7/31/2019 2/11/1996 - Tribune - Orr - Overstating the State of the State

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Voice of the people

Overstating the state of the stateCHICAGOThe state of the State of Illinois isnot as rosy as Gov. Jim Edgar claimed in hisspeech to the General Assembly in January.

To begin with, Illinois has received seriouswarnings about its financial condition from tworespected sources:

Last September, Richard Mattoon, senioreconomist for the Chicago Federal ReserveBank, found that of five Midwestern states,Illinois was the most fiscally unstable, withlittle in cash reserves to meet downturns. In thepast five years, Moodys Investor Services haslowered the states bond rating three times andStandard and Poors has lowered it twice.

The University of Illinois Institute ofGovernment and Public Affairs recently warnedthat the state has a structural deficit becausestate expenses are increasing at the rate of 2percent per year, while income is increasing at'only 1 percent. This means that by currentspending levels, the yearly deficit will equal 10percent of the budget by the year 2005.

This financial stress is occurring at a timewhen the unmet needs of Illinois are increasing:

Education: Under Gov. Edgar, the state paysless for primary and secondary education, as ashare of the total budget, than it did five yearsago. It has continued to push school fundingonto the overburdened property-tax system. In1990 the state paid 38 percent of education

funding, but between the 1994 and 1995 schoolyears, this was reduced to 32 percent. Duringthe same period, the property-tax share ofeducational spending rose from 55 to 59 percent.

Housing: The governors upbeat speech didnot address affordable housing for Illinoisresidents. In 1995 Illinois was 46th out of 50

states in affordable housing availability,according to the American Housing Survey.

Social services: The numbers of abused _children, elderly people in need, disabled fpersons and schoolchildren are growing every *year. The governor plans to combine seven *

state agencies into one mega-bureaucracy for *better efficiency. Is his intention to further cut 'social-service spending or to use money more efficiently to serve the states unmet needs?

The homeless: According to the ChicagoCoalition for the Homeless, there areapproximately 100,000 homeless people inIllinois, including 20,000 youth. The state has

allocated only $1.9 million annually to fundresources for homeless youthan average of 'about $100 per teenager.

Jobs: There are four job-seekers in Illinoisfor every available entry-level job. In Chicago, .the job gap is 6-1. Edgar proposes that peopleon welfare get jobs. But what is his plan to ..increase employment? Where are his programs 1

to promote job creation in the state?In recent weeks, the Tribune called upon

Edgar to put the state's finances on track bysimultaneously increasing the state income tax.for schools and reforming the property tax.

Gov. Edgar can lead, or he can continue tohide behind his public-relations apparatus.Every years delay in solving our fundingproblems drives the state deeper intodebtdepriving our children of the educationand services they deserve, limiting theiropportunities, making our state less competitiveand creating more long-term poverty.

David OrrCook County Clerk