From a press release:
State Senator David Koehler (D-Peoria) believes that Governor Quinn’s budget proposal will provide a good base for negotiations.
“Governor Quinn has included some things in this budget that the state has desperately needed for a long time,” said Koehler. “I’m particularly happy to see a capital plan that includes road repair for Peoria, Tazewell, and Fulton Counties. We need to repair Illinois’ aging infrastructure.”
According to the Governor’s office, the capital construction plan will cost approximately $26 billion and create as many as 340,000 jobs. The proposed plan includes both new construction and repairs, targeted at roads and bridges, schools, and mass transit. It also includes investments in green technology, Illinois-based energy sources, and economic development.
“Another area I’m pleased about is education,” said Senator Koehler. “The budget proposal contains an increase in money for K-12 education. We need to do all we can to ensure Illinois students can compete with their peers nationwide, even in these tough economic times. This increase may not be as high as we’ve provided in the past, but given the state’s financial woes, it’s still a positive step.”
The Governor’s proposal also includes a number of initiatives to enhance revenue. One initiative is an income tax increase of 1.5%, accompanied by higher exemptions to protect low-income families. The Governor also suggests increasing a number of fees.
“I think Governor Quinn’s tax proposal is a good starting point,” said Koehler. “It’s clear that we are going to have to do something to increase revenue. It’s hard to say exactly what form tax and fee increases will take, but knowing that the Governor is committed to protecting low and middle income Illinoisans is reassuring.”
Senator Koehler lauded several of the Governor’s other commitments.
“The Governor has promised to make sure the state pays its bills on time,” said Koehler. “Our failure to provide timely reimbursements to doctors, hospitals, and other vital service providers has been a huge disappointment. A prompt payment schedule will help ensure Illinois citizens receive quality services and keep businesses and facilities open. I also like Governor Quinn’s idea of a 10-day sales tax holiday to help families afford back-to-school shopping. When we vote on a final budget, I hope it includes measures that help struggling families.”
My financial advisor gave me a report today with this gem buried in it:
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Here’s one last thing that’s not normal. We discussed in recent weeks the challenges facing state and local municipalities, who employ 12% of the workforce and have granted 64% of all unfunded benefit obligations. Now a bankruptcy judge has determined that Vallejo, California, which filed for Chapter 9 bankruptcy, can unilaterally reject union benefit contracts. Why? Municipal workers are not covered by Section 1113 protections that Congress granted to workers in Chapter 11 filings. If that becomes a broader solution to over-promised municipal benefits, look out. If you think consumers fleeing to a 5% savings rate is high, you ain’t seen nothin yet.
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Mr. Koehler approves of the govenors revenue suggestions but I did not see him comment on the sad state of our underfunded pension funds for muncipal workers in the state. Given the above comment it appears to me that we have grossly inflated pensions in our state and they must be RADICALLY reduced before a tax increase should be considered. IF not perhaps Chaper 11 for municpalites is the only way the issue can be dealt with. Our politicians do not seem capable of telling Union led groups that they are compensated to much.
Koehler is a socialist Democrat who favors any kind of taxes so long as the middle class and rich pay them; he has brought forward no items of relief in the way of cutting expenses and spending, only pushing forward his agenda of screwing the middle class and rich. It was a mistake electing him, but we were really given no choice. Wait until the next time though.