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|Expert: State Budget Cuts Will Harm Economy -- FULL INTERVIEW SUNDAY ON WGIL
|A man who studies budget and tax policy says making substantial cuts to Illinois' state budget would have a disastrous effect on the economy.
Ralph Martire of the Center for Tax and Budget Accountability says if the state tries to cover its $9.2 billion deficit entirely by cutting jobs and services and grants to private-sector organizations that provide social services, the people who perform that work will lose their jobs, to the tune of 128,000 jobs.
Due to the recession, the state so far this year has lost 105,000 jobs. This move, he says, would make the recession longer, and would hurt businesses that have nothing to do with state services due to the multiplier effect.
Martire favors H.B. 174, which would raise the personal income tax rate from 3 percent to 5 percent while providing some property tax relief. He says the recession has contributed to the state's dire budget situation, but the state would have had a deficit of at least $5 billion even without the recession, because it doesn't charge enough tax to pay for the services people need or want.
He has also analyzed two proposals that supporters say would save the state money:
* Senate Republicans say there are billions to be saved by enrolling Medicaid beneficiaries in a managed care program. Martire says this has been tried in 15 states without producing savings. He says savings occur only if the delivery of care is cut back.
* The governor proposes offering lower pension benefits to new workers. Martire says that under the governor's plan, some of the pension obligation is shifted from the workers to the state, ending up costing $98 billion more over 30 years.
Martire was interviewed for this week's Eye on Illinois program. Hear the interview in its entirety Sunday at 6am on AM 1400 WGIL.
(Illinois Radio Network)
|06 24 09 by Newsroom
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