Names Two Senior Advisors and Five Agency Heads to Continue Efforts to Boost Illinois' Economic Recovery, Address State's Fiscal Challenges

CHICAGO - February 7, 2011. Governor Pat Quinn today named two senior members to his administration and re-appointed five members of his executive cabinet. Today's actions are the second step in a series of appointments Governor Quinn will make over the first quarter of 2011 as he continues to fulfill his commitment to creating jobs, recovering our economy and making state government more efficient and accountable to the people of Illinois.

Today Governor Quinn named Cristal Thomas to serve as his Deputy Governor for Public Policy and Sean Vinck to serve as Chief Information Officer. Governor Quinn also re-appointed Secretary Brent Adams to the Department of Financial and Professional Regulation, Director Arthur Bishop to the Department of Juvenile Justice, Director Dan Grant to the Department of Veterans' Affairs, Director Michael McRaith to the Department of Insurance and Director Marc Miller to the Department of Natural Resources.

"Continuing our mission of recovering Illinois' economy and addressing our budget challenges requires hard work by a team of dedicated and talented individuals," said Governor Quinn. "These seven appointees have an ethic of service and I am confident that they will work collaboratively and creatively to address our problems and move Illinois forward."

As Deputy Governor for Public Policy, Cristal Thomas will help develop and implement the Quinn administration's public policy priorities. Thomas previously served as Region V Director for the U.S. Department of Health and Human Services (HHS), acting as the official representative of Secretary Kathleen Sebelius. Previously, Thomas was Executive Director of the Ohio Executive Medicaid Management Administration, serving as a member of Governor Ted Strickland's cabinet. Thomas previously served as Assistant Director of the Illinois Department of Healthcare and Family Services (HFS), Director of Strategic Planning for HFS, and Policy Analyst in the White House Office of Management and Budget. She holds a Master's Degree in Public Policy from the University of Chicago.

As Chief Information Officer, Vinck will direct the state's information technology policies, focusing on improving and updating IT infrastructure. Additionally, he will oversee information technology officers throughout state government. Since January 2010, Vinck has served as Special Administrator for the Department of Corrections, where he was tasked with overhauling and modernizing the agency's electronic Offender Tracking System. Previously, he served as Governor Quinn's Chief Legislative Counsel and Chief of Intergovernmental Affairs. Vinck also served then-Lieutenant Governor Pat Quinn as his Legislative Counsel. He holds a Master's Degree in Political Science and a Juris Doctorate from the University of Notre Dame.

Secretary Brent Adams partnered with legislative leaders, industry experts, and consumer advocates to develop and pass the Cemetery Oversight Act, one of the most pro-consumer cemetery laws in the country. He also chaired the Mortgage Fraud Task Force and coordinated the Mortgage Relief Project, a statewide program that has helped thousands of homeowners take advantage of programs that can help them save their homes. He drafted and served as a lead negotiator for consumers on the Homeowner Protection Act, the Payday Loan Reform Act, the Consumer Installment Loan Reform Act, and regulations to protect consumers from predatory auto title loans.

Director Arthur Bishop brings more 35 years of experience in administering child welfare, community mental health and substance abuse programs including 15 years serving in the Department of Child and Family Services where he led several initiatives requiring interagency collaboration between public, private and community-based partners, including family advocacy centers, paternal involvement centers and the Fatherhood Initiative. Bishop has also represented DCFS on the Governor's Task Force on the Condition of African American Males.

Director Dan Grant, a graduate of West Point, has led the Department of Veterans' Affairs since 2009. Grant has worked with members of the Illinois legislature and testified at hearings to help secure passage of a bill that ensured interest payments were made on delayed Line-of-Duty Benefit payments to bereaved military families (SB 2489.) He also spearheaded legislation to establish the Task Force on Service Member and Veterans Education and the Military Family Interstate Compact Implementation Statute Drafting Advisory Committee (HB 5368). Grant is also a captain in the U.S. Army and led 28 men in a combat arms platoon during a year-long deployment in Operation Iraqi Freedom. He served throughout the Sunni Triangle in Bayji, Samarra, Balad, and Tikrit in a wide range of roles, including leading a 120 person team of soldiers, local Iraqi's, U.S. contractors, and coalition allies in the excavation, collection and destruction of 3 million pounds of enemy ammunition during a 120 day mission.

Director Michael McRaith is leading the state's implementation of federal health care reform and serves as chairman of the board of directors for the Illinois Comprehensive Health Insurance Plan (a high risk health insurance pool). He also supervises the state's Senior Health Insurance Program (SHIP), and has actively participated in developing, drafting and advocating for statewide and national health insurance modernization, including boosting reporting requirements to guard against unreasonable premium hikes by Illinois health insurance providers. McRaith also serves on the executive committee of the board of directors for the AIDS Foundation of Chicago and serves on board of directors for the American Foundation for Suicide Prevention, Chicago Chapter.

Director Marc Miller has led the Department of Natural Resources since 2009 after serving on then-Lieutenant Governor Quinn's staff since June 2004. Miller was instrumental in the development and implementation of many environmental programs including the Dam Safety Initiative and the Mud-to-Parks program, which promoted the beneficial reuse of river settlement. He has also been instrumental in dozens of park development and land acquisition projects throughout Illinois. Miller is also an avid outdoorsman with an interest in fly fishing, hunting, canoeing, wildlife viewing, camping and hiking.

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Generates More than $314 million in State Revenue

CHICAGO - February 7, 2011. More than 78,000 taxpayers sent payments to the Illinois Department of Revenue during the state's tax amnesty program that concluded last November. The program exceeded its budgetary goal, adding $314 million to the general revenue fund for FY 2011.

"This program's success is good news as we work to stabilize state finances and to maintain vital public services," Governor Pat Quinn said. "This much-needed revenue will help our state to meet its obligations and is another important step towards making Illinois fiscally sound."

The FY 2011 budget estimated that tax amnesty would infuse $250 million into state government coffers during this fiscal year. The state received a total of $717 million in tax payments; $314 million went to the general revenue fund, with the balance going to local governments and the state's income tax refunds.

"We are pleased with this program's end result - Illinois' tax amnesty exceeded expectations," said Brian Hamer, Director of Revenue. "The program was straightforward and simple, and it generated hundreds of millions of dollars to help the state meet its obligations to vendors, taxpayers, and providers of essential services."

During the five-week tax amnesty program, which ended Nov. 8, those who paid taxes from previous years were able to avoid interest and penalties on their tax debts. On Nov. 9, penalties and interest on those debts doubled.

While individuals were the vast majority of participants in the program, corporations accounted for most of the program's tax receipts. Companies scheduled for audits, as well as taxpayers in the collection program, also used the amnesty period, reassessing their own tax returns and making payments to fully eliminate their debt to the state.

In addition to the immediate cash infusion, tax amnesty broadened the tax base. Non-filers accounted for $12 million of state receipts, and will be easier for the state to track in future years. Additionally, improved tax tracking software and enhanced audit and collection capabilities will further assist the state in monitoring filers who came forward under amnesty for future compliance.

Tax Type                           Participants                 State Share of Amnesty Receipts

Individual Income Tax         59,777                         $ 20 million

Business Income Tax          5,264                          $ 252 million

Sales and Use Tax              9,347                          $ 111 million

Other taxes                         3,801                          $ 25 million

Total                                 78,189                          $ 408 million

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WASHINGTON, February 7, 2011 - TOMORROW, Agriculture Secretary Tom Vilsack will host a national media conference call highlighting USDA efforts to help rural America win the future by helping businesses expand and increase economic opportunities in rural communities.

Q.  What is the difference between federal deficit and federal debt?

A.  The federal deficit is the annual amount the federal government spends over what it takes in.  According to the non-partisan Congressional Budget Office, the federal government is projected to take in $2.2 trillion in fiscal year 2011 and spend $3.7 trillion.  Because Congress now spends $1.68 for every dollar it collects through taxes, the result will be a deficit of $1.5 trillion.  Fiscal year 2011 will be the third straight year with an annual deficit of more than $1 trillion.  The federal debt is the cumulative amount of annual deficits.  The current federal debt is more than $14 trillion.

Q.  Why is the budget freeze in the news?

A.  Congress and the President are discussing ways to reduce spending.  In his State of the Union address in January, President Obama called for a five-year freeze on non-security related discretionary spending.  Congress determines discretionary spending levels annually, by passing 12 appropriations bills.  Entitlement programs such as Medicare and Social Security are not altered unless Congress passes a law to modify the programs.  The proposed freeze would affect about 11 percent of the federal government's budget.  President Obama predicts that his freeze would save $400 billion over the next 10 years.  What does that mean in terms of overall debt?  Well, the Congressional Budget Office predicts that if the federal government continues to spend at its current rate, it will add between $7 trillion and $12 trillion to the national debt over the next decade.  The $400 billion in savings President Obama predicts is 5.7 percent of $7 trillion and 3.3 percent of $12 trillion.  So, it's a drop in the bucket.

The reality is that you can't raise taxes high enough to satisfy the appetite of Congress to spend money.  Consider this.  Using current Congressional Budget Office projections, over the next 10 years federal spending and interest payments will average 23.5 percent of the gross domestic product.  This is higher than the 40-year average of 20.8 percent.  Also over the next 10 years, revenues coming into the federal government are projected to average 19.9 percent of the gross domestic product, compared to the 40-year average of 18 percent.  So, even with revenues at historic highs, spending will far outpace revenues.

Q.  What should be done to get the national debt under control?

A budget freeze is a step in the right direction, but we need a leap in the right direction.  Washington has to get serious about getting the debt under control.  That means taking an all-of-the-above approach that includes spending freezes, spending reductions, a balanced budget amendment to the Constitution, and increased efforts to stop fraud, waste and abuse of tax dollars.  Beyond freezing non-security related discretionary spending at fiscal year 2010 levels for five years, as the President proposes, I support freezing non-defense related discretionary spending at fiscal year 2008 levels for 10 years.  This change alone would save almost $1 trillion.  That's more than twice as much savings as under President Obama's proposal.

Q.  What else are you doing to get spending under control?

I'm a cosponsor of a resolution that proposes a balanced budget amendment to the Constitution.  A constitutional amendment requires a two-thirds vote in both houses of Congress as well as the approval of three-fourths of state legislatures.  Congress has voted on a balanced budget amendment several times over the years, but there have never been enough votes to approve the amendment and send it to the states for ratification.  I've supported a balanced budget amendment going back to my service in the House of Representatives.  In the Senate, I cosponsored the resolution proposing the amendment the last time it was brought up, in March 1997, when it failed by just one vote.  I'm also a cosponsor of the Reduce Unnecessary Spending Act.  This bill, which I also cosponsored during the last Congress, would let the President single out specific spending items in bills that land on his desk.  Congress would have to hold an up-or-down vote on the spending items within 10 days of the President's sending them back, as long as the President sends them within 45 days of signing the bill.  Any and all funds that are rescinded would go to reducing the deficit, under this proposal.

All this and more should be done to reduce the deficit and rein in the federal debt.  The debt will reduce opportunities for future generations, and the U.S. economy will continue to suffer the weight of a government that spends far more than it can afford.  It's only common sense that you can't sustain a situation like we have today, where for every dollar the federal government spends, 40 cents of it is borrowed