Illinois 67% State Income Tax Increase Looks Permanent: Long Term, Illinois Budget Picture Looks Grim

Chicago Sun-Times columnist Rich Miller reports:

He didn’t come out and say it, but Governor Pat Quinn has apparently abandoned his promise to allow the “temporary” income-tax hikes to expire three years from now.

The governor submitted a three-year revenue and spending projection last week as he’s required to do by a new Illinois law. The bottom line of Quinn’s projection is that revenues are simply not high enough to match what Quinn wants to spend. According to the governor’s projections, the state will finish this fiscal year with a $507-million deficit, despite the recent tax hikes.

Overall, Quinn wants to reduce the state’s operating budget by 7 percent next fiscal year, but much of that “cut” is actually a $400-million decrease in the availability of what is known as “salvage” money, or unspent appropriations. Quinn then projects no more cuts or increases in the operating budget through 2015.

Barack Obama's Illinois.