THERE IS plenty to dislike in Gov. Pat Quinn’s proposed state budget. Nobody wants to pay higher taxes. No union employee wants increased health-care costs. Most everyone would like the state’s treasured historic sites reopened.
But Illinois’ day of reckoning, after years of expanding programs and spending without the necessary revenue, is here. We give Quinn credit for proposing a state budget that uses fewer of the accounting gimmicks and one-time revenues that are an Illinois hallmark.
THE GOVERNOR has presented the state with pick-your-poison options to close an $11.5 billion deficit in fiscal years 2009 and 2010. It can slash state spending, resulting in 800,000 people being tossed off of state-provided health care, teacher layoffs and other undesirable outcomes.
Or it can go with Quinn’s approach and balance the budget by raising the income tax, making more modest budget cuts and changing state employee benefits and pensions.
We don’t disagree with those who say a recession is no time to raise taxes. But it may be worse to deeply slash state services — cuts that could throw poor people off Medicaid at the worst possible time and deny aid to already-strapped schools. Deep cuts will sink Illinois deeper into recession, according to a recent Center for Tax and Budget Accountability report.
IS THERE a middle ground, a way to capture more revenue without a tax increase? Are there inefficiencies and savings that can be implemented this year that will make a difference later? For example, why didn’t Quinn try to implement managed care for the state’s Medicaid program, which could save a significant sum? These are questions Quinn and lawmakers have to explore before the state’s fiscal year begins on July 1. But clearly, the days of Illinois getting something for nothing are over.
There is no doubt that some legislators will seek to avoid taking a tough tax-hike vote by proposing other revenue sources, such as gambling expansion. Rep. Jim Durkin, a Western Springs Republican, already hauled out one old Blagojevich standby — leasing the state lottery. But a 2008 Justice Department opinion cast doubt on that proposal’s legality, saying that long-term leases of state lotteries violate federal law.
There may be a place for alternatives, such as a Chicago-based casino, to plug the holes that legislators and lobbyists will inevitably poke in Quinn’s proposal. But we agree with Quinn, who asked, “Do we really want to solve our budgetary problems by expanding gambling everywhere the eye can see?” We also wonder if new casinos can sprout up in time to help the budget this year.
WE HOPE Quinn, his fellow Democrats in the House and Senate and the Republican minority can come together. Illinois’ budget deficit belongs to everyone.
But we are not naïve. Given the Democrats’ large legislative majorities, the nature of electoral politics and the Blagojevich scandal, Quinn and the Democrats will own this budget. The most we can hope for is that the Republicans offer constructive suggestions and that Democrats have open minds.
Quick thoughts on the budget
* STATE EMPLOYEES: New
employees would see their pensions scaled back and have to pay more for health
care. We sympathize with state workers who will argue they are being treated
unfairly after decades of the state shorting pensions. However, these plans are
unaffordable now, if they ever were. Quinn's proposal for a retirement age of 67
for new workers is fair because people are living longer. But is Quinn living in
a fantasy world in thinking he and the legislature can impose the changes
without union consent?
* TAX REFORM: We favor a graduated income tax instead of Illinois' flat tax; Quinn's increased personal exemption proposal would cut taxes for families but leave single people making as little as $20,000 paying higher income taxes. A constitutional amendment allowing a truly progressive tax structure should be on next year's agenda.
* HISTORIC SITES: There is no money to reopen the Dana-Thomas House, a huge disappointment. Springfield's Republican legislators should use their votes as leverage to find the money.
