April 24, 2010

Senate Republicans briefed the Statehouse media corps Thursday on Governor Quinn’s budget proposal, which they say is less of a “plan,” and more of a “wish list.”

Republican members of the Senate Appropriation committees said Quinn’s plan represents a failure of leadership evidenced by his lack of significant spending cuts, and reliance on tax increases and massive borrowing.

The Quinn administration is touting $2.2 billion in budget cuts that Republicans say do not exist, and he’s purposely ignoring mandated spending increases tied to his plan, including:

• $1.3 billion in education cuts he never intended to implement;
• $400 million MAP shell game;
• $300 million local government’s share of income tax
• $400 million in required spending for debt service on his pension  and tobacco securitization bonds.
  

Republicans say that when you add it up, the real cuts amount to $200 million, but he has not identified where he plans to get those cuts. They noted that when looking at his record, it’s likely Quinn will be reluctant to make real cuts in spending.

Last year the governor said he would make $1 billion in budget cuts, yet implemented a Fiscal Year 2010 budget that was actually $1.2 billion higher than what he had pledged. Quinn has on many occasions advocated for cuts and then immediately backtracked; now he’s counting cuts that don’t exist, and which he has no will or intention to implement.

The governor is also assuming a 33 percent tax increase—the largest in the history of the state, and he wants to impose $700 million in new taxes on consumers and employers—including $231 - $316 million in recycled Blagojevich-era tax hikes that were previously rejected by the Legislature, and $50 - $55 million in Blagojevich-endorsed tax hikes that were enacted by the General Assembly but later repealed.

Other proposed taxes include $80 - $190 million in new taxes on consumers, including a tax on downloading music and video, as well as a $200 million cigarette tax increase. But, as has become common with Quinn, once the new consumer taxes became public, he quickly tried to distance himself from his own proposal – declaring Thursday that the download tax was simply a suggestion and claiming he was never in favor of the tax.

Borrowing is also back on the table, with Quinn hoping to borrow an additional $6 billion. This includes $3.7 billion in pension bonding and a $1.35 billion “pay day loan” against tobacco proceeds. He’s also expecting to sweep $1 billion from state special funds.

Senate Republicans said that the governor’s “plan” is devoid of leadership or the wherewithal to actually address the state’s financial problems.

Utilize the links below to listen to what Senate Republicans had to say during their April 22 media availability:

Sen. Pam Althoff

Sen. Dan Duffy

Sen. Tim Bivins  

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