With the state legislature and the Governor still at stalemate on the budget negotiations in Springfield, Micheal Lucci (Lew-Chee) with the business oriented Illinois Policy Institute says the budget problems in the short term are due to the fact that pensions consume 25% of the budget.
But in the long term, the root problem is job loss and population loss in Illinois.
The legislature has to decide whether to take a short term approach to the budget and just raise taxes and make some cuts… Or address the long term drivers of population and job loss.
Last year Illinois lost 95,000 people, over the past two decades about a million people left the state and haven’t been replaced by increased births.. The result is a declining tax base, reducing tax receipts by hundreds of millions a year.