The evolving proposal coming out of the state Senate attempting to break the year and a half long budget logjam may just serve to make Illinois’ problems with outbound migration even worse.
That’s according to one analyst who also said it’s full of poison pills.
Mark Glennon is founder of Illinois financial news service WirePoints. He doesn’t expect taxpayers to get on board with proposed minimal reforms being lumped together with big tax increases. “Look at this from the perspective of the average taxpayer. There’s nothing that they’ll really notice in the near term, except the tax increases.”
The package includes increasing the individual and corporate income tax, increasing the minimum wage over several years, $7 billion in borrowing to pay off backlogged bills, gambling expansion, state payments for Chicago teacher pensions, plus a budget bill the governor’s office has said is more than $4 billion out of balance. Some of the reforms include a 2-year property tax freeze and reforms to workers compensation that have already been criticized by the manufacturing industry.
Glennon said there could be holes in the various reforms that won’t produce any short term relief for taxpayers or for businesses. “They’ll see that nothing has really been accomplished. They’re paying more taxes into the same sinkhole, into the same broken corrupt system, and they’re not going to put up with it.”
Glennon warned higher taxes and minimal reforms will lead to more outbound migration. Illinois has had consecutive years of population decline.
Meanwhile Glennon said only a select few are cheering the proposed deal of minimal reforms and big tax increases out the Illinois Senate. “Where in the business community or among taxpayers are you seeing any enthusiasm for this? It’s only Democrats and the media, which have been asleep at the switch on this crisis for year, who are cheering on this proposal.”
When the deal was initially revealed, Senate Minority Leader Christine Radogno, R-Lemont, said they’re open to ideas but won’t accept any poison pills. Glennon said the deal is riddled with them.
“The depth of those poison pills remains to be determined and it’s not going to be determined by the time the Senate passes it,” Glennon said.
Senators will take up the package in committees Tuesday.
