QUINN: CUT, BORROW AND TAX
In perhaps the shortest budget address ever given, Governor Pat Quinn briefly outlined his plan for shoring up the state’s worst fiscal crisis. In settling a budget deficit that’s hovering around $13 billion, Quinn presented a mixture of budget cuts, borrowing ideas, and tax increases.
Quinn proposed $2 billion in budget cuts. Education will see an approximately $1.3 billion, or 17%, cut from general state aid, special education, student transportation, grants and universities. However, Quinn called on the legislature to pass a 1% income tax increase for education that would bring in somewhere between $2.8 and $3 billion to stave off these cuts and, depending upon how the money is used, perhaps increase education funding.
Services such as home care for older adults, child care and community mental health services will be reduced by $276 million. Scaling back prescription drug assistance and group health coverage for state retirees, combined with a managed care pilot program for seniors and adults with disabilities who are enrolled in Medicaid will save the state $325 million.
The administration is also proposing to borrow $4.7 billion and carry over $6.3 billion of the state’s debt, which means that delayed payments to vendors will be even more delayed.
Governor Quinn also wants to institute a two-tier pension plan with lesser benefits for future state workers, which could provide up to $300 million in savings.
And finally, Quinn called for a $2,500 tax credit for each full-time job created over the next year for companies with fewer than 50 employees. It’s hoped this credit, which is capped at $50 million, will help create 20,000 jobs for small businesses such as manufacturers, service companies and technology firms. | 
