You're watching...
State Rep. Jack Franks says the state needs to stop borrowing money from the federal government.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Illinois State treasurer Dan rather but says that state is quote on the -- financial disaster.
And he refuses to borrow any more money relevant is a Republican.
So let's see what Democrat state representative Jack Franks has to say he's joining us now live from.
So welcome the programs good to have you with us.
Thank you Stewart now let let's recap here a second down -- state treasurer Republican.
He says look we all broke.
We cannot afford to borrow any more money we got -- stall borrowing right now because we face financial disaster.
What are you gonna do about that so.
He's a 100% right we should not be digging ourselves into a deeper debt right now.
Illinois just passed the 66%.
Tax increase on our citizens and every one of those dollars simply went to pay for our current.
Pension obligations.
We have a structural deficit and our first day of our fiscal year on July 1 of this year.
We will all over eight point three billion dollars an unpaid bills.
And we will also have an eighty billion dollar unfunded pension obligation.
Last year -- surprise higher revenue source I'm sort of jump in this you surprise me.
Because I didn't know what you're gonna say when I asked the question.
I thought that the Democrats in Illinois including the governor we're pretty much in lockstep.
Raise taxes on -- more money but your.
You're not in now Lou volume yours are you saying that -- the Republican Dan rather but he's right that's what your side.
He's a 100% with Stuart you and I both want them to the LS CR -- with you on this we -- is no reason that we should be great yeah I wish we shouldn't be raising taxes.
The way to stimulate the economy is the cut that you're a Democrat and -- -- -- -- -- if you're a Democrat what are you doing saying that the way to stimulate in the column is the lower taxes.
You'll playbook.
But listen I don't think that the Republicans on that either.
I think it's common sense in you look at what these states have had to do to try to retain businesses by throwing all these incentives that them.
You wouldn't have to throw incentives that businesses if you simply lower the tax rate.
That's how you create jobs that and I think we -- you comply you know dogs would that would -- -- -- -- -- totally at all just don't want Democrats are proposing in Illinois.
And I guess that's why almost ran against him last -- to get I did the usual yeah on this issue.
Now let -- maybe next -- What is the state going to do.
I mean you've got a budget to the which is before the state legislature which I think calls for borrowing too there's a gap there of two point -- billion dollars.
General -- just don't borrow tripled the -- down brother that says don't borrow -- -- what's gonna happen how this thing gonna play out.
Will we actually passed a law in January just before we -- their tax increase was called budgeting for outcomes.
That what we would do as you would see how much revenue that's projected and then we would only spend up to that amount.
Unfortunately the governor did not sign that law -- -- one hour after he gave his budget address which is based primarily -- borrowed funds so what I say is forget that.
Only do what are projected revenues are don't borrow any require consolidation.
Require cuts -- has passed a law.
What's on the governor's desk hopefully we'll be signing it with the consolidation commission to get rid of many of our levels of government Al -- Has 7000.
Levels of government can and then next closest state is Pennsylvania with less than 5000.
Jack frank we -- totally attacks in Illinois I think we can consolidate significant do you sound like somebody straight out of the teapot I mean if you confession out of him -- body stuff.
I'm afraid I'm out of time -- it's on the please -- -- -- LSE graduate come back again would love to see you but that's very interesting enough we come back and report what's happening in the state of Illinois because we think is the most indebted.
Near bankrupt state in the nation we want to hear what happens that Jack Franks thanks so much so appreciated.
That.
