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Governor Asks IL Businesses to Push for Pension and Medicaid Changes
From WUIS: Governor Pat Quinn is urging business owners to support his plans for overhauling state employee pensions and Medicaid. He spoke to a gathering of Illinois manufacturers and retailers in Springfield…Mark Denzler is vice president of the Illinois Manufacturer’s Association. “Well Illinois businesses want to operate in state that’s not bankrupt, that’s not on the edge of a fiscal abyss. So it’s important that the state of Illinois, the Governor and General Assembly address pensions and Medicaid which are spiraling out of control, so we applaud the Governor’s message for fiscal restraint, for reforming pensions and Medicaid, and we think it’s a movement in the right direction.” It’s unclear if lawmakers will keep going in that direction, however. TO READ MORE …
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Thursday
Feb232012

Governor Quinn’s budget address recognizes critical problems; fails to provide details  

DateThursday, February 23, 2012 at 2:16PM

The Illinois Manufacturers’ Association (IMA) commends Governor Patrick Quinn on his February 22nd budget address for recognizing the need for profound reforms in public pensions and Medicaid spending. However, the IMA is also disappointed in the lack of factual details. According to IMA President & CEO, Greg Baise, the governor set the right tone for reforms in pension and social services, but contradicted the tone of his earlier State of the State address encouraging a better environment for employers.

“Governor Quinn’s blunt language challenging the General Assembly concerning the pressures our pension and Medicaid system are placing on the state budget was sorely needed,” Baise said. “Unfortunately, failing to provide lawmakers with the critical details of his plan makes it too easy to slough off real reforms.”

According to Baise, Governor Quinn should have presented specific ideas to balance the budget and eliminate the backlog of bills, reform pension plans that are $85 billion underfunded, and reduce out-of-control Medicaid spending. Without changes to the state’s fiscal condition, it is extremely unlikely that the massive temporary $7 billion income tax increase will be allowed to sunset in three years.

Baise was also critical of the tone set by the governor in dealing with Illinois’ employer community.

“Governor Quinn held out an olive branch to employers in his recent State of the State address; today he sounded eerily like his predecessor who suggested that businesses are tax cheats,” Baise stated. “The IMA is ready to engage and cooperate with the Governor and lawmakers in a comprehensive tax reform effort that will strengthen the economy. But the governor’s flippant suggestion that employers are somehow being underhanded when fighting for a better tax climate is an indication of inconsistency and populist rhetoric. Manufacturing companies — which can take a major role in helping revive this state’s economy — want to hear a clear and concise plan on how the Governor will stop the state’s downward fiscal spiral.”

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