2010 State of the State Address 

Gov. Pat Quinn (D), January 13, 2010

Governor's description of budget shortfall size:
1.Gov. Quinn did not dwell on the state's budget shortfall, but he did mention at least six times that Illinois is the Land of Lincoln and that it has a severe budget deficit, saying, "I didn't create it, and when I assumed office it was $11.5 billion. We have done everything we can this year to try to manage this financial crisis. It's the worst financial calamity that Illinois has ever had, and we have been a state since 1818."

2."We had to work on that overtime last year; it didn't end on May 31st as you know. We went through June, and then half of July, and finally we came to a budget that's far from perfect. But it is a budget that we have to work on over the course of this fiscal year and the next fiscal year as we prepare for the future."

3."As you know, there was an effort last summer, by some, to cut human services in Illinois during this Great Recession, cut them in half. Now I didn't think that was right, and I vetoed that budget. And we went back to work, and we passed a different budget, one that does involve some borrowing in order to keep our human services going."

4."There's only one person in the whole history of Illinois who's been in this Office of Governor who has been voted Mr. Soybean by the Illinois Soybean Association. You're looking at him. My nickname is Soy Boy!.. And I understand that our whole green economy depends a lot on our agriculture. Soybeans. You can get fuel out of them, soy biodiesel; you can eat them."

Generic actions to solve the problem:
1.After cutting all costs, using strategic borrowing, getting as much money from the federal government as possible, the state is still short and more revenue is needed.

2."Costs have been cut across the board in Illinois." State going to reduce budget, the general revenue budget by about $2 billion. "It was the mandate of the people and the General Assembly, and we've listened to that mandate." Gov. says he cut his pay; he takes furloughs like other state workers.

3.Thanked the general assembly for "understanding that having $250 million, an opportunity to borrow that money, that we can spend on our healthcare and Medicaid ‐ that we can bring back from the federal government, an enhanced Medicaid match under the federal stimulus."

4.He wants to be known as the "Building Governor." "I want to build more things, more good things, across our state than any other governor in state history." Of course, he doesn't say where the money will come from.

5.Tax system needs reform. State has an unfair tax system...It relies way too much on property taxes, and other levies that are not based on ability to pay. Principle as old as the Bible: that taxes should be based on ability to pay. "If we work together in good faith, we can cut taxes on 5 million people, maybe more in Illinois. We can find ways using the personal exemption, using the Earned Income Tax Credit, using the property tax relief credit, to cut taxes on people who need help the most, people of modest income and poor people. There is something wrong in Illinois where our state is taxing poor people into further poverty."

Specific actions to solve the problem:
No specifics with numbers and action

Mentions of spending/tax credits:
1.Passed a bill that gives more time for people to get their finances together to ward off foreclosure. Another landmark bill that passed aims at helping people who are struggling with paying their utility bills.

2.Gov. Quinn signed a "bill that allows women of color, women of low income access to mammograms and breast cancer screening"

3.The assembly took action to sell the prison to the federal government for fair market value.

4.In capital bill enacted, the state has invested $400 million dollars in sustainable green energy and conservation and in opportunities for credit for those who develop wind power.

5.There were no budget cuts on Warrior Assistance Program which provides counseling for returning military personnel who need it. There is also a Military Family Trust Fund to provide financial assistance to Guard Members and Reservists who need it.

Notes:

1. Data on Illinois' buget shortfall from the Center on Budget and Policy Priorities:

FY 2010 Before Budget	FY 2010 Mid-year Gap	FY 2010 Total	FY 2010 as  % of Gen Fund Budget
9.3 billion	$5.0 billion	$14.3 billion	B40.9%

http://www.cbpp.org/cms/?fa=view&id=711

2. Forbes.com reported on 3/10/2010 that: "It's a question of whether the creditors that we owe money to can actually stay in business or whether they'll collapse," said Quinn budget director David Vaught. The Democratic governor has long embraced an income tax increase as the key to closing the biggest budget deficit in Illinois history - $13 billion or more. But the budget proposal that the (Quinn) administration described Tuesday night for legislators and reporters does not include a tax increase. Instead, it addresses the deficit by cutting expenses by $2 billion, borrowing $4.7 billion to pay old bills and letting about $6 billion in new bills pile up for another year.

3. Quinn's aides did not outright call this budget proposal a doomsday scenario meant to pressure legislators into supporting a tax increase, but they did say repeatedly that Quinn has not had a change of heart.

4. Most of the savings in Quinn's proposal would come from cutting education by $1.3 billion, or roughly 10 percent. State employees would have to take unpaid days off, saving $200 million. Prescription drug benefits for the elderly would be cut in half, saving $70 million. Quinn proposed a $2,500 tax credit for each new job created by small businesses. He said it would create 20,000 jobs. Lawmakers last year rejected Quinn's proposal to raise income taxes. Now, in an election year, lawmakers aren't any more eager to consider the idea.

Check out

http://www.forbes.com/feeds/ap/2010/03/10/business-financial-impact-us-il-state-budget_7422282.html

and
http://www.forbes.com/feeds/ap/2010/03/10/general-il-state-budget_7424688.html