Friday, May 30, 2014

Just A Reminder, Despite Massive Tax Hikes, Illinois Still Circling the Drain

Hey, just a reminder, Illinois, which passed massive tax hikes a few years ago, which drove businesses out of state, still can't balance its budget and faces another ratings downgrade from the worst-rated state to...I don't know, the worster rated state.
Illinois lawmakers are poised to approve a $35.7 billion spending plan for the year beginning July 1, knowing they’ll probably have to return after the November election to provide more funding to keep government operating. 
The General Assembly has been unable to extend personal and corporate income increases beyond their Dec. 31 expiration, or cut the budget by about $2 billion, the amount that would be lost in tax revenue.  While Democratic Governor Pat Quinn said he wanted to renew the levies, the proposal fell short of the votes needed in the House, where all members are up for re-election in November. The Senate is to take up the budget bills today.
The plan under consideration maintains spending at current-year levels, using dollars drawn from borrowing, transfers and delayed payments to vendors and state employees.  Illinois is the lowest-rated state, with an A3 grade from Moody’s Investors Service, and lawmakers acknowledge their actions risk another cut.


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