Quinn predicts radical budget cuts without revenue

March 26, 2014

The Associated Press

(AP Photo/Seth Perlman, File)
Illinois Gov. Pat Quinn delivers the State of the State address at Capitol in Springfield.

Gov. Pat Quinn wants to make the state's temporary income tax increase permanent to prevent "extreme and "radical" budget cuts.

The Chicago Democrat also said during his annual budget speech Wednesday he wants to give homeowners a $500 annual property tax refund.

The speech comes as the state faces dire financial problems and Quinn embarks on what's anticipated to be a difficult re-election bid against Republican businessman Bruce Rauner.

Quinn proposed maintaining the state's income tax increase, saying that it'll be a "real challenge." The increase rolls back next year, leaving a $1.6 billion revenue dip.

Quinn says extending the increase is a better long-term solution.

Illinois has billions in unpaid bills, a low credit rating and uncertainty with its pension debt.