Fw: January 16, 2011 Newsletter

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January 16, 2011 NewsletterThis is from a State Rep. on the north shore. It

describes her perspective on the tax bill.

Ellen

Ellen Garber Bronfeld

egskb@...

January 16, 2011 Newsletter

Illinois 58th District State Representative Newsletter

January 16, 2011 Newsletter

a.. REVENUES TO CURE INSOLVENCY: DIGGING ILLINOIS OUT OF DEBT

REVENUES TO CURE INSOLVENCY: DIGGING ILLINOIS OUT OF DEBT

As a result of the revenue increases enacted by the state, the $8 billion

backlog of payments to our schools, social service agencies, mental health

providers, and municipalities will start to flow once again. After fighting hard

to make sure there were no new programs or new spending included, that firm

spending caps were in place and the property tax deduction was left intact, I

voted for the scaled back final bill and I want you to know why. I waited to

send you this until I had all of the details on the amounts of cuts we will be

making, so that you might understand why I supported the bill.

To have done nothing would have put us over the edge to insolvency,

reduced us to junk bond status immediately, and the state would have been unable

to meet payroll by the end of the month. This was one of the toughest votes that

I have cast during my years in the legislature, but I had to do what I thought

was right. I have been listening to people for several years as they told me of

social service agencies closing, our structural deficit deepening, and wasted

millions in interest on our borrowing.

The bill contains unprecedented limits on future spending. We will not be

adding any new programs. We will not have new spending. In order to stay within

the caps, we will be forced to make cuts in our budgets for each of the coming

years. FY12 cuts are $860 million, FY13 cuts are $872 million and FY14 cuts are

$508 million. If we do not meet the firm spending cuts imposed by the bill, the

income tax increase will be rolled back. This was one of the assurances I

required for my support. We have also passed a law that holds government

accountable for performance and increases public participation in the process.

That law will also stop automatic renewal of multi-million dollar insider

contracts without competitive bidding.

I believe that this bill is a major first step to stabilize the state's

financial situation. We have made reforms and cuts and more are on the way.

During the last session, we passed major Medicaid reforms saving $800 million in

4 years, and pension reforms saving $75 billion in the next 35 years. We are

proposing more reforms for pensions and workers compensation, and with

cooperation from the other side of the aisle, all can be accomplished this

session. I have already filed a further pension bill that can be a test of the

constitutionality of changing pensions for current employees, and I have drafted

a bill to cut boards and commissions.

Most of the tax increase is for a fixed period of 4 years. This money will

be used to pay off our unpaid bills and to cover the state's structural deficit

of $15 billion. We owe over $8 billion to vendors, service providers, and

companies which are owed tax refunds. Many of these businesses have been pressed

to extinction by the state's failure to pay its bills.

As you know, over the past year I have been working for cuts in our

spending. This month I helped put together a coalition of like-minded suburban

and downstate legislators to lobby the Governor to control spending. I also

fought hard and was successful in stopping the last minute shell game which was

tried with regard to property taxes. As a result of my efforts, we preserved the

property tax deduction of 5% which we are allowed to deduct from out state

income taxes.

Many people suggest we cut employees, but we already have the lowest head

count per capita of any state. Those facts and other cuts are outlined in

information from the Governor's office by following the link here. SB 2025

Information Release

It is difficult for all of us to face the reality of higher taxes. I am

certainly concerned about the impacts on our families and our businesses.

However, I believe the revenue was necessary. In the coming session I will be

working hard to pass legislation which will further reduce our spending and add

further reforms to our pension system. Our work has just begun. Give me your

ideas of any programs you want to cut or any other efficiency.

As always, I welcome your comments and suggestions. Please contact me at

my Constituent Service Office, 847-433-9100 or @....

Sincerely,

.

Quick Links...

a.. My Web Site

a.. To look up a bill...

a.. Follow me on Facebook

email: karen@...

phone: (847) 433-9100

web: http://www.repkarenmay.org

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Illinois 58th District State Representative | 427 Sheridan Rd. |

Highwood | IL | 60040