Senate Republicans announced during the week that they will voluntarily walk away from the controversial Illinois General Assembly Legislative Scholarships Program.

Also during the week, Governor 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 indicated he also plans to close three other developmental disabilities facilities and possibly additional mental health facilities over the next several years.

The Senate Republican decision to stop participating in the scholarship waiver program drew quick editorial support from the Chicago Tribune. A January 19 Tribune editorial noted: “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.” 

The newspaper then chided the Democrat legislative leaders for their refusal to end the program, pointing out that the Senate Republican action “raises an obvious question for Democratic legislators...What, exactly, is your problem? Do you think citizens by the millions haven’t learned what a rip-off you’re perpetuating?”

It’s been a year since a lame-duck Legislature raised income taxes and Illinois’ fiscal outlook remains bleak, despite the fact that working families are now paying about $1,000 more in taxes that could be better spent on groceries, gas, and other necessities.

No Republican lawmakers voted for the “temporary” tax increase passed in the early morning hours January 12, 2011.

Senate Bill 2505 hiked the state’s personal income tax rate from 3 percent to 5 percent – an increase of 67 percent. It also increased the state’s corporate income tax rate from 4.8 percent to 7 percent – an increase of 46 percent. Governor Pat Quinn signed the bill into law the next day.

Democrat leaders insisted that increasing taxes would not affect jobs but in the ensuing year, a number of high-profile employers threatened to leave Illinois. Tax incentives have been passed to retain the employers—and jobs, but the state unemployment rate has still reached double-digits and was 16 percent above the national average in November.

Budget projections released by the Quinn Administration during the week offer a bleak preview of the state’s fiscal situation, though a Senate Republican plan could serve as a commonsense road map to financial recovery.

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

Illinois’ ongoing budget woes continue to be the preeminent issue facing state leaders. When the 2012 legislative session gets under way later this month, one issue is likely to overshadow all others – the continuously weak position of the Illinois state budget.

That was reinforced when the Governor’s Office of Management and Budget on January 3 released preliminary revenue and spending projections for the next three fiscal years. While Governor Pat Quinn isn’t scheduled to deliver his formal budget address until February 22, the projections emphasize the severity of the financial challenges facing Illinois.

More than 200 new laws, covering everything from local library boards to murder, will take effect January 1.

Among the more notable measures are bills that would give citizens greater access to government information through the Internet, encourage the use of alternative energy sources, reduce regulations for home-based food businesses and allow motorcyclists to proceed through a red light if the tripping device fails to turn the light green after a reasonable time.