Tuesday, May 11, 2010
 
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With budget on pause, Quinn to consider other proposals

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[May 11, 2010]  SPRINGFIELD -- Gov. Pat Quinn is still waiting for lawmakers to send him a proposed budget for next fiscal year, but he'll have other legislative proposals to consider in the meantime.

HardwareLawmakers also have yet to take up-or-down votes on a number of other significant measures. They will debate those proposals when they return to Springfield later this month.

Illinois Statehouse News compiled a list of what legislation Quinn will mull over and what's left for lawmakers to consider:

What the governor will consider:

School borrowing

Lawmakers have approved a plan allowing public universities the power to borrow money in order to pay employee salaries and expenses for at least the rest of the school year.

The state is months behind on millions of dollars in payments to its public universities because of the state's $13 billion budget deficit. Additionally, university administrators have testified before lawmakers that their institutions are struggling to remain financially credible.

While both the House and Senate passed the borrowing plan by considerable margins, the governor has not indicated when he would consider the proposal.

Nursing home changes

A comprehensive measure passed overwhelmingly by both chambers last week would raise the number of caregivers working at nursing homes statewide.

David Vinkler with AARP in Illinois said providing a statewide requirement for staffing would raise the standard of care for nursing homes.

"You're really touching the poor performers more than you are the good performers. So if (nursing homes) have pretty high staffing that takes care of their residents, they won't have to adjust too much to reach it. Those facilities that are dangerously low on staffing, yes, they're going to have a little harder time, but that's kind of the idea behind this," he said.

The measure would also tighten standards on nursing homes and background checks for personnel, as well as provide whistle-blower protections for patients.

Vinkler said he would be surprised if Quinn didn't sign the proposal into law, as many of the suggestions came from a task force commissioned by the governor.

Telecommunications

A telecommunications bill passed both the Senate and House last week. The new bill would allow utility companies such as AT&T to invest in newer technologies such as broadband and provide better service for customers -- including those who are getting rid of landlines.

State Rep. Kevin McCarthy, D-Orland Park, sponsored the legislation, which passed unanimously in both houses.

AT&T Illinois president Paul La Schiazza said this is good legislation for consumers in Illinois.

"I firmly believe this is the right public policy for Illinois at this time," La Schiazza said. "Illinois is open for business. This is a major step forward."

McCormick Place and Navy Pier

A plan that will change how Chicago's biggest exhibition and convention center is run is awaiting the governor's approval.

McCormick Place, overseen by McPier, the Metropolitan Pier and Exhibition Authority, has been losing many of its national trade shows due to rising union costs, and lawmakers hope the changes will be enough to keep the shows in Chicago.

Under the proposal, a trustee would be assigned to aid in the privatization of McCormick Place.

The proposal would also place a cap on labor fees and allow exhibitors to avoid extra union fees by taking more responsibility for their shows' setup.

Both chambers approved the changes by significant margins, but Quinn has not set a timetable on consideration.

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Property tax

During the flurry of proposals that came up on Friday, lawmakers passed a measure that would give Chicago residents property tax relief.

The Illinois General Assembly voted to extend the "7 percent solution" at the suggestion of Quinn.

The plan would cap property tax increases by 7 percent per year and would replace the existing law that expires this year.

The proposal also clarifies homestead exemptions and provides for taxpayer action boards to be created in Cook and suburban counties at no cost to the state.

What the General Assembly will consider:

Cigarette tax hike

A proposal sponsored by state Sen. Jeffrey Schoenberg, D-Evanston, would implement a $1 tax hike per pack of cigarettes over two years.

Schoenberg estimated the tax increase would bring in $300 million and could be leveraged for additional federal funding.

But Republicans claim the tax hike would hurt small businesses, while lawmakers in border districts say it would push smokers to make purchases in other states.

The Senate passed a version of the plan by a vote of 30-26 last year, and an equally contentious vote will likely occur in the House.

Water

Sales tax holiday

The Senate will consider a plan to drop the sales tax on clothing and school goods from 6.25 percent to 1.25 percent for 10 days this August.

The House passed the plan by a vote of 65-51 last week, with most Democrats supporting the measure and most Republicans voting against it.

Republicans are concerned the state could lose out on sales tax revenue from parents shopping for the start of the school year.

But Rob Karr, vice president of the Illinois Retail Merchants Association, said the state of Florida earned an extra $100 million using a similar sales tax holiday.

"And that's because people buy the items that are under the holiday ... but they also purchase the accessories, the items that aren't covered, to go with those things," he said. "Plus you have gas purchases, food purchases when people are out shopping."

Tax amnesty period

House Democrats are putting together a proposal that would provide an incentive for taxpayers to pay their overdue state taxes.

Those who paid their tardy taxes during a proposed amnesty period would not have to pay interest or penalties on those taxes.

Sue Hofer with the Illinois Department of Revenue indicated the amnesty period could bring in an estimated $100 million, but she added that the department could recoup most of that without an amnesty period.

Neither the full House nor Senate has debated the proposed tax amnesty. Quinn originally opposed the idea, but a spokeswoman with Quinn's Office of Management and Budget said the governor was now "supportive" of the proposal.

[Illinois Statehouse News]

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