BUDGET SENT TO GOVERNOR, SESSION FAR FROM OVER

The leaders of the General Assembly finally agreed on a Fiscal Year 2008 state budget that largely takes care of state government operations and spends $600 million more of natural revenue growth for education over the previous year.  The biggest question that remains now is will Governor Blagojevich sign the budget, veto the budget, or not act on the budget.  The governor has 60 days to act on the bill or it automatically becomes law.  The problem with the governor sitting on the bill is the state is currently operating without a budget for the fiscal year that began July 1, 2007, although state employees are still being paid, pursuant to a legal order entered today making the Comptroller process payroll and other checks until August 31, 2007.  After that, it’s anyone’s guess what will happen.

There are many issues still revolving around the budget, however.  Even if the governor does sign the budget into law or vetoes it and the General Assembly overrides it, a capitol construction program, a bail out of the CTA & RTA, and the governor’s healthcare proposal is still desired by many in the legislature.  The capitol program is a multi billion dollar endeavor to build schools, roads, and bridges, with the revenue coming from an ever changing gaming expansion proposal that could include a casino in Chicago.  The funding that the CTA and the RTA is seeking could come from increased local sales tax and real estate transfer taxes or could be financed by additional gaming.  There is also a proposal to increase the cigarette tax throughout out the state and for local governments.  And of course there is the governor’s onerous healthcare proposal that would either tax every employer 3% of their payroll to front the expenses of this $1.2 billion program or fund it with the cigarette tax hike. Needless to say, CICI and the state’s employer community are still aggressively fighting the 3% payroll tax.  The current overtime session is far from over.

COOK COUNTY “7% SOLUTION” SENT TO GOVERNOR

After battling the renewal and extension of the “7% solution” of Cook County property taxes all year, a measure, HB 664 (Currie, D-Chicago) was finally sent to the governor today.  The bill would not only extend “the 7% solution” for an additional three years, but also increases the exemption cap from the previous level of $20,000 to $33,000 in the first year, $26,000 for the second year and $20,000 for the third year.

While the business and education community were opposed to HB 664, many feel good property tax measures were incorporated into the bill that made it virtually impossible for lawmakers to vote against.  The general homestead exemption was increased as was several other property tax exemptions for the elderly, longtime owner/occupants, veterans, firefighters etc.  

Like the previous bills that have been introduced, this proposal has effectively shifted the property tax burden onto industrial and commercials properties.  As a result, over half of the homes in Chicago and all industrial and commercial property saw tax increases as a result of this 7% cap.  The higher property value homes were the ones that received the lion share of the benefit of this assessment cap, paid for by a greater shift to industrial and commercial property owners and lower property value homes.

CICI will ask Governor Blagojevich to veto HB 664.

GENERAL MEMBERSHIP MEETING & GOLF OUTING AUGUST 23

CICI’s Annual General Membership Meeting and Golf Outing will be held Thursday, August 23 at the Klein Creek Golf Club in Winfield at 1N333 Pleasant Hill Rd.  State Representative Mike Fortner (R-West Chicago) will be this year’s luncheon speaker and will be discussing the recent legislative session.  The day’s events begin at 9:30 a.m. with the General Membership/Open Board of Directors meeting with lunch served at 11:45 a.m. followed by a shotgun start, scramble format at 1:30 p.m. The meeting registration is available at: http://www.cicil.net/Flyers/General_Membership_Golf_2007.html

If your company has any promotional items or gifts to donate for the golf outing, your support would be greatly appreciated. Please send items to the Des Plaines office at 2250 E. Devon Ave, Des Plaines, 60018.

CICI is again making available hole sponsorships at $500 per hole to benefit CHEMPAC, the only political action committee solely representing the chemical industry. Sponsorship includes a sign with your company name prominently displayed at the tee box.  For more information on hole sponsorship, please contact Brad Babcook at 217/522-5805 or bbabcook@cicil.net.

Please note that the Chemical Industry Council of Illinois Legislator is not intended to convey legal advice or set forth all legal requirements applicable to particular circumstances.

Headquarters: 2250 E. DEVON AVE., SUITE 239, DES PLAINES, IL 60018 • TEL :( 847) 544-5995 • FAX :( 847) 544-5999
Springfield: 400 W. MONROE, SUITE 205, SPRINGFIELD, IL 62704 • TEL :( 217) 522-5805 • FAX :( 217) 522-5815