“ALL SUMMER LONG”
As budget negotiations were falling apart, Governor Pat Quinn yesterday addressed a rare joint session of the General Assembly. In his 10-minute remarks, he repeatedly warned lawmakers that he would veto any partial or temporary budget that doesn’t fund government at “his” level, claiming that he would keep the legislature in session “all summer long” in order to get a 12 month budget for the new fiscal year, which started today. Quinn also stated that he was willing to offer an additional $1 billion in cuts.
Despite Quinn’s remarks, the House and Senate sent Quinn a budget along with a capital infrastructure program this week that only funds the government at the Governor’s requested level for perhaps six months. This proposed budget, however, included a $2.2 billion borrowing scheme from the state’s pensions systems, freeing up needed revenue earmarked for the state’s social/human services sector. However, the Senate failed twice last night to pass this pension borrowing mechanism thus leaving a $2.2 billion hole in the General Assembly’s proposed budget. Governor Quinn, who earlier in the day had told the legislative leaders that he supported the pension borrowing plan abruptly changed his mind and actively lobbied against it last night. Since Illinois’ state constitution requires a balanced budget, Governor Quinn vetoed part of the proposed budget this afternoon, using the state constitution as his cover and forcing lawmakers back to the negotiating table.
A special legislative session has already been announced by the Senate President and the House Speaker for Tuesday, July 14. The purposes of the special session will be to take action on any vetoes, amendatory vetoes, or reduction vetoes by the Governor of legislation related to the budget for the new fiscal year and to consider any legislation, pending or otherwise, related in any way to the budget, including but not limited to appropriation, budget implementation, or additional revenue resources, i.e. tax increases. At this point it’s unclear as to whether the Governor will call lawmakers back into session sooner than the proposed July 14 date.
Currently, it’s anyone’s guess what mechanisms will be used in order to present the governor a balanced budget that he would sign. Quinn is still holding out for a temporary personal income tax increase that would raise the rate from 3 to 4.5 percent for two years. Quinn has also publically stated that he is willing to reduce the increase in the corporate rate, presumably in an effort to garner Republican votes. As the legislature in presently in overtime session, it takes a 3/5’s majority (71 votes in the House, 36 in the Senate) to pass anything that would have an immediate effective date. Currently, it’s estimated that only 45 House Democrats support increasing the income tax, leaving them 26 votes short of the 71 votes needed for passage. It’s unclear at this time what the vote tally may be in the Senate.
As it’s been said in this space earlier, 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. So far, none of these steps have been taken.
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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