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Illinois is 2 roll-call votes away from having its first full-year budget in 3 years, dealing a blow to Governor Bruce Rauner's reform agenda.
The Illinois Senate Tuesday morning passed both the spending bill and the tax increase bill, that were approved by the House on Sunday. Both passed with some Senate Republicans voting "yes" on both bills to provide the veto-proof majority needed to override the Governor's veto, which came at 1:39 Tuesday afternoon.
The Senate quickly overrode the Governor's veto of both bills in votes later on Tuesday afternoon, and Illinois' first full-year budget will be law when the Illinois House convenes to override the Governor's veto of both bills.
As of Tuesday night, it wasn't known when exactly Speaker Michael Madigan would call the House back into session. Representatives were called into session Tuesday afternoon after the Governor's veto, but couldn't do business because of a lack of a quorum.
Word out of Springfield Tuesday night, was that the House would convene for the override votes, on Wednesday at 10, but if not enough members were present for the 2 votes, it could be delayed until Thursday. Their Sunday vote on both spending and tax increase bills were veto-proof, which means that when they vote to override the Governor's veto with what should be a veto-proof majority once again, the budget wil become law.
The new budget increases the personal income tax from 3-point-7-5 to 4-point-9-5 percent, and the corporate tax from 5-point-2-5 to 7 percent. Both tax increases are permanent.
Democrats claim the 36-point-one billion dollar budget is balanced, with 2-point-5 billion in spending cuts and one-point-5 billion in pension savings.
Republicans wanted reforms in state spending, but didn't get any.
Reforms the Republicans wanted include statewide property tax relief, cost reductions in workers' compensation and benefits for state-employee pensions, and working toward dissolving or eliminating local governments.
Several Republicans in both chambers did vote for both the spending plan and the tax increase.
The Senate today (Tuesday) voted to send Governor Bruce Rauner a budget package that could put an end to the two-year stalemate that has crippled Illinois’ finances and has bond houses threatening to lower Illinois to an unprecedented “junk” credit rating this week. It's the same package the House passed on Sunday. Rauner has already said if it reached his desk, he would veto it.
Votes for both the spending plan and tax increase in both Chambers were veto proof, which means even if the Governor vetos both the spending plan and tax increase, the House and Senate will vote to override and the budget will become law.
The new budget increases the personal income tax from 3-point-7-5 to 4-point-9-5 percent, and the corporate tax from 5-point-2-5 to 7 percent. Both tax increases are permanent.
Democrats claim the 36-point-one billion dollar budget is balanced, with 2-point-5 billion in spending cuts and one-point-5 billion in pension savings.
Republicans wanted reforms in state spending, but didn't get any.
Reforms the Republicans wanted include statewide property tax relief, cost reductions in workers' compensation and benefits for state-employee pensions, and working toward dissolving or eliminating local governments.
Several Republicans in both chambers did vote for both the spending plan and the tax increase.
At mid-afternoon on Tuesday, the Senate was working to get the paperwork to the Governor so he could officially veto the budget, with the Senate remaining in session for the override vote late in the day on Tuesday.
House Speaker Michael Madigan has not announced when he'll call the House back in session for an override vote there.
Wall Street is watching the budget proceedings closely, as the state's bonds could end up in junk bond status if the budget isn't approved.
The Illinois Senate is working on Independence Day, to take up the 2 budget bills passed on Sunday by their counterparts in the Illinois House.
On Monday, a leaders meeting came up short of a quorum. Both Republican leaders didn’t show up for a meeting scheduled for 1 on Monday. Senate President John Cullerton says that he and the rest of the Democrat Caucus are ready to continue talks and negotiations on workers comp and property tax freezes among other issues.
The Senate has already passed a budget and tax hike but now they will need to do so with 36 votes instead of 32 and Cullerton will almost certainly need Republican votes this time around to pass both a tax increase and a budget bill.
Governor Rauner has indicated that if the budget that passed the House and is being voted on by the Senate on Tuesday, reaches his desk, he will veto it.
The Illinois House Sunday evening passed both a spending plan and a revenue plan with veto-proof majorities, and sent both to the Illinois Senate for action, while the state still doesn't have an official budget for the fiscal year that started on Saturday.
The revenue plan includes hiking the state personal income tax rate from 3-point-7-5 to 4-point-9-5 percent, which is a 32-percent increase. Corporate income taxes also go up under the House revenue plan, from 5-point-2-5 to 7 percent.
The Illinois Channel reports House Republican Minority Leader Jim Durkin complained that “once again” legislators got several hundred pages of spending, of billions of dollars, and had only three hours to review them before voting Sunday evening.
Area legislators were split on voting for the tax increases. Republicans Avery Bourne and Tim Butler both voted against them. Reggie Phillips, whose district includes Eastern Illinois University in Charleston, and Sara Wojcicki Jimenez of Leland Grove, whose district includes Springfield, were among 15 Republicans that voted in favor of the tax hikes.
Both proposals now go to the Illinois Senate for consideration. The state still doesn't have an official budget, leaving schools, universities, human services, and road projects in limbo.
After Sunday's vote in the Illinois House, Republican Governor Bruce Rauner said if the budget reaches his desk, he'll veto it.
Illinois still does not have a budget as of Saturday night. Republicans and Democrats in both houses, negotiated into the night on Friday night and were back at it on Saturday, in hopes that both chambers would vote on a budget for the new fiscal year that started on Saturday.
But Democratic House Speaker Michael Madigan ruled while the House was in session on Saturday, that there would not be a vote on a budget, and that prompted an outburst in the House chamber.
House Minority Leader Jim Durkin, told House members he thought that the negotiations were going well enough in both chambers, that the House and Senate could be voting on the budget on Saturday. That didn't happen.
The House had passed a procedural test vote on the budget on Friday, by a wide margin, with both Democrats and Republicans voting for it.
Madigan announced later in the day on Saturday, that he was calling a vote on the proposed tax increase, on Sunday.
The Illinois Channel is reporting that Republican Representative Tom Demmers, and Republican State Senator Jason Barickman of Bloomington-Normal, held a news conference on Saturday, complaining that Speaker Madigan's tactics had slowed negotiations, and they were both disappointed.
Meanwhile, Governor Bruce Rauner said he was disappointed that the General Assembly overrode his amendatory veto of a bill that will continue to fund 9-1-1 emergency call centers across the state. Rauner released a statement saying that the increases in fees that will be assessed on Illinois residents' phone bills as part of the 9-1-1 bill, amounts to a tax increase.
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