Springfield, Ill. – Governor Quinn’s lead budget official, David Vaught, declared recently that the largest tax increase in Illinois will likely become law sometime next January, following the November election. In a recent interview with Bloomberg Businessweek, Vaught was quoted as saying, “We’re going to pass a tax increase in January. We expect it is going to be substantial.” Vaught was not reported as having discussed the likelihood of budget cuts or reforms as part of any tax hike proposal.
According to State Senator Dale Righter (R-Mattoon), a 67 percent increase in the individual income tax rate would cost taxpayers an additional $6 billion. Just last year, Democrats in the Illinois Senate, on a party line vote, approved a similarly-sized tax increase. The legislation, House Bill 174, as not acted upon by the Illinois House.
Republicans in the Senate opposed the measure, expressing concerns that such a heavy increase in taxes would worsen the already troubled economy. Additionally,any tax increase, without core reforms to state government, will only offer temporary relief and lead to even more tax hikes in the future.
Righter to return district office funds to taxpayers again
Mattoon, Illinois—In consideration of the state’s fiscal difficulties and increases from the state’s leaders, State Senator Dale Righter (R-Mattoon) has reduced expenditures in his district office and will return over 10 percent of his allotted budget to the state treasury.
“The decision to reduce budgeted expenditures and return a percentage of the district office funds allotted to my Senate District office is driven by the realities of the budget and just as importantly, what is happening in Illinois,“ explained Righter. “We are facing the largest budget deficit in Illinois’ history and the budget passed by the majority is unbalanced.”
According to Senator Righter’s office, approximately ten thousand dollars, more than 10 percent of his yearly office budget will be returned. Those funds can be used to help pay some of the state’s bills. In seven of the last eight years, Righter has been able to reduce expenditures in his office and return funds.
“Ten thousand dollars may be small in the big picture of Illinois’s budget situation, but returning the funds is something we can do even if it means tightening our belt in some areas. Families and businesses are working with less, and this year my office did as well, “Righter said.
July 1 marked the start of Illinois’ new Fiscal Year
Seante Week in Review- June 14-18
Springfield, Ill. – Illinois’ credit rating took yet another hit this week, and several bills were signed into law, including measures that will overhaul the state’s outdated telecommunications act.
State Senator Dale Righter (R-Mattoon) said Senate Bill 107 (P.A. 96-0927) will modernize Illinois’ existing telecommunications law, which had been originally in 1985 before the prevalent use of cell phones and similar technology. The law will continue to safeguard consumers by extending affordable package options to those who still use landline services, while also lifting unnecessary regulations, which will promote companies’ investment in wireless and broadband technology.
The measure also encourages market competition by allowing providers to alter price and phone package details without approval from the Illinois Commerce Commission, which often took weeks.
Even though a Fiscal Year 2011 budget has passed both chambers of the General Assembly and now sits on Governor Quinn’s desk, the Governor continues to insist that lawmakers will be returning to Springfield to take up the task of borrowing billions more. Specifically, Governor Quinn has advocated for an additional $4 billion in borrowing to help support the new budget, in which Democrat lawmakers voted to spend $1.2 billion more than in the current fiscal year.
Currently the Governor’s borrowing plan does not have the votes necessary for passage. State Senator Dale Righter (R-Mattoon) has voiced his opposition to the borrowing plan. Specifically, Senator Righter has pointed out that while borrowing can be an important component of an overall financial plan designed to reduce the deficit, create more jobs in Illinois and meet cash flow needs, the Governors suggestion is largely a ‘stand alone’ proposal.
“I have supported limited borrowing previously, even at Governor Quinn’s suggestion, when it was accompanied with an understanding there would be budget cuts and budget reform,” stated Righter. “However, after fifteen months in office we’ve seen that the governor has been unwilling to reduce expenditures and push for reforms to help control spending over the long term.” Righter went on to note that last year lawmakers approved approximately $3.5 billion in borrowing, based on an understanding that Governor Quinn would use his executive authority to reduce the newly adopted budget by approximately $2 billion, as well as impose much-needed spending reforms in the Medicaid program. Neither the budget cuts nor the reforms have materialized to date.
Additionally, Righter noted that the Governor has the ability to withhold appropriated funds and make budget cuts in the new budget to free up working cash necessary to help pay down the backlog of bills that currently plague many entities across the state.
“Illinois must begin to pay down on the bills that have accumulated under the last several years of mismanagement and overspending,” Righter stated. “However, a long term answer is not simply borrowing; it is to begin reducing expenditures and reforming major programs so that we can be more effective with the public’s dollars and efficient.”
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