Sen. Brady: Blagojevich calls for fifth year of more spending, higher debt         

[March 08, 2007]  SPRINGFIELD -- As he begins his second term, Gov. Rod Blagojevich continues on the same fiscally dangerous course, balancing a fifth year of higher spending, deeper debt and pension gimmickry squarely on the backs of Illinois businesses, the citizens they employ and the consumers who buy their goods or use their services, according to State Sen. Bill Brady (R-Bloomington).

Blagojevich outlined his $49.1 billion budget proposal for Fiscal Year (FY) 2008 to a joint session of the General Assembly on March 7. Fiscal Year 2008 runs from July 1, 2007, through June 30, 2008.

Sen. Brady says the Governor's plan includes programs with laudable goals -- universal healthcare and more money for schools -- but the costs are staggering and place an even greater strain on a state budget relying on record-high state debt, a record-high backlog of unpaid bills and continued attacks on the state's jobs climate.

"Our Governor is one for high drama. Well, here's a drama he should consider -- a tale of two economic realities," Sen. Brady said. "He claims it is the best of times, but with this budget, it will be the worst of times in Illinois."

Not included in the Blagojevich plan are measures that would provide property tax relief or utility rate relief for Illinois citizens and businesses. "This is the biggest tax increase in the state's history and there's not a dime to give homeowners, senior citizens, and small businesses relief from high property taxes," Sen. Brady said.

Blagojevich wants to implement a $2.1 billion universal healthcare program and increase education funding by $1.5 billion -- to be paid by a $6 billion gross receipts tax on businesses and a healthcare payroll tax that will eventually cost business more than $1.1 billion per year. He wants to shore up the state's pension system -- which he has systematically raided for years -- with a $10 billion lottery lease and $16 billion sale of pension bonds.

The 44th District Senator noted several facts that the Governor did not mention in his budget address:

• The Blagojevich budget proposal includes the largest spending increase in the history of the state -- $3.1 billion.

• The Blagojevich plan includes the largest tax increase in Illinois history -- $6 billion gross receipts tax on business. That is bigger than the previous six largest tax increases in Illinois history combined.

• The Governor's budget would include the largest borrowing in the history of the state
  -- $16 billion.

• The Governor is asking for $32 billion in new dollars ($6 billion tax hike, $10 billion lottery sale and $16 billion borrowing).

• In one year, Rod Blagojevich will increase spending nearly as much as during his entire first term.

• Rod Blagojevich doubled state debt in his first term, now he will quadruple it. General Obligation debt will be four times what it was when he took office, going from $9 billion to $36 billion.

Illinois employers, and the jobs they provide, have long been the target of Blagojevich and his budgeteers. In his first year, Blagojevich raised 300 taxes and fees, sending jobs out of Illinois and into other states. Illinois's job growth rate of 1.9 percent is the 8th worst in the nation since Blagojevich took office, and lags behind neighboring states of Missouri (2.6 percent), Indiana (2.8 percent), Kentucky (3.5 percent), Wisconsin (3.7 percent) and Iowa (5.4 percent).

The 44th District Senator says strong economic and job growth would be a better solution to Illinois' budget woes that record tax increases. He said if Illinois ranked 8th best in job creation, instead of 8th worst, Illinois would have 500,000 more jobs today. Based on the estimate that each job generates $4,000 in tax revenue, those jobs would be generating $2 billion in additional state tax revenues this year.

"Since January, I have been going to communities in each of the seven central Illinois counties I represent to talk with their citizens about the real 'state of our state,'" Sen. Brady said. "Medicaid, healthcare and pensions are taking more and more of our tax dollars -- one business group has estimated $106 billion in unfunded commitments or a debt of $8,800 for every man, woman and child in Illinois. Citizens must understand the serious economic challenges we face."

Sen. Brady says the Governor's spending blueprint is the first step in the budget negotiation process, and he looks forward to working with his fellow lawmakers to craft a fiscal plan that reflects the spending priorities of 44th District citizens.

[Text copied from news release sent on behalf of Sen. Bill Brady and received from Illinois Senate Republican staff]