least six lawsuits, including a federal bankruptcy proceeding -- and fiscal gimmickry such as selling state-owned buildings to private investors who then rent them back to the state.

The new governor has been telling us for months that it was not going to be "business as usual" in his new administration. This sounds exactly like "business as usual." This budget does not raise the income or sales tax, for which we are grateful, but higher user fees mean that more money is coming out of taxpayer pockets, whether they be individuals or businesses.

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The budget plan also relies heavily on the revenues generated by the sale of $10 billion in pension bonds, which is a short-term fix with significant risks. The bond sale immediately doubles the state’s debt and banks on the state’s ability to make an 8 percent return on the investments over 30 years.

Blagojevich’s plan also counts on $35 million in new revenue from the creation of a state "death" tax. The federal government had passed legislation to phase out the "death" tax, which has resulted in decreased revenues for the state. In an effort to retain those revenues, the governor has proposed the creation of an Illinois state "death" tax, which could have severe financial consequences for individuals who inherit small businesses or family farms.

Senate Republicans to visit universities to learn about impact of budget cuts

Illinois State University is site of first meeting, on April 15

See article posted Saturday in LDN.

New office

The new office of state Sen. Bill Brady is officially open in Forsyth. The Decatur and Macon County Chamber of Commerce hosted a ribbon-cutting Friday, which was attended by about 50 people.

The address in Forsyth is 332 W. Marion Ave., Suite 12.

[Provided by Sen. Bill Brady]

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