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Quinn talks capital; Trotter talks taxes; Durbin talks high speed rail; and the NCSL looks back at the ’30s

Monday, Mar 9, 2009 - Posted by Rich Miller

* The governor talked about his capital plan again today, but without offering many specifics. His $25 billion figure is on par with the Senate Democratic proposal, which they’re looking to fund with a 16 cents per gallon motor fuel tax hike to bring in about a billion dollars in new annual revenue. Quinn isn’t keen on the gas tax, however…

“We hope to have a $25 billion… Illinois economic recovery investment program that invests in rail as well as highway and bridges and water and everything else,” Quinn said. “I think it’s imperative… but we have to get it passed. I’d like to see it passed by April 3, and we’re going to work very hard in that direction.”

April 3rd is beyond optimistic. The General Assembly is scheduled to take a two-week break immediately after that. If it was Rod Blagojevich, you’d expect the governor to call a series of special sessions when legislators left town for vacation rather than pass a capital plan. But Gov. Quinn appears to be avoiding that kind of confrontation so far. Still, if the GA ignores him, there’s a good chance he’ll look weak and ineffective. That’s a big reason why setting such an early passage date is so dangerous and unwise.

More..

Quinn would not say how he plans to pay for such a massive spending program as the state faces a deficit of $9 billion or more. He once again said he’s “not a big fan” of increasing gas taxes, as some lawmakers have proposed. And he again used the kind of code language that has many speculating an income tax increase could be on the table.

“I think if you’re going to use any revenues to try to invest in our future in Illinois, in job creation, in making sure we get our economy moving, you should rely on taxes that are based on ability to pay,” Quinn said. “That’s my philosophy, you’ll hear about it next week. We’re going to have, I think, a very robust program in Illinois of job creation, investing in things that matter today, but also matter for our kids and grandkids.”

* Trotter talks income taxes

Donne Trotter is the Senate Democrats’ budget expert. He says talks are underway about how the [income] tax hike would work, although one version would have top earners paying about 60% more. Those who make less would get tax credits to lessen the blow.

TROTTER: It is not like a regressive sales tax. People aren’t shopping anyway so we aren’t getting those. So i believe this is fairest way to do it .

Trotter says other tax and fee hikes are also on the table, as well as some spending cuts.

Trotter points out he has never had a meeting with the Governor’s staff and is unsure if Pat Quinn is on board with this specific plan. But he says an income tax increase is getting more attention this year than it has since it was last raised in the early 1990’s. [emphasis added]

I know the governor is still working on his budget plan, but as a courtesy at least, they ought to meet with the budgeteers. Then again, the House Democrats lost their budgeteer when Gary Hannig was made Secretary of Transportation.

* Also today

Illinois leaders want stimulus money to develop high-speed train travel between Chicago and St. Louis.

Gov. Pat Quinn and U.S. Sen. Dick Durbin say the priority is to upgrade Amtrak’s existing service between the cities so trains can travel at up to 110 miles per hour. That could cut travel times to under 4 hours from the current 5.

Quinn and Durbin met with other officials Monday at Chicago’s Union Station to discuss an Illinois request for some of the $8 billion set aside for high-speed rail in the federal stimulus bill.

* Also, in case you care, the NCSL has published an interesting paper on state finances during the Great Depression.

Yes, people, we’re gonna have to go back to our wonkier roots now that Blagojevich is gone. Get used to it. :)

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