SPRINGFIELD- State Senator Chris Lauzen (R- Aurora) says Governor Blagojevich's budget continues the fiscal irresponsibility of his Administration and his pattern of record borrowing and spending.

"Every budget the Governor has proposed or signed has increased state spending at a time when our coffers have been strained, our job growth has lagged, and businesses in the state have been under siege by this Administration's fiscal policies," Lauzen said "Instead of using taxpayer dollars to fully fund the pension system, as required by law, or address the stockpile of overdue bills the state has amassed under this Administration, the Governor wants to use your money to salvage his election chances." 

Blagojevich announced several expensive programs, grants, and initiatives during the speech to legislators at the state Capitol Wednesday Feb. 15. Some of the more costly ideas included $45 million to provide universal pre-school to children age 3 and up, $90 million for tuition tax credits for parents of college students and $10 million to elementary schools around the state where K-3 class sizes average more than 20 students.

Blagojevich has increase the state's budget $3.4 billion over his term in office, including $1.4 billion in increase spending this year- $200 million of which is

on new programs. Lauzen says even as prolific as former Governor George Ryan was at spending increases, his total increase for four years in office was $2.5 billion. 

Lauzen says Gov. Blagojevich has more than doubled the state's bond debt during his term from $9 Billion in FY03 to $21 Billion in this new proposal. The payments of that debt have been "back-loaded" or put off for future generation to tackle.

Complicating this, the budget is balanced on the backs of teachers and retirees by shorting state pension contributions another $1.1 billion this year. Illinois has the worst-funded pension system in the nation with $38.6 billion in unfunded liability.

"I was hoping the Governor and the Democrat majority would come to their senses and take the Republicans up on their calls to end the pension raids," Lauzen said. "They did not, and if you take their alleged increased revenue estimates for fact .. which is a stretch at best because it includes tax and fee increases, fund sweeps, and proposals that have yet to gain legislative approval- this budget wouldn't be balanced at all if it were not for the raided pension funds. This budget is a magician's dream."

Lauzen reminds that Democrat Senators muscled through Senate Bill 27, a measure that eliminated more than $2 billion dollars in pension payments over this year and last, during the frantic end to last year's spring legislative session. The money from that raid was used to fill both last and this year's state budget gap. The move will cost Illinois taxpayers a total of $38 billion over the life of the raids.

"While the Governor is proposing new programs, the state's Medicaid bills are being pushed off for another day," Lauzen said.  "The current budget year will end with $1.8 billion in unpaid bills. This is due to the increase in Medicaid eligibility every year of the Blagojevich Administration. Currently one of every seven Illinoisans is enrolled in Medicaid and now the Governor wants to increase the already overburdened rolls by adding Veterans to the mix. The idea sounds nice, but where will he get the money to pay for it?"

Lauzen says the assault on the state's businesses continues in this budget with $130 million in new taxes on Illinois employers. This adds to the more than 300 taxes and fee increases imposed by the Administration over the last three years. These taxes and fees have been instrumental in driving jobs across the borders to our neighboring states, which have all seen drastic increases in their job numbers.

"Illinois is 45^th in the nation in job growth since Blagojevich took office and the state's median household income has fallen drastically as a result," Lauzen said. "Nothing I heard today is going to help that, or solve the other important financial issues the state is facing like our overstretch Medicaid system."  

Lauzen says instead of the increased borrowing and spending the Governor has proposed he'd rather see the Governor show some fiscal discipline by introducing serious managed care provisions to our Illinois Medicaid system, prioritize spending, and hold off on new programs until the state can "get its fiscal house in order."

The fiscal year '07 budget will fund all the state's expenditures from July 1^st of this year through June 30^th of 2007. The Governor's released budget plan is only a proposal and will be up to legislators to amend and approve before the end of the legislative session which is set to adjourn on April 7.

###