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| Quinn's Budget: Tax Hikes, Over $1B in Cuts -- LIVE COVERAGE OF BUDGET SPEECH WEDNESDAY 12PM ON WGIL |
UPDATED 10:19pm 3/17/09 No gas tax hike, but Wednesday's budget speech by Illinois Governor Pat Quinn will have other hikes to sell. Quinn's calling for an income tax hike for individuals and companies, a cigarette tax hike, and increases in several vehicle-related fees.
His budget blueprint calls for $1.3 billion in cuts to help close what's expected to be an $11.6 billion deficit. One of those cuts would be in state jobs, as Quinn wants to consolidate the Historic Preservation Agency into the Department on Natural Resources.
Democrats are saying they're open to tax hikes, but say they want details on exactly how it would affect people. They also want details on how Quinn would spend the money. Several Republicans say they're willing to cut school funding and healthcare programs rather than agree to tax hikes, saying those hikes could cost jobs in the long run.
Quinn's including a $26 billion building and construction plan, paid for by the vehicle fee hikes.
Quinn's budget speech starts at noon Wednesday. HEAR LIVE COVERAGE ON WGIL AND WGIL.COM'S "SPECIAL EVENTS LIVE AUDIO STREAM" LINK.
Tax Hikes:
* 50 percent increase in the personal income tax (from 3 percent to 4.5 percent), although only the top half of filers should be affected because of increased exemptions (from $2,000 to $6,000) (for $2.8 billion)
-- Family of 4 with a $45,000 annual income would pay $219 less
-- Family of 4 with a $75,000 annual income would pay $166 more
* Increase in the corporate income tax (from 4.8 percent to 7.2 percent) (for $350 million)
State Sales Tax Holiday:
* 10 days of no sales tax in August intended to help families buy back-to-school items for kids.
-- Included items: clothing and footwear less than $100 per item and school supplies.
Cuts to Save $1.3 Billion:
* 2 percent across-the-board reduction in grant programs, except for health care and education ($80 million)
* Consolidate the Historic Preservation Agency into the Department of Natural Resources and combine 2 labor boards ($2.3 million)
* Level funding for senior and disability services ($44 million)
* Consolidate building leases ($6 million)
* Cutting tax breaks for companies (i.e. insurance costs, sheltering money in foreign funds, etc.) ($287 million)
* None of the closed historic sites will re-open. The Carl Sandburg Birthplace and the Bishop Hill State Historic Site are among those closed.
Schools and Medicaid:
* Reduce the Medicaid payment cycle to 30 days, from the current 90 days (to help trap federal stimulus money)
* Increase pre-school-12th grade education funding by $174 million
* Increase higher education funding by $40 million
Illinois Jobs Now!
Billed as the first jobs plan in over a decade, the building and construction program would spend $26 billion:
* $14 billion for roads and bridges
* $5 billion for public transit
* $4 billion for schools, including higher education
* $2 billion for environment/energy/technology
* $1 billion for economic development
The money would come from stopping Road Fund diversions ($150 million), plus hikes in:
* License plate renewal from $79 (Summer ‘09) to $99 ($180 million)
* Driver's license renewal from $10 to $20 ($20 million)
* Auto title transfer fee from $65 to $105 ($110 million)
* Auto registration transfer fee from $15 to $30 ($10 million)
The plan claims to support 340,000 jobs across Illinois.
Pensions System Costs:
* Two-tiered benefits system, with fewer benefits for future state employees
* Savings of $162 billion in 2045
* Cuts to pension system payments of $550 million in current fiscal year and $2.3 billion in the next fiscal year
For State Employees:
* Four furlough days (not for those providing direct patient care or public safety ($36 million)
* Pay more for health care ($200 million)
(Illinois Radio Network) |
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| 03 17 09 by Newsroom |
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