Senate Week in Review: January 9 - 13

</element><element id="paragraph-1" type="body"><![CDATA[This week, Jan. 13 marked the one year anniversary of the state's 67 percent tax hike passed by Democrat lawmakers during the 2011 lame-duck session. State Sen. Dave Luechtefeld (R-Okawville) said that while the increase was packaged as the way to pull Illinois back from financial collapse, a year later the state is still faltering financially.

Just last week, Gov. Quinn released budget projections showing that even with the tax increase, the Fiscal Year 2012 budget is on target to spend more money than state will generate. In fact, according to the Governor, Illinois will still see a $500 million shortfall at the end of this fiscal year-not including $2 billion in deferred obligations.

Aspirations to reduce the state's overwhelming debt have gone unrealized. Currently, the state still cannot pay its bills in a timely manner, continuing to balance the budget on the back of the state's employers and Medicaid providers. At this time, the Governor's administration estimates a $7 billion bill backlog, while the Comptroller believes the backlog could be as high as $8 billion; it currently takes the state an average 75 days to issue repayments to the state's Medicaid providers.

Influenced by the systemic budget problems highlighted in the Governor's recent report, recently one major credit rating agency lowered the state's credit rating to the worst in the nation. Two others issued stern warnings that future downgrades could occur unless changes are made.

However, it's not too late to change course. Illinois is a great state with an abundance of assets and resources. But without a plan to reduce spending and improve our economy, it is clear that by the time the tax increase is scheduled to expire, Illinois will still be drowning in red ink-even with the majorities' massive tax increase.