No one can deny the fact that the economy is slowing down—that much is apparent. Whether it’s presidential candidates, leading economists, or members of the media, they all agree that the economy is one of the most important issues currently facing our nation.

Similarly, Illinois is facing economic problems of its own. Tax and fee hikes on businesses implemented in 2003 by Gov. Blagojevich, coupled with the Administration’s rhetorical attacks on employers, have contributed to stagnant job growth and a beleaguered economic climate.

According to the state treasurer’s office, Illinois stands to lose between $40 million and $50 million this year on the state’s investment portfolio, and Fiscal Year 2008 projected revenues have fallen short of original estimates. In fact, experts on the budget expect to see a more than a half-billion dollar underperformance in this year’s funds.

Though political leaders and fiscal watchdog groups bewail Illinois’ fiscal health, very little is being done to rectify the situation. The governor continues to advocate increased state spending and program expansions, despite the state’s inability to pay its bills in a timely manner.

If state leaders refuse to exercise restraint when it comes to spending, Illinois is headed for a world of trouble. However, I believe there are a number of ways that state government can work to rebuild our economy and re-establish a thriving business community in Illinois.

Illinois cannot continue to balance the budget on the back of the business community. The effects of higher business taxes, penalties and fees not only impact business owners, but are often passed on to consumers as employers are forced to increase the costs of goods and services. It is imperative that the state extends an olive branch to employers, by acknowledging the fundamental role they play in establishing Illinois’ fiscal solvency.

Another significant way I believe the state can revive its ailing economy would be through a reduction of the state sales tax on gasoline and a 5 percent utility tax holiday for Illinois manufacturers. Energy is expensive, and it’s not only families who are feeling the impact of these increases—businesses are also burdened by the increased cost of transporting goods. Reducing the state sales tax could save Illinois taxpayers almost $500 million per year, while a utility tax holiday would provide much-need relief for manufacturing companies in Illinois.

Additionally, one immediate step Illinois can take to boost economic development would be to abolish the state’s controversial (largely due to the federal corruption trial of Gov. Blagojevich’s fundraiser Tony Rezko) Health Facilities Planning Board.

Currently, $3 billion in projects are awaiting approval by the Health Facilities Planning Board. Abolishing the board would free up that money, providing billions of dollars for private health care development and creating thousands of permanent new positions, as well as construction jobs, at great benefit to the state.

Similarly, for employers ready to invest in new equipment or facilities, time truly is money. Bureaucratic red tape often prevents economic development from moving forward. By expediting the state certification and licensing process, Illinois can stimulate economic growth and free up needed projects that are currently awaiting state approval.

Investing in our infrastructure is another essential step that the state could take to revitalize the economy, while making much-need improvements to roads, bridges and schools. Though a capital improvement plan has not been approved in almost a decade, I would advocate the sale of the 10th riverboat license, the proceeds of which would go to finance a capital program in Illinois. This would provide Illinois with an annual revenue stream of approximately $300 million to $500 million, and spur the creation of thousands of construction jobs throughout the state.

Finally, I would support a restoration of the federal depreciation schedule. In 2002, Illinois decoupled from federal depreciation laws intended to give businesses a 30 percent bonus incentive to invest in for the cost of their capital assets. Readopting federal depreciation laws would allow Illinois to take full advantage of the federal economic stimulus program.

By adopting these commonsense solutions, Illinois has hope of becoming the economic stronghold it once was. It is unthinkable that a state which boasts Illinois’ substantial resources could be underperforming so significantly in economic development and job creation. Implementing any of these proposed reforms could considerably boost Illinois’ economy, create good-paying jobs and make our state competitive once again.