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In a time of economic challenge, it is
our challenge to offer a way forward. Times are tough. People are
worried. But there are solutions. I am here to talk about the state
of the state and to present a budget. But how do you talk about the
state of Illinois without first talking about the state of the
nation? Today, we are a country at war. Leading economists warn of
a recession, unemployment is up, more and more Americans find
themselves without health care, and many families face the very real
possibility of losing their homes.
In America the promise of the American Dream is a promise that is
getting harder to keep. In Illinois we are guiding a ship in the
midst of a storm. But, our ship of state is on the right course to
navigate through that storm.
In spite of national trends, here in Illinois, we have made real
progress for people. Over the last four years, we led the Midwest in
job creation; we raised the minimum wage twice, more than three
quarters of a million people have gotten health care, including All
Kids. We are the first state in the nation to create a fund to help
families keep their homes. We put a record amount of money in our
public schools without raising taxes on people and, most recently,
Illinois became the only state in the nation where a senior citizen
can ride the bus for free.
We have made a lot of progress for people. But make no mistake
about it these are tough times. And when times are tough, I believe
the best way to fight for families and fight for people is to focus
on strengthening the economy.
The economy is about interest rates, inflation rates, the
velocity of money and sub-prime mortgages. It is about the balance
of trade and taxes, fiscal and monetary policy, the unemployment
rate and more.
But, what it really comes down to is families and their economy.
Today as we focus on what I believe we must do to strengthen the
economy, we must never lose sight of the fact that it is all about
families and our ability to help them build a better, more secure
life.
What I will propose today is a comprehensive approach to the
economy. It will focus on three clear and achievable goals. It will
be challenging. But we can do this.
A stronger economy requires an infrastructure that will support
and spur growth. A stronger economy requires that families get more
of their hard earned money to spend and save the way they want to. A
stronger economy requires that we cut taxes for businesses that
create jobs and growth. Invest in our Infrastructure. Relief for
families. Tax cuts for businesses. If we make the tough choices
elsewhere in our $58 billion budget, we can do these things and
strengthen our economy. And we should do it now.
My first proposal focuses on families. Why? Because our state's
economy is based on the family and every month, at the kitchen
table, that reality hits home with the parents as they try to
balance a checkbook with all the bills their family faces. They do
not need an economist to tell them the economy is in trouble. They
know it. Because at the end of every month, they do not have any
money left over. Our focus on the economy must always keep in mind
that family. If they are stronger, our state is stronger. If they
are struggling, our economy is weakened, our future diminished.
So here is what I propose: we do in Illinois what Washington just
did. Help middle-class families, by giving them another $300 tax
credit for their children. This doubles the tax credit Washington
just passed. Doubling the tax credit would give parents a little
more money to pay for the things their kids need now, and, maybe,
have a little left over to invest in their kids' future.
A Republican President and a Democrat-controlled Congress put
aside their differences and came together to act quickly. If
Washington can do it, we can do it. They did their share, we should
do ours.
Economic experts say this is good policy. It will strengthen the
economy by putting more money into the hands of families. And
besides, families need it. It is hard to make ends meet these days.
When I was growing up, every hard earned penny my parents made
was spent on paying the rent, feeding their children, and paying
their bills. Like a lot of families, they lived paycheck to
paycheck. There was no money left over for things like movies,
restaurants or vacations. For my parents, life was hard but there
was real opportunity. Hard work meant a better life for their kids.
But imagine how hard it is for families to make ends meet today?
How can they afford to build a better life for their children when
the cost of everything is going up? In the last five years, the cost
of gasoline has doubled. The cost to heat your home is up more than
50%. It costs 25% more just to turn your lights on. Eggs cost twice
as much. Bread costs three times as much. And a gallon of milk is a
dollar more than it was a few years ago.
Wages do not keep pace. And leaders at every level of government
keep talking about raising taxes on people. Enough is enough. The
middle class is getting squeezed. They are doing their part. They
are working longer and harder than ever before. But they are finding
it harder and harder to make ends meet and provide for their
families. Let's help those families and let's do it now.
So, I am asking you to immediately pass this child tax credit.
Let's give parents the help they need as they work and raise their
kids. So let's strengthen our economy by helping families. And let's
strengthen our economy by helping businesses.
I propose we cut taxes on businesses by 20%. Cut taxes, that is,
on those businesses that actually pay taxes. Now last year I
proposed the GRT, designed in part, to make our tax system more
fair. I didn't believe then, and I don't believe now, that 20% of
business in Illinois should pay 96% of corporate taxes. The tax
system in Illinois is loophole-ridden, outdated and unfair. I
believe it actually stifles economic growth.
But I am not asking you to do that again. What I am asking you to
do, is to cut taxes on those businesses that are paying more than
their fair share. They are driving our economy. They are small. They
are mid-sized. They are start-ups. They are family owned. They are
the few big corporations that actually do pay corporate income
taxes. They are meeting their responsibilities and, most
importantly, they are creating jobs.
When times are tough it is hard for businesses to keep people on
their payroll. Cutting taxes on those businesses will allow them to
invest more, stimulate the economy, keep people working and put more
people to work.
Cutting taxes on business is a way to strengthen the economy
through the private sector. But we should also strengthen the
economy through the public sector. I know I am not alone when I say,
it is about time we pass a capital bill.
Let's pass a capital bill. Let's make those necessary investments
in our aging infrastructure. Let's make our bridges safe. Let's
repair our roads.
Let's build schools. Let's put people to work. And let's put an
end to the delays, the excuses, and the poison pills.
How is it that virtually everybody here says they support a
capital bill that will create jobs, but you have yet to send me
something I can sign? Actions speak louder than words. Act and send
me a capital bill that I can sign.
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And here's why: in a global economy with national economic forces,
when so much of the economic activity that affects us here in
Illinois is out of our control, the single most direct thing we can
do at the state level to create jobs, is to invest in our
infrastructure and invest in a public works jobs program. If the
Bush administration can invest billions in the re-building of Iraq,
the least we can do is to invest to re-build Illinois.
Those of us who are Democrats; those of us who are the
descendants of Franklin Roosevelt; those of us who philosophically
believe that it's the proper role of government to put people to
work through public works programs, especially during hard economic
times; and for those of us, the Democratic Governor, the Democratic
Senate and the Democratic House – this should not be hard to do.
And we Democrats are not alone. The two Republican leaders, and I
believe most rank and file Republican members, have joined us in our
call to invest in our infrastructure and pass a capital bill. In
fact, I think our Republicans colleagues are just as enthusiastic as
we Democrats say we are. The stars are perfectly aligned and we have
a golden opportunity. Let's seize this opportunity and strengthen
our economy.
I like the idea of a capital bill of the size and scope I am
proposing because first and foremost, it means that we will put more
than 700,000 people to work. More than 700,000 jobs. Good jobs. Jobs
that pay good wages. Jobs that have good benefits. Jobs that help
families. Jobs that help businesses. Jobs that strengthen our
economy. And jobs that do the work that needs be done.
There are bridges across Illinois that desperately need to be
fixed. There are bridges that need to be built. There are roads in
each of your districts that need to be repaired. And there are too
many of our school children trying to learn their lessons in
classrooms that are overcrowded, or going to school in buildings
that are old and crumbling and not good places to learn. Let's build
them good places to learn.
And speaking of good places, I think Chicago is a great place to
host the Olympics in 2016. Strengthening Chicago's infrastructure
strengthens Chicago's bid to get the Olympics. Let's pass a capital
bill, let's help Chicago win the Olympics.
It has been nine years since Illinois has had a major plan to
invest in our infrastructure. And there are millions of Federal
funds waiting to be matched by State dollars. If you do not act,
that money will be left on the table and we will miss this summer's
construction season. So I am asking you to pass a capital bill and I
am asking you to get it done now.
How do we get it done? I am flexible. I am convinced we can find
common ground; that old options and new approaches can and should be
put on the table. But because I want to help, and not hurt families,
I will not raise taxes on people. There are other ways to achieve
our goals.
Last year, many of you proposed expanding gaming in Illinois as a
way to invest in our infrastructure. I was, in the spirit of
compromise, open to that idea. But after months of haggling,
pretending, poison pills, and no results, let me suggest another
way.
I am proposing a multi-faceted approach that centers around
private investment in the Lottery. It is a fiscally sound idea. And
if linked to a capital bill, it is an idea that could easily pass.
It would preserve current education funding, and the proceeds from
the Lottery - along with other funding mechanisms - will allow us to
fund a $25 billion capital bill. This proposal is the same size and
scope as the State Senate passed last September with bipartisan
support.
I am appointing a team of business, labor and government leaders
to join with me and the other legislative leaders to immediately
begin work on passing a comprehensive capital bill. I am inviting
the members of this working group to be as much a part of the
process of passing a capital bill as the Governor, the Legislative
leaders, and the members of the General Assembly. These leaders know
we need to act now to strengthen the economy. We know it too.
The idea of giving parents more money to help pay for the things
their kids need is exciting. The idea of cutting taxes on
businesses, that are already paying more than their fair share, is
good policy. The idea of a major public works program that puts
hundreds of thousands of people to work, in every part of Illinois,
what is not to like?
All of this is a way forward to help families and strengthen our
economy. But like most things in life, nothing good worth doing
comes without some sacrifice. To give families and businesses more
of their money back, we have to cut spending. These spending cuts
will allow us to cut taxes and get the economy moving.
The sacrifice I am suggesting is a 3% spending cut across the
board, in areas outside health care, education, and public safety. I
am also proposing that we cut more pork, consolidate more
administrative functions and close unnecessary facilities.
By cutting spending and eliminating pork we can afford to give
the people more of their money back and afford to cut taxes on
business. If we manage our budget in tough but clear-eyed ways, we
can move, and move quickly, on strengthening our economy. And by
strengthening our economy, we also strengthen our State Budget.
There are, of course, other important priorities of government.
We will continue to fund and support our state police. We will
continue to provide critical social services to protect children,
seniors and help families in need. We will fund our schools and
continue to work for higher standards and accountability. And,
without question, we will continue on our important mission to
provide affordable, quality health care for all.
To my fellow Democrats, who the people have entrusted to run
state government, we need to make good on our campaign promises to
pass legislation that provides access to health care to all the
citizens of Illinois.
The Democratic Party platform of Illinois states that health care
is one of the most critical issues facing families. Senator Obama is
running for President on the platform of providing health care to
all Americans.
I am calling on the Democratic leaders, to join Senate President
Jones and me and do what our party platform pledges, and expand
access to health care to all of the citizens of Illinois.
We all know the urgent tasks that lie ahead. We have a deadline.
It is real. It is the deadline that every week, a family faces, when
balancing a paycheck against the cost of gas, electric rates, food
prices and an economy that is faltering.
Build our infrastructure. Give families more of what they have
earned and now need. Help businesses by cutting their taxes so they
can create jobs.
These actions by us, now, will strengthen our economy, now. The
economy needs our attention. Time marches on and unless we act, a
recession will deepen, the hurt will spread and real people will pay
the price. It is time to strengthen our economy.
[Text copied from file received from
the
Illinois Office of
Communication and Information] |
