Rutherford: Governor continues to play fast and loose with state's economy

Tuesday, March 14, 2006 - Posted 2:40:14 PM by Office of Sen. Dan Rutherford

Springfield – Once again Governor Blagojevich has outlined his intentions to raid millions of dollars from the state’s special funds for general state spending, and raise taxes on Illinois’ employers by over $130 million, said State Senator Dan Rutherford (R-Pontiac).

Senator Rutherford has been a champion of opposition to these fund sweeps for the last three years, consistently opposing both the raids and the tax increases as an irresponsible way to balance the budget and finance new state programs. Therefore he was concerned to hear of Governor Blagojevich’s plans to use almost $150 million in “surplus” revenues from undisclosed state funds to finance various state programs, rather than the dedicated accounts for which they were intended.

 “The Blagojevich Administration has consistently dipped into these dedicated funds as a way to increase state spending and bankroll new initiatives. Governor Blagojevich says that these are ‘unused’ funds, but the reality is that many Illinois programs are already struggling to make ends meet,” said Rutherford.

Senator Rutherford said that while he wants a balanced budget, he does not condone the Administration’s use of special funds as a way to supplement every day state expenses. He continues to maintain that it is irresponsible, as well as dishonest, to take money from these programs and redirect it into the General Revenue Fund.

“Raiding these funds displays a ‘rob Peter to pay Paul’ mentality that is not only detrimental to the many programs whose coffers are being drained, but is also deceitful. I don’t think it is right to pocket this revenue to fund administrative costs instead of the dedicated purposes they were intended for,” said Rutherford. “In tough fiscal times we need to cut back on spending, and resist the urge to implement new programs as a way to free up revenue. Diverting funding allocated for one program into another is simply not the answer.”

The business tax proposals on Illinois’ employers also have Senator Rutherford concerned: “The Governor has consistently taxed Illinois businesses as a way to stimulate additional revenues. The problem is that those taxes have been driving employers out of the state for almost four years—and they are taking jobs with them,” said Rutherford. “The state shouldn’t jeopardize jobs or the state’s economic growth by imposing additional business taxes.”