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 Pension costs are still climbing dramatically. Unemployment
remains stubbornly high. Schools and universities are struggling to
make do with less state money. And the Capitol remains a place where
conflict outweighs cooperation, something that's not likely to
change in an election year.
Experts on business, education and human services see a long "to do"
list for Illinois in 2012. They want more progress on balancing the
budget, payment of billions of dollars in overdue bills, better
teaching methods and a solution to the growing cost of government
pensions.
Most of all, they want a clear, long-term plan for bringing
stability to a state that often seems to lurch from crisis to
crisis.
"Our state has been beaten down for a long time," said Doug Whitley,
president of the Illinois Chamber of Commerce. "We've got to send
positive signals that we know where we're going and we're going to
work at it."
Gov. Pat Quinn, in an interview with The Associated Press, said
reaching an agreement to control government pension costs will be a
major focus in 2012. But his top priority is job creation -- by
increasing the state's exports, helping returning veterans find work
and emphasizing workforce training at high schools and community
colleges.
"We can't have folks dropping out. We can't have folks who are laid
off giving up," Quinn said.
That should be welcome news to Illinois business leaders. They won't
be so thrilled with the Democratic governor's goal of paying for
those initiatives by ending various corporate tax breaks, an idea he
floated briefly in November but shelved when lawmakers balked.
Stubborn problems
Quinn and the legislature's Democratic majority -- sometimes joined
by Republicans and sometimes on their own -- have tried to address
some of the state's most stubborn problems over the past year or
two.
They raised income taxes and cut spending to help balance the
budget. State government is still in a deep hole, but at least it's
not digging deeper.
State officials reduced retirement benefits for new government
employees, but not current employees, to begin reining in long-term
pension costs. Quinn also canceled raises guaranteed in state
contracts and tried unsuccessfully to break a no-layoff promise.
Officials lowered the costs of unemployment insurance and workers'
compensation for Illinois businesses and, in response to complaints
about higher taxes, approved a variety of tax credits. They approved
a major public works program to create jobs while improving Illinois
infrastructure and also tried to make Chicago's McCormick Place more
affordable to major conventions.
Whitley, from the Illinois Chamber of Commerce, called such steps positive
but "incremental." Making Illinois an attractive place for business,
he said, will require a truly sound state budget, further reductions
in pension costs, more cuts in workers' compensation and more.
The trick will be finding any agreement on where Illinois should go
in a year when lawmakers face the uncertainty of running in
districts that were redrawn after the 2010 census. Change tends to
make lawmakers cautious about any votes that could be used against
them in a primary challenge or in the fall elections. Compromise can
anger people who vote based on ideology.
Springfield is likely to be quiet until after the March 20 primary,
and political concerns could harden differences all year long.
"Especially during election season, we'll have negative ads and
finger-pointing," said Glenn "Max" McGee, president of the Illinois
Math and Science Academy and former state education superintendent.
Take taxes, for instance.
House Minority Leader Tom Cross of Oswego, along with many of his
fellow Republicans, wants to roll back the increase in corporate
income taxes that Democrats approved a year ago. They blame the tax,
and its Democratic supporters, for driving up the unemployment rate.
Whether they're right or wrong, the proposal to resume a year-old
fight and potentially blow a $900 million hole in the budget shows
how far apart the two parties are.
Now imagine the two sides trying to negotiate the issue of reducing
retirement benefits for employees, a move that many Democrats
believe is unconstitutional and which would be bitterly opposed by
unions.
"None of these guys are going to get into a real, meaningful
discussion of pensions this year with elections coming up. They're
not," said Peoria Mayor Jim Ardis, a Republican.
Next year, the state is supposed to come up with $6.9 billion for
pensions, up from $5.7 billion this year, according to the Civic
Federation. Without a change, either in the benefits promised or the
state's timetable for providing the money, the cost will continue to
leap from year to year, leaving little money for other government
services.
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Quinn said the problem can be solved, despite the fierce differences
of opinion on cutting benefits to people already enrolled in
government retirement systems. He said his administration will bring
interest groups and lawmakers together to hash out a plan.
Likely to spin wheels
Despite Quinn's optimism, others fear Illinois will mostly spin its
wheels in 2012 instead of moving forward. Partisan differences, a
weak economy and a tight budget don't exactly encourage movement,
they say.
Judith Gethner, executive director of Illinois Partners for Human
Services, hopes the grim outlook could work to her advantage on one
issue: the billions of dollars Illinois owes to the charities and
businesses who provide services for state government.
Until recently, hospitals and other Medicaid providers were partly
shielded by federal rules requiring the state to pay them first. Now
those rules are gone, and she expects hospitals to share more of the
pain and push loudly for state officials to take action. That might
renew efforts to have the state borrow money and pay providers who
often wait months for what's owed to them.
That would shore up the human services "safety net" and avoid
further job cuts, but Gethner -- like others -- said solving larger
problems will require a clear vision for 2012 and beyond.
"When you're in the mode of just trying to survive and nobody's
watching the future, I find it difficult to see a way
that anything will be different," she said.
Leaders outline needed steps
In interviews with The Associated Press, leaders in a variety of
fields discussed the challenges facing Illinois in 2012. Here's what
they think should be the top priorities for state government:
-- Jim Ardis, Peoria mayor: Control pension costs that are eating up
most of the state's new revenue. Stop raids on money that goes to
local government. Make Illinois more attractive to businesses.
"Pay your bills and stay out of our pocket," Ardis said.
--Judith Gethner, human services advocate: Pay billions of dollars
owed to businesses and community groups. Avoid temptation to reverse
tax increases.
"Make some real, significant changes," Gethner
said.
--Glenn "Max" McGee, educator: Improve standardized testing to
emphasize students' problem-solving. Provide more money for schools.
Make Illinois a place that values innovation and excellence.
"When you're focused on just living from one day to the next, which
I think Illinois is doing right now, you don't attract the best and
the brightest," McGee said.
--Pat Quinn, governor: Expand overseas sales of Illinois goods.
Offer a tax credit to businesses that hire veterans. Provide
additional tax relief to working families. Reach a deal to control
pension costs. Emphasize job training in schools and community
colleges.
"If you want a job for the rest of your life, be a welder. I
guarantee you that. The same way with nursing," Quinn said.
--Doug Whitley, business advocate: Continue progress toward
balancing budget. Find way to control government pension costs.
Improve schools and job training. Rebuild state government's
battered reputation.
"Illinois needs to stand for job growth instead of corruption,"
Whitley said.
[Associated Press;
By CHRISTOPHER WILLS]
Copyright 2012 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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