Tuesday, June 30, 2009

Illinois Budget Crisis

Governor Quinn is an honest and decent fellow. An affable, reform minded politician; after all he, long ago, led the charge toward dumping Illinois' convoluted cumulative voting system. Under such a system, voters elected three state representatives from each legislative district. The theory was that the minority party would have a representative to present their viewpoint. Imagine how this played in the City of Chicago?? Nonetheless, Quinn's leadership helped reduce government by leading Illinois voter's towards dumping this system. That was then, this is now.

Now Governor proposes a budget that both increases government spending and seeks to increase taxes. Perhaps it is time to drop the "Reform" label. The Governor's proposed "temporary" increase in the personal income tax as well as increase the state's business tax is the wrong way to move Illinois forward.

First, to increase taxes during troubled economic times is antithetical to any type of pro-growth policies. A raise in taxes will only continue the decades long slide in Illinois' manufacturing base. Additionally, we will see a continued exodus of retirees to more sunny and tax favorable climates. Neither are a good way to grow Illinois.

Second, all the political posturing about how certain groups of needy citizens are going to get hurt more as budget cuts in social services ensue, is a bunch of nonsense. As the Republican leadership in the Illinois legislature so ably point out, the money is there for these social services to be carried out. The Republicans are also pushing for urgently needed reforms to avoid future budget crisis's. These reforms need to happen now!

Finally, there are other items that can be cut from this budget that would not adversely impact basic governmental functions. Since tax dollars are fungible, The Governor would do well to veto the capital improvement bill, send it back to the legislature and ask the politicos to prioritize the projects. Ask them to save some taxpayer dough.

It is imperative that the politicians in Springfield begin to build a better Illinois during these tough economic times. The state politicos need to build a strong business environment to attract business and industry as well as create home grown businesses. Job creation should be the top goal of our politicians. The first step towards that end is to create a favorable tax climate.

Another area that Illinois needs to strengthen is its vibrant Independent Sector. One avenue to do that is to actually cut funding to social service agencies that are not directly part of Illinois government (ie: grants,special earmarks, etc.). At the same time provide a tax credit to businesses and individuals that make donations/contributions to charitable organizations that provide social services. This would be a great way to build up the Independent Sector while at the same time de-fund the Poverty Industry.

Should the Governor follow the road map above he could regain his Reform label once again. Failing to do so would relegate Illinois to a third rate state.