- Associated Press - Wednesday, March 26, 2014

SPRINGFIELD, Ill. (AP) - Gov. Pat Quinn says there could be tough budget cuts ahead without addressing ways Illinois generates revenue.

The Chicago Democrat delivered his annual budget address Wednesday. He says without more revenue state agencies will make more cuts.

Quinn is expected to say he’ll wants to make the income tax increase permanent. Illinois faces a rollback of the temporary income tax increase in January and a roughly $1.6 billion revenue drop.

The speech comes as Quinn faces a tough re-election challenge from Republican businessman Bruce Rauner (ROW’-nur), who calls Quinn the “worst governor in America.”

Illinois also faces billions in unpaid bills and uncertainty with its pension debt. A newly-signed pension overhaul cuts benefits for state employees and retirees, but unions have sued because they think it’s unconstitutional.

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