Fritz Pfister

It was reported this week by an Illinois state Senator that although the state is a top ten economy in the nation, Illinois is 48th in new job creation. About a month earlier it was reported the city of Springfield had a negative job growth rate, down fractionally from the previous year. This while local businesses have contributed or pledged over five million dollars to support the local Chamber of Commerce’s Q5 program to create 4500 jobs in central Illinois within five years.

If it were not for the momentum of the national economy dragging Illinois in its wake, the state would be on economic life support. Governor Blagojevich is doing his best to stifle job growth, and economic expansion, through the following actions; 1. the biggest fee increases on business in history costing Illinois tens of thousands of jobs. (while promising not to raise taxes on working people through income or sales tax increases) 2. implementing new programs like Kid Care with no way to pay for the program. 3. diverting to general funds, revenue for specific projects resulting in the worst infrastructure neglect in 30 years as roads and bridges crumble, and robbing pension funds creating underfunded obligations by an estimated 25 billion dollars. 4. in name only, the of crafting of a more lean and efficient state government, while department directors have personal chauffeurs, has decimated the prison system where there is now only 1 guard for each 450 inmates, health and human service case workers with hundreds of cases, impossible to serve, the moving of 1700 high paying jobs to Chicago creating a hole in the Springfield economy and hundreds of thousands of square feet of office space sitting vacant. 5. proposing the largest tax increase in Illinois history for new programs while unable to pay for current programs, resulting in budget gridlock with the potential of a state shutdown by August 1.

The national economy is growing because of tax cuts. The national government is now receiving more tax revenue than at any other time in history. A lesson that seems to fall on deaf ears at the governors office. When the governor could not get support from fellow democrats for his new programs due to the cost (it would have cost them their jobs because the governors plans would have bankrupted the state, and taxpayers would have booted them out), the budget went into overtime which by law requires a super majority to pass a budget. This placed Republican senators and representatives in position to have a say on the budget. Blagojevich who was wasting $6,000 a day flying on state planes to Springfield from his base in Chicago then calls the legislatures into special session seven days a week until a budget can be worked out, after passing a temporary budget to get the state through July. This is costing tax payers millions as Blagojevich can’t seem to get support for his tax increase proposals for new programs. House speaker and democrat, Mike Madigan a fiscal conservative, states there isn’t enough support for Blagojevich’s plan and last week proposed an increase in the state income tax, which the governor has promised to veto.

If you want an example of a dysfunctional government for your college classes, look to Illinois under the direction of a tax and spend social liberal governor, and fiscal conservative house leader. The outlook for a resolution is dim, with the exception that time pressure may force leaders to act in the best interest of the state, instead of for their pet social programs that the state cannot afford, before a government shutdown results.

The local housing market, along with the state’s economy will be directly impacted by the budget passed by the state. The state will either pass a reasonable spending plan, which will allow growth in the private sector; or the state can kill the economy by implementing new taxes to pay for new programs while unable to pay for current programs. These next nine days will be interesting to watch the leaders craft a plan.