Weekly Review
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February 3,
2009
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From
the Capitol
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Last week, Governor Blagojevich was impeached
from office. Lieutenant Governor Quinn was
immediately sworn in. New Governor Quinn has
already met with constitutional officers and
legislative leaders to sort out the State's
budget problems.
According to the State Journal Register, Quinn
pegged he budget deficit at $4 billion or even
greater. CTBA analysis confirms that number.
Governor Quinn asked for a month delay in the
budget address (to March 18th) because he
doesn't know how bad the budget and revenue
picture actually are. Quinn said he didn't have
access to the information when he served as
Lieutenant Governor and needs time to hash out a
plan.
Governor Quinn told the Chicago Sun Times, "My
hope is between now and the 31st of May to have
the most productive legislative session. That
is what the public wants; and I think if we do
what the public wants, we'll do pretty well."
Also, last Friday, New Senate President John
Cullerton (D-Chicago) put an income tax hike on
the table. "We have major economic challenges
so nothing should be off the table, including
the income tax," Rikeesha Phelon, Cullerton's
spokeswoman, said.
With a $4 billion budget deficit, State leaders
have tough decisions to make in order to get
Illinois fiscally solvent. CTBA has advocated
solutions such as a minor increase in the
State's income tax combined with a refundable
tax credit to protect low and middle income
workers, increasing the State's Earned Income
Tax Credit and expanding the sales tax to
include consumer services.
For more information on these solutions go to
CTBA's
website here.
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Federal Stimulus
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President Obama's American Recovery and Reinvestment
Bill of 2009 Passes the House
In January, President Obama proposed the
American Recovery and Reinvestment Bill of
2009. The bill passed the House, however, it
had no Republican votes.
It now goes to the Senate.
The package contains tar  geted
efforts in:
- Clean, Efficient, American Energy
- Transforming our Economy with Science
and Technology
- Modernizing Roads, Bridges, Transit and
Waterways
- Education for the 21st Century
- Tax Cuts to Make Work Pay and Create
Jobs
- Lowering Healthcare Costs
- Helping Workers Hurt by the Economy
- Saving Public Sector Jobs and Protect
Vital Services
Specifically for state and local governments,
the President has proposed providing federal
dollars for capital projects, education, school
construction, health care, transit, job
training, the Medicaid program and many other
programs. An analysis by the Center on Budget
and Policy Priorities found that of the total
program, Illinois' governments would get about
$7.5 billion, with residents seeing another
billion in tax credits, including child tax
credits, additional Social Security income and
additional money via food stamps.
Specifically, Illinois would receive almost $2.9
billion in Medicaid assistance over two years.
The proposed legislation will change as it goes
through the U.S. Senate. Republican Senators
are concerned the bill does not do enough to
create jobs. However, CBPP found evidence
contrary to that.
Read the report here.
To read CBPP's analysis of the Medicaid
assistance for the states click
here
To read the total analysis of the stimulus bill
click
here
Additionally, the Center for Tax Justice
released the report:
New State Fact Sheets from Citizens for Tax
Justice Show that Families with Children in Most
States Would Gain Around $900 to $1,000 in Tax
Cuts from the Stimulus Bills
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FY 2009 Budget Deficit
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State Budget
Deficits
The Center on Budget and Policy Priorities
(CBPP) has compared state budget deficits
across the nation. The analysis finds at
least 46 states face shortfalls in their
budgets for this and/or next year, and
severe fiscal problems are highly likely to
continue into the following year as well.
Combined budget gaps for the remainder of
this fiscal year and state fiscal years 2010
and 2011 are estimated to total more than
$350 billion. Over half the states had
already cut spending, used reserves, or
raised revenues in order to adopt a balanced
budget for the current 2009 fiscal year.
CTBA analysis pegs Illinois current budget
deficit at $4 billion. However that number
could increase over the next few months as
new Governor Quinn sorts out budget issues
left over from impeached Governor
Blagojevich and if revenues continue to
decline.
CBPP finds that the state budget and revenue
picture could be even worse in FY 2010 and
FY 2011.
The Illinois constitution prohibits the
state from having an unbalanced budget so
the state really only has two options,
spending cuts or revenue increases. It is
doubtful the State could find $4 billion in
spending to cut from FY 2009
appropriations. As newly elected Senate
President Cullerton stated when he was sworn
into office, health care and education make
up the largest part of the budget, but those
programs are difficult to cut. So since
health care and education make up most of
the state budget and are off limits, cutting
the rest won't save much money.
Read the entire CBPP report,
State Budget Troubles Worsen.
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Calendar
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WHAT: Loyola
University Chicago School of Law Public Interest Law
Reporter Symposium
Separate and Unequal: The
Socioeconomic Realities of American Public Education
WHEN: Friday,
February 6, 2009 8am to 4pm
WHERE: Loyola
Law Center
Ceremonial Courtroom
25 East Pearson Street
Chicago, IL
INFO:
Loyola University Chicago School of Law is pleased
to present this important
symposium at no charge. However, seating
is limited. To register, please e-mail:
PILR-Symposium@luc.edu
WHAT:
Leadership for Diversity Conference
Social Justice for Illinois Schools
Pre K-12
WHEN:
Friday-Saturday, January 30-31, 2009
WHERE:
Bradley University · Robert H. Michel Student Center
· Peoria, IL
INFO: The
purpose of this conference is to promote a statewide
dialogue about best leadership practices to promote
learning in diverse environments. We seek to
understand policy implications at the local, state,
and national levels that affect all stakeholders in
diverse settings. It is our hope that from this
dialogue will emerge effective leadership practices
that build inclusive learning communities where
diversity is valued, respected and promoted.
Keynote Speakers:
Dr. Linda Skrla,
Associate Dean for Research, P-16 Initiatives, &
International Programs, Texas A&M University, Ralph
Martire, Executive Director, Center for Tax and
Budget Accountability, Phillip Jackson, Founder &
CEO, The Black Star Project
Registration Fees:
Friday Afternoon Diversity & Inclusion Awareness
Workshop $50.00
Friday Evening $50.00
Saturday $125.00
CPDU credit available - $15.00 Register online at
www.iwel.org. (Deadline for registration is January
9th.) Questions? Contact Dr. Jenny Tripses at
309-677-3593 or jtripses@bradley.edu
WHAT: Dupage Federation on Human Services
Reform, Making the Connection: Accessing Public
Benefits for Low Income Persons
WHEN: October
1, 8, 15, 22, 29
February
18, 25
March 4,
11, 18
June 3,
10, 17, 24
July 1
WHERE: All trainings held at NIU Naperville,
1120 Diehl Road, Naperville, IL
INFO: Making the Connection training sessions
contain information in an easy-to-understand format
regarding many programs available to assist low
income persons.
Individuals who register for a Making the Connection
training session now receive membership access to
the Federation's newly developed Making the
Connection Illinois website, www.mtcil.org.
To register and for more information please visit
www.dupagefederation.org.
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Do you have something to add to the Weekly
Review?
email Chrissy Mancini @
cmancini@ctbaonline.org
___________________________________________________________________________
Center for
Tax and Budget Accountability
70 East Lake Street, Suite 1700
Chicago, IL 60601
312-332-1041
www.ctbaonline.org
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