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Friday, July 17, 2009 10:22 PM CDT
With budget finished, pols turn attention to campaigns
By KURT ERICKSON, JG/T-C Springfield Bureau
SPRINGFIELD — The debate over raising taxes or sending state government deeper into debt now moves from the halls of the Illinois Capitol to the campaign trail.
With lawmakers essentially done with their work until mid-October, their focus now tilts toward running for re-election or higher office.
By delaying debate on a politically tricky tax increase until January, lawmakers and those seeking to unseat Gov. Pat Quinn will know if they have a challenger in the February primary election.
Petitions for the 2010 election can begin being circulated in early August. Filing for the election begins in October.
For now, Quinn is alone in his quest for the Democratic nomination next February. He approved the debt-reliant budget on Wednesday night, but says its just a way to keep the state operating while he resumes his push for an income tax hike this fall.
Under the pension borrowing plan, the state will cut the more than $4 billion payment it was supposed to make to the pension systems next year by about 75 percent by borrowing money and then paying it back over five years.
The freed-up cash will be used to reduce major cuts facing social service providers.
But, borrowing costs money too.
It is estimated that interests costs over the five year term will be about $500 million. It could be even more.
Moody’s Investors Service, a financial rating firm, is reviewing the state’s finances, which could result in a downgrade that could result in higher interest payments.
Republicans are expected to use the state’s fiscal quagmire as a key component of their election campaigns in the coming months.
State Sen. Bill Brady, R-Bloomington, who has been campaigning for governor for more than five years, says the state can save money by moving more people into managed care-style health insurance plans. He also supports cuts to state programs.
Both Brady and state Sen. Kirk Dillard, R-Hinsdale, who also is running for governor, were among Republicans voting against an income and service tax increase in May, as well as against the pension borrowing plan last Wednesday.
“It’s time for Illinois to cut up its credit card,” said Dillard, also a candidate for governor. “We’ve tripled the state’s debt. This just puts off D-Day for another day.“
Other Republicans considering a gubernatorial bid include state Sen. Matt Murphy of Palatine, Wheaton political consultant Dan Proft, political newcomer Adam Andrzejewski of Hinsdale and DuPage County Board Chairman Bob Schillerstrom.
Quinn also acknowledges the problem with borrowing, but says he hopes it is a temporary solution to carry the state through the next few months while he tries to build support among lawmakers for the income tax increase.
Contact Kurt Erickson at kurt.erickson@lee.net or 217-789-0865.
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what? wrote on Jul 19, 2009 9:24 PM: