IL Budget Crisis

Also speaking to DGAAN was Pete Subkoviak of the Chicago AIDS Foundation.  Pete presented an informative, yet sobering look at the IL Budget Crisis.  HIV/AIDS healthcare and prevention programs in Illinois are some of the best in the United States.  However, all the existing programs are in jeopardy, and some have already had to shut down, due to cuts in the IL State budget.  

The Chicago Aids Foundation is supporting the initiatives of The Responsible Budget Coalition, which brings together many diverse organizations that represent and serve millions of Illinois residents. They are committed to building the support needed to solve Illinois’ budget crisis, prevent harmful cuts to essential public services, save jobs, eliminate the state’s long-term structural deficit, and make taxes more fair.

“The state has a moral and legal obligation to protect public safety, safeguard public health, strengthen our economy, and ensure that individual has the opportunity to thrive. The current Illinois budget fails that test. It threatens or has already forced deep and damaging cuts to education, health care, human services, and public safety—the core responsibilities of state government—and undermines economic recovery by throwing thousands of Illinoisan's out of work.

We call on every elected official in Illinois to acknowledge that this fiscal crisis, brought on by a long-standing structural budget deficit and an economic downturn, cannot be solved without significant new revenue. The revenue mix contained in HB 174—a comprehensive tax-reform package passed by the Illinois Senate and approved by a committee of the Illinois House—is the most responsible framework for such a solution.

RBC supports comprehensive tax reform, including a revenue increase at least equal to that proposed in HB 174; which would:

• Raise $5.6 billion to $6 billion in new, recurring tax revenues, expand tax credits for homeowners and low-income families, and provide additional funding for education, health care, human services and public safety.
  Increase the individual income tax rate from 3% to 5%, and raise the corporate income tax rate from 4.8% to 5%. +$6.4 billion
• Increase the personal exemption from $2,000 to $3,000. -$1.05 billion
• Double the property tax credit from 5% to 10% (capped at $1,500). Make this credit refundable, ensuring that homeowners receive its full value even if it exceeds their income-tax liability. -$493 million
• Triple the state Earned Income Tax Credit (EITC) for low-income working families from 5% to 15% of the federal EITC claimed. -$167 million
• Apply the state sales tax to luxury services previously untaxed in Illinois but already taxed by neighboring states. +$450-600 million

Pete has created a visual aid to indicate how this tax increase will actually affect average IL citizens.  This is worth viewing!

As Illinois residents we can make a difference. Please go to http://www.abetterillinois.com/ to learn more about the coalition and its