Governor recaps achievements, sets priorities for 1978

REPUBLICAN Gov. James R. Thompson singled out the creation of new jobs as the most important goal of his administration for 1978 in his annual State of the State message issued January 11. The governor's legislative speech was only delivered in written form due to a back injury that confined him to bed. The message said, "Jobs not only lessen the costs of government, but produce the revenue that makes everything we do possible."

Two days earlier Democratic gubernatorial candidate Michael J. Bakalis and party legislative leaders also named jobs creation as a major goal of their 1978 legislative program. At a Statehouse press conference Comp. Bakalis, House Speaker William A. Redmond (D., Bensenville) and Senate President Thomas C. Hynes (D., Chicago) proposed a four-point "legislative action agenda" aimed at developing more jobs, giving more state funds to education, providing property tax relief and reducing waste in state government.

Democrats, governor agree Democratic party leaders were in agreement with the Republican governor on most large goals for the next session of the General Assembly. Thompson also called for increasing "overall school aid beyond 'full funding' of the current formula, while at the same time insuring that if the formula changes, it must be equitable throughout the State and 'fully funded' from the beginning."

Thompson made specific education budget recommendations for fiscal 1979 on January 31. He called for a $103 million increase in general fund aid to elementary and secondary schools — $83 million short of what the Illinois Office of Education had asked for, but enough to "fully fund mandated categorical grant programs at statutorily required levels." He also proposed a $79 million increase for higher education — $15 million below what the Illinois Board of Higher Education requested.

As for property tax reform, he said, "I believe the real problem here may not only be an inequitable distribution of the burden, it is that the burden itself is too big. Local government spending is rising faster than that of any other level of government."

The only point in the Democrats' program not specifically mentioned in Thompson's speech was reduction of waste in state government. (An understandable omission, since a governor is thought to be in a position to reduce waste in executive agencies; if that were a goal, one might wonder why it hadn't been done already.) But the Democrats didn't name any specific example of current waste, nor did they give details on how they would reduce it if it is found. But they promised details. Bakalis said he and the leaders "don't necessarily have concrete programs at this point," but would propose solutions soon.

Thompson's State of the State message made mention of a number of goals not on the "legislative action agenda" of the Democrats. One of these was the women's Equal Rights Amendment (ERA), which both Thompson and Bakalis support. Thompson called its passage "urgent," perhaps in reaction to criticism that his support has been superficial. He also expressed hope that state spending may again be held to a minimum, "with no tax increase."

He backed merit selection of judges; "This General Assembly should act, and act now, to put merit selection of judges before the voters in the November 1978 election." Other proposals included: closing loopholes in campaign finance law, putting "meaningful reporting requirements on lobbying," continued efforts at reorganization of state government, expansion of transportation, reducing welfare roles and getting "more federal money for youth unemployment," Thompson said.

Thompson's first year
The governor also reviewed his accomplishments during the first year of his term as chief executive. Praising the legislature for its cooperation, he chided former Gov. Dan Walker for bequeathing bad fiscal situation. "Three years of record deficit spending had drawn our state's resources down to a few days reserve. Fiscal gimmicks and creative accounting had covered the truth from the people and penalized those who did business with the state. Our (triple) AAA bond rating was in extreme jeopardy," he said. "But he added that this problem had been "faced squarely, and what had to be done was done."

"We predicted a fiscal 1977 year end surplus of $48 million. We ended up with $52 million," Thompson said "If we had been off . . . even by a relatively small amount ... it could have spelled disaster. But we weren't wrong."

While pointing to a balanced budget as the most "fundamental" and "important" accomplishment of his first year, Thompson also listed other results of improved "spirit" and "atmosphere" in relations between his office and the legislature. He said:

"1. An equitable contract was negotiated with State employees which did not wreck the budget and yet held out the possibility of an additional raise if revenue increased sufficiently over budget estimates.

"2. A settlement was negotiated with hospitals.

"3. The freeze on nursing home costs

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"4. Sites for two new prisons were selected, after full and open consultation with the communities involved and with cooperation of the Legislature to secure immediate bonding authority.

"5. A contingency plan was drafted to meet an energy emergency with a graduated and logical response.

"6. Legislative action was taken to resolve the unemployment debt to the federal government.

"7. In spite of the obvious partisan nature of the issue, the General Assembly and the Executive Branch came together to agree on a State Board of Elections which was fair to both political parties."

Thompson also bragged about legislation reforming criminal justice sentencing, cracking down on medicaid fraud, remaking currency exchange regulations, reorganizing law enforcement and administrative services, and giving tax relief to agricultural land owners.

He said there would be more money available for education in the new fiscal 1979 budget. The state Board of Education had called for a $186 million, a 10.3 per cent increase over this year's budget. Thompson balked at that figure but promised an increase of more than $100 million. This year's increase was $75 million.

The governor wrapped up his State of the State message with a quote from French novelist Victor Hugo, who said that the secret of great government was "knowing exactly how much of the future can be introduced into the present." Perhaps that is what both Gov. Thompson and his political rival Mike Bakalis were searching for in setting their goals for state government in 1978.

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