Governor’s Budget Lacks Long Term Solutions

March 7, 2007

Springfield , IL … State Representative Ron Wait (R-Belvidere) was disappointed, but not surprised, at the governor’s proposal to implement the largest tax increase in Illinois history. During the governor’s first budget address of his second term, Blagojevich also proposed a universal healthcare program, leasing the Illinois lottery, a pension bond plan, and school funding initiatives.

“Expanding access to affordable healthcare in Illinois is an important issue that needs to be discussed, but the governor conveniently failed to address the state’s $1.5 billion backlog of overdue Medicaid bills,” Wait said. “While skeptical of the governor’s budget package, I’m willing to consider his proposals in conjunction with the other fiscal challenges Illinois is facing.”

Blagojevich’s main funding source for his universal healthcare plan, the gross receipts tax, would add an additional tax of 1.8% to all companies in the state grossing over one million dollars a year.

“The gross receipts tax is a pyramid scheme and a roundabout runaround way of a tax increase on working families,” Wait said. “The governor wants to tax Belvidere ’s Chrysler plant for selling their cars to dealerships. He then wants to tax the dealerships for selling the same cars to customers. Hard-working Illinoisans will end up paying the double tax.”

Wait added, “In the long run, local jobs will be at risk when customers start crossing the border to Wisconsin to shop and Illinois ‘ companies are taxed out of business.

Blagojevich’s budget also proposed a lottery lease to fund state pensions, but the 75-year lease would force Illinois to forgo the long-term guarantee of $65 billion in revenue traditionally earmarked for education. “What I see are short term proposals that do not look toward our future,” Wait said. “I have been a long-time advocate of a local dollar-for-dollar tax swap option that would provide a more stable funding source for our schools and provide property tax relief.”

“While the governor proposed some ideas that warrant consideration, we need more details about the governor’s proposals and we need more information about what impact his proposals will have on our state bond ratings and local jobs,” Wait said. “According to a report from Democrat Comptroller Dan Hynes office, Illinois ‘ budget deficit of $2.3 billion is the largest of any state in the nation. We need to secure our pension systems, pay our Medicaid bills, and properly fund our schools before we further harm Illinois ‘ long-term budget stability.”

Representative Wait’s 69 th legislative district encompasses parts of Rockford and Winnebago County , Boone County , and several townships in DeKalb County . He may be reached at his district office in Belvidere at 411 South State Street or by calling (815) 547-7771.