Illinois General Assembly—income tax increase update
Governor Pat Quinn, who replaced ousted Governor Blagojevich, has proposed an income tax increase of 50% to pay for the programs of the State of Illinois. He called the General Assembly back into special session on Tuesday of this week to pass an acceptable budget which he hoped would include a tax increase.
If the income tax increase is not passed, he has suggested that cuts up to 50% might occur particularly in the area of social services—such as cutting day care assistance. According to news stories, this is a threat that has been leveled by past governors.
And in fact, while I was a member of a school board in Arizona, I said that if the district did not have sufficient income to cover its expenses, I would push to cut extra-curricular programs, such as sports, before cutting core educational areas. It is known as setting priorities. I have never been a proponent of across the board percentage cuts. Such cuts would mean that every program has the same priority and that should not be the case. Some program ARE more important than others. Some programs ARE more essential than others.
(Unfortunately, there seems to be many programs that are neither important nor essential and they still get funded. Once a program begins, it is almost impossible to end it!)
The Governor’s threat to cut such programs generated the results he had hoped for. Groups, who benefit from such programs, including those who work for the programs, immediately began lobbying for an income tax increase. The Peoria Journal Star’s “letters to the editor” has been filled every day with people opposed to the cuts and supporting a tax increase to “save” the programs. Rallies have been held at the Capitol in support of the services provided. The Governor, himself, declared that the people of the State were a charitable people and would not let such services be cut. (By the way, it is NOT charity if you are forced by law to pay for it!)
And yet, the special session has ended and no significant progress was achieved. A new special session is planned for next Monday—the 29th of June. The new budget year begins on July 1, 2009. Time is getting short although the State has not passed a final budget by the July 1st deadline for at least the last two years.
As the Peoria Journal Star reported on June 25, 2009, page B3, “New programs, expenses and a drop in revenues have left the state unable to cover costs for the fiscal year that starts July 1.
Quinn put the shortfall at $11.6 billion and says he and legislators have agreed on measures to trim the deficit to $9.2 billion. He wants to use higher income taxes, spending cuts, federal aid (Is this stimulus money?—my addition) and financial maneuvers. Many legislators are balking at raising income taxes.”
Here is a major part of the problem. Since I moved to Illinois, balancing the budget has been a recurring theme. The State has been very good at increasing more and more programs and automatically increasing expenditures for existing programs. It seemed the powers that be have never met a program that they didn’t like and that was absolutely necessary for the improvement of the State. It’s the same old story; it’s easier to spend money than it is to have the money necessary to cover the new programs and cover the increasing costs of existing programs. They have used financial maneuvers which did not solve the cost problems but just postponed the day of reckoning. In my opinion, they have been reckless and irresponsible with the people’s money.
Answer this question: Why would any government body propose and pass any new program that costs additional money when the people who support the new program realize that the State does not have sufficient revenue to pay for the programs already in existence? Does that make financial sense? The State somehow has survived all these years WITHOUT the new program. We don’t have enough money to cover what we are already doing. And yet, WE are spending MORE money for NEW programs! Explain to me how that is fiscally responsible. The FIRST step in fiscal responsibility is NO NEW program that COSTS money unless an existing program is cut proportionally to the new cost! Therefore, every new program passed by the legislature that costs additional money should be vetoed unless a corresponding CUT occurs. That is fiscally responsible!
The day of reckoning has arrived and what is the solution? To raise the income tax by 50%! Meanwhile, will they stop spending money they don’t have? From past experience, the answer is NO! Consequently, at some future day of reckoning, the solution will be the same—raise TAXES! We can’t “harm” the people being served by government!
The only real and permanent solution is the solution that every one of us has available. Spend only the money we have after setting the appropriate priorities and save some of that for the inevitable “rainy day.” Set priorities and don’t create new programs that can’t be paid for and don’t expand programs that aren’t working and can’t be paid for. Wait! There can’t possibly be programs that don’t work, can there?
As I’ve said before, NO tax increase should be passed until and unless the General Assembly and the Governor DEMONSTRATES that they are fiscally responsible in handling the money already provided. This has NOT been demonstrated to this point!
Governor Pat Quinn, who replaced ousted Governor Blagojevich, has proposed an income tax increase of 50% to pay for the programs of the State of Illinois. He called the General Assembly back into special session on Tuesday of this week to pass an acceptable budget which he hoped would include a tax increase.
If the income tax increase is not passed, he has suggested that cuts up to 50% might occur particularly in the area of social services—such as cutting day care assistance. According to news stories, this is a threat that has been leveled by past governors.
And in fact, while I was a member of a school board in Arizona, I said that if the district did not have sufficient income to cover its expenses, I would push to cut extra-curricular programs, such as sports, before cutting core educational areas. It is known as setting priorities. I have never been a proponent of across the board percentage cuts. Such cuts would mean that every program has the same priority and that should not be the case. Some program ARE more important than others. Some programs ARE more essential than others.
(Unfortunately, there seems to be many programs that are neither important nor essential and they still get funded. Once a program begins, it is almost impossible to end it!)
The Governor’s threat to cut such programs generated the results he had hoped for. Groups, who benefit from such programs, including those who work for the programs, immediately began lobbying for an income tax increase. The Peoria Journal Star’s “letters to the editor” has been filled every day with people opposed to the cuts and supporting a tax increase to “save” the programs. Rallies have been held at the Capitol in support of the services provided. The Governor, himself, declared that the people of the State were a charitable people and would not let such services be cut. (By the way, it is NOT charity if you are forced by law to pay for it!)
And yet, the special session has ended and no significant progress was achieved. A new special session is planned for next Monday—the 29th of June. The new budget year begins on July 1, 2009. Time is getting short although the State has not passed a final budget by the July 1st deadline for at least the last two years.
As the Peoria Journal Star reported on June 25, 2009, page B3, “New programs, expenses and a drop in revenues have left the state unable to cover costs for the fiscal year that starts July 1.
Quinn put the shortfall at $11.6 billion and says he and legislators have agreed on measures to trim the deficit to $9.2 billion. He wants to use higher income taxes, spending cuts, federal aid (Is this stimulus money?—my addition) and financial maneuvers. Many legislators are balking at raising income taxes.”
Here is a major part of the problem. Since I moved to Illinois, balancing the budget has been a recurring theme. The State has been very good at increasing more and more programs and automatically increasing expenditures for existing programs. It seemed the powers that be have never met a program that they didn’t like and that was absolutely necessary for the improvement of the State. It’s the same old story; it’s easier to spend money than it is to have the money necessary to cover the new programs and cover the increasing costs of existing programs. They have used financial maneuvers which did not solve the cost problems but just postponed the day of reckoning. In my opinion, they have been reckless and irresponsible with the people’s money.
Answer this question: Why would any government body propose and pass any new program that costs additional money when the people who support the new program realize that the State does not have sufficient revenue to pay for the programs already in existence? Does that make financial sense? The State somehow has survived all these years WITHOUT the new program. We don’t have enough money to cover what we are already doing. And yet, WE are spending MORE money for NEW programs! Explain to me how that is fiscally responsible. The FIRST step in fiscal responsibility is NO NEW program that COSTS money unless an existing program is cut proportionally to the new cost! Therefore, every new program passed by the legislature that costs additional money should be vetoed unless a corresponding CUT occurs. That is fiscally responsible!
The day of reckoning has arrived and what is the solution? To raise the income tax by 50%! Meanwhile, will they stop spending money they don’t have? From past experience, the answer is NO! Consequently, at some future day of reckoning, the solution will be the same—raise TAXES! We can’t “harm” the people being served by government!
The only real and permanent solution is the solution that every one of us has available. Spend only the money we have after setting the appropriate priorities and save some of that for the inevitable “rainy day.” Set priorities and don’t create new programs that can’t be paid for and don’t expand programs that aren’t working and can’t be paid for. Wait! There can’t possibly be programs that don’t work, can there?
As I’ve said before, NO tax increase should be passed until and unless the General Assembly and the Governor DEMONSTRATES that they are fiscally responsible in handling the money already provided. This has NOT been demonstrated to this point!
posted by Christian Gunslinger at 4:46 AM
0 Comments:
Post a Comment
<< Home