Pat QuinnThe biggest problem with passing Governor Pat Quinn's tax-hike and budget proposals is not that almost every Statehouse interest group opposes them.

The Illinois Federation of Teachers, for instance, sent out a statement before Quinn had even finished his budget address to say that any state legislator who votes for the governor's proposed "pension cuts" would automatically lose the union's endorsement.

State workers are spitting mad about paying more into the pension plan and being forced to take unpaid days off.

Business groups are beside themselves about the tax hikes.

Mayors hate the idea that they won't get their usual 10-percent slice of Quinn's proposed income-tax increase.

These are very serious, almost insurmountable obstacles, of course. But they're not the worst.

The biggest hurdle, by far, is that the governor focused on a problem that he alone wants to deal with, but that nobody else really cares about.

The governor, you already know, wants to raise the state's personal income tax rate from 3 percent to 4.5 percent, but also triple the $2,000 personal exemption so that almost 5 million people will get a tax cut or pay no extra taxes. Quinn claims this is about "tax fairness" as much as it is about raising new money to close the state's $11.5-billion budget deficit.

But, seriously, when was the last time you heard anybody complain about the Illinois income tax?

At just 3 percent, Illinois has the lowest flat tax in the nation. Quinn has pushed this tax-fairness idea for decades, but almost nobody else has. Tripling the personal exemption is just not something that any legislator has ever cared much about.

Since the governor's tax proposal has no real constituency within the General Assembly, he starts out with almost no legislative allies.

Just about every member of the Illinois General Assembly has fervently campaigned to reduce the property-tax burden and increase spending for schools. Also, suburban Cook County and Chicago legislators are hearing loud and constant screams of anger from their voters about their region's super-high sales tax.

There are some very angry everyday people demanding a solution to these festering problems. Yet Quinn's budget and tax-hike proposals do nothing about any of them.

In fact, the governor's proposals may be making the political situation for incumbent legislators far worse than they would be with a more "normal" tax hike and budget fix.

For one, the governor has proposed a relatively tiny education-spending increase. That pretty much guarantees some local school districts, which are also experiencing serious problems in this economy, will have to raise property taxes even higher.

Local governments are strapped in this economy as well and are dying for money. Without help from the state via their usual share of the income-tax hike, they may also have to raise sales or property taxes.

Quinn wants to expand the state sales tax to cover items such as grooming and hygiene products, sweetened tea, and coffee drinks that are currently exempted from the full sales tax rate. That's not really a big thing, but in this sort of environment it could make for big headlines.

And, not surprisingly, legislators aren't particularly thrilled with voting for Quinn's 50-percent income-tax hike and still having to vote for well over a billion dollars in state budget cuts. Quinn's tax-exemption reform proposal took a tax hike that could've raised almost $6 billion down to only about $2.5 billion.

The governor said on Friday that he hoped he could convince the business lobby to support his tax hike by showing them how he's forcing teachers and state workers to pay more into the pension systems. But it's the height of folly to assume that the business lobby will ever get behind a tax hike.

The only groups that can be counted on to reliably support tax hikes are the very groups that Quinn has gone out of his way to whack. Public-school teachers, state workers, and people such as Chicago Mayor Richard M. Daley are absolutely key, and all of them are firmly in the "no" category.

I still think there will be a state tax increase in our near future. I just don't think yet that it'll be this one. Quinn has a horrific fight ahead of him.

Rich Miller also publishes Capitol Fax (a daily political newsletter) and TheCapitolFaxBlog.com.

Bill Brady

Republican State Senator Bill Brady kicked off his new gubernatorial campaign the other day by claiming that Illinois' horrific budget deficit can be "managed." But a new report by the governor's office makes that claim even less realistic that it already was.

As you already know, Democratic Comptroller Dan Hynes has estimated the state's budget deficit could reach $9 billion next fiscal year, not including aid from the federal stimulus package. We can toss those numbers out the window now, but this is all Brady had to go on when he announced his campaign, so let's look at it anyway.

Brady told WGN Radio the day before his official campaign kickoff that the budget deficit was about $4 billion to $5 billion "on an annual basis." That's pretty much exactly what Comptroller Hynes projected. Hynes included $4 billion or so in unpaid bills from this fiscal year in his $9-billion deficit projection for next fiscal year, which begins July 1.

But Brady insisted that the budget deficit could be managed. "The first thing we need to do is to deal with that $4- to $5-billion deficit. And you can manage that. When you've got a $53-plus-billion budget, you need to manage it," Brady said.

Mike QuigleyCan the votes of a handful of Chicago and Cook County residents change Illinois? We are about to find out.

Winning 22 percent of the vote is not usually considered an overwhelming mandate, but winners write the history books. And Democrat Mike Quigley's congressional-primary victory last week is already being touted as an occasion worthy of at least a chapter.

Cook County Commissioner Quigley defeated 11 candidates, including two state legislators, to win the Fifth Congressional District special primary election last Tuesday with 12,100 votes. His smart, well-managed campaign was vastly outspent by his top two opponents.

Quigley successfully tapped into rising voter anger in the wake of Rod Blagojevich's arrest, Roland Burris' U.S. Senate appointment and, most importantly, Cook County Board President Todd Stroger's tax hikes and innumerable missteps.

Every two years, the Illinois Republican Party tears itself apart over a piece of legislation that supposedly would allow rank-and-file party members to have more say in party affairs This year may be worse than usual, however.

Senate Bill 600, sponsored by Senator Chris Lauzen (R-Aurora), would stop the practice of allowing Republican township, ward, and precinct committee members to elect the state central committee. The bill would instead force the GOP to adopt the same rules as the Democrats and allow primary voters to elect the state central committee.

Most people don't care about this, and I can understand if you're with them. But since this tiny little change has been one of the most divisive issues in the Illinois GOP's recent history, it's worth a closer look.

Rich MillerThe nasty and brutish Statehouse war is officially over for everyone but House Speaker Michael Madigan.

miller.jpgGovernor Pat Quinn's choice of Jerry Stermer as his new chief of staff tells us a lot about what's going to happen soon.

As the head of the advocacy group Voices for Illinois Children for the past 22 years, Stermer has been a tireless advocate for progressive tax reform and expansion of human-services and education programs.

If this were anybody else working for any other governor, you might think that Stermer would be the perfect choice to deliver the bad news to Medicaid providers, education lobbyists, and liberals of all stripes that their agenda just wasn't affordable in the face of Illinois' horrific budget-deficit mess. But almost nobody believes that will be Stermer's role.

miller.jpgThe chickens are coming home to roost.

In fact, more chickens are on their way than we've ever seen before.

And they're mad.

Former Governor Rod Blagojevich spent years ignoring and exacerbating the state's structural budget deficit. What that means is he did a lot of one-time budget fixes with one-time revenue sources to stem the tide of red ink, while at the same time expanding state spending exponentially.

miller.jpgBefore Rod Blagojevich came along, Pat Quinn was often ridiculed as a camera-hungry huckster with lots of ideas and little follow-through.

But after six years of Blagojevich's bomb-throwing, empty promises, flat-out lies, needless political wars, and miserable failures, finally topped off with a shocking display of corruption and self-immolation, our new Governor Quinn looks like a statesman by comparison.

A long-simmering dispute between Governor Rod Blagojevich's lawyers dramatically spilled out for everyone to see last week, with one claiming that no lawsuit would be filed to stop the Illinois Senate's impeachment trial of the governor and another claiming that a lawsuit was possible. It all culminated with the disastrous resignation of the governor's top defense attorney, Ed Genson.

Insiders say that Genson, the senior member of the governor's legal team and a crack criminal defense attorney, had retained a high-priced lawyer from Boston who was an expert in impeachment issues. That attorney was preparing a case to be filed with the state Supreme Court this week to at least delay the Senate trial.

The ultimate goal reportedly was to force the Senate to agree to abandon the trial in exchange for the governor stepping aside and handing power over to Lieutenant Governor Pat Quinn. The governor would then still receive his paycheck until at least the end of the fiscal year, which ends in June, and would also likely retain some of his state-police body guards.

But Sam Adam Jr., who has known Genson literally since the day he was born, reportedly convinced the governor to reject the idea.

Adam and Genson have been at odds for weeks, insiders claim. Adam was the governor's emissary to Roland Burris regarding his U.S. Senate appointment. Genson had said in public that the governor would not appoint a replacement for Barack Obama and privately told Adam that he shouldn't become involved in the ordeal.

Adam also reportedly convinced the governor to make the controversial decision to boycott the state Senate impeachment trial, apparently without consulting Genson in advance.

Governor Blagojevich loves nothing more than people who agree with him, and Adam has reportedly played that role since signing on to the legal team in December. Genson, on the other hand, is accustomed to calling the shots for his clients. Genson hates nothing more than a client who won't listen, and he apparently didn't realize what he was getting into with Blagojevich. The governor is infamous for his refusal to listen to anyone who doesn't agree with whatever the voices in his head are saying at the moment.

The tension became so intolerable that Genson threatened to resign from the legal team entirely after Blagojevich made the decision last week week to drop the carefully prepared court case against the impeachment trial and instead embark on an intense publicity blitz of national and local TV and radio programs.

Genson gave a couple of interviews last Thursday that more than just hinted at his discontent. Genson, for instance, told the Associated Press that he wasn't involved in impeachment decisions. "I should be," he said, "but I'm not."

A couple of hours later, Sam Adam told the AP that the lawsuit to block the Senate trial might still be filed, but Genson denied that any suit was imminent. Genson then told the Chicago Sun-Times, "I don't know anything about it." A day later, he resigned. As I write this, Genson is also reportedly refusing to refund any of the $500,000 legal retainer he received from Blagojevich's campaign fund.

The governor kicked off his ill-fated publicity blitz by appearing on a Chicago radio show last Friday morning. Blagojevich claimed that the impeachment process was in reality a removal from office so that Quinn could raise taxes. Amazingly enough, the hosts let him get away with this crazy talk. Blagojevich made the same claim later in the day to reporters, who weren't so accepting of his silly theory.

Blagojevich also said he was still hopeful that the Senate would change its impeachment-trial rules to allow him to call witnesses such as White House Chief of Staff Rahm Emanuel. Emanuel has said that no untoward or illegal offers were made by Blagojevich regarding Barack Obama's vacant U.S. Senate seat.

But the Senate Democrats said last week that nobody from the governor's office has contacted them formally or informally about the trial rules. Blagojevich's trial boycott meant that he missed the deadline last week to ask that witnesses be subpoenaed.

In other words, he's just throwing verbal bombs on his way off the cliff, and Ed Genson refused to jump with him.

Rich Miller also publishes Capitol Fax (a daily political newsletter) and TheCapitolFaxBlog.com.

miller.jpgIllinois state Senator Heather Steans (D-Chicago) said last week that the Senate Democrats will seek "feedback" from the Senate Republicans before making final decisions on new rules for the chamber. Steans was put in charge of devising new rules by Senate President John Cullerton several months ago.

That statement, probably more than anything else that was said or done recently, illustrates how much things are about to change in the Illinois Senate.

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