Illinois' budget crisis diagnosed, but cure is ignored

Like almost every state in the union, Illinois is in debt. Really deep debt. The governor pitched a tax increase last March, in an effort to fix the budget deficit, but cut it from his plans in favor of pension borrowing -- a temporary fix that Quinn hoped would eliminate "tax hiker" from his opponents' attacks in 2010.

And this is the true reality of the problem. We have now reached 2010 and many of those in power have yet to offer more than temporary fixes, in fear of the always impending election cycle. No incumbent wants to risk their seat, even if their inaction means cutting much needed social services, underfunding schools (whether elementary or higher education) or passing debts to future generations.

And what do we, the people of Illinois, do about it? We keep the seats warm with the same hides, and expect new results.

Our state is in need of budget reform, and even conservative groups are starting to realize that a tax increase is a critical piece to a real solution. The Center for Tax and Budget Accountability, a think-tank whose board hosts Jim Ryan, former Attorney General and current Gubernatorial candidate, stated it several times in a summer brief:

"Illinois has an antiquated revenue system that cannot fund public services in a modern economy. It in fact has a long‐term, structural deficit. It has already cut billions in funding for essential human services over the past decade. It is time the state faced reality and raised the revenue needed to invest in services relied upon by millions."

**Note: Jim Ryan has since distanced himself from this position and others like it, now that he is running for governor**

The idea that Illinois' budget can be balanced strictly by cutting spending is as much a myth as the idea that revenue can be raised by cutting taxes. The facts are plain, but unspoken by anyone in our legislature (or the press). Our state has been funding its services on the backs of the least fortunate among us for the past decade or so.

As Jim Broadway of State School News Service points out, many budget deficit "solutions" are those that take no concern for an individual's income, but rather flat fees (such as recent hikes in drivers license fees, and local government sales tax hikes like that in Cook County) that hit the poor harder than the wealthy. And while Broadway relates these principles to schools, they can be said of almost every government program:

"For example, by over-relying on property taxes and constraining state general revenue (low, flat income tax rate, narrow sales tax base), state policy widens the local revenue gap among school districts even as it chokes off the intended “equalizing” effects of the General State Aid formula.

The GSA was designed to ensure adequate funding even in the poorest school districts. It was based on a 50% state share of total education funding. It does not work at the 30%-33% levels we have seen in the last 15 years or so. The gap in school funding grows."

We need to send our officials a clear message: something needs to be done to preserve a future for our state. If we replace our regressive tax system (one that taxes the wealthy at a significantly lower percent than the lower and middle class) with a progressive tax system (one that taxes the wealthy at a slightly higher percent than lower and middle class and lowers taxes for the latter) our state will not only be more equal morally, but more importantly, it will be more responsible fiscally.

The idea that fiscal responsibility can only mean one thing -- cutting spending and lowering taxes -- as the conservative movement has always claimed, must be reversed. Fiscal responsibility means paying your bills, and little more. While lowering those bills by cutting waste is an essential part of a balanced budget, creating revenue to fund the necessary programs (schools, roads, etc.) is the most essential piece of any balanced budget. In most cases, this can only be done by raising taxes on someone. But we cannot expect our state's current leaders to do this, as they have already quietly announced intentions to ignore the problem. As Broadway concludes:

"The word currently circulating is that the legislative leaders hope they can avoid any general revenue increases until the veto session of November, after the November 2 general elections. If that is the case the state budget for FY 2011 will be a disaster for all who rely on state support – including schools."

We need to make this an issue. We must ask candidates where they stand on this issue. We must ask elected officials why they refuse to act upon it. Most importantly, we need to support the candidates and incumbents who support efforts to fix the budget by raising revenue, rather than those who hope only to cut spending.

Republican gubernatorial candidates like State Senator Kirk Dillard, who promise only to lower taxes and cut spending, offer few solutions, opting rather to pander to Illinois, telling us taxes will stay where they are and all will be fine. Dillard bragged several times on Public Affairs (a local-access show) about his hopes to maintain the status-quo. In one case, Dillard even has the ignorance to claim that tax increases will inhibit school reforms.

"There’s got to be massive school reform, so it’s ridiculous for anybody to talk about a tax increase. I’m not for a tax increase and I believe I’m the best candidate, with my managerial skills, to stop a tax increase.."

The only thing more disgusting than elected officials who do not recognize a problem are those who recognize a problem and choose not to properly fix it.