 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 has previously 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.
A group of Democratic lawmakers on Monday morning unveiled a plan
to reduce state spending by $1.3 billion, which includes cuts to
education, Medicaid and public employee health benefits.
House Democrats will likely push the spending reduction plan this
week as a major component of the budget, since most proposals
require a simple majority for passage in the General Assembly up to
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 must also 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.
Since 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.
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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 has so far
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 would
essentially 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 has already 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.
[Illinois
Statehouse News]
 |
