Hynes: Plan to fix budget won't be popular

URBANA – For a gubernatorial candidate seeking votes in a tough primary contest, Dan Hynes had a lot of bitter medicine to deliver to Champaign County Democrats at a fundraiser Thursday afternoon.

"I can guarantee you that if you look at my budget plan on our Web site you'll find something in there that you don't like," the three-term state comptroller told about 50 people at a $50-a-plate fundraiser at Kennedy's in Urbana. "You'll find something in there that hits home with you, maybe not in a great way. But that's the nature of the situation that we're in. It's the nature of the mutual sacrifice that we're going to ask."

Hynes, who will oppose Gov. Pat Quinn in the Feb. 2 Democratic primary, said his campaign will focus on three issues: ethics, the Illinois economy and the state's fiscal condition.

"And they're all intertwined," he said. "Our economy is only going to get better if we get our fiscal house in order. Our fiscal house will get better only if we can ask people to make the sacrifices that are necessary to bring more money into the state, and to be patient with government as we get out of this fiscal hole that we're in.

"And that's not going to happen if they don't believe in government. Nobody right now is in a mood to pay more in taxes or to trust people who are the decision-makers. That is why ethics is important to the budget and the economy."

Hynes said his plan identified $1.6 billion budget cuts that can be made, including eliminating lottery advertising, "scrutinizing" 1,600 appointees of former Gov. Rod Blagojevich and reducing agency spending to 2005 levels. He said he would not seek to reduce human service agency grants to those levels, nor would he support "laying off 2,000 frontline workers." Quinn has suggested laying off hundreds of state workers as a way of cutting spending.

Budget cuts must be a first step, Hynes said.

"It shows taxpayers that we're not instinctively going to them and saying, 'You have to bail us out.' It shows that there will be mutual sacrifice," Hynes said.

Next, he said, the state must look to a number of revenue measures, including expanding the sales tax base to include "luxury" services such as elective cosmetic surgery, country club memberships and dating services; expanded gaming; and closing some corporate tax loopholes.

The "toughest part," he said, will be persuading voters to adopt a new, graduated state income tax, as opposed to the current flat 3 percent individual income tax.

Illinois' entire tax system is regressive, Hynes said, including its property, sales and income taxes. "Our schools are overly dependent on property taxes, and the longer we stay on the path we're on, the longer that's going to be true," Hynes said.

Before his address to the local Democrats, including a large number of union officials, Hynes said he hopes legislators come up with a better way of funding a financial aid program for college students than the method approved by the Illinois House on Thursday. Lawmakers approved a $205 million increase, but left it up to Quinn to find the money.

"I'm hoping there will be more discussion on that because right now they're appropriating without any money, which just makes the budget problems worse," Hynes said.

And he said he will wait to comment on a campaign finance reform bill being pushed by House Speaker Michael Madigan. The legislation was criticized by reformers for not placing restrictions on donations from legislative leaders and political parties.

"I'm going to wait until we see a final bill because right now it's a moving target," Hynes said. "But my philosophy on campaign reform is that, number one, we need to reduce the influence of money and special interests on campaigns. Number two, it needs to increase transparency of contributions and political activities and, number three, it has to level the playing field and eliminate the financial barriers to running for public office, which includes public financing of campaigns."

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