Quinn budget to include airport land fund

G ov. Pat Quinn's state budget will likely include millions of dollars to purchase land for a south suburban airport near Peotone.

Three sources confirmed that Quinn is committed to moving forward on the airport development, with one person claiming that Quinn would allocate as much as $100 million to buy 3,275 acres in the airport footprint. The state has acquired about 1,900 acres to date.

"There is money in the budget for the purpose of airport land acquisition, but I can't confirm it's $100 million because the budget has been changing on nearly a daily basis," said a source close to the governor. "I can say that the governor remains committed to the airport."

Another source said the money for land acquisition will likely come from a capital improvement bond sale. That source, who has been conferring with the governor on a regular basis, said Quinn believes the state can't just cut its way out of an $11.5 billion budget deficit.

"The state needs a plan to grow the economy," the source said. "It needs to create jobs. You have to plan for the future. Building roads and bridges, building an airport, those are the kinds of things you have to do long term for the health of the state. Quinn understands that."

Quinn is scheduled to make his budget address to a joint session of the Legislature today. On Tuesday, The Associated Press reported that the governor was still undecided on whether to increase the state income tax from 3 percent to 4.5 percent or something in between. Other taxes may include a $20 hike in the vehicle license plate fee and a $1 increase on cigarettes over a two-year period.

While the average citizen is likely to respond, "I can't afford any tax hike," there are some economists who believe that Quinn's plan isn't enough.

For example, he's planning tax cuts for low-income taxpayers, and on Tuesday he revealed he's considering a sales tax holiday in August to help parents making purchases for the new school year.

"The real mistake would be to pass a tax hike and discover that you haven't raised enough money to solve the state's problems," said Ralph Martire, executive director of the nonprofit Center for Tax and Budget Accountability, a respected think tank that has offered financial advice to both Republicans and Democrats.

Martire favors a 2 point increase in the income tax combined with sales tax increases.

Quinn's plan, while plugging some current budget holes, would not create sufficient new revenue to provide property tax relief to homeowners or reform the state's public school funding system - two longstanding problems in Illinois that have only gotten worse over the years. It also fails to address the state's long-term pension obligations.

Martire said that allowing for inflation, property taxes in Illinois from 1990 to 2005 increased 42.6 percent while per-capita income increased only 2.8 percent.

"That's real money," he said. "You can't allow that trend to continue. People are hurting."

By raising taxes and using that money to provide tax relief to certain segments of the population, the state could find itself needing more money in the not-too-distant future.

On the other hand, it seems to me that Quinn is trying to pander to the Democratic political base. By cutting taxes for low- and moderate-income families, Quinn could make a case for re-election to black voters, who are disproportionately represented in those tax brackets.

His support for the south suburban airport is also likely to help him with U.S. Rep. Jesse Jackson Jr. (D-2nd) and state Sen. James Meeks (D-Chicago), two influential elected officials who support the airport plan. Meeks, the head of one of the largest black churches in Illinois and a leader in the Legislature's black caucus, has said he supports Quinn's plan for an income tax increase.

So while many political pundits believe Quinn's tax hikes will destroy his chances for re-election, he could be positioning himself in the best way possible given the economic realities he faces.

As for the south suburban airport, the primary stumbling block remains picking a body to control its development.

Jackson put together a group of south suburban mayors to develop a privately financed Abraham Lincoln National Airport. But Will County officials, who have done nothing to advance construction of the airport, have said they want control if the airport is ever built.

The battle between the two sides has delayed progress, and Quinn, as the state's leader, ought to pick one group and resolve the deadlock.

And while Quinn is trying to sell his tax plan as bold and providing tax relief for many, he may be undermining his own recovery program by trying to straddle the fence.

Raising income taxes so the governor can use that money to provide a feel-good sales tax holiday is an insult to the taxpayers of Illinois.

If you need the money to fund state programs, construct highways or pay for the schools, fine. But don't play Robin Hood by going after the middle class and pretending it represents the evil Sheriff of Nottingham.

This state needs an honest governor, and taxpayers deserve a square deal.

Phil Kadner can be reached at pkadner@southtownstar.com or (708) 633-6787.