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Eliminate state's portion of sales tax on motor fuel As gas
prices across the country continue to soar, I am working to give
Illinois drivers some relief at the gas pump. Along with other
Senate Republicans, I filed an amendment to
House Bill 576 last week to eliminate the state's portion of the
sales tax on motor fuel. Based on today's gas prices, that measure
would save motorists about 16 cents per gallon.
Under current law, the sales tax on motor fuel is 6.25 percent.
Of that percentage, 5 percent goes to the state, 1 percent to the
local municipality and 0.25 percent to the county. The amendment
would completely remove the state's portion of the sales tax
beginning on July 1, which would save taxpayers more than $600
million, equaling a 5 percent cut in gasoline pump prices in
Illinois. Local units of government would continue to receive their
portion of the revenue, which helps them maintain local roads.
Suspending the gasoline sales tax is not a new idea. It was tried
on a temporary basis in 2000 to ease soaring gas prices at that
time, and I have introduced similar legislation in past legislative
sessions.
If approved by the General Assembly and signed into law, the sales
tax on motor fuel would end on June 30.
Stop "pay-to-play," start open budgeting
Key government contract and budget reforms that won overwhelming
support in the House of Representatives are not being allowed a
hearing in the Senate.
House Bill 1, which I am co-sponsoring, would help stop
"pay-to-play" abuses by prohibiting state contractors with more than
$25,000 in state contracts from contributing to the officeholder or
the political committee of the person responsible for awarding the
contract.
House Bill 3 is an open budgeting measure that would enable the
public and the media to access information about entities receiving
tax dollars.
Both bills have been bottled up in committees by Senate
Democratic leaders. At a state Capitol press conference Thursday, I
joined with several other lawmakers in calling for a vote on the
reforms.
Senate Republicans have been offering "responsible public
contracting" proposals for several years, based on a number of
incidents in which the Blagojevich administration has pushed the
ethical envelope. Allegations of contract abuses have resulted in
investigations by the attorney general and federal authorities.
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 There are other reforms pending in the House of Representatives,
but no legislation is as sweeping as House Bill 1 and House Bill 3.
There is much more we can do to eliminate the contract abuses and
public perception of "pay-to-play" politics that continue to plague
Illinois. It is hard to comprehend why Senate Democratic leaders
will not allow us to vote on these important reforms.
Defined-contribution pension plan will save state money
As state budget negotiations fail to advance in Springfield, I am
asking that my state pension-reform plan be allowed a vote by
Illinois lawmakers as one way to reduce the state's fiscal
pressures.
I introduced legislation in February that will save Illinois
taxpayers money by giving public employees more control and
responsibility over their pension plans. This legislation has been
stalled, however, by Senate Democratic leaders.
My legislation calls for a responsible new plan, similar to the
401(k) plans offered by many private businesses. The plans would be
optional for current employees and teachers and required for newly
hired employees. Unfortunately, the legislation is not being allowed
a hearing. What are Senate Democratic leaders afraid of? Why won't
they consider a plan that will save the state money, instead of
continuing on their reckless course of "tax and spend"?
Senate Bill 621 will require new employees covered by Illinois'
five state-funded pension systems to participate in a
defined-contribution, self-managed plan, similar to the pension
systems more public and private sector employers are using. Current
public employees would also be given the option to switch from the
traditional defined-benefit plan.
The new plan would force the governor to properly fund pensions
each year, instead of ignoring the state's pension obligations and
debt.
There are benefits for employees as well. The accounts would be
portable, in and out of the public and private-sector jobs, so no
one would feel locked into a public job for life. Employees would
direct their own investments.
My proposal is backed by the Civic Committee of the Commercial
Club of Chicago and others. I know that taxpayers will support this
idea as well.
[Text from file received from
Sen. Bill Brady] |
