Illinois Taxpayers Need a Responsible Budget This Year
The state needs government consolidation, spending, and pension reforms, not a progressive income tax that will raise tax rates on the majority of taxpayers yet again.
A recent story in Illinois Policy discusses Illinois’ “persistent crisis-like budget environment” which has led to the state having the worst credit rating in the nation and four straight years of population loss.
It’s time for real solutions and a responsible budget. It’s not too late to save our state.
Here is the original story as reported by Illinois Policy:
CAP SPENDING NOW: ILLINOIS TAXPAYERS NEED A RESPONSIBLE BUDGET THIS YEAR
Lawmakers should voluntarily adopt a spending cap to give taxpayers the certainty they deserve.
Illinois taxpayers desperately need a full-year, balanced budget with no new taxes. While the history of election-year budgets shows that lawmakers prefer to kick the can on tough choices, half measures and phony budgets will only make matters worse.
Lawmakers should end the bickering about a revenue estimate for next year’s budget and instead adopt a “magic number” based on the formula outlined in a proposed constitutional amendment that caps state spending growth to what taxpayers can afford – the growth in the state’s economy. The magic number this year? $36.9 billion.
Voluntarily adopting this spending cap would help remedy the state’s “crisis-like” budget environment, stem chronic overspending and eventually ease the crushing tax burden imposed on residents.
Near-junk credit rating
Illinois already has the worst credit rating of any state in the nation, with credit ratings agencies assigning much of the blame to Illinois’ “persistent crisis-like budget environment.”
Moody’s Investors Service gives Illinois a negative outlook on its credit, meaning more troubling financial decisions from elected officials could cause the state’s bond rating to drop even further – into junk status.
Ultimately, a bad credit rating means higher borrowing costs and therefore higher future taxes on the residents of the state.