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The State of the State



'Serious, but improving' — Thompson



By MICHAEL D. KLEMENS

If Gov. James R. Thompson were a doctor and his State of the State message a diagnosis, his patient — the state of Illinois — would be listed as serious but improving. It would take another month, until the March 4 budget message, to see how Thompson proposes to pay for the course of treatment he outlined.

The assessment from Springfield agreed for the most part with that by citizens in Carlinville and Freeport (see pp. 8-9). Thompson identified economic problems that are on the minds of farmers and businessmen. He proposed improvements in a social service system that leaves abused children and the mentally ill unserved. Most importantly he recognized a basic optimism found outside the capital: "We are a strong state and getting stronger." Carlinville farmers and Freeport bankers echo that optimism.

Thompson's was a lengthy diagnosis (44 minutes to be precise) that intertwined the good news with the bad. Some heard signals of a tax increase. Others did not. Some saw national ambition in appeals to make Illinois a national leader in areas from welfare reform to business climate. Others did not.

For symptoms he found:

"... our farmers — at the peak of their efficiency — despair at the increasing choice of the world to take less rather than more of our crops."

". . . . We are struggling, and, at the moment, losing our competition to hold and improve our standard of living and our children's future."

". . . in my day parents, at least parents I knew, cared more than many do today about their children's education and welfare . . . . "

"... a system of education in Illinois that tolerates a dropout rate of 50 percent in Chicago high schools and 25 percent in high schools statewide."

"... welfare, like its counterparts in every other state in this nation, is a mulit-billion dollar failure that is immoral and unaffordable."

". . .we still do not do enough [to prevent child abuse and neglect] and we still do not do what we do well enough."

". . .we must stop 'trashing' lllinois."

The doctor was quick to note signs of improvement and to attribute them to the course of treatment he had already administered.

"Today unemployment has dropped to 7.4 percent [from 8.8 percent a year ago], the lowest rate in more than five years."

". . .we have never retreated from the necessity to advance educational spending in any year of our history save one - the recession year of 1982-1983 . . . "

". . . . In just one year of Projecy Chance we have created a welfare-to-work program which educates and trains, has placed 40,000 recipients in jobs and covers the broadest category of recipient in the nation."

"We have come a long way in a decade [in fighting child abuse and neglect] and we do much that is good."

"... our system of correctional facilities ... is the best, most well-run system in the nation."

And he indicated the plan of treatment, although he left until his budget message the specific medicine and method of payment.

Pledges to address problems from mental health cuts to selection of judges drew the most comment, but the largest part of the diagnosis and treatment involved economic development.

March 1987/Illinois Issues/6


The state of the State
From Carlinville see page 8

The Macoupin County Courthouse in Carlinville. Photo © 1987 Ross Hulvey III

The state of the State
From Freeport see page 9

Stephenson County Courthouse in Freeport circa 1870. Drawing courtesy Robert F. Hill

Problems with the sick agricultural economy would be attacked by a new loan prograrn to encourage growing of new crops and by a search for new uses for existing crops.

For the ailing manufacturing sector Thompson proposed state programs to assist in expansion of employee-owned firms and to help manufacturers find Illinois suppliers. And he urged creation of Southwest and Northwest Regional Development authorities. The Northwest group would acquire the former Farmall tractor plant in Rock Island, repair it and seek a tenant for the facility. The governor also urged solutions to problems with unemployment insurance and worker's compensation. He said that Illinois must recognize that loading new taxes onto business costs jobs and must continue its efforts to retrain workers and attract investment.

At the heart of his diagnosis was jobs, and he linked new jobs to improvements in education, human services and quality of life. He said revision in the state school aid formula is needed to continue the recovery begun by the 1985 reform package. If that proves impossible, more money must be found for elementary, secondary and higher education. If funds are limited, Thompson said he would emphasize spending for the youngest children.

"Business will not bring jobs to, nor expand jobs within, a state which does not fairly and compassionately deal with those in need of help, nor bend every effort to improve the quality of life for all of us," Thompson said. To improve such services he said Illinois might have to mandate service for the mentally ill and retarded and said he would not further reduce state mental health spending to fund other programs. And the state must move forward to protect children from abuse and neglect. "The cry of a wounded child — abused, battered and neglected — is the most frightening sound to be uttered on this earth, and it must be heard with diminishing frequency in Illinois," he said.

More opportunities for recreation were part of the doctor's regimen. Thompson said the state must acquire land for recreation, banking that which it can not now develop for future use. He suggested it may be time to hike fees for use of recreational facilities.

And he said it was time "we cleaned ethical house in Illinois." He asked legislators to pass a plan for the merit selection of judges and to reform state campaign financing and ethics laws.

But an improved attitude would cure some ills better than costly medicines, Thompson said. "To a great extent pride and discipline can replace dollars . . he said, speaking of the environment.

And, the doctor acknowledged that two years of treatment have consumed the patient's savings. "We must all recognize . . . that at least for the last two years we have expended one-time resources — our bank balance — to say yes to permanent, ongoing needs." And he warned that the cure will be expensive, perhaps painful and a while in coming: "Neither the needs I have outlined, nor the means to pay for them by new revenues or adjusted priorities, will come painlessly or in a single year, or a single budget."

Doc Thompson has everyone's attention. Now they want to see the bill.

Phase 2: tax increases

A week after his State of the State message, Gov. James R. Thompson turned from human needs to "bricks and mortar." His prescription for state and local roads, bridges and mass transit systems was a five-year $2.9 billion infusion of new money. At the same time he proposed a $700 million expansion of Build Illinois.

Thompson would pay for the highway work with higher motor fuel taxes and license plate fees. The tax on gasoline would rise 73 percent over five years, from 13 cents per gallon to 22.5 cents, and would raise $1.75 billion over the period. Over the five years, another $783 million would come from higher license plate fees. The charge for cars and pickup trucks would increase from $48 to $65, and the fees for large trucks would rise 30 percent. New bonding authority would raise another $425 million.

The 54 percent expansion in Build Illinois — from $1.3 billion to $2 billion — would be funded from state sales taxes. Money lost to the general funds would be made up with sales taxes on items now exempt. Nearly half the new funds would be used to build or enlarge sewage treatment plants: $262 million would be available for grants to 236 communities that do not meet federal standards, and $70 million would match an additional $350 million in federal money to set up a revolving loan fund for other communities that want to expand their plants to serve new developments. The balance, $368 million, would cover other Build Illinois projects added by lawmakers to Thompson's original program.

Thompson said taxing sales of nonprescription medications — adding items like aspirin, fluoridated toothpaste and medicated shampoo — would raise $27 million and removing the sales tax exemption from ready-made computer programs would raise $8 million.

His new tax plan drew mostly criticism initially. Thompson unveiled his program in Chicago, then flew to five down-state cities carrying lists of projects for those areas. "I was not exactly overwhelmed by legislators standing at my side," Thompson quipped later.

March 1987/Illinois Issues/7



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