ROCKFORD (WIFR) -- Governor Quinn says Illinois is a better place to do business today despite frequent complaints about taxes and regulations.

In his State of the State Address, Quinn cited overhauling worker's comp and lowering unemployment insurance as boons to business. He says there's still a lot to be done to improve the economic climate in Illinois. The governor unveiled three new tax cut proposals as part of his "Illinois Jobs Agenda for 2012," but didn't have much to say about the state's budget problems. He did say that we're going to have to spend some money to get back on track.

Quinn said, “Cuts alone will not get us to a better budget. We must build and grow our Illinois economy like never before to keep Illinois moving forward.”

He didn't go into any specific financial details of his plans, saying the details on the state's bleak finances will wait until later this month when he proposes a new budget. Republicans say the speech was unrealistic and fails to address major issues.

Syverson: Governor must make immediate course change

State Sen. Dave Syverson (R-Rockford) says while Gov. Pat Quinn mentioned many positive things in his State of the State speech, they will be overshadowed if Illinois does not get its fiscal and economic challenges under control.

“What we really need from the Governor right now is leadership that will truly turn the course of our state around,” Syverson said. “We must get serious about curbing spending and making Illinois a place of job growth and economic opportunity, and I stand ready to work with him to make that happen.”

“The Governor talked about various capital projects that are underway in Northern Illinois which I totally support – I was a strong backer of the recent capital plan,” Syverson continued. “But as good as these ideas are, they aren’t reality yet – we must work to make sure they are fully-funded in a way that doesn’t put Illinois further into debt.”

Syverson also noted the Governor mentioned several business reforms that Illinois passed during last two years, but warned they were far from the substantive reforms the state needed to turn the economy around.

“While those reforms were positive, they were minor changes,” Syverson said. “Businesses still find Illinois one of the most expensive states to do business in for workers’ compensation, unemployment, health care and regulatory restrictions. If we are serious about bringing businesses and jobs back to Illinois, we must make those crucial reforms.”

Statement by Illinois GOP Chairman on Quinn's Address

Illinois Republican Party Chairman Pat Brady said, "Since 2010, Republican and Democrat Governors across the United States have implemented sweeping reforms and made tough choices to improve their state's financial conditions. Unfortunately, Gov. Quinn's State of the State Address today confirms that he has no comprehensive plan for dealing with the near catastrophic fiscal condition of our state or the political courage to make the reforms necessary for Illinois to have a government it can afford."

State Sen. Christine Johnson has a very different view on the state of this state than Gov. Quinn
SPRINGFIELD (WIFR) -- While Governor Quinn took a very upbeat approach in his State of the State Address on Feb. 1, 2012, State Sen. Christine Johnson (R-Shabbona) has a less optimistic view of the real financial state of Illinois.

“Although I appreciate him finally identifying that we need to focus on reforming Medicaid and pension liabilities this year, I was very discouraged that he didn’t offer an inkling of a solution to these massive problems,” said Sen. Johnson.

“Pointing out the obvious is far from introducing real policy reform for these liabilities which our caucus did last year in the Senate GOP Reality Check plan and will continue to do until we get the budget under some kind of control,” Johnson said.

In fact, Johnson said, the Governor’s speech really didn’t offer any solutions.

“I think what disturbed me most were his numerous proposals to increase spending without once saying where the money was going to come from,” Johnson said.

While the Governor’s speech included several budget allocations including a $2.3 million investment in Chicago’s Merchandise Mart and $6 million in high-speed broadband for Illinois, he never said where he would get the money to pay for these initiatives, said Sen. Johnson.

The Governor also brought up several tax incentives he wants to offer, including an estimated $10 million in a Veterans Tax Credit, $130 million in a Child Tax Credit and $160 million in the elimination of the natural gas tax.

“What I want to know is where he plans to find the estimated $500 million to pay for the programs and incentives he brought to the table today,” Johnson said.

Johnson said the Governor talked about increasing spending in a multitude of areas of government including education, infrastructure, technology and green energy but never once mentioned how the state is going to bring in enough revenue to fund these programs and still phase out his 67% tax increase in three years as promised.

“The point of this speech is to take an honest look at where we’ve been, where we are and where we’re headed. However, he didn’t even mention the elephant in the room - last year’s income tax increase - which was the largest tax hike in the history of our state,” said Johnson.

“The Governor also boasted of job creation without discussing last year’s 46 percent corporate income tax increase that is causing companies to flee Illinois or to never step foot here at all,” Johnson said

Last week Abbott Labs announced it would cut 200 jobs in Lake County. In mid-January, ADM announced it would lay off 1,000 workers companywide—15 percent of its Decatur based staff. Additionally the Sara Lee bakery plant in Rock Island, Illinois, employing 110 people will shut down in mid-2012. Lowe’s let 1,500 workers go throughout Illinois in the 3rd and 4th quarters of 2011.

“This list goes on and on. We have an unemployment rate of 9.8 percent, well above the national average. A real jobs plan is needed using real numbers and real money, the latter which I heard nothing about today,” Johnson said.

Johnson said she applauds the Governor for mentioning the words “tax relief” today. However the relief he is talking about, while noble, are completely unrealistic, she said.

“The best tax relief and job creation plan would be to give people back the week's pay that the Governor and his fellow Democrats took from them with the 67 percent tax hike,” Johnson said.

“I know the state is in a dire situation. Thanks to our recent crediting rating drop that puts us 50th in the country and the Civic Federation’s report that projected Illinois’ deficit will exceed $35 billion by 2017, the rest of Illinois and America for that matter, do too,” Johnson said.

“What I want to know is: what exactly is the fact-based, realistic plan to fix it?”

Johnson did note that one bright spot in the Governor’s speech was when he highlighted the 1,600 production jobs that Chrysler will bring to the 35th district that she represents over the next three years.

While Sen. Johnson said overall she was disappointed in the lack of budget-based information and real solutions, she hopes that the Governor’s February 22 Budget Address will contain the funding solutions to implement what she heard today.

“Once again I urge the Governor’s Office to take another look at the Senate Republicans’ alternative budgeting plan outlined in Reality Check so together we can make some tough that will lead to real solutions for Illinois and its people,” Johnson said.

HOUSE IN ORDER FIRST

Reform needed now for state to lower taxes, as promised

Illinois Comptroller Judy Baar Topinka on Wednesday released the following statement in response to Gov. Pat Quinn’s State of the State address:

“First let me say that I appreciate the Governor laying out his agenda today. His speech was full of heart, and I think most of us appreciate his sincere concern for those who are struggling. But his approach is a little like putting desert on the table before the vegetables. We must get our fiscal house in order before we can even talk about more tax breaks and incentives. Instead of targeting certain segments of the population, we need to remain focused on the needs of the entire state. All of Illinois benefits from lower taxes and the jobs that a better tax climate will create. To that end, the ultimate goal of our leaders should be to put us in position to eliminate last year’s tax increase, while balancing our books."

“I stand ready to work with the Governor to tackle the greatest issues of our day: Medicaid, pensions, and a slowly recovering economy.”

SPRINGFIELD (AP) -- Gov. Pat Quinn used Wednesday's State of the State address to call for ending an Illinois tax on natural gas.

The Democratic governor also proposed the creation of a new tax credit for parents with children, which he said will save $100 a year for the average family of four. And he called for expanding an existing tax credit for companies that hire unemployed veterans.

In his speech, Quinn also set a goal of higher education for 60 percent of adults by 2025.

He said Illinois is a better place to do business today, despite frequent complaints about taxes, regulations and other costs. By overhauling workers' compensation, lowering unemployment insurance costs and improving roads and bridges, the state has improved the business climate, Quinn said.

Quinn unveiled the tax cut proposals as part of what he called "the Illinois Jobs Agenda for 2012." He said that ending the natural gas utility tax would make Illinois the only one state without one in the Midwest, and would help businesses and families alike.

"This tax is an unfair, regressive tax that is not based on the ability to pay," Quinn said. "By abolishing it entirely, we can provide targeted tax relief to both consumers and businesses. Illinois will be the only state in the Midwest without a natural gas utility tax on manufacturers, retailers and everyday families."

The Democratic governor indicated he'd focus on ways to create more jobs in Illinois, even if it means some new spending at a time of financial crisis.

The governor declined to get into specific financial details about his plans, saying the painful details on the state's bleak finances will wait until he proposes a new budget on Feb. 22.

Quinn did not address the income tax increase approved a year ago, which critics say has been a burden on Illinois businesses.

Quinn also took a swipe at other states by saying Illinois still believes in the right of workers to organize. Indiana is on the verge of passing a "right to work" law that bars unions from requiring non-members to pay fees for representation.

Quinn also introduced the idea of tax incentives to create jobs for veterans. He proposed letting businesses reduce their income tax bills by up to $5,000 if they hire an unemployed veteran. The plan also calls for giving businesses a credit equal to 20 percent of the wages they pay to a veteran, up to a maximum credit of $5,000. Currently, Illinois offers a credit of 10 percent, up to a maximum of $1,200.

It wasn't clear how much the tax measures might cost the state, but Quinn said some money must be spent to improve Illinois.

"You can't just cut your way to a better budget. We have to make cuts, there's no doubt about it," he said during an appearance Tuesday. "We also have to build and grow our economy."

Other state officials expressed skepticism. Illinois Democrats took the painful step of raising income taxes a year ago and last fall softened that blow with an array of breaks for businesses and families. More tinkering with taxes raises questions for some.

"We would be most interested in hearing how that could be paid for, given our current fiscal condition," said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago.

Rep. John Bradley, a Marion Democrat who chairs the House Revenue Committee, expressed similar concerns. He said the focus should be on broad tax reform instead of scattered new credits.

Quinn called for the creation of a council of business leaders to come up with a plan to double Illinois exports by 2014, the administration said, confirming news first reported by Crain's Chicago Business.

Quinn's State of the State address follows a dire report earlier this week that said Illinois' backlog of unpaid bills could nearly quadruple -- from $9.2 billion to $34.8 billion -- over the next five years unless officials take action. The Civic Federation's report predicts pension and health costs will continue to climb while revenues will drop when the state's temporary income tax increase expires.

The governor has said Illinois needs to control costs in the Medicaid health care program. He also is talking of making downstate schools and universities share in the cost of pensions for their employees.

Quinn's tax proposals aren't likely to carry high price tags.

The Revenue Department said a smaller version of the veteran-hiring credit has rarely been used. Only 95 taxpayers claimed the credit, for a total cost to the state of $79,543, in the most recent year for which data is available. That was 2008-09, when the credit was 5 percent of wages, up to a maximum of $600, the department said.

To underline his interest in jobs, Quinn spent the day before his speech discussing two startup companies that are receiving money from a state venture capital fund that's part of a $78 million program called Advantage Illinois. And the day after the speech, he's expected to be in Belvidere for the announcement of hundreds of new jobs at a Chrysler plant where the new Dodge Dart will be built.