Saturday, May 19, 2012
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Springfield, IL… Instead of supplying sensible solutions to paying down state debt and boosting the state economy, Governor Blagojevich’s State of the State address Wednesday masked proposals that will harm businesses and take funding away from education and other state obligations said State Representative David Leitch (R-Peoria).

“The governor’s address was vague and provided no detail about how he plans to help bring Illinois out of this economic slump,” said Leitch. “The state is almost $1.7 billion behind in paying bills. My office receives regular calls from healthcare and nursing home providers who are struggling because they have not received Medicaid reimbursements owed to them. This topic is extremely important in ensuring access to healthcare for seniors, the disabled, and low income families, and it should have been addressed during his speech.”

Leitch noted the governor camouflaged several tax increases on businesses in his message. The governor spoke about a one-time tax cut for Illinois companies, but failed to mention his proposal to increase taxes on businesses by more than $1.2 billion for years to come. On top of a $1 billion payroll tax to help expand his universal healthcare plan, the governor also plans to raise $250 million in unspecified business taxes to help fill in a budget shortfall created by the Democrats.

“Our business climate is already hurting with the poor national economy – raising taxes on Illinois companies won’t help matters,” said Leitch. “We need to find ways to attract businesses and create new, good paying jobs to enhance our economy. By doing this, state revenues will naturally increase.”

In addition, Leitch said the governor failed to mention his plan to sweep $500 million from numerous special funds. “Many special purpose funds are dedicated to important initiatives such as developmental disabilities and public safety,” said Leitch. “They should not be tampered with. The simple and logical solution to our state’s fiscal crisis is to stop spending and start paying down our debt. So this spring, I will be pushing for these sensible solutions as well as a capital plan to help create jobs and boost the economy.”