Debt bombs and how we can disarm them

by John Tillman There is only one way out of the worldwide debt crisis, but so far Illinois’ political leaders do not seem to understand what that path is.  Here is what the solution is not: The solution is not increasing taxes. The General Assembly and Gov. Quinn did that in January by implementing a...

by John Tillman

There is only one way out of the worldwide debt crisis, but so far Illinois’ political leaders do not seem to understand what that path is.  Here is what the solution is not:

• The solution is not increasing taxes. The General Assembly and Gov. Quinn did that in January by implementing a record $7.2 billion tax hike – yet the state is still piling up debt. Most of the tax hike money has gone to make the public employee pension payment, not pay down past due debt, as was promised.
• The solution is not fake budgets. Lawmakers passed a fake budget for fiscal year 2012 by claiming they cut spending, but actually hiding more than $1 billion of 2012 spending that will have to be paid for in 2013.
• The solution is not a fake spending cap big enough to drive a moving truck through on its way to Indiana.
• The solution is not massive spending on public programs, government workers, pensions and benefits that are unsustainable…  Just look at the Greek crisis to see what is coming.
• The also solution is not running government as an endless favor factory, doling out special carve outs and incentives for those with access to political power.  It hasn’t worked for the now bankrupt city of Harrisburg, Pa, and it won’t work for our great state of Illinois.

The only way to fix the root problem in Illinois is to cut spending. And there are only a few core areas to focus upon to cut spending: pension reform for current employees, real workers’ compensation reform that will reduce costs to businesses, reforming Medicaid and opting out of the federal health reform, the Patient Protection and Affordable Care Act.

And these are just the start.

All across the state, primary candidates from both major political parties are collecting signatures, endorsements and funding. As they come into your sphere of influence, ask if they are ready to lead by making the tough choices in the areas noted above. If they are unfamiliar with these issues, or do not have a clear plan to solve these fundamental policy challenges, I suggest that you think long and hard about whether or not that candidate is prepared to lead, take the tough votes and face the wrath of the entrenched interests who have long dominated Springfield.

On the other hand, if they show themselves to be well-informed and ready to lead, now is a time for engagement and policy activism more than ever. The fuse is lit, the debt bomb is ticking and it is exploding in places like Harrisburg. Will our fuse burn, or will it be extinguished? The clock ticks.