Gov. Quinn proposes 2010 budget

By GILES BRUCE

With Illinois in an estimated $11.5 billion debt, Gov. Pat Quinn proposed his fiscal year 2010 budget last week.

While it is just a proposal and will have to be agreed upon by lawmakers, NIU could finally see funding for some long-overdue construction projects. Other measures in the budget could affect NIU students and employees alike.

Quinn’s budget proposal, in particular its income tax increases, shows the new reality states face during the economic crisis.

In the governor’s proposal for a new capital bill is $22 million for the renovation of Stevens Hall and $2.8 million for the planning of a new computer science/technology building, said Ken Zehnder, associate director of NIU external affairs. A capital bill has been in the works for five to six years, he said.

“There is nothing specifically in the budget for Cole Hall,” Zehnder said, adding that funding from the economic stimulus plan was requested for renovations for Cole and Grant Halls and the Chiller Plant.

Quinn’s budget would also include a $40 million increase to higher education compared to the last fiscal year. If that were to pass, NIU would receive around 1.5 percent increase in its budget, Zehnder said.

Also recommended was a 2 percent increase in pension contributions and higher health care costs for state employees as well as a new pension plan for new state employees, Zehnder said.

Among the more controversial elements in the budget is a 50 percent income tax increase, from 3.0 percent to 4.5 percent. NIU students who have an income of over $15,200 and only claim themselves will likely see a tax increase, according to a tax calculator. Those with an income of less than $15,100 and only claim themselves will actually see a tax decrease: That’s because Quinn also proposed a rise in the standard exemption from $2,000 to $6,000, giving Illinois’ poorest families and individuals a tax break.

Freshman undecided major Vesta Hall falls into the camp that would receive a tax decrease though she said she wouldn’t be against Quinn’s plan even if she were receiving an increase.

“If the state’s in debt some, as long as they monitor the money properly … probably the quickest solution is to raise taxes then,” Hall said.

Proposing a tax increase in the middle of a recession is a bold move, certain experts say, and it could cost Quinn his chance for re-election.

“Any time someone proposes raising taxes, it is politically dangerous. Republicans are already hitting him hard on the proposal and even some Democrats, while expressing support for the governor, have shied away from the tax increase proposal,” said Matthew Streb, associate professor of political science. “Eliminating an $11.5 billion deficit is one heck of a challenge, and I’m sure happy that Governor Quinn has to figure out how to do it and not me.”