Illinois Turnaround Plan Handbook

8/8/2019 Illinois Turnaround Plan Handbook

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ILLINOIS

TURNAROUND

PLAN

A project of the Illinois Policy Institute


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Copyright 2010 by the Illinois Policy Institute

Permission to reprint in whole or in part is hereby granted,provided the Illinois Policy Institute is properly cited.

Te Illinois Policy Institute is a nonpartisan research orga-nization dedicated to supporting ree market principles andliberty-based public policy initiatives or a better Illinois. As aleading voice or economic liberty and government account-ability, we engage policy makers, opinion leaders, and citizenson the state and local level.

We invite you to join with us or better opportunities or allcitizens across the state. o learn more about how you can helpin Illinois, visit www.IllinoisPolicy.org.

Chicago Oce

Illinois Policy Institute190 South LaSalle StreetSuite 1630

Chicago, IL 60603Phone: 312-346-5700

Fax: 312-346-5755

Springeld Oce

Illinois Policy Institute802 South 2nd Street2nd Floor

Springeld, IL 62704Phone: 217-528-8800

Fax: 217-528-8808


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Contents

Letter of Introduction...............................................4

The Need for a Turnaround.....................................6

Fast Facts about Illinois.............................................7

The Illinois Turnaround Plan..................................10

The Illinois Turnaround Plan:

Policy Details.............................................................13

How Can I Help?......................................................20

Its Time for a Turnaround!.....................................22

Appendix:

Fiscal Follies...............................................................23


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4

Illinois Turnaround Plan

LETTER OF INTRODUCTION

Dear Friend,

For years, the state o Illinois has been driven in the wrongdirection. Some would say we are headed toward a scal andeconomic cliand too many who hold oce believe that ourpath cannot be changed.

We disagree.We believe it is time to turn the state around.Te people o Illinois are ready or a new direction, andthats what the Illinois urnaround Plan is all about.

Illinois was once an economic powerhouse, known throughoutthe nation as a beacon o opportunity and prosperity. oday,Illinois is showing an alarming pattern o continuallyslipping behind other states in major national rankings oeconomic health (see page 7 or more details). Decade aterdecade, Illinois leaders and legislators have put us on the

wrong trackdened by the states out-o-control growth ingovernment spending, prevailing corruption, and delay anddenial by politicians who avoid solving our real problems.

Putting our state back on the path to prosperity requires a newset o guiding principles, and policies, to govern our state. Wecan turn this state around. Tis booklet outlines the specicpolicies that will do just that.


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We hope you can join our efort to transorm Illinois or thebetter. Want to get involved to make our state a better placeor all citizens? Visit www.illinoisturnaround.com.

Best wishes,

John illmanCEO, Illinois Policy Institute

P.S. ogether, we can make Illinois an economic powerhouseonce again. I hope youll use this handy booklet as a reerenceguide or making positive change in your backyard andbeyond.

CEO John Tillman and Executive Vice

President Kristina Rasmussen of the

Illinois Policy Institute


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THE NEED FOR A TURNAROUND

In June 2010, the Illinois Policy Institute commissioned apoll among 600 likely voters in Illinois. Here are some o thenoteworthy ndings:

60% 70%

61%76% support scalresponsibility for

the Illinois budget.

feel Illinois is on

the wrong track.

say state

government isspending too

much money.

favor amending

the stateconstitution to

limit state

spending growth.

o see the complete results o the poll, visitwww.illinoispolicy.org/voterpoll.


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FAST FACTS ABOUT ILLINOIS

Te ProblemOut o the 50 states, Illinois ranks 48th in economicperormance. According to the ALEC-Laer StateCompetitiveness Index, Illinois is doing better than only twostates: Michigan and Ohio.

According to this report, as well as government data, Illinoisalso ranks:

47th in economic outlook. Neighboring Missouri andIndiana rank well ahead in terms o uture opportunity,at 15th and 20th respectively.

44th in GDP growth, averaging only 4.95% per yearrom 1998-2008 while the U.S. average is 6.59%. Illinois

GDP growth has declined since 1977rom 7.6% to5.9%.


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38th in personal income growthper capita, averaging at 4.5% in1998-2008 while the U.S. averageis 5.0%.

48th in employment growthrom 1998 till 2008, rankingahead o only Michigan andOhio.

48th in net out-migration,with 637,979 people leavingthe state rom 1999-2008. Onlytwo statesCaliornia and New

Yorklost more people. 7th highest in median property

taxes paid. 14th highest in number o

days spent working each yearto pay ederal, state, and localgovernment taxes.

14th highest in state and localtax burden on a per-capita basis,at $4,346.

10th highest in property taxburden per capita.

5th highest gas tax burdenapproximately 39 cents pergallon.

1st in sales tax burden (Chicago& Cook County) o any large

47th

44th

38th

48th

48th

in economic outlook

in GDP growth

in personal income

growth per capita

in employment

growth

in net out-migration

At present, of

the 50 states,

Illinois ranks:


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Policychanges lives.When Eddie Metz and his

siblings took over their familys

business in 2000, they knew

there would be challenges.

However, the challenges for

Joseph Metz and Son, Inc. in

Lyons, IL, have proved daunting.As the construction and housing

boom ended, demand for the

concrete material they sell

collapsed. Amidst this change

in business conditions, their

property taxes have gone up.

Eddie says, With the property

taxes, and no business, we have

had to lay off all our employees.

Unless the climate for business

changes, Eddie will be forced to

close the 103-year-old family

business next year.

U.S. city. 8th highest

combined state andaverage local salestax rate, at 8.22percent.

Illinois is shrinkingin wealth, onceranking as high as 6thin per capita personalincome and droppingto 12th in 2008.

Te growth o theIllinois economy haslagged the rest o thecountryor the pastthree decades.

Our SolutionTe solution: lower taxes;responsible spending;transparent, accountablegovernment; and abusiness-riendly environment that empowers entrepreneurs,investors and workers.


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THE ILLINOIS TURNAROUND PLAN

Is Illinois a lost cause? Unortunately, many politicians andcommunity leaders seem to have resigned themselves tothe status quoa culture o corruption, overspending, andrepeatedly kicking the can o responsibility down the road.

Currently, our state aces $4.7 billion in unpaid bills andan ununded pension liability that is over $80 billion. Oureconomy, meanwhile, is stagnant, with high unemployment,low job growth, and amilies struggling to make ends meet.

We cannot tax our way out o this problemeven with a giantincome tax hike o 66 percent, as Governor Pat Quinn hasproposed.

We cannot borrow our way out o this problem. Eventually, thebill will come due.


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And we cannot simply cut our way out o this problem.Structural reorms must take place.

We can only solve Illinoiss massive problems by addressingtheir root causesand reversing them, step by step.

urnaround Step One:Stop the out-o-control spending

Over the years, government spending has skyrocketed, andit continues to grow at an incredible rate. Quite simply, wespend more than we take in. Tis must stop. Step One o theIllinois urnaround Plan is a government spending brakethat will let government grow, but in a moderate, predictable

way: at the rate o infation plus population growth. Tis willput Springeld on a clear path to scal sustainability whileunding core programs (see page 13 or details).

urnaround Step wo:Encourage job-riendly policies that

increase household incomes

For years, the Illinois economy has been choked byunriendly government policy. We rank near the bottomo all states in economic growth. We rank near the bottom(48th in the nation) in creating jobs. We are alling inhousehold income. Slow growth and ewer jobs means peopleare leaving our state in record numbers to seek economic


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opportunity elsewhere. Step wo o the Illinois urnaroundcalls or policies that will reverse this trend (see page 13 ordetails).

Te path to prosperity is clear. So how do we start the journey?I we want to turn this state around, every single policyproposal must go through this three-question lter:

1. Will this policy proposal reduce the burden on

taxpayers?2. Will this policy proposal stop the unsustainable

growth in government spending?3. Will this policy proposal make Illinois #1 in job

creation and increase household incomes?

wo steps. Tree simple questions. As youll see in the pagesthat ollow, the Illinois urnaround Plan oers the detailedpolicy prescriptions needed to get Illinois on the right track.Cynics will tell you it cant be done. Were going to show themotherwise. urning Illinois around wont require a miracle. It

will just require citizens rom across the state getting togetherto demand the right policies or the uture. You can learn morein the pages that ollow.

Real change starts hereand real change starts with you.

Join the turnaround today. o learn what you can do to help,see page 20 or visit www.illinoisturnaround.com.


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THE ILLINOIS TURNAROUND PLAN:

POLICY DETAILS

Real change starts hereand real change starts with you.

For years, Illinois politicians have driven our state in the wrongdirectiona direction thats leading us to nancial ruin. Tats

why were launching the Illinois urnaround Plan, ocusedon practical, common-sense solutions to our states problems.

We propose the ollowing our policy solutions to turn Illinoisaround.

1. Stopping out-o-control state spendingDid you know that

State spending is up 26 percent ater infation rom2000 to 2009. Your tax dollars are fying out the

door aster than theyre coming into state coers.Our proposed spending growth index would ensurereasonable government growthtied to the rate oinfation plus populationwhile stopping out-o-controlspending. Find out more at www.illinoispolicy.org/missionpossible.

More oten than not, our legislators are shoppingwithout looking at the price tags. Fiscal note reorm,


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which was proposed by the Illinois Policy Instituteand endorsed by Governor Quinn, would require thelegislature to consider exactly how much a proposedbill would cost or save the state. Learn more atwww.illinoispolicy.org/scalnote.

Illinois legislators earn a base salary o $67,836theth-highest legislator salary in the country. OnlyCaliornia, Michigan, New York and Pennsylvania paytheir legislators more. Read the Institutes suggestionsor reorming legislator pay at www.illinoispolicy.org/legislatorpay.

POLICY PRESCRIPTIONStop spending beyond our means. When a new

spending program is added, lawmakers must offset

the expense by eliminating an existing program that is

outdated or ineffective. Freeze all new expenditures

and limit state spending growth to the rate of

ination plus population growth. Require a three-

fths supermajority vote on any legislation that would

raise taxes or fees on Illinois families or businesses.


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2. Expanding government transparency

Did you know that

All too oten, the state is spending your moneyon wasteul items. Te Illinois Policy Institutestransparency website (illinoisopengov.org) gives Illinoistaxpayers an online X-ray machine into the details o

state spendingand provides an unbiased look into rawstate government spending data. Few Illinois citizens know the state government spent

$7,875 on birdtesting, $20,692on subscriptions

or the Governorsoce, or that theDepartment oCommerce spent$3,770 or gol carts,$2,822 on hot sauce,

and $280 on soycrayonsall undedby Illinois taxpayers. Learn more atwww.illinoisopengov.org.

Te rst step to true government reorm is greatertransparency. Te Illinois Policy Institutes Liberty

Leaders volunteer program works with citizens acrossthe state to make their communities more open andtransparent. So ar, our 1,056 Liberty Leaders have made

Our represenatives are

using our money in the

wrong way...were in debt

and it keeps going higherand they spend our money

behind closed doors, the

transparency needs to be

there and we need to know

whats going on.

-Joanna, Chicago suburbs


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over $1.496 billion in taxpayer dollars open to the public.Get involved at illinoispolicy.org.

POLICY PRESCRIPTIONMake every penny of state spending easily accessible

and understandable by taxpayers. Require that

legislators read the budgets and bills theyre passing

before voting on them. Give the public seven days to

review the budget online before it is voted upon in

the House and Senate, thereby providing additional

time for the media and public to review and provide

input. Require agencies to show real results from any

spending and sunset the non-performing programs.

3. Reorming our bankrupt state pension system

Did you know that

Our state pension system is more than $83 billion in thehole. For years, the General Assembly and successive

governors have ailed to ully und the annual pensionpayment. Instead, ocials have gone on an all-outspending spree. oday, every Illinois household is nowburdened with $4,423 in state government debt.

Te state oers retirement benets that are moregenerous than those commonly oered in the private

sector. In 2009, 536 Illinois public employee retireesearned a pension o more than $100,000. State retirees


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with 20 or more years o service pay no health insurancepremiums. Tese perks are no longer sustainable. TeGeneral Assembly must implement salaries, benets, andpensions that do not create inequity between those whopay or these benets and those who receive them.

Te states pension contributionmore than $4 billionin 2010 and growing every yearis squeezing outspending on other core government operations. Until amechanism that prevents irresponsible spending whileprotecting pension payments is put into place, Illinois

will continue the long, slow economic decline that hasbeen underway or over 30 years.

Te Illinois Policy Institute put together a plan that xesthe pension problem while respecting both taxpayersand the promises made to public employees. Te PensionFunding & Fairness Act would require state leaders toset priorities while allocating nite taxpayer resources.Read our updated Pension Funding & Fairness Act atwww.illinoispolicy.org/missionpossible.

POLICY PRESCRIPTIONTransition the state pension system to a dened-

contribution plan. Pass the Pension Funding &

Fairness Act in order to control spending excesses,

budget responsibly, and fully fund the annual required

pension payment.


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4. Removing government roadblocks to prosperity

Did you know that

Illinoiss maze o regulations has the eect o sendinga KEEP OU message to would-be entrepreneurs.Not only do Illinoisans battle against the general tideo a struggling economy, they must also conront costly

barriers to doing business, which come in the orm ostate laws and regulations, licensing requirements, andees.

Many unnecessary government regulations stifewould-be entrepreneurs. Until recently, or example, hairbraiders in Illinois needed 1,500 hours o training in

order to get a licensea regulation that stopped manywould-be entrepreneurs in their tracks. Tanks to thehard work o the Illinois Policy Institute and allies acrossthe state, a new law has passed that loosens unnecessaryrestrictions on hair braidersand opens the door ornew jobs.

Illinoiss remaining licensing requirements create oneo the most discouraging obstacles entrepreneurs acein Illinois. Even with the best o intentions, ees andlicense requirements establish barriers to success orentrepreneurs seeking to expand a business in Illinois. InChicago, or example, there is no way to escape a ee i

you want to start a business. For more inormation, visitwww.illinoispolicy.org/roadblocks.


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POLICY PRESCRIPTIONCreate the Illinois Enterprise Commission to review

and determine which Illinois regulations have a

negative impact on job creation and economic

productivity. The Commission would recommend

repealing, abolishing, or amending these regulations,

and the General Assembly would take an up-or-down

vote on removing job-killing regulations and laws.

With your help, we can make these positive policy changeshappen.

I we can change Illinois, we can change the nation.Join oure-list todayyou can sign up by going towww.illinoisturnaround.com or www.illinoispolicy.org.Well keep you posted on the next steps to making our state abetter place or all citizens.


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HOW CAN I HELP?

Get on board: Seven simple things youcan do to turn this state around.

You know Illinois is in trouble. Big trouble. Now what are yougoing to do about it?

1. Sign up. Visitwww.illinoisturnaround.com andsign up or important e-mail updates on the Illinois

urnaround Plan.2. Attend an event. Over the next ew months, well be

touring the state, hosting town hall events dedicated

to hearing the views o local candidates and discussingthe reorms proposed in the urnaround Plan. Tis isa chance or you to make your voice heard on the mostimportant issues acing Illinois.

3. Host an event.Want to host an event in your town?E-mail us at [email protected].

4. Spread the word.ell your riends about the urnaroundPlan, and send them towww.illinoisturnaround.com toget connected!

5. Volunteer. Our network o Liberty Leaders, morethan 1,000 strong, is changing policy or the betteraround Illinois! o get involved, contact Brian Costin at

[email protected].


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6. ell your story.o share your storyo how entrepreneursand small businessesmake a dierenceand how they could bebetter encouraged inIllinoiscontact us.

7. Support our work.Te Illinois PolicyInstitute, which is thelead sponsor o theIllinois urnaroundPlan, relies on the support o donors like you. o supportour work to turn Illinois around, visitwww.illinoisturnaround.com.

My son works for a small

company in Champaign/

Urbana. I see him having to

leave the state for businessmore and more, and he

doesnt want to leave...and

I want him to stay. I do

not like whats happening

in Illinois, and I really feel

like were going to be like

Michigan if we dont start

turning it around.

-Jan, Rolling Meadows


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ITS TIME FOR A TURNAROUND!

Were making progressand with yourhelp, we can transorm our state.

Illinois is not, as many people would tell you, a lost cause. Hereare just a ew o the reorms we have helped make happen inrecent years:

Successully blocked a massive state income tax hike in2009 and 2010.

Challenged spending boondoggles at the state, local,and ederal levels.

Our Liberty Leaders have made over $1.4 billion intaxpayer money transparent and open to the public.

Worked or Medicaid and education reorms inIllinois.

Spread the word about common-sense budget reormsthat have saved local communities millions.

With your help, theres no limit to what we can do. ogether,we can turn Illinois around, restoring our states place asan economic powerhouse and a land o opportunity or allcitizens.

Will you join us?

Visitwww.illinoisturnaround.com to get started.


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APPENDIX: FISCAL FOLLIES

Why Illinoiss budget is brokenand what to do about it.

Illinoiss budget is brokenthats a act accepted by almost allPrairie State policy analysts. Te state has more than $4 billionin accumulated operating debt, to say nothing o the $83billion in ununded public employee pension liabilities.

How did Illinois get into this messand more importantly,how do we get out o it?

Until recently, the narrative in Springeld has been Illinoisstate government isnt spending enough; amilies andbusinesses should swallow a tax hike to make more undsavailable or government.

Tis perspective is refective o the same backward thinking

that put Illinois in a scal pickle in the rst place. I we couldtruly tax, spend, and borrow our way into prosperity, Illinoiswould be a job creation powerhouse. Hundreds o thousandso Americans would be pouring into our borders instead oheading to low-tax, high-growth states like exas, Arizona,and Florida. Distressingly, Illinois had a net out migration

o 637,979 people rom 1999-2008, putting us at 48th in thenation or attracting newcomers to call our state home.


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Its time to take a clear-eyed look at the myths that havepropelled Illinois down a path o economic decline. Illinois canonce again stand as an economic powerhouse and a beacon oprosperity, provided it sheds the misguided policy prescriptionso the past.

Fact: Illinois state government has spent more inreal terms over time.

Overall state spending in Illinois has gone up signicantlyover the past decade, increasing 26 percent ater infation rom2000 to 2009. In 2000, state spending per resident was $3,983(infation adjusted). en years later, state spending per resident

was $4,730.

Spending on major programs is up. For example, governmenthealth carenamely Medicaidis one o the big drivers

If we could truly tax, spend, and borrow our

way into prosperity, Illinois would be a job

creation powerhouse. Hundreds of thousands

of Americans would be pouring into our

borders instead of heading to low-tax,

high-growth states like Texas, Arizona, andFlorida. Distressingly, Illinois had a net out

migration of 637,979 people from 1999-2008,

putting us at 48th in the nation for attracting

newcomers to call our state home.


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o Illinoiss budget growth. From 1993 to 1999, IllinoissMedicaid liabilities grew at a rate o 1.4 percent; over the last10 years, state Medicaid liabilities grew at a rate o 6.9 percenta year.Education spending has also been on an upward trend. Duringthe 2008-09 school year, real infation-adjusted per pupilspending in Illinois schools was at an all-time high. Accordingto the State Board o Education, combined spending inIllinois public schools totaled $12,363 per pupil.

State government debt and tough economic conditionsnow make high levels o spending unsustainable. Instead ospending more or the sake o spending more, Illinois stategovernment should be pursuing innovative ways to achievemore eciency in service delivery.


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Fact: Illinois has a spending problem.

Te undamental problem in Illinois state government is a lacko spending discipline. For years the taxpayers provided Illinoisgovernment with record revenues. In 2008, state governmentreceived a record amount o revenues$29.7 billionromthe tax-paying amilies and businesses o Illinois. State leadersspent every dime and borrowed billions more.

Illinoiss total debt per capita has risen rom $676 in 2001 to$1,682 in 2010. otal general obligation and capital debt grewrom $8.4 billion in scal year 2001 to scal year $25.4 billionin 2011. Illinois now ranks 37th in debt service as a share orevenue; only 13 states have worse burdens than Illinois.

At its core, Illinois has an overspending problem, not a revenueproblem. Future reorms must ocus on the spending side othe states ledger.

In 2008, state government received a record

amount of revenues$29.7 billionfrom the

tax-paying families and businesses of Illinois.

State leaders spent every dime and borrowed

billions more.


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Fact: State spending goes ar beyond covering theessentials.

Needs are unlimited, while resources are not. Budgeting isalways a balancing act o priorities, but unortunately Illinoishas too oten allocated resources toward non-core spendingand above-market public employee compensation rates.

Te Illinois Policy Institutes 2010 Piglet Book identiedhundreds o thousands o dollars in questionable stategovernment spending. Via our transparency website atillinoisopengov.org, weve discovered even more examples onon-essential spending by the State o Illinois, including:

Department o Commerce: $2,520 on promotional hotsauce; Statewide: $574,759 on registration ees and other

conerence expenses; Department o Commerce: $10,000 on Dark Knight

Batman movie gala; and

Department o ransportation: $5,398 on XM SatelliteRadio.

High labor costs detract rom the amount o resourcesavailable or grant and program spending. According to theBureau o Labor Statistics, private-sector workers in Illinois

earned an average annual wage o $48,981 in 2008. Illinoisstate workers earned an average wage o $56,68215.7


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percent more. Comparing 2008 Illinois state governmentpayroll data with statewide Bureau o Labor Statistics incomenumbers, state government cooks earned an average o$42,348 while the income o all Illinois cooks, institutionand caeteria averaged just $23,480. State government automechanics earned an average o $55,555; auto mechanicsstatewide only $40,600. State government non-supervisorial

janitors earned an average o $41,965; the statewide average isonly $25,510.

Te problem isnt just above-market wages. Generous pensionsand benets also add up. In 2009, 536 Illinois public employeeretirees earned a pension o more than $100,000. State retirees

with 20 or more years o service pay no health insurancepremiums.

State government needs to prioritize spending on core needsover discretionary wants. Further, the General Assemblymust implement salaries, benets and pensions that do notcreate inequity between those who pay or these benets andthose who receive them.

Fact: Illinois cannot continue on a path ospending more than it collects.

Leaders o the General Assembly and successive governors

have demonstrated year ater year that they lack the disciplineto set priorities and rein in spending. Each year they have


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Illinoisans spend on average 101 days

January 1 through April 11working to pay

their combined tax burden, making Illinoisthe 14th highest in number of days spent

working each year to pay federal, state, and

local government taxes.

expanded government obligations to unsustainable levels.Tese expansions o state government obligations createstructural overspending, in turn leading to so-called structuraldecits.

Certainly, the states accumulated budget decit is not theproduct o one years overspending. It is the result o many

years o spending beyond our means. Te state ended 2009with a decit o $4.3 billion, and it closed 2010 still billions inthe hole. Te budget or scal year 2011 remains unbalancedby billions o dollars, with past due debt totaling over $4billion.It is the rapid, excessive growth in spending during the goodtimes that builds in spending levels that become unsustainable

when the inevitable economic slowdowns occur. Te stateneeds structural reorms, together with targeted spendingreorms, to move out o todays scal morass.


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Fact: Illinois already takes a lot in taxes romamilies and businesses.

Illinoisans spend on average 101 daysJanuary 1 throughApril 11working to pay their combined tax burden, makingIllinois the 14th highest in number o days spent working each

year to pay ederal, state, and local government taxes. Illinois isalso 14th highest in state and local tax burden on a per-capita

basis, at $4,346.

Illinois has high sales taxes. Illinois has the 8th-highestcombined state and average local sales tax rate at 8.22 percent.Even with a rate reduction to just 9.75 percent, Chicago isstill known as a sales tax sinkhole.

Illinois has high property taxes. Illinois ranked 7th highestin median real estate taxes paid in 2008, at $3,384. Illinoishas the 6th-highest property taxes as a percentage o medianhome value. Illinois has the 5th-highest property taxes asa percentage o homeowner income. Seventeen out o the

top 100 counties on a national list o property taxes paid onowner-occupied housing (as a percentage o home value) are inIllinois.

Illinois has high excise taxes. Illinois has the 5th-highest stategas tax at 39 cents per gallon. Illinois has high taxes on beer,

wine, and spirits compared to nearby states. With a $1-per-pack tobacco tax increase, wed have a higher rate than our oour neighboring states.


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Fact: A massive income tax increase iseconomically harmul to Illinoiss amilies and

businesses.

Illinoiss moderate income tax rate is the best competitiveadvantage in our states tax code. We should not oreit one othe best incentives or people to live and work in Illinois byincreasing the states income tax rate.

An income tax hike would hit amily budgets hard. Accordingto Bureau o Labor Statistics data, the average Midwesternhousehold is made up o 2.4 persons and has a beore-taxincome o $61,063. A amily with taxable income o $50,000

would pay an additional $500 in taxes under Governor Quinns

2010 tax hike plan, on top o the $1,500 theyre already payingin state income taxes, or a total state income tax bill o $2,000.

What should amilies cut rom their household budgets tomake room or higher tax bills?

Income tax increases will also hurt job creation in Illinois.

Scott Moody, a tax-policy economist, calculated that GovernorQuinns 2009 proposal to hike income taxes by 50 percent

would cost the Illinois economy $8.6 billion in lost economicoutput. According to Moody, this is equivalent to taking thestates 2008 revenue rom its sales, cigarette, liquor, inheritance,corporate ranchise, and insurance taxes and dumping that

money into Lake Michigan.


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Hiking taxes will kill jobssomething that Illinois can illaord to do right now with an unemployment rate above 10percent.

State leaders need to have the courage to levelwith voters about the need or governmentspending reorm beore asking taxpayers to bailout state government with another tax hike.


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Get on Board & Share

the Turnaround

Become a Liberty Leader!

Te Illinois Policy Institutes Liberty Leaders programconsists o a diverse group o volunteers who are dedicated topromoting the principles o accountability, transparency and

better government in Illinois. Individually and as a team, Lib-erty Leaders are revitalizing citizen participation in local andstate government, eectively reorming the public sector.

Sign up to be a Liberty Leader today! Contact Brian Costinat:

[email protected]

Share the urnaround Plan!

Request more copies o this booklet or you or your riends!

Email us and well ship some out:[email protected]

Support the urnaround!

Tis wouldnt be possible without the generous support o ourdonors. Please visit:

www.illinoispolicy.org/donate


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ILLINOIS

TURNAROUNDPLAN

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