State Budget Hole Grows, Blago Takes Shot At Quinn

By Marcus Gilmer in News on Mar 14, 2009 4:45PM

On the heels of yesterday's revelation that Gov. Quinn plans to propose an income tax hike of upwards of 50 percent comes news that the state budget gap is much larger than had been previously reported: $11.5 billion. According to Crain's Greg Hinz, Quinn's chief of staff Jerry Stermer referred to the deficit as "an unprecedented tsunami of red ink." Hinz continues:

Over fiscal 2009 and 2010 combined, state revenues from individual and corporate income taxes and the sales tax are projected to be off a projected $3.2 billion -- an "unprecedented" decline, according to Mr. Stermer.

At the same time, he said, Medicaid will cost the state an additional $1 billion or so in fiscal 2010, which begins on July 1, higher social services will cost taxpayers an additional $300 million, scheduled employee wage hikes and group health insurance another $300 million, and employee pensions potentially well over $1 billion, depending on possible cost savings.

Meanwhile, never one to miss a chance to get his name in the news, ousted governor Rod Blagojevich used the news of an income tax hike to take a shot at his former lieutenant governor. Blago released the following statement [via ChuffPo]:

This is exactly what I said was going to happen. It is unconscionable that the new governor, Pat Quinn, wants to raise the income tax by 50% especially at a time when people are hurting and the economy is in shambles. When Pat Quinn and I ran as a ticket we promised the people not to raise their income taxes. For six years I kept that promise. It took him less than six weeks to break it.

Classy. And no mention from Blago about his role in all of this? Gotta love our former gov's selective memory.