Progress Illinois

Two weeks ago, state lawmakers wrapped up the fall veto session and headed home with hopes that Illinois' financial crisis wouldn't follow them back to their own districts. So far, the bad budget news has trickled in slowly enough that many have been able to distance themselves from the severity of the state's financial situation. But they won't be able to dodge blame forever. For example, adding millions in school reimbursements to the growing pile of unpaid bills is weighing heavy on cash-strapped districts. And in places like the Central Illinois town of Pekin, the backlog -- coupled with other uncertainties and cutbacks -- is growing too big to sweep under the rug. The Pekin Daily Times explains:

The state has a multi-billion-dollar deficit. Inflation is down so far that school districts are limited in how much they can raise taxes to bring in new revenue. Corporate Personal Property Replacement Taxes and sales taxes are down.

General state aid funding for schools is running three months behind. Programs like special education and transportation will not be funded at the full levels. The state has not yet received an application for additional federal American Recovery and Reinvestment Act funding, which was used in lieu of state-generated general state aid payments.

Illinois State Board of Education Chair Jesse Ruiz summed it up best when warned that if the state doesn't generate new revenue for schools next year, "we fall off the cliff." That's why the Illinois Association of School Administrators (IASA) is busy educating members of the Assembly about the devastating effects more cuts would have in districts across the state. Pekin's State Sen. David Koehler has gotten the message, pointing out the there is simply no way to cut next year's projected $12 billion deficit from the state's $26 billion overall budget without eviscerating public education. Too many other lawmakers have taken the decidedly cowardly approach, pushing off a vote on an income tax increase until after the February 2 primary election. Unfortunately, next year's projected $12.8 billion deficit will soon be simply too large to ignore.

The only responsible alternative is to find a new revenue source. Encouragingly, Koehler supports HB 174, the most viable tax plan to date. As regular readers may recall, that measure -- which would impose sales taxes on certain services and raise the personal and corporate income tax rate from 5 percent while doubling the state property tax credit and providing targeted tax credits to low- and middle-income families -- cleared the Senate back in May. The hurdle is the House. But it's not just finding 60 votes to pass the measure that's posing a challenge.  Speaker Michael Madigan (D-Chicago) has hinted that he won't even lift the bill from the Rules Committee until between 10 and 12 Republicans jump on board.

Encouragingly, we hear that a handful are ready to cross the aisle, but there's still work to be done on that front. "It's only going to get worse until all of us take responsibility for what we need to do," State Rep. Greg Harris (D-Chicago) told his Republican colleagues during a roundtable earlier this week, "and bite the bullet."