Illinois $13 Billion Budget Woes Reach Boiling Point; Governor Quinn Works for Union Thugs and Promises to Raise Taxes by 50%; Bill Brady for Governor

Inquiring minds are again focusing on problems in state budgets.

Illinois is in a dogfight with California, New York, and New Jersey for the dubious honor of being the state deepest in fiscal do-do.

Although New Jersey is addressing its fiscal issues thanks to Governor Christ Christie, Illinois, California, and New York are flopping around like a 50 pound sea bass in 3 inches of water.

Illinois $13 Billion Budget Woes Reach Boiling Point

Please consider Illinois Budget Woes Come to a Boil

Illinois lawmakers were in disarray Thursday as they groped for stopgap measures to address a $13 billion deficit equaling nearly half of the state’s general-fund revenue.

The state faces one of the nation’s worst budget crises, spilled over in part from the broader national economic crunch, and its current bond ratings lag only California’s. But the confusion in the legislature indicates that serious steps to fix state finances won’t be taken until after the November elections—if then.

House Minority Leader Tom Cross said “We are lucky in that we still can borrow,” noting that lawmakers responded to rating-agency concerns last month by reducing pension benefits and lifting the retirement age for new state employees to 67 from 60. Lawmakers also are weighing the idea of postponing pension payments for the first half of the fiscal year until January, Mr. Trotter said.

Mr. Quinn presented a budget in March that would still leave the state with a $10.6 billion deficit. His plan projected a deficit of $4.7 billion for the coming fiscal year beginning July 1—which he planned to cover through borrowing—and a $5.9 billion deficit carried over from the current budget.

The governor also proposed cutting expenses by $1.5 billion and raising the state income tax 1.5 percentage points, to 4.5% from 3%. He said the tax hike would be used to avert tens of thousands of teacher layoffs. A different proposal to raise income-tax rates passed the state Senate last year but has stalled in the House.

Any hopes that the national economic recovery would help the budget discussions were dashed this week when Illinois disclosed that revenue for April —when most citizens pay taxes—fell more than 15% from the same month a year ago, or $501 million, in part because of a $345 million drop in federal aid. Gross personal income-tax receipts, a major revenue source, dropped $103 million, or 8.1%.

Illinois Comptroller Daniel Hynes said in his April report that the state’s cash position for the quarter ending June 30 “looks exceedingly difficult.” By June 10, Illinois must repay $1.75 billion, plus interest, in short-term borrowing