Gov. George Ryan confirmed Thursday that
state fiscal experts project a budget shortfall of more than $2 billion by
next summer as he sharply questioned campaign pledges by both major
candidates for governor to veto any state tax increase.
"I think a promise of no new taxes is probably bad policy, especially in
times like this," Ryan said at the Thompson Center after briefing
legislative leaders on the budget.On the budget,
Ryan said state revenues from July through September, the first three months
of the current budget year, were $80 million below projections. Still, the
governor said he did not see a reason yet for tax hikes or a new round of
spending cuts.
Blagojevich and Jim Ryan both say they'll block any legislative move to
increase sales and income taxes, the two major sources of state revenue. As
a candidate, George Ryan made a similar pledge, though once in office he
agreed to large increases in liquor taxes and vehicle fees.
Gov. Ryan ridiculed the
candidates, who have made expensive commitments to boost education spending
and to reopen state prisons and social service facilities recently closed to
save money.
"We've cut out a lot of programs and did a lot of layoffs and things that
were unpleasant to do," Ryan said. "If they can find the money to reopen
those facilities or not increase taxes or cut any other services, they're
Houdinis."
Both campaigns stood by their no-new-tax pledges and shot back that blame
for the state's fiscal woes rests squarely with the current administration.
Blagojevich spokesman Billy Weinberg called the budget crisis "the legacy of
a small circle of Republican leaders" who have run state government "without
much concern for the long term fiscal health of our state."
Dan Curry, a spokesman for Jim Ryan, said the governor was wrong to solely
blame the budget crisis on a faltering economy exacerbated by last year's
terrorist attacks. "The main problem was the administration spent too much
and saved too little," he said. "There's a lack of fiscal discipline."
In Springfield, Jim Ryan said, "the last thing we should do in the face of a
recession is raise general taxes," because that would hinder economic
growth.
To balance the budget, Jim Ryan said he wants to urge use of health
maintenance organizations, get better leases for public buildings, freeze
pork barrel spending, cut administrative overhead and seek more federal
money.
Blagojevich has said he wants to cut the state's $25 million horse racing
subsidy, eliminate pork projects, reduce managerial staff and reform the
budget-making process.
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