From AP - News Headlines -

East Central IL Lawmakers Have Mixed Feelings on the Quinn Budget Proposal

A member of the legislative majority says he sees good faith in Governor Quinn's budget proposal, but he would still like to see some changes.

Democratic Senator Mike Frerichs of Champaign acknowledges that many lawmakers and the public are questioning the size of the tax increases in the plan. "I think there are those of us who would like to see a little more detail about what cuts we need to make in Illinois government first. I think there are more opportunities for cuts out there. But I think overall deficit reduction will be some combination of cuts in state services as well as revenue enhancement," said Frerichs.

Frerichs also says the proposed income tax hike was made fairer paired with a higher exemption for lower-income families. But he says it might stifle efforts from him and other downstate lawmakers to swap higher state taxes for lower local property taxes to fund education.

Pontiac Republican Senator Dan Rutherford says he credits Governor Quinn for unveiling a budget proposal free of smoke and mirrors. But he says Illinois families can't take the hit of a 50% income tax hike during the current economic crisis, calling the plan a 'non-starter.' And Rutherford says a proposal to boost corporate taxes and remove a manufacturer tax credit will hurt the incentive of companies to expand and create jobs. He says this is especially true in his district, where employers like Interlake and Caterpillar are already faced with layoffs:

"When it's time for investment into their plants, and a manufacturer says it's time to upgrade my tooling or upgrade my machinery, I think it's appropriate for us to give them credit and benefit in Illinois so they do it here rather than in another state, which those big companies can do," said Rutherford.

Rutherford says he's also concerned the Governor will shortchange Illinois' pension system by skipping payments. Fellow Republican Chapin Rose of Mahomet, a state representative, went further, calling the income tax hike proposal an assault on the middle class.

But Democratic Representative Naomi Jakobsson of Urbana wanted to remind colleagues that the Governor's proposal only forms the basis for budget debate over the next few weeks, and she blamed former Governor Rod Blagojevich for putting the state in its current situation.

Categories: Economics, Government, Politics