By J. Larry Miller
March 7, 2013
Governor Quinn provided his budget address yesterday, opening the speech by stating that this “is an honest budget that reflects our fiscal challenges, pays down the backlog of bills and addresses funds that have been under-appropriated for too long.” The speech focused on three prominent issues: pension reform, tax reform, and economic growth.
Larry Miller, executive director Franklin County Farm Bureau
Pension funding has been and continues to be the most significant issue for the state budget. The pension system is costing taxpayers an additional $17 million a day. The Governor’s budget fully funds the state’s pension liability for the coming fiscal year at the cost of cuts in some core priorities. For example, the Governor’s budget proposes to reduce funding for the general state aid for education by approximately $150 million. For this reason, the Governor stressed in his speech that the top priority for this General Assembly should be to pass pension reform. He stated that if nothing is done “within two years Illinois will be spending more on public pensions than on education.” The Governor outlined a few conditions that he believes should be involved in a pension reform: payment of the full pension amount each year, adjusted employee contributions, possible state funding changes and adjustments to benefits.
A second focus of the speech was on efforts to pay down the back log of bills. Front and center in that discussion is the idea of closing tax loopholes to increase state revenue. The Governor is proposing a complete review of tax loopholes included in current law in order to close those that are “unnecessary”. He stated that it does not make sense to give the “most profitable corporations on earth” tax loopholes when there are bills to pay. He specifically singled out three loopholes that should be suspended: the Foreign Dividend corporate loophole, the Federal production Activities loophole, and the Non Combination Rule. The Governor alluded that there will be others considered. IFB will be working diligently to assure that agricultural sales tax and the other tax incentives are not viewed as “unnecessary”.
A third focus for the Governors speech was on economic growth. He outlined the accomplishments of the state over the last three years in adding 167,000 private sector jobs. He discussed the recent $700 million investment in further public works that will help update roads and bridges all over the state. Another job creator backed by the Governor is hydraulic fracturing. He specifically called for the General Assembly to pass legislation on hydraulic fracturing because it will create thousands of jobs in southern Illinois.
Aside from these three issues, the Governor addressed his commitment to increasing government efficiency and the goal of doing more with less. The Governor announced that later this week he will be issuing an Executive Order to officially eliminate or consolidate 75 boards and commissions as a further step to increase government efficiency.
Just a reminder that the Young Leaders are taking orders for smoked pork loin – ½ loin $30 and a full loin $45. They will be ready for pickup on Thursday March 28 and orders and payment must be received in this office by the 19th. These are amazing and all proceeds go to providing a scholarship. Call 435-3616 for more information. Will make a great addition to any Easter table.
Remember we are farmers working together. If we can help let us know.
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