State Rep. Brandon Phelps did not paint a rosy picture of the state's immediate future at the Soil and Water Conservation District annual dinner Monday night.
Phelps said he wishes he could have brought better news, but "You want me to be honest, and I am being honest."
The state is facing an $11 billion deficit and $5 billion in unpaid bills and the news is getting worse all the time, he said. While 10 to 20 percent cuts across the board in agencies are possible, even that won't make up the state's red ink. Everything will be on the table when the legislature begins the spring session in earnest, including income tax hikes, Phelps said.
"Folks, I don't know what else to do," Phelps said. "Everything will be on the table this year."
Even though the state is in a bad financial situation and Gov. Pat Quinn is pushing an increase, a tax hike is a tough sell in Springfield, Phelps said. During a meeting of the Democratic Caucus, only about 45 of the 70 members were willing to talk seriously about new taxes. The remainder, mostly the black caucus, seemed opposed, Phelps said. Cook County local taxes are very high and legislators there are reluctant to place more burden on their constituents. House Speaker Michael Madigan asked Minority Leader Tom Cross how many votes he might be able to muster among Republicans for a tax increase - only three, Phelps said.
The state pension system is in as much trouble as the budget. There is talk of a two-tier system of pensions that would reduce pensions for new hires. Phelps said he is not necessarily in favor of a two-tier system, but there is a lot of talk in Springfield about the possibility.
Phelps did bring some good news. The Capital Bill passed last year and the federal stimulus package could bring a shot in the arm to the local economy.
"Every town in my district is going to get something, some kind of money from the Capital Bill or the stimulus," Phelps said.
Phelps, who is chairman of the Agriculture and Conservation Committee, said he will work to keep the sales tax exemption on seed, fuel and fertilizer for farmers. He also said he will continue to represent coal mining and agricultural interests in Springfield despite the push for "green jobs," and opposition by the Sierra Club to mining.
"I'm fighting the Sierra Club every day to keep mines open," Phelps said.
