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May 8, 2009
Volume 23 - Issue 14
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ANNUAL LEGISLATIVE & REGULATORY DAY A GREAT SUCCESS
In spite of a downturn in the economy,the CICI membership turned out for CICI’s Annual Legislative & Regulatory Day and Reception. Over 200 government officials, legislators and CICI members attended the evening reception. CICI would like to thank the members for their attendance and showing of support of our efforts in Springfield. The active and enthusiastic support of our members does not go unnoticed by the policy makers in the General Assembly and state government. Thank you very much for making it a good event.
During lunch, Senate Republican Leader Christine Radogno gave a very frank overview of the state’s budget problems and the potential for tax increases being dealt with by General Assembly. Tom Johnson, President of the Taxpayers Federation of Illinois, also gave a detailed report of the state’s budget problems and the various proposals for increasing taxes during the afternoon Legislative & Regulatory Affairs Committee meeting.
Joining us for the evening were many legislators, regulators and government officials. Among the government officials were Acting Pollution Control Board (IPCB) Chairman Tanner Girard; House E&E Committee Chairman Tom Holbrook (D-Belleville), Senate Environment Committee Spokesman Dale Risinger (R-Peoria), House Environmental Health Spokesperson Jil Tracy (R-Quincy)and House Environmental Health Committee member Dave Winters (R-Rockford);and a host of other legislators and key government officials. |
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BUDGET, TAX INCREASE DEVELOPMENTS
Some developments have begun to emerge on the budget crisis that has engulfed Springfield this year. First of all, Governor Pat Quinn has backed off of his proposal to force teachers and state workers to pay an extra 2 percent of their salaries into the pension funds. However, the proposals to create a two-tiered pension system, increase health insurance costs and divert billions in state pension payments over the next two fiscal years are still being discussed.
Secondly it was reported that Senate President John Cullerton has suggested raising the income tax on a temporary basis, which was done the last two times the state hiked the income tax. Both temporary tax increases ultimately became permanent. President Cullerton also hinted at possibly increasing the income tax higher than Governor Quinn’s proposal, from 3% to 4.75% instead of the Governor’s 4.5%.
In addition, the Senate Democrats are also attempting to put together a funding plan for a capital construction program. In the past, they’ve proposed raising the motor fuel tax, but they are also looking at a host of fee and tax increases. Ideas being considered include increasing the vehicle registration fees, title transfer fees and drivers’ license fees while also removing the state sales tax exemption on candy, iced tea and health and beauty aids. There has also been some talk of increasing the state’s alcohol taxes, establishing online lottery games, legalization of video game poker machines, and streamlining of the sales tax.
Also this week some members of the Senate Democratic Caucus have unveiled a gaming expansion bill this week that calls for a Chicago-owned casino and a new casino in Rockford and in Waukegan. This plan also calls for all current riverboats to become land-based, and 2500 new gaming positions to be divided up between the horse racing tracks and run by the casinos. While some Democrats are seeking an expansion of gambling, House Speaker Madigan has indicated that the House won’t be considering gaming expansion this year.
It should be noted that a whole host of tax and fee increases or other means of raising revenue will be floated during the waning days of the spring session in an attempt to put together a spending plan and adjourn by May 31. CICI will keep you abreast of all these developments as they begin to emerge. |
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PERSONAL INCOME TAX RECEIPTS DECLINE BY 6.3%
The economic and revenue forecasting arm of the Illinois General Assembly is reporting more loss of revenue from personal and corporate income taxes and sales taxes from the previous fiscal year (FY 08). Fiscal year 2009 ends June 30, 2009. The April report highlights that personal income tax revenue is down 6.3%, or $581 million, and the corporate amount is down 4%, or $72 million. Also, sales tax revenue, reflecting decreased consumer spending, is also down 5.3%, or $317 million. Also, mentioned in the report were various other general revenue receipts that are experiencing the same decline.
This creates even further problems for trying to craft a spending and tax plan as legislators and budget negotiators try to grapple with revenue income. CICI’s main concern is that the more revenue loss that is forecasted, the need for upping the proposed tax increases become more apparent. |
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COOK COUNTY BOARD VOTES TO REPEAL SALES TAX INCREASE
As you probably already know by now, the Cook County Board voted this week to repeal the 1% increase in the county’s sales tax which had increased Chicago's overall sales tax to 10.25 percent, the highest of any large city in the country. A day after the vote County Board President Todd Stroger angrily vowed to veto the reduction but now appears to be backing off his statement. Stroger has until this Tuesday to decide whether to veto the decrease.
Slashing the tax increase altogether will cost the county roughly $250 million, potentially eliminating health-care programs, public safety programs and thousands of jobs across the county. However, the concern for CICI is that this lost revenue may be made up elsewhere, like in previously floated tax and fees increases on natural gas, electricity and other county environmental programs.
CICI will also keep the membership abreast of this situation as it unfolds. |
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BILL INTRODUCED TO RID STATE OF RYAN, BLAGO HIRES
House Speaker Michael Madigan has introduced a measure, HB 4450, to terminate essentially all current political employees hired by former Governors’ Ryan and Blagojevich. These @3,000 employees include (1) agency heads, assistant heads, and deputy heads subject to the advice and consent of the Senate, (2) members of approximately 90 boards or commissions subject to the advice and consent of the Senate, (3) agency, board, or commission employees in exempt positions, (4) term appointees of agencies, boards, or commissions, and (5) any other official or employee subject to the advice or consent of the Senate. The persons covered by the bill will be allowed to serve for up to 60 days after its effective date. However, these people will be eligible for reinstatement by Governor Quinn to their current positions if he so chooses. This would cover many directors, deputy and assistant directors and members at agencies like the IEPA, IPCB, IEMA, and the ICC. This bill has already been scheduled in the House Executive Committee this Wednesday, May 13.
CICI’s concern is with the potential loss of institutional knowledge of many people we work with on a daily basis and the political mind-set of those who may be replacements.
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: 1400 E. TOUHY AVE., SUITE 110, 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 |
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