PI Original Adam Doster Friday May 1st, 2009, 3:55pm

More From Springfield: The Big Ticket Items

Earlier today, we recapped
which pieces of progressive legislation were moving forward in
Springfield. But what about Gov. Quinn's two big ticket items: a
2010 budget and a capital construction plan? With a May 31 scheduled
session deadline, have lawmakers made any ...

Earlier today, we recapped which pieces of progressive legislation were moving forward in Springfield. But what about Gov. Quinn's two big ticket items: a 2010 budget and a capital construction plan? With a May 31 scheduled session deadline, have lawmakers made any progress on these measures? Here's what we know so far:

Budget
As we've written before, Quinn's original budget proposal -- a 50 percent income tax increase combined with tripling the personal exemption and making $1.3 billion in other budget cuts and other savings -- has not been particularly well-received. While various constituencies have praised Quinn for trying to address the structural problems underlying the state's massive budget deficit, organized labor, social service providers, the business community, and lawmakers from both sides of the aisle have raised red flags. He had weeks to prime the pump in anticaption of the budget negotiations -- which officially kicked off yesterday -- but he's simply done a poor job of selling the plan to both voters and legislators.

To his credit, Quinn has stayed firm in his insistence that an income tax increase is necessary to balance the budget. While he seems willing to negotiate on other potential revenue sources, that's one point on which he's not budging. And as he has pointed out repeatedly, there aren't many competing proposals out there.

There is a possibility that Quinn could broaden support if he'd pare down his income hike and call for targeted tax relief, like increasing the state's Earned Income Tax Credit. Another framework is Sen. James Meeks' SB 750, which would increase the income tax rate from 3 to 5 percent, expand the sales tax base to include services, and issue targeted tax relief to property owners and low- and middle-income households. Legislators might be more attracted to this bill because it offers something concrete in return -- more education funding and a lighter property tax burden -- but that's yet to be seen.

Capital Bill
Quinn netted a significant victory when the legislature passed his $3 billion mini-capital bill after years of failed attempts to move an infrastructure plan during the Blagojevich years. But finding the money for his broader Illinois Jobs Now! proposal -- a $26 billion plan that would cost the state $8.6 billion -- is much trickier.

Quinn suggests siphoning off 10 percent of the revenue generated from his income tax reform and raising motor-related fees (driver’s licenses, license plates, vehicle registrations, and title transfers) to cover the expenditures. House Speaker Michael Madigan backs a proposal to raise the state's motor fuel tax by eight-cents-per-gallon -- which would raise an estimated $500 million annually -- while Sen. Martin Sandoval and transit advocates support a more substantial fuel bump. (Quinn opposes both). Speaking to the State Journal-Register's editorial board yesterday, Senate Minority Leader Christine Radogno and House Minority Leader Tom Cross both emphasized the importance of the construction plan but neither could explain "which tax or fee increases Republican lawmakers will support to pay for the program." Gaming is an option that they've bandied about in recent months, but the industry has been whacked by the recession and it's a regressive way to raise funds anyway.

While no consensus has been reached, there is a lot of urgency to get a plan finished and get people back to work. Labor and construction groups have even launched an advertising campaign on television stations across the state.

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