{"id":33983,"date":"2017-07-07T05:45:29","date_gmt":"2017-07-07T05:45:29","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=33983"},"modified":"2017-07-07T05:45:29","modified_gmt":"2017-07-07T05:45:29","slug":"illinois-house-approves-state-budget-ends-historic-impasse","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/illinois-house-approves-state-budget-ends-historic-impasse.html","title":{"rendered":"Illinois House approves state budget, ends historic impasse"},"content":{"rendered":"

Illinois House approves state budget, ends historic impasse<\/span><\/strong><\/span><\/h2>\n

The Illinois House voted Thursday to override Gov. Bruce Rauner\u2019s vetoes of a budget package, giving the state its first spending blueprint in more than two years and ending the nation\u2019s longest fiscal stalemate since at least the Great Depression.<\/span><\/p>\n

The action eases some financial woes, but it\u2019s fueled by a permanent 32 percent increase in the income tax rate, raising $5 billion more annually, and it reduces spending by more than $2 billion.<\/span><\/p>\n

Illinois is staring down a $6.2 billion annual deficit and $14.7 billion in past-due bills.<\/span><\/p>\n

Lawmakers, culminating two straight weeks of a special session that began ahead of the July 1 start of the fiscal year, approved the bill to raise taxes by a 71-42 vote. A plan to spend $36 billion in the fiscal year that began July 1 was OK\u2019d 74-37. An override requires 71 votes.<\/span><\/p>\n

\u201cToday, Republicans and Democrats stood together to enact a bipartisan, balanced budget and end a destructive, 736 day impasse,\u201d House Speaker Michael Madigan, a Chicago Democrat, said after the votes. \u201cI want to thank you all for your perseverance through this unbelievable struggle.\u201d<\/span><\/p>\n

It turned out to be bigger struggle for 67 House Democrats than in the initial tax-increase vote Sunday. Madigan, who next year will become the longest serving state House speaker in the nation\u2019s history, had to call upon previously reluctant Democrats to keep the veto-override supermajority intact.<\/span><\/p>\n

Fifteen Republicans voted \u201cyes\u201d on Sunday. On the override vote Thursday, only 10 pressed their green buttons. Madigan had to rely upon four of his own members who had voted against the tax hike on Sunday.<\/span><\/p>\n

The override votes were critical for both sides with an election for governor \u2014 Rauner already faces several Democratic opponents \u2014 and much of the Legislature in 2018.<\/span><\/p>\n

The income tax increase means individuals will pay 4.95 percent instead of 3.75 percent. The corporate rate jumps to 7 percent from 5.25 percent.<\/span><\/p>\n

Rauner rejected the budget plan because he saw no indication that the Democratic-controlled Legislature would send him the \u201cstructural\u201d changes he\u2019s demanded. Those include a statewide property tax freeze, cost-cutting restrictions on compensation for injured workers, changes to pension benefits for state employees, and reforms making it easier for voters to merge or eliminate local governing bodies.<\/span><\/p>\n

Instead, the vote to override is \u201canother step in Illinois\u2019 never-ending tragic trail of tax hikes,\u201d Rauner said in a statement.<\/span><\/p>\n

The budget \u201cis not balanced, does not cut enough spending or pay down enough debt, and does not help grow jobs or restore confidence in government,\u201d the governor said in a statement. \u201cIt proves how desperately we need real property tax relief and term limits.\u201d<\/span><\/p>\n

The standoff had effects statewide. Road construction work was shutting down. Public universities, cut to the bone, face a loss of academic accreditation. The United Way predicted the demise of 36 percent of all human-services agencies in Illinois by year\u2019s end.<\/span><\/p>\n

The situation is \u201cimmoral,\u201d said GOP Rep. David Harris of Arlington Heights.<\/span><\/p>\n

\u201cThere\u2019s no joy in voting for a tax increase,\u201d Harris said Thursday. \u201cBut how long can this impasse go on? We are looking into a financial abyss. The state is imploding financially.\u201d<\/span><\/p>\n

Credit-rating houses threatened to downgrade the state\u2019s creditworthiness to \u201cjunk,\u201d signaling state debt purchases as highly speculative venture. Two agencies gave Illinois some breathing room Monday after the weekend tax vote.<\/span><\/p>\n

But on Wednesday, a third credit-rating agency, Moody\u2019s Investors Service, put Illinois under review for a downgrade even if lawmakers reversed the veto. Despite progress, the package does not address the state\u2019s $130 billion unfunded liability in employee pensions or do enough to pay down bills, Moody\u2019s said.<\/span><\/p>\n

\u201cThis budget is junk,\u201d Rep. Allen Skillicorn, an East Dundee Republican, said before the vote. \u201cIllinois currently has unfunded pension liability of over $100 billion. This budget, these massive tax hikes, don\u2019t address that.\u201d<\/span><\/p>\n

Voting was delayed for several hours as authorities investigated a report of a woman throwing a powdery substance in the governor\u2019s office. Springfield city Fire Marshal Chris Richmond said powdery substance that prompted a hazardous material investigation was collected from several locations on the second floor, including the governor\u2019s office. Rauner was not at the Capitol.<\/span><\/p>\n

One person was taken into custody, said Dave Druker, a spokesman for the Secretary of State\u2019s office, which oversees Capitol security.<\/span><\/p>\n

Source:-\u00a0https:\/\/www.washingtonpost.com\/national\/illinois-house-approves-state-budget-ends-historic-impasse\/2017\/07\/06\/f70aaee0-62aa-11e7-80a2-8c226031ac3f_story.html?utm_term=.1668e310098a<\/span><\/p>\n

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