January 20, 2012
 
Senate Republicans announced this week they will voluntarily walk away from the controversial and scandal-prone Legislative Scholarships Program, State Senator Dale Righter (R-Mattoon) said. The Senate Republicans hoped their decision will pressure their Democrat colleagues to also give up the costly and politically-charged perk.
 
Also during the week, Illinois Comptroller Judy Baar Topinka released a new report that estimates that one year after the state raised personal income taxes by 67 percent, Illinois has a bill backlog of about $8.5 billion.  Meanwhile, Gov. Pat Quinn announced plans to close a state-run developmental center in Jacksonville and a mental health center in Tinley Park in 2012. The Governor also indicated he plans to close three other developmental disabilities facilities and possibly additional mental health facilities over the next several years.
 
Sen. Righter had already opted out of the troubled scholarship program, and was pleased with his Senate Republican colleagues' decision to cease participation in the tuition waiver program. The Caucus decision drew quick editorial applause from the Chicago Tribune on Jan. 19, when a Tribune editorial praised Senate GOP efforts, saying: "Republicans in the Illinois Senate are voluntarily suspending their participation in the tuition waiver program that has brought so much dishonor — and so much dishonorable conduct — to the General Assembly."

January 18, 2011

This past Friday, January 6, Moody’s Investors Service released information concerning credit ratings for Illinois and other states. In a disappointing but not surprising revelation, Illinois has the worst credit rating of all 50 states.

It’s certainly not new information for those who have been paying even a modest degree of attention to Illinois’ financial condition to hear that Springfield’s leaders have once again been shown evidence that their fiscal policies are failing the taxpayers. Many of those leaders will attempt to dismiss Moody’s findings as just more technical information from far away “Wall Street.” But in reality a poor credit rating costs Illinois taxpayers more of their hard earned dollars. As a practical matter, it becomes more expensive for state government to borrow funds, through an increased interest rate. That increased interest rate must be paid to those from whom the money is borrowed, and that money comes directly out of taxpayers’ pockets. Over time, the extra interest can add up to hundreds of millions of dollars.

As we enter 2012 and discussions soon begin on the next state budget, the solution to our problems is now more clear than ever – state government must reduce spending.

For those who believed that a tax increase was the answer, the Democrat majority did just that, on the final day of the Fall Veto Session one year ago. That 67% increase in income tax rates, which is projected to take another $7 billion from taxpayers, has now been in place for a full year. Yet our financial condition, as measured by our backlog of bills, the budget deficit, and long term debt, is even worse. Why? Because as quickly as Springfield’s leaders are taking money out of the private sector, they are choosing to spend it at an even more alarming rate. So reducing the rate at which that money is spent is the only remaining answer.

Early last year I was part of a budget proposal that would have slashed billions in spending over the next five years, in order to allow Illinois to achieve three objectives with which the overwhelming majority of legislators and those they represent say they favor. First, allowing the tax increase that was voted in to place in January of 2011 to sunset on schedule, which is to take place three years from now. Second, paying off our backlog of bills, now over $6 billion, without borrowing even more money. Third, build up enough of a surplus over these next few years so that when the tax increase does sunset, the state budget will be in balance.

Of course, it is easy for elected officials and others to stand up and say ‘we need to cut spending.’ The real challenge lies in outlining those cuts and then enacting them. But it is exactly that type of courage that is long overdue, and what Springfield’s leaders must find in order to prevent further damage. And when I speak of cutting state spending, I do not refer to cutting the “growth” in spending – for doing that will no longer provide the financial stability we need. I am referring to real reductions, the kinds of reductions with which individuals, families, and small businesses all across my district, and all across this state have had to cope. These cuts will affect everybody, including public education, healthcare, environmental concerns, and a long list of others. The sad fact is that those who had the power to set our fiscal policies for the last decade have either somehow not understood the damage they were creating in year after year of overspending and excessive borrowing, or did so regardless of that knowledge.

I will once again be part of a budget plan that will seek to achieve the three goals I listed above, within the timeframe of the next four years. Of course, in the interim we have lost one year since that plan was set forth a year ago, so now the cuts will be deeper and the impact will be heavier. But the alternative – the state defaulting on its debts, school districts closing for lack of timely payments, and the Medicaid system imploding – is both unacceptable and would be all but impossible from which to recover.

The Moody’s report creates another clear fault line which we can clearly see. The question is whether Springfield’s leaders will now awaken to the reality and take action before it’s too late.

January 9, 2012

This week, budget projections released by the Quinn Administration offer a bleak outlook for Illinois’ finances, though State Sen. Dale Righter (R-Mattoon) noted Senate Republican’s have offered a cost-saving, revenue generating budget blueprint that could serve as a commonsense road map to financial recovery.

The need to address the state’s dire budget situation was further underscored by a new report released by the credit rating agency, Fitch Ratings. In a Jan. 5 report, Fitch emphasized the importance of reining in the state’s Medicaid and pension obligations, and pursuing long-term solutions to finance state government operations.

Righter said that when the 2012 legislative session gets underway later this month, Illinois’ ongoing budget woes will likely be the preeminent issue facing state leaders. The
Governor's Office of Management and Budget further reinforced the Senator’s predictions on Jan. 3, when the Administration released preliminary revenue and spending projections for the next three fiscal years.

Though Governor Quinn isn't scheduled to deliver his formal budget address until February 22, the projections emphasize the severity of the financial challenges facing Illinois. For the coming fiscal year, the Governor's office promised a tightly balanced budget that would spend $33.7 billion, based on $34.1 billion in projected revenues. That budget would keep spending slightly under revenues, allowing for a modest surplus to reduce the state's backlog of bills.

However, achieving that goal will be far from easy. The outline presented by the budget office indicated virtually all state spending must remain flat for the next three years. In order to achieve a balanced budget, there could be no increase in education, public safety, welfare or healthcare spending.

The projections echo Senate GOP warnings that Illinois must draw the line on spending and eliminate non-essential state programs or services, or eventually face fiscal insolvency; however, the state’s Democrat leaders have continued to spend well beyond the state’s means, digging Illinois into an almost insurmountable fiscal hole.

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