In spite of the biggest tax hikes in the history of Illinois, the state is still $8 billion in a budget-deficit hole. Instead of cutting expenses, Governor Quinn wants to borrow $8.75 billion to pay the bills. Currently, Illinois is just starting to pay bills from November 2010.



To get approval for his preposterous proposal, Quinn threatens cities' revenue sharing unless they hop on board his plan. Currently $1 billion a year is distributed from state income tax collections to cities, based on population.



Amazingly, Quinn's budget director says this is "not a hostile message".



Please consider Quinn wants to withhold cities' money as pressure to borrow billions

Gov. Pat Quinn wants to stop nearly $100 million in monthly payments to Chicago, the suburbs and other Illinois towns if lawmakers won't let him borrow billions of dollars to pay overdue bills, according to a confidential memo the Tribune obtained Thursday.



The proposal, outlined in the memo and quietly distributed to top legislators, represents a pressure tactic by the Democratic governor. He hopes mayors from Zion to Cairo will squeeze their town's lawmakers to help get him the loan he wants.



Acknowledging the backlash from cities, Quinn budget director David Vaught said mayors and other community leaders should "come help us get the debt restructured, and then you would get paid. That's the message to them. It's not, it's not a hostile message. … We have a cash crunch here, and we need your help getting out of it."



Chicago would be hit hardest, with the city getting about $220 million in the last budget year from that pot of money. Mayor-elect Rahm Emanuel already faces a money shortfall that could total $1 billion in day-to-day expenses and employee pension costs.



The Quinn administration's gamble comes a day after Republican Comptroller Judy Baar Topinka revealed the state would be slightly more than $8 billion in the red when the budget year ends June 30, pending any new moves by Quinn or legislators. The state this week is just getting around to paying bills dated Nov. 5.



If lawmakers instead decide to pass legislation allowing Quinn to stop the local payments, the suspension could be retroactive to February and last through year's end.



Suburban leaders say such a move by the state would cripple their budgets. In Tinley Park, the state income tax payments make up about 11 percent of village revenue. Elgin gets $683,000 a month from that state source. In Naperville, it's a little less than $1 million a month.

Quinn's Proposal Dead On Arrival

Massive Cash Crunch Coming

Madigan honored with "prevailing wage" award

Illinois Attorney General Lisa Madigan accepted an award from the state’s Building Trades Council in Bloomington for her previous pro-union legislation. The Reuben G. Soderstrom Prevailing Wage Award is given annually. Madigan says she’s honored and will continue with the same work. She says she’s now working on a bill to enhance penalties for criminal violations of the prevailing wage act. Madigan says under the law, violations would be a class four felony.



“I think the real impact would be, that it would provide for debarment,” Madigan said. “In other words, employers, contractors who are found to have criminally violated the Illinois Prevailing Wage Act will not be allowed to bid on contracts for a period of four years.”

Democrats Running Illinois Into the Ground For Decades

Hiked the personal income tax rate from 3% to 5% (a 67% hike in rates).

Hiked the corporate income tax rate from 4.8% to 7% (a 46% hike in rates).

Blatant Lies By Governor Quinn

Sales Taxes

Home Rule

Depending upon the location of the sale, the actual sales tax rate may be higher than the fundamental rate because of home rule, non-home rule, water commission, mass transit, park district, and county public safety sales taxes.



Gasoline Taxes January 2011

Diesel Taxes January 2011

Overburdened Taxpayers

Praise from the SEIU

The election of Pat Quinn

The Reuben G. Soderstrom Prevailing Wage Award

Praise from Illinois teachers' unions

Severely underfunded pension plans, the worst in the nation. Please see Interactive Map of Public Pension Plans; How Badly Underfunded are the Plans in Your State? for details



Numerous cities on the verge of bankruptcy

An extremely hostile business environment