LAWMAKERS RETURN TO WORK ON BUDGET
Lawmakers returned to Springfield this week hoping to find a resolution to the state’s budget problems. They left town with no agreement but negotiations are still on going.
The General Assembly hopes to vote on some technical issues related to the budget and the state’s capital infrastructure program. Then lawmakers plan to come back to the Capitol on June 30, the day the current budget expires, to continue their efforts.
There have been several avenues explored, and even some agreements reached, on filling the budget hole, including borrowing to help make state worker pension payments worth $2.2 – $2.3 billion, cutting more programs by $1 billion, and asking the federal government for more money.
In an effort to try to get Republican support for his income tax plans, Governor Quinn has also offered to reduce the size of the corporate income tax rate hike from the proposed 9.7%, although no exact percentage increase was mentioned. However, Quinn is still backing a temporary personal income tax increase that would raise the rate from 3 to 4.5 percent for two years. Currently, it’s estimated that only 45 Democrats support increasing the income tax leaving them 26 votes short of the 71 votes needed for passage.
Also this week, State Comptroller Dan Hynes advised a fresh start with regards to the budget making process - advocating for a 60-day spending plan for the budget year that begins July 1 and using the time to slash contracts and impose a 5% cut in agency operations and grants. He also mentioned authorizing new casinos, higher cigarette taxes, close unspecified corporate tax incentives and put the sales tax on “luxury items” such as spas and tanning salons. Under Hynes’ proposal, the cuts would save about $1.2 billion while the casinos and other tax increases would raise $1.8 billion.
Before legislators consider raising taxes, the state should first make substantial changes to their out-of-control pension and health care programs while also forcing state government to undergo the same budget scrutiny that private industry has been doing for the past 18 months.
CICI will continue to keep you posted on developments as they occur.
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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