SPRINGFIELD | Gov. Rod Blagojevich wants to mail out election-year tax rebates worth at least $300 to 1.3 million Illinois families.
In his 23-minute budget address Wednesday, Blagojevich said the checks, patterned after a recently approved federal initiative, will stimulate the Illinois economy and potential offset a predicted decline in state revenue growth.
"If Washington can do it, we can do it," Blagojevich said.
Unlike Washington, however, the state's chief executive doesn't appear to have many members of the legislature on board.
"We're not like the federal government. We cannot print more money," said Senate Majority Leader Debbie Halvorson, D-Crete.
The proposal was among the key points of the governor's latest budget $58 billion proposal, which includes a mix of old and new ideas. Most were quickly panned by members of the General Assembly who just recently ended a months-long battle with the governor over last year's budget plan.
State Rep. Dan Brady, R-Bloomington, said the state should pay down its debt before providing rebates to parents.
"You can't develop any new programs," Brady said. "There's no dollars to spend."
The governor also resurrected a plan to sell the state lottery to pay for a $25 billion statewide construction program and again floated his plan for a payroll tax on many businesses to pay for his health insurance expansion proposal.
Neither were met with enthusiastic support.
"I'd say he's got a huge problem right here in Springfield in the General Assembly," said Senate Minority Leader Frank Watson, R-Greenville.
House Speaker Michael Madigan, D-Chicago, said he plans a series of regional budget hearings in the coming weeks in hopes of avoiding a repeat of last year's overtime session.
"The people of our state simply will not tolerate another prolonged, acrimonious encore of last year," Madigan said.
The governor's proposal doesn't call for any hikes in the income or sales tax rate, but certain businesses, campers and university students would see increases. Schools would see a $300 million boost in funding, which would be the lowest annual increase since the governor took office.
To pay for new programs, Blagojevich also wants to raise casino taxes, tap into the state's share of the tobacco lawsuit settlement and refinance the state's pension debt.
And while the governor said a statewide construction program would jumpstart the state's flat-lining economy by creating thousands of jobs, business leaders offered a gloomy outlook.
"I'd be surprised if the legislature goes along with any of these proposals," said Doug Whitley of the Illinois Chamber of Commerce.
-- Kurt Erickson can be reached at kurt.erickson@lee.net or (217) 789-0865.
