Illinois governor-elect eyes bipartisan fix for budget hole

[November 07, 2014]  CHICAGO, Nov 6 (Reuters) - Illinois' Republican governor-elect bulked up his transition team on Thursday, but skirted questions on how he plans to deal with a $1.8 billion hole in the budget he will inherit in January.

In his first news conference since defeating incumbent Democratic Governor Pat Quinn in Tuesday's election, wealthy businessman Bruce Rauner was peppered with questions concerning the partial rollback on Jan. 1 of income tax rates that were temporarily boosted in 2011.

The tax hike was a major issue in the gubernatorial campaign and the rollback will punch a hole in the state's already-shaky budget midway through the current fiscal year.

"We want to work very closely with members of the General Assembly to provide both short-term solutions and long-term solutions to fix the financial health of the state," Rauner said, without offering any specific proposal.

Quinn based the fiscal 2015 budget on making the tax rates permanent and was expected to push the Democratic-controlled legislature to act if he was re-elected. Rauner has called for eliminating the tax hike on individual and corporate income.

Fitch Ratings on Thursday warned that Illinois needs to address the mismatch between spending and revenue, saying in a report that "inaction would be a return to past choices and leave the state particularly poorly positioned when the economy experiences another downturn."

Illinois has the lowest ratings among states and credit rating agencies have said Illinois could be downgraded further if it fails to enact cost-saving pension reforms and structurally balance its budget.

Fitch also noted that Rauner, who has never held political office, will need the cooperation of the legislature.

Rauner, who vilified Democratic legislative leaders in campaign ads, said that by electing him, voters were mandating a bipartisan approach to the state's problems.

"Our mission is not to bicker, is not to waste time arguing, finding petty faults. Our mission is to serve the people, all the people of Illinois, to provide real solutions, real bottom-line results to solve the significant problems that are facing our state today," he said.

Rauner unveiled a diverse 26-member transition committee that includes Bill Daley, President Barack Obama's former chief of staff and brother of former Chicago mayor Richard Daley. Other members were Caterpillar Inc CEO and Chairman Doug Oberhelman and former Illinois governor Jim Edgar. On Wednesday, he announced Lieutenant Governor-elect Evelyn Sanguinetti would chair his then-five-member transition team. (Reporting by Karen Pierog; editing by Matthew Lewis)

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