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Local lawmakers oppose gas tax hike
Originally Posted Online: Jan. 12, 2009, 7:21 pm
Last Updated: Jan. 12, 2009, 8:40 pm
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Print this story | Email this storyLast Updated: Jan. 12, 2009, 8:40 pm
By Pete Nickeas, sng3@springnet1.com
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SPRINGFIELD -- State lawmakers are looking at tax increases as a way to address shrinking revenue and statewide construction plans. "Our pension costs are up. Our Medicaid bills are crushing us. Revenue continues to drop. It means drastic cuts and stable revenue. That may mean looking at tax increases," said state Rep. Frank Mautino, D-Spring Valley. State revenues from the last six months of 2008 were down $477 million compared to the same period in 2007, a 3.6 percent drop. The comptroller’s office, already behind on bills, predicted 20-week delays in payments to state vendors this spring. Gov. Rod Blagojevich was impeached last week and could be removed from office by the Senate next month. Lt. Gov. Patrick Quinn, warm to the idea of tax increases in the past, would replace Blagojevich if the Senate votes to remove him from office. Lawmakers scheduled two weeks of session for the recently impeached governor’s Senate trial, slated to begin Jan. 26. Jim Tobin, President of the Illinois Taxpayers Education Foundation, said Quinn would raise taxes "at the drop of a hat," and praised Blagojevich as a rare breed of politician who doesn’t raise taxes. Quinn did not return repeated telephone messages seeking comment. "I believe the governor. He’s proven, and he’s just about the only one of them that will keep his promise on tax increases," Tobin said. One tax increase lawmakers may consider is House Bill 1, which would increase the gasoline tax to 27 cents per gallon, an 8-cent increase. Proposed by state Rep. John Bradley, D-Marion, the plan would fund $5.9 billion in transportation construction spending. Illinois collected about $1.37 billion last year in motor fuel taxes and an additional $763 million in sales tax on fuel. A state sales tax is applied in addition to the per gallon tax to the total gasoline purchase. Every state bordering Illinois has lower gasoline tax rates, and the increase would make Illinois’ gasoline tax the highest in the country, according to the American Petroleum Institute. If passed, the increase would become effective in July. Blagojevich’s potential removal from office bodes well for tax-increase supporters, Tobin said. But State Rep. Mike Boland, D-East Moline, said his district is too close to the Iowa border for him to support a gasoline tax increase. "It puts our people at a competitive disadvantage," Boland said. State Rep. Pat Verschoore, D-Milan, said his constituents largely have been opposed to the increase. Although gas prices are low now, they likely will increase, he said. "I think we need to have either income tax or sales tax increases," Verschoore said. "As long as people know we’ll use it like we should – to pay our bills and get an infrastructure program in place – I think they would support that." Others, such as state Rep. Lisa Dugan, D-Bradley, said the revenue issues must be addressed with some measure of credibility – promises to taxpayers that the money will be allocated fairly. "When we tell the people we need income, and we need revenue, and this is how we’re going to get it, we need to assure them what we’re going to do with it," she said. Spending cuts instead of tax increases would be preferred, according to state Rep. Shane Cultra, R-Onagra, although he acknowledged tax increases could be coming. "I look at this General Assembly run by the Democrats and I don’t think they can make the hard choices to cut spending," he said. "I think they’ll raise taxes. I won’t be voting for it." Kevin Lee contributed to this report. 
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