Paying the piper

Another session of dreamland opened in Springfield on Wednesday. That's the world, inhabited by legislators and politicians, where money is promised for services, but no cash actually exists to pay for them. Gov. Pat Quinn, noting short-term borrowing is routine in state government, now wants to borrow about $900 million so the state has cash to pay its bills. If it happens, once again, Illinois will be borrowing to pay the piper. The governor says the state is suffering through the worst financial times in its history. Guess he wasn't around in the Great Depression, huh?

The real problem, of course, is the state's massive budget deficit. Simply put, the state does not have enough money to pay its bills. This state lacks money to pay for its core services -- schools, health care, social services, infrastructure. Add to that a $74 billion long-term unfunded pension liability and we're looking at multibillion-dollar deficits for many years to come.

Most observers agreed that the state's $26 billion budget passed in July -- $3 billion less than the previous year -- wasn't enough to cover Illinois' costs. Overall state spending now, after adjustments for inflation, is below 2000 levels in all categories except health care, according to an analysis by the Center for Tax and Budget Accountability.

And the situation looks far worse for 2012, when $6.3 billion in one-time revenues, including stimulus money and bond proceeds, will evaporate. The Center for Tax and Budget Accountability expects the 2012 Illlinois deficit to be, at a minimum, $12 billion.

So where does this leave us today? How do we pay for scholarships, Medicare, public education and the rest?

By adopting a new tax system. For decades, Illinois has had one of the nation's most unfair, regressive tax systems, charging everyone the same rate whether you make $1 million a year or $40,000 a year.

While Quinn has favored a more progressive tax system since taking office last winter, he didn't push for a tax increase during the six-day veto session that began last week because time is short and any vote now would require a super-majority. Once January comes, the standard goes back to a regular majority, although next year is an election year. Who among Lake County lawmakers wants to be tagged as raising taxes?

Illinois needs a new tax system, one that treats lower earners more fairly and generates more income. Until we get it, we'll keep romping in dreamland until the state goes broke. Wait a minute, we are broke.