Welcome to the Chemical Industry of Illinois

$26 BILLION CONSTRUCTION PROGRAM HEADS TO QUINN

The General Assembly this week approved a $26 billion statewide construction program for building and maintaining roads, bridges, schools, state buildings, etc., sending the measure to Governor Quinn. At this time, it’s unclear if or when the Governor will act on the measure. Governor Quinn did indicate concern that the construction program was passed prior to the General Assembly addressing the $12 billion structural budget deficit currently facing the state.

Under the proposed construction plan, an additional $2.8 billion will go to new road projects, give $1.5 billion for new schools and provide $718 million to public universities. The construction plan also sets aside millions of dollars in lump sums that will later be distributed to various parts of the state, like, for instance, $150 million earmarked for railroad-related projects.

The means to pay for the bonds for this program include higher fees for driver's licenses, license plates and title transfers. An increase in the state tax on liquor, wine and beer also would rise to bring in an estimated $114 million in new revenue. The cost of a case of beer would jump by 10.6 cents. The plan would also eliminate a tax exemption on candy, non-carbonated beverages and health and beauty aids. In addition, the plan would legalize video poker in bars and clubs, bringing in an estimated $375 million in new revenue. This link will take you to the language of the bill for these new and increased fees and taxes: http://www.ilga.gov/legislation/96/HB/PDF/09600HB0255sam001.pdf

Interesting to note is that the bill also contains language amending the Environmental Protection Act to provide that the Underground Storage Tank Fund is not subject to sweeps, administrative charges or charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any funds from the Underground Storage Tank Fund into any other fund of the state.

BEGINNINGS OF TAX PLAN CLEARS SENATE COMMITTEE

What could be a beginning blueprint for the state’s largest tax increase cleared a Senate committee this week and now waits for further action on the Senate Floor. This measure, SB 750 (Meeks, D-Chicago), has long been discussed in both the House and Senate under the same bill number for a few years but now seems to be gaining some steam amid the current budget negotiations.

The measure would increase the personal income tax by two percentage points, from 3% to 5%, and broaden the sales tax base to include services commonly taxed in other states. It would not raise the corporate income tax; however, many observers in Springfield don’t believe that provision will remain absent much longer. The bill would also double the income tax credit for property taxes, and provide this credit to businesses. It would also triple the value of the Earned Income Tax Credit and make other tax relief adjustments for middle- and lower-income taxpayers - 60% or all income taxpayers.

This plan would generate $7 billion for education and other state programs and services, including income and property tax relief. From the balance, roughly $1 billion would be allocated to K-12 education operations, $300 million for higher education and $1 billion for capital construction.

This link will take you to the language of the bill for these new changes: http://www.ilga.gov/legislation/96/SB/PDF/09600SB0750sam002.pdf

CICI would like to see a greater emphasis on budget cuts and restructuring state government prior to the raising of any further taxes. As always, CICI will keep you abreast of these developments.

ETHICS, LOBBYING BILL ADVANCING

The General Assembly began advancing a measure, SB 54 (Garrett, D-Lake Forest), this week seeking to enact broad changes in government procurement policy and lobbying activities. For CICI members that are registered lobbyists, the following are the notable changes and new requirements:

Lobbyist Registration Act

Revolving Door Prohibition

Implements strict 1 year ban for certain officials and employees: Banned officials and employees are prohibited from accepting employment or compensation for 1 year from an entity if that entity was party to a state contract(s) or change orders worth $25,000 or more (cumulative) or was the subject of a regulatory or licensing decision involving the official's or employee's state agency.

This link will take you to the language of SB 54: http://www.ilga.gov/legislation/96/SB/PDF/09600SB0054ham001.pdf

STROGER VETOS SALES TAX CUT, OVERRIDE FAILS

The Cook County's sales tax increase will stand after commissioners this week failed to muster enough votes to override Cook County Board President Todd Stroger’s veto.

Supporters of the tax cut needed to convince 14 out of 17 commissioners to override Stroger's veto which would have repealed the tax on Jan. 1, 2010. Only 11 commissioners voted to override Stroger. Four others voted to uphold Stroger's veto and two voted “present”.

After the override vote failed, commissioners then approved a new ordinance to roll back three-fourths of the tax on Jan. 1, 2010 and the remaining fourth on Jan. 1, 2011. The vote was 10-7, not enough to override a likely Stroger veto, which he has already promised to make.

While this is not good news for anyone or any business in Cook County, CICI’s concern with the sales tax cut is that lost revenue may be made up elsewhere, like in previously floated tax and fees on natural gas, electricity and other county environmental programs.

BILL TO RID STATE OF RYAN, BLAGO HIRES ALTERED, ADVANCES

House Speaker Michael Madigan has greatly altered his proposal, HB 4450, to terminate essentially all current political employees hired by former Governors’ Ryan and Blagojevich. Before the bill was amended in committee this week and passed to the Senate, close to 3,000 employees were earmarked to be removed from their positions, including (1) agency directors, assistant directors, and deputy directors 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 bill as currently amended would cover about 750 positions in state government.

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 proposal would cover many directors, deputy and assistant directors and members at agencies like the Illinois Environmental Protection Agency, Illinois Pollution Control Board, Illinois Emergency Management Agency, Dept. of Agriculture and the Illinois Commerce Commission.

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 their replacements.

ONEROUS LABOR MEASURES STILL ALIVE

While there is a little over a week left in scheduled spring legislative session, CICI thought it pertinent to remind the membership of 2 onerous labor issues which are still alive and opposed by CICI.

Prevailing Wage for Enterprise Zones & TIF Districts

This measure, SB 43 (Clayborne, D-E. St. Louis), proposes to extend the Prevailing Wage Act to all projects in an enterprise zone or a TIF district, even for projects that are 100% financed from private sources, with the exception for housing of 6 units or fewer. The bill also provides that "public works" also includes any project that will derive a financial benefit, in whole or in part, from loans, grants, subsidies, incentives, or other financial benefits made available through these areas, even though there are not utilized. This covers just about every construction project in these areas, which encompasses a very large part of the state. A significant number of CICI members are in Enterprise Zones.

UI for Locked-Out Workers

This measure, SB 1350 (Forby, D-Benton), would provide an additional 26 weeks of unemployment insurance benefits for workers in lockout situations. The bill was muscled through the Senate and now waits for further action on the House Floor. Many in the business community feel this is a blatant attempt to insert government into contract discussions between employers and unions.

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.

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