Illinois kicked the can down the road, not raising taxes but also not cutting much spending. Gov. Pat Quinn (D) had urged hiking the state’s flat income tax from 3% to 4.5%, which would harm pretty much the only bright spot in the state’s distortive and burdensome tax system. The state’s defined-benefit pension fund has sharply dropped in value, and the state will borrow $3.5 billion to make its payment this year, a hefty part of the budget gap. More on Illinois here.
