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Patchwork of bills part of IL budget package (The Telegraph.com)
05/24/2010
SPRINGFIELD - Lawmakers could finalize a package of budget proposals to send to Gov. Pat Quinn before the Memorial Day weekend.
The state's budget for the next fiscal year, which begins July 1, could be $13 billion in the red if the General Assembly and Quinn do nothing.
Quinn previously has called for a 33 percent income tax increase that could bring in nearly $2 billion, but the idea lacks support in the Legislature during this election year.
On Monday morning, a group of Democratic lawmakers unveiled a plan to reduce state spending by $1.3 billion, which includes cuts to education, Medicaid and public employee health benefits.
House Democrats likely will push the spending reduction plan this week as a major component of the budget, because most proposals require a simple majority for passage in the General Assembly up until May 31.
After that, proposals require a three-fifths majority for passage, which means House Democrats would require at least some support from Republicans.
Senate Democrats already have an extraordinary majority and can pass proposals without Republican support. They passed a budget proposal to the House earlier this month.
However, before finalizing a budget, lawmakers also must grapple with how the state will make this year's pension payment.
Last year, Democrats and Republicans in both chambers agreed to a borrowing plan in order to make the state's annual contribution to its five public employee retirement systems.
This year, Democrats want to institute a similar $4 billion borrowing plan, but Republicans aren't supportive of more borrowing.
Because measures calling for borrowing require three-fifths majority for passage, lawmakers instead could opt to delay the pension payment.
Legislators also will consider granting Quinn broad authority to manage spending for state agencies for the upcoming fiscal year.
Proponents say Quinn requires flexibility to manage state finances in light of the tremendous budget deficit, while opponents say the proposal would provide Quinn too much power at the expense of the Legislature.
Additional proposals under consideration include the following:
- A $1-per-pack increase in the state tax on cigarettes phased in over two years would garner an estimated $300 million, which could be used to leverage additional federal funding.
Senate Bill 44 passed the Senate last year but so far has been stalled in the House. Lawmakers representing border districts say the increased tax would drive smokers across state lines to buy cigarettes and take any ancillary sales with them.
- A measure allowing slot machines at horse tracks sponsored by state Rep. Will Burns, D-Chicago, would bring in approximately $100 million from licensing fees, and $100 million to $300 million from the state's cut of new gaming revenue.
The new income from Senate Bill 3146 would go toward financing Quinn's six-year, $12 billion road construction plan. The measure is under consideration in the House but is opposed by representatives of the state's nine riverboat casinos, who say the measure essentially would turn the racetracks into land-based casinos.
- A proposed sales tax holiday for back-to-school supplies would cut the state sales tax from 6.25 percent to 1.25 percent for the 10-day period beginning Aug. 6 and ending Aug. 15.
The House already has passed Senate Bill 3658, which now waits for Senate action.
- An amnesty program allowing late taxpayers to avoid paying penalties and interest if they pay their tax bills could bring in an estimated $100 million.
Senate Bill 377 is currently under consideration in the House.
The state's budget for the next fiscal year, which begins July 1, could be $13 billion in the red if the General Assembly and Quinn do nothing.
Quinn previously has called for a 33 percent income tax increase that could bring in nearly $2 billion, but the idea lacks support in the Legislature during this election year.
On Monday morning, a group of Democratic lawmakers unveiled a plan to reduce state spending by $1.3 billion, which includes cuts to education, Medicaid and public employee health benefits.
House Democrats likely will push the spending reduction plan this week as a major component of the budget, because most proposals require a simple majority for passage in the General Assembly up until May 31.
After that, proposals require a three-fifths majority for passage, which means House Democrats would require at least some support from Republicans.
Senate Democrats already have an extraordinary majority and can pass proposals without Republican support. They passed a budget proposal to the House earlier this month.
However, before finalizing a budget, lawmakers also must grapple with how the state will make this year's pension payment.
Last year, Democrats and Republicans in both chambers agreed to a borrowing plan in order to make the state's annual contribution to its five public employee retirement systems.
This year, Democrats want to institute a similar $4 billion borrowing plan, but Republicans aren't supportive of more borrowing.
Because measures calling for borrowing require three-fifths majority for passage, lawmakers instead could opt to delay the pension payment.
Legislators also will consider granting Quinn broad authority to manage spending for state agencies for the upcoming fiscal year.
Proponents say Quinn requires flexibility to manage state finances in light of the tremendous budget deficit, while opponents say the proposal would provide Quinn too much power at the expense of the Legislature.
Additional proposals under consideration include the following:
- A $1-per-pack increase in the state tax on cigarettes phased in over two years would garner an estimated $300 million, which could be used to leverage additional federal funding.
Senate Bill 44 passed the Senate last year but so far has been stalled in the House. Lawmakers representing border districts say the increased tax would drive smokers across state lines to buy cigarettes and take any ancillary sales with them.
- A measure allowing slot machines at horse tracks sponsored by state Rep. Will Burns, D-Chicago, would bring in approximately $100 million from licensing fees, and $100 million to $300 million from the state's cut of new gaming revenue.
The new income from Senate Bill 3146 would go toward financing Quinn's six-year, $12 billion road construction plan. The measure is under consideration in the House but is opposed by representatives of the state's nine riverboat casinos, who say the measure essentially would turn the racetracks into land-based casinos.
- A proposed sales tax holiday for back-to-school supplies would cut the state sales tax from 6.25 percent to 1.25 percent for the 10-day period beginning Aug. 6 and ending Aug. 15.
The House already has passed Senate Bill 3658, which now waits for Senate action.
- An amnesty program allowing late taxpayers to avoid paying penalties and interest if they pay their tax bills could bring in an estimated $100 million.
Senate Bill 377 is currently under consideration in the House.
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