CHICAGO – Governor Rod R. Blagojevich received support from more than 250 healthcare, education, business, religious, government and labor organizations representing hundreds of thousands of people across the state as he kicked off the Investing in Families Bus Tour at a Chicago Navy Pier rally with many of those groups today.  This week, the Governor will travel Illinois to discuss how his Fiscal Year 2008 budget plan helps working families and to continue to generate support for his plan. The proposed budget includes the Illinois Covered plan to provide affordable comprehensive insurance to all Illinoisans, the Helping Kids Learn plan to invest an additional $10 billion in Illinois schools over the next four years, the Tax Fairness Plan that requires big wealthy businesses to pay their fair share and gives the middle class the relief it deserves, and a plan to address the state’s long-time pension deficit and ensure secure retirements for thousands of workers.

 

“We have a unique opportunity to fundamentally reform the way state government meets its responsibilities so that middle class and working families are at the center of what we do.  For decades, working families have shouldered more and more of the tax burden while the wealthiest corporations in our state have paid less and less. The real tragedy is that the very people carrying most of the load have been hit hardest education went under-funded, healthcare costs skyrocketed, property taxes escalated and the state’s pension debt deficit swelled,” said Gov. Blagojevich. 

 

“When I presented my budget proposal last month, I was optimistic about our chance to really change things around.  And as I stand here with so many people from such a wide range of backgrounds – who are all here to help make state government work for the people – I’m more encouraged than ever.  We’ve spent weeks talking to lawmakers and getting the legislative process started.  Now we’re reaching out to families in every corner of the state to ask for their help in making sure we don’t let this historic opportunity pass us by,” the Governor added.       

 

To date, more than 250 organizations, elected officials, and businesses throughout Illinois have supported the Governor’s Investing in Families budget.  The Governor’s Investing in Families Bus Tour, leaves from Navy Pier in Chicago today, and will stop at restaurants, businesses, schools, and rallies in Illinois cities and towns including Elgin, Rockford, Moline, Galesburg, Peoria, Avon, Quincy, Alton, Marion, Decatur, and Danville. Throughout his trip, the Governor will meet with families, visit small businesses, and rally support for an historic budget that makes record investments in working families.

 

Gov. Blagojevich’s FY08 budget proposal includes fundamental changes that will benefit the people of Illinois for generations to come.  The Governor’s Illinois Covered will ensure all 1.4 million uninsured have access to quality, affordable healthcare, and will help many middle-income families and small businesses that are currently enrolled in health insurance plans save thousands a year on healthcare costs.  The plan will also reform the existing healthcare system to improve quality and require more accountability. 

 

“As a member of the Chicago-Chapter-National Black Nurses Association, an organization made up of professional registered nurses, student nurses, and licensed practical nurses, I can say with assurance that the majority of our members understand that it is VITAL that access to affordable healthcare becomes a reality very soon in Illinois,” said Pamela J. Johnson, R.N., B.S.N. of the Chicago Chapter-National Black Nurses Association who supports the Governor’s plan.

 

“Alexian Brothers Hospital Network is happy to endorse Governor Blagojevich's Illinois Covered program that is designed to provide affordable healthcare for all,” said Kelley Clancy, VP for External Affairs for Alexian Brothers Hospital. “After embracing the Governor's All Kids program and partnering with the Illinois Department of Healthcare and Family Services, we look forward to the implementation of this bold and critically important initiative."

 

“I applaud the Governor’s healthcare plan and vow to join the fight to make sure this proposal becomes a reality,” said Delores R. Richmond, Broker/Owner of Richmond GMAC Real Estate. “Small business owners and the self-employed, including the thousands of real estate firms and their independent real estate agents are forced into the individual insurance market where there is no negotiating or leverage.  The only choice realtors have is to pay whatever price is offered or to go without insurance all together.  The time is right for a change, and I thank the Governor for taking this bold move.” 

 

“As a small business owner in Illinois, I am looking forward to the future,” said John Gordon, owner of the vending company, Gordon Services. “Illinois Covered will offer me, my family, and employee’s affordable health insurance.  It is great to know that health insurance premiums will be capped and there will be protection for people with pre-existing conditions.  Group protection is important for those of us who are self employed.”

 

Also included in the budget proposal is the Governor’s Helping Kids Learn, which continues the Governor’s commitment to schools by boosting funding by an unprecedented $1.5 billion in Fiscal Year 2008.  Under the plan, general state aid to schools will increase by more than $800 million, raising the Foundation Level by $724 to $6,058.  With more funds per pupil, schools can improve textbook quality, modernize their technology, or invest in teachers.  The plan also will increase funds to hire special education teachers and fully fund “mandated categorical” programs like special education and transportation.  The plan will accelerate implementation of Preschool for All and dedicate additional resources for school districts that provide full-day kindergarten.  Underperforming school districts will get extra funds if they invest in proven strategies that raise student achievement.  And the plan will invest in a capital construction plan to replace or rebuild deteriorating schools.

 

“As a religious leader, it was good to hear the Governor’s budget proposal focus on issues that affect the members of my congregation,” said Bishop Simon Gordon of Triedstone Full Gospel Baptist Church.

 

To pay for record investments in education and healthcare, Gov. Blagojevich proposed major reforms to Illinois’ tax structure. Many large corporations pay little or nothing in corporate income taxes, and they are not paying their fair share to meet the state’s ongoing infrastructure, education, healthcare and public safety needs.  Gov. Blagojevich’s plan takes historic steps to change the Illinois tax structure – one of the most regressive and unfair to working families in the nation.  According to the Illinois Department of Revenue, 37 of the 99 ‘Fortune 100’ companies that filed taxes in Illinois paid no state income taxes, despite the fact that they averaged $1.2 billion in sales during 2004.  On average, 48 percent of corporations that generated $50 million or more in annual sales in Illinois paid no income taxes from 1997 through 2004.

 

The Governor’s Tax Fairness plan implements a Gross Receipts Tax (GRT) that has been embraced by many economists because of its broad base and low rates.  States including Washington, Delaware and Hawaii have had a GRT for years, and, recently, Ohio and Texas have adopted a form of the tax.  The GRT will only apply to businesses that make more than $2 million each year, which means 85 percent of all businesses in Illinois will be exempt.  The GRT will tax service industries at a low 1.95 percent rate, while manufacturers, construction, retail and wholesale companies will be taxed at a lower .85 percent.  Exports will not be taxed.  The plan also mitigates costs being passed on to consumers by excluding certain goods, such as retail food and pharmaceuticals.

 

The Governor’s budget also addresses the State of Illinois’ increasing pension obligation – the state’s most pressing structural deficit challenge.  Thirty years of under-funding the state employee pension system, combined with passing billions of dollars in unfunded pension sweeteners, has created the largest state pension debt in the nation.  Gov. Blagojevich laid out a landmark plan that would use the proceeds from a long-term lease the Illinois State Lottery to provide an immediate infusion of at least $10 billion into the state’s pension system.  He also proposed issuing $16 billion in pension obligation bonds that will help put the system on stronger fiscal footing.  Altogether, the Governor’s plan will save more than $60 billion between now and 2045. 

 

The following organizations, elected officials, and businesses throughout Illinois have supported the Governor’s Investing in Families budget: