 Democratic leaders said they lacked the votes to pass an income tax
increase that would help close the $11.6 billion deficit. They asked
Republicans to vote for an increase coupled with spending cuts.
"Raising taxes is going to cost more Illinoisans their jobs, and we
are not going to participate in that," said Sen. Matt Murphy, who
follows budget issues for Senate Republicans.
Quinn offered a new version of his tax proposal in a bid to pick
up additional Democratic support.
The new version would generate between $3.7 billion and $4
billion for state government, compared with $3.2 billion under
Quinn's original proposal. That means lawmakers still would have to
cast a politically risky tax vote, but it would produce more money
for the programs they support.
The government would get that additional money by cutting back on
tax breaks that Quinn had proposed to shield many families from the
tax increase.
Instead of tripling the personal exemption -- an amount of income
exempt from taxes -- to $6,000, the new version would increase it to
just $3,000. But the earned income tax credit for the working poor
and a property tax credit would be doubled. The effect would be to
concentrate most tax relief on poor families.
The new version "preserves the blueprint for tax relief and
fairness that Gov. Quinn is seeking with his reform budget,"
spokesman Bob Reed said.
There was no indication whether Quinn's revision helped his
cause. The Democratic governor stayed in his office throughout the
day for meetings with key lawmakers on the budget, ethics and more.
[to top of second column]
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He and the four legislative leaders did not discuss the budget as a
group, even though Sunday is the last scheduled day of the
legislative session.
In another blow to Quinn's budget, the House voted to make the
state's full annual payment to government retirement systems. Quinn
had proposed trimming the payment by $2.2 billion, justifying the
reduction by calling for changes in retirement benefits that would
save the state money for decades to come.
House Speaker Michael Madigan said there was little support among
House Democrats for reducing the pension payment, a step that has
been taken in past years.
Spending that pension money would leave the government with about
$3.5 billion to cover $10 billion worth of proposed spending, said
Madigan, D-Chicago. Even if lawmakers approve a tax increase, the
state would still face a budget hole of roughly $3 billion.
Rep. Sara Feigenholtz, D-Chicago, used the debate to warn that
Illinois was on the verge of making massive cuts to important
services.
"It will virtually shut down programs that are life-sustaining
and vital programs to the people of Illinois," she said.
[Associated Press;
By CHRISTOPHER WILLS]
Copyright 2009 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed. |
