Wanted: A Balanced Budget

Today the House Revenue Committee passed a proposal that will lower the FY12 revenue estimates by $759 million

by Mark Cavers

Today, the Illinois House Revenue Committee passed a revenue estimate proposal that is $759 million lower than Governor Quinn’s estimates for fiscal year 2012. The Governor’s budget calls for $35.382 billion in spending, a $1.71 billion (5%) increase over this year’s record spending levels. To pay for this the Governor counts on $33,932 billion in revenue. Using his own numbers, the Governor’s budget proposal is unsustainable, it has a $1.45 billion deficit.

The proposal passed by the Revenue Committee this morning projects $33.173 billion in revenue. Taking into account these figures, Governor Quinn’s proposed budget actually has a $2.2 billion dollar deficit. This $2.2 billion represents 6% of the total budget. Despite passing the largest tax hike in history, government spending is growing so fast that they have no way to pay for 6% of spending beyond new tax increases and a proposed $8.75 billion in borrowing.

On Tuesday, March 8th, the Institute’s CEO John Tillman will give our budget address in conjunction with the release of a workable alternative budget, Budget Solutions 2012. It will be a real budget that is balanced and sustainable. Rather than relying on working families to devote more and more of their income and the time spent earning it for the exact same ineffective government services, it will address the structural overspending rampant throughout government today.

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And make sure you check back between now and Tuesday for updates.