Governor Quinn: Raise Income Taxes By One-Third

SPRINGFIELD — Illinois Governor Pat Quinn gave lawmakers two choices. Raise the income tax rate by one-third, or make more than one billion dollars in cuts to schools.

In his annual budget address Wednesday, Quinn said the state’s finances are in dire straits and will only get worse unless lawmakers can find a way to pump billions of new dollars into state government.

Quinn is targeting $1.3 billion in education cuts, and even more cuts in health care and social services. The governor says he will chop the budget, even though he says he thinks it is wrong to slash spending that much.

“The approach is both heartless and naïve. Taking a chainsaw to our state budget for schools, and for healthcare, and for human services is just plain wrong,” he said.

His solution is a 1 percent income tax increase.

“That 1 percent will be enough to restore our education budget…and allow us to get caught-up on some of the millions of dollars we owe to our public schools, our community colleges, and our four year universities.”

But the governor acknowledged lawmakers are unlikely pass a tax increase.

Ouinn saising income taxes by one-third is necessary and told lawmakers they will have to face the consequences if school budgets are whacked.

“I’ve made some difficult and painful choices in the budget. And you must make tough choices as well. Either by approving a plan for new revenue for education. Or by passing a budget that will starve public education at every level, in every community in the state of Illinois.”

Quinn’s income tax hike is one of his five “budget pillars.” The Governor is also basing his $32.1 billion general revenue budget on $4 billion in borrowing, $2 billion in cuts, and another billion or so in new help from the federal government.

“There’s been a historic drop in state revenues, amounting to billions and billions of dollars. And we don’t expect our revenues to rebound in the coming fiscal year.” said Quinn.

Quinn said federal money and “belt tightening” have allowed the state to limp-along for the past year. He said Illinois cannot limp-along further.

The Governor urged lawmakers not to wait to act on his tax increase proposal.

But the outlook for lawmakers voting to raise taxes in an election year appears problematic.
Quinn’s last tax-hike proposal, a 50 percent income tax increase, failed in the Illinois House last spring.

Lawmakers have scheduled an early-May adjournment date, but are not saying when a vote could come on the governor’s budget proposal.