 But top aides hint that he
will also present higher taxes as an alternative to the deep cuts in
social services that would be likely if state government continues
letting bills pile up."He's not included a tax increase in this
budget, and that's a conversation that has to happen," his chief of
staff, Jerome Stermer, said Tuesday.
Letting more bills simply pile up could be disastrous for those
who need help with child care, job training, services to the
elderly, drug counseling and more. The local organizations the state
hires to provide those services, which are already struggling to
survive, could go under if they don't get paid.
"It's a question of whether the creditors that we owe money to
can actually stay in business or whether they'll collapse," said
Quinn budget director David Vaught.
The Democratic governor has long embraced an income tax increase
as the key to closing the biggest budget deficit in Illinois history
-- $13 billion or more.
But the budget proposal that the administration described Tuesday
night for legislators and reporters does not include a tax increase.
Instead, it addresses the deficit by cutting expenses by $2 billion,
borrowing $4.7 billion to pay old bills and letting about $6 billion
in new bills pile up for another year.
Quinn's aides did not outright call this budget proposal a
doomsday scenario meant to pressure legislators into supporting a
tax increase, but they did say repeatedly that Quinn has not had a
change of heart.
Wednesday's speech will address state revenues, they said.
Sen. Matt Murphy said Quinn must tell lawmakers how he prefers to
handle the budget and not simply leave it for the Legislature to
decide. "To punt from day one is a total failure of leadership,"
said Murphy, R-Palatine.
Ralph Martire, executive director of the Chicago-based Center for
Tax and Budget Accountability, said it would be irresponsible for
Quinn not to propose a tax increase. The state's budget problems are
too big to fix any other way, he said, adding that Quinn may be
challenging lawmakers who oppose higher taxes.
"I think that what you see the governor doing is calling the
bluff of those who say you can do this without a tax increase,"
Martire said.
Most of the savings in Quinn's proposal would come from cutting
education spending by $1.3 billion, or roughly 10 percent. State
employees would have to take unpaid days off, saving $200 million.
Prescription drug benefits for the elderly would be cut in half,
saving $70 million.
Quinn proposed a $2,500 tax credit for each new job created by
small businesses. He said it would create 20,000 jobs.
[to top of second column]
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Lawmakers last year rejected Quinn's proposal to raise income
taxes. Now, in an election year, lawmakers aren't any more eager to
consider the idea.
They could pass a temporary budget and postpone any politically
touchy decisions until after the November election. At that point,
legislators will be safe from voter backlash and Quinn will either
have won a full term or have been beaten by Republican Sen. Bill
Brady, who opposes any increase.
"I'm really curious about what the next governor thinks we should
do," said Senate President John Cullerton, D-Chicago.
With revenues falling and expenses climbing, Illinois government
has a huge hole in its budget. Experts predict the deficit will top
$13 billion in the upcoming fiscal year. That's nearly half the
entire discretionary-spending portion of the state budget.
The state faced a similar, though smaller, deficit a year ago.
Quinn proposed closing the deficit with a mixture of higher taxes,
lower spending and temporary budget maneuvers.
Legislators, however, balked at raising taxes or making deep
cuts. They passed a budget that cut some spending but relied mostly
on borrowing money and delaying bill payments to keep the state
operating for another year.
[Associated Press;
By CHRISTOPHER WILLS]
Associated Press writer Deanna Bellandi contributed
to this report.
Copyright 2010 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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