Illinois decision makers are confronted with two immense challenges. On the one hand, state government is facing the largest deficit in its history, with published estimates of the hole ranging from $4 billion to $9 billion. At the same time, the U.S. and state economies are suffering through what looks like the worst recession since the Great Depression. How the state elects to resolve its record deficit will have a meaningful impact on the size and duration of the recession in the state's economy. Given this scenario, the state's best hope of growing its economy and countering the recession is to close its deficit by raising taxes progressively and maintaining or expanding spending on services.
