While Illinois taxpayers were told a tax increase would help solve the state’s financial problems, the fact is that the FY12 deficit still exceeds the state’s FY11 deficit. Senate GOP lawmakers have consistently said that the tax increase will not solve Illinois’ fiscal problems unless there are major changes in the state’s spending habits. The Civic Federation backs up Senate Republican warnings, noting that despite the $7 billion in new revenue associated with the income tax increase, the FY12 budget is still approximately $455 million out of balance.
Echoing Senate Republicans’ criticism of the spending plan, the Civic Federation stresses the only reason there is any semblance of a balanced budget is due to the deferral of Medicaid payments. The budget plan failed to include revenue for a projected FY12 Medicaid liability of at least $11 billion, pushing off payment of $1.7 billion needed to cover the state’s entire FY12 Medicaid obligations." />Skip to Main Content
Sign up below to receive Senator Bivin's email newsletter!