News From

State Representative Ron Stephens

For Immediate Release: May 21, 2008

Contact: Rep. Stephens

618-651-0405

House Democrat budget increases state spending by $3.1 billion

Springfield…. Representative Ron Stephens (R-Highland) and his Republican colleagues emphatically reject a massive budget submitted by the House Democrats that would increase the state’s spending by $3.1 billion without identifying new revenue sources.

“This proposal is an outrageous travesty against the people of Illinois,” Stephens said. “In drafting a budget this year we can’t ignore our fiscal realities. Every family in the state has to make sacrifices to have a balanced budget and we should follow suit. The Democrats’ budget is not a balanced budget. It’s a financial abomination!”

Currently, Illinois is ending Fiscal Year 2008 with at least a $500 million budget shortfall and another $1.7 billion in unpaid bills. State leaders also appear to be pushing off two general state aid payments until the next fiscal year, which would hurt local schools. Stephens believes Illinois needs to tighten its belt and cut the spending back so the state’s financial sinkhole doesn’t widen any further.

“The proposed budget promises money to a wide variety of agencies, universities and groups that the state cannot afford to pay,” Stephens explained. “As we all know, budget shortfalls have already impacted Soil and Water Conservation Districts, the U of I Extension, schools and universities, and many state agencies so far this year. The Democrat budget gives these groups a false sense of security, and without a suitable funding source, the rug will be pulled out from underneath them again in 2009. Their budget is all spending without sufficient revenue to pay for it. It’s nothing but an election year lie – a cruel hoax.”

In addition to last year’s budget shortfall, Illinois is starting Fiscal Year 2009 with at least $3.1 billion in new spending pressures. The state is only expected to bring in $1.2 million in new revenue growth in FY09, which is not enough to cover already known obligations such as: $600 million more for Medicaid; $800 million more to make our pension payment; at least a $300 million increase for education; $100 million for labor contracts and rising health insurance costs.

House Republicans are advocating a budget that will force the state to live within its means. They also believe it is vital to pay down the $1.7 billion owed in unpaid Medicaid bills and make the state’s obligated pension payment. A capital plan is another important idea the House Republicans are advocating. However, the one-time money that would be raised through the auction of the tenth gaming license is being committed elsewhere in the Democrat budget.

“Illinois desperately needs to create a capital plan,” Stephens said. “A capital plan would create jobs, spur on our economy and repair our crumbling infrastructure. A capital plan needs to be our top priority to help Illinois get back on its feet.”

Stephens believes the excessive budget proposed by the House Democrats signals a possible income tax increase for taxpayers late this year or in early 2009.

“One must wonder whether Speaker Michael Madigan is planning a November surprise…coming back in the fall veto session – after the election – to push new tax increases to pay for all of his new spending and our growing debt,” Stephens said. “It’s the only way he can possible expect to pay for some of this!”

Stephens said those who run the state need to begin to get along and realistically look at the current condition of Illinois before they can put a decent budget together.

“Realistically, how can we pass a budget when the two chambers and the Governor refuse to communicate with one another,” Stephens asked. “The House Democrats have a budget. The Senate Democrats say they have their own budget. And of course, the Governor has his own budget. They control everything but haven’t consulted each other – let alone the Republicans. Just another example of Democrat dysfunction.”

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