SPRINGFIELD, Ill. – In his state budget address Wednesday, Gov. Pat Quinn said keeping the tax hike is a hard choice – and some question if it is the right choice.
The governor wants to make Illinois' temporary income tax rate increases of 2011 permanent, which he said would stabilize the budget for the long term.
Ralph Martire, executive director, Center for Tax and Budget Accountability, said it was a bold move.
"Revenue is really important at this juncture and people that try to claim you could let this tax increase expire and still fund schools or social services are simply not telling you the truth," he pointed out.
But Ben VanMetre, senior budget and tax policy analyst at the Illinois Policy Institute, said continuing to raise taxes isn't the answer to the state's budget problems.
"Gov. Quinn's budget pushes spending up to $38 billion next year,” he pointed out. “I think that's disrespectful. He's breaking his promise to taxpayers to let the tax hike sunset. "
The rates that had been raised from 3 percent to 5 percent are scheduled to drop to 3.75 percent in January.
Quinn said without action to stabilize revenue, extreme cuts would need to be made to education and critical public services.
While VanMetre said leaders need to discuss better ways to reform spending and address the state's billions in unpaid bills, Martire stressed taxes are what need to be reformed.
He said the governor should support a proposed constitutional amendment that would change the Illinois income tax from a flat tax to a more fair, federal-style progressive tax system.
"One that has lower rates for lower levels of income and higher rates for higher levels of income like the federal government income tax does,” he explained. “But we can't do that with our current Illinois constitution. "
In his address, Quinn also called for increases in the Earned Income Tax Credit for low-income families, and proposed that those who pay property taxes get a $500 refund.
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An Eau Claire resident is speaking out about how federal cuts to Medicaid and the Supplemental Nutrition Assistance Program could affect his life and his family's.
Oliver Winn and his parents all live with disabilities. He said Medicaid has allowed him to have surgeries that have improved his quality of life to such a degree, he no longer needs a wheelchair. It also helps him pay for medication which would otherwise cost $5,000 a month. Winn described the forthcoming federal cuts to Medicaid and SNAP as "terrifying."
"It's going to change a lot of things for a lot of people, and I'm concerned for myself, I'm concerned for my family, my community," Winn explained. "Everyone is going to be affected by this and it's a very scary time to be living through."
It's estimated more than 276,000 people in Wisconsin could lose their Medicaid coverage and another 90,000 risk losing their SNAP benefits over the next decade.
One in eight people in Wisconsin depends on SNAP to help pay for groceries. Winn is one of them. Although he currently works overnight shifts, he noted he still needs SNAP to afford food for him and his child. Before he had Medicaid and SNAP, Winn added his high medical debts meant he struggled to keep up with food and housing expenses, which led him to become homeless.
"Because there's no way to balance trying to feed yourself, trying to pay off this debt and still have access to health care and rent," Winn stressed. "It's impossible, and I wish that the people writing these bills and enacting these policies could get a taste of the life that they're creating for other people."
Along with federal cuts, the Trump administration is implementing stricter work requirements for these programs in an effort to curb what it calls "welfare dependency." More than 45% of SNAP recipients in Wisconsin are in working families and the majority of Medicaid recipients in the state are part of the workforce.
Winn argued the rhetoric suggesting beneficiaries are lazy and unmotivated is not based in reality.
"We do and want to work," Winn emphasized. "Almost everyone I know is on Medicaid. My friends, my family that are capable of working are the hardest workers I know, because we have to work so hard to scrape out ends meet."
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The mayor of Lancaster, Pennsylvania is voicing concerns about the state budget delay, warning it could affect the city's more than 58,000 residents.
Lawmakers missed the June 30 deadline for the fourth year in a row.
Danene Sorace, mayor of Lancaster, said she is closely monitoring both the state budget and the federal transportation, housing, and urban development budget coming before Congress today, noting both have significant implications for the city.
"There's been a significant reduction in federal funds that are coming to the state," Sorace pointed out. "How the state, in a divided House and Senate, reconcile these reductions in federal funding for Medicaid and address the other issues at hand, specifically equitable school funding, is yet to be determined."
Gov. Josh Shapiro said the state budget talks are making progress and expects a deal soon.
Sorace added since the "One Big Beautiful Bill Act" has passed and the state must deal with reduced federal funding, Lancaster will likely experience losses in health care access. She explained the city is fortunate to have strong hospitals and community health systems, which is not always the case in rural areas.
"I think that long term, the impacts are going to be potentially more damaging," Sorace observed. "For our rural brethren in other parts of Pennsylvania and across the country, we're more concerned about their access to health care."
The new law slashes Supplemental Nutrition Assistance Program funding by $186 billion over the next decade, adding stricter work and reporting rules, threatening benefits for many Pennsylvanians.
Sorace emphasized food insecurity was already rising before the cuts and she now expects even more demand at local food pantries.
"Our nonprofit community is trying to figure out what the state is going to do to help fill those gaps," Sorace stressed. "Of course, we're very concerned about food insecurity, especially during the summer months, when kids aren't in school and don't have breakfast and lunch always available to them."
Sorace added she recently joined more than 200 mayors at the annual meeting of the U.S. Conference of Mayors to discuss key issues, including housing and public safety. She underscored cities across the country are making progress on public safety, highlighting Lancaster's achievement of its lowest homicide rate since 1983.
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While cuts to food support programs and Medicaid gained attention as the debate over the budget bill went on, there is also a long-term likelihood it will result in automatic spending cuts to Medicare.
According to the Congressional Budget Office, the reconciliation bill is projected to add more than $3 trillion to the deficit over 10 years. If the estimate is accurate, the Statutory Pay-As-You-Go Act would require the executive branch to enact automatic spending cuts, including 4% annual cuts to Medicare starting in January, translating to around $500 billion in cuts over 10 years.
John Geer, professor of political science at Vanderbilt University and co-director of the Vanderbilt Poll, said a spring survey found Tennesseans were broadly opposed to cuts.
"We ask about Tennesseans' willingness to support cuts to Medicaid, Medicare, Social Security, veterans, etc.," Geer outlined. "And the truth of the matter is that Tennesseans are opposed to cuts in any of these programs. And it doesn't matter your partisan stripe, whether you're a liberal Democrat or a conservative MAGA-ite, you don't want to see these programs cut."
More than 1.5 million Tennesseans depend on Medicare. Congressional action would be needed to avoid automatic cuts, likely requiring a 60-vote majority in the Senate.
While funding to research under the National Institutes of Health would not be subjected to automatic cuts, the Department of Government Efficiency has already fired 2,500 researchers at the NIH and canceled more than 800 research grants. Geer's polling found more than 70% of Tennesseans oppose cutting funding for basic research.
"We asked a battery of questions about cutting research at universities, at hospitals, for drug discovery, etc., and again, there's partisan differences," Geer reported. "The MAGA folks, so to speak, are happy to do the cutting but the rest of the state has concerns."
The poll found 73% of Tennesseans support research at teaching hospitals and 66% supported research at universities.
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