The state legislature wrapped up the fall veto session without a new budget. Lack of a budget slows economic growth in the state, due to uncertainty over future tax policy and funding levels for businesses that depend on state business. Dr David Merriman, economist at the U of I, Chicago, and part of the U of I’s Institute of Govt and Public Affairs, says the road map to a long term balanced budget is clear, involving a combination of budget cuts and tax increases.
Merriman says every day without action on spending cuts and taxes means the long debt keeps growing. Meanwhile, lack of a budget in the short term hurts the most vulnerable citizens the hardest.
The legislature will take up the budget issue again in January.