SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Down to the wire

Sunday, May 31, 2009

* The truth is, nobody knows what will happen today after the Senate’s game-changing vote to pass a 2 point income tax hike and expand the sales tax base…

The 31-27 vote shifted Statehouse dynamics after Democrats spent much of the day struggling to find support for a tax increase. With lawmakers on the brink of blowing their deadline, the focus now turns to the House, where Speaker Michael Madigan of Chicago repeatedly has insisted he lacks the votes among his Democratic majority to approve a tax hike.The uncertainty for the major Senate tax plan also was illustrated by Democratic Senate President John Cullerton’s acknowledgment that Republican votes are needed to get the plan through the House. But House Republicans have said they won’t support a higher income tax.

Beyond that, House Democrats have been reluctant to vote for a temporary 50 percent income tax rate increase for two years. The Senate plan they are being asked to approve is a 67 percent increase that would be permanent. And it’s one that would tax individuals at the same rate as corporations.

Rep. Art Turner (D-Chicago) said the votes are not available to pass either tax increase bill. “That’s reality,” Turner said.

But

Cullerton said that passing the bill in the Senate may help House Democrats feel safer about changing their minds. However, he said that the bill would need Republican support to pass. “When one chamber starts and passes a bill, they see that we’re still walking around — we’ve got a different version of what the governor has — that there’s a way to do this. So I think it’s a good start.”

* This change was hugely important

In order to attract suburban Democrats and try to draw Republican votes, the plan was altered at the last minute to take out a large increase in business income taxes. That increase is to 5 percent from 4.8 percent but had initially been set to go to 7.2 percent.

It worked for area Democrats. “I was a ‘no’ vote on this until, as somebody who had been a small-business owner, the corporate income tax rate they wanted to raise to 7.2 was knocked down to 5 percent,” said state Sen. Linda Holmes, an Aurora Democrat.

* $750 million is nothing to sneeze at

[Republicans] said the Senate bill offers only meager property tax relief. The property tax credits amount to only about $750 million. “The property tax relief in here is a joke,” said Sen. Kirk Dillard, R-Hinsdale.

* Gov. Quinn initially told reporters that he would stick with the House’s tax hike plan…

Before Saturday night’s vote, Quinn continued pushing for a smaller income tax package — one that would raise the individual rate from 3 percent to 4.5 percent and that would sunset in two years — that advanced out of a House committee Saturday. Quinn identified that plan as his top revenue choice.

“I think the plan we have here in the House is probably the one we’ll have to go with,” the governor said. “The whole idea is to at least at this time get enough revenue to hold off dire catastrophe.”

He has since changed his mind

But following the Senate’s action, a Quinn aide said the vote is “a meaningful first step and the House should consider it promptly.”

* And there’s internal pressure among House Dems to call the Senate’s proposal…

Majority Leader Barbara Flynn Currie tried early in the day to advance a temporary income tax increase. That wasn’t gaining enough votes. So late Saturday night, Currie tried to at least approve the “insurance budget” to keep the lights on, so to speak. Without it, agencies would be funded at 32 percent of Quinn’s proposed budget.

But after word spread that senators approved an income tax increase across the rotunda, several House Democrats started to peal off support for a bare bones budget. Rep. Sara Feigenholtz, a Chicago Democrat and vocal advocate of human services, urged fellow lawmakers to hold off on a bare bones budget to “continue to fight for more solutions.”

* And the governor has a big stick he could use

Gov. Pat Quinn wouldn’t say whether he will veto a budget that doesn’t include enough money to operate for the full year. “I don’t really want to be thinking about vetoes. I’d rather think about everybody coming together in the next 24 hours and passing a budget,” said Quinn, a Chicago Democrat. “It’s hard to do, but it’s for the best interests of the people.”

* The pressure is also building on some “moderate” Downstate House Republicans. I told subscribers about this development yesterday afternoon…

Governor Quinn also dropped in, claiming progress getting votes from the other side with help from former Republican governors Edgar and Thompson.

“Governor Thompson said he was in favor of our proposal. He suggested that we make it a temporary income tax and scale it down a little bit, and we have done that,” Gov. Pat Quinn said.

* And even if a tax hike passes there are still some very tough votes ahead

Supporters of a tax increase say it would not take the place of budget cuts.

They estimate that after spending cuts that have already been approved and the arrival of federal stimulus money, Illinois government still faces a gap of about $7 billion between revenue and expenses. The Senate tax plan would generate about $5.2 billion and a House version approved in committee Saturday would generate about $4.5 billion, so neither one would close that budget gap.

* Making things even more difficult, the governor’s proposed pension skim can no longer be justified with “reform” efforts

The state’s pension systems will not be split into two levels of benefits, the plan’s sponsor said Saturday. “At this point I believe the case has not been made to advance,” said state Sen. Don Harmon, an Oak Park Democrat. Harmon sponsored Gov. Pat Quinn’s idea of putting all new state, university and public school hires in a new, reduced benefit system.

* But this might help balance the budget, even though the House Speaker said he wouldn’t call it for a vote

One possible fix would be gambling expansion that also cleared the Senate late Saturday. On a vote of 30-28, senators approved new casinos for Chicago, Park City, Rockford and Danville. It also allows slot machines at Arlington Park and other tracks and lets existing floating casinos to expand and move off the water.

Sponsor Terry Link, a Waukegan Democrat, has said the millions in gambling taxes could be used to balance the budget. That plan also now moves to the House.

* Related…

* Online horse betting bill heads to Quinn

* House Dems paint picture without tax hike

* KOTOWSKI: I look at those programs that are in there. Programs for kids with autism, programs for seniors, programs for veterans, programs for abused and neglected kids. And these are serious programs that provide, uh, provide a safety net for folks that are struggling and don’t have a voice.

* Live blogging the Senate’s tax hike debate

* Senate’s tax hike bill

- Posted by Rich Miller        


1 Comment
  1. - Quinn T. Sential - Sunday, May 31, 09 @ 12:43 pm:

    AHHHHHHHH CHOOOOOOOOO!

    This is a joke worth sneezing at because of how it will most likely b allocated. Dillard knows what he cn expect for is district.


Sorry, comments for this post are now closed.


* Reader comments closed for the holiday weekend
* Fracking rules finally unveiled
* Question of the day
* A big IDOT roundup
* Even Steven, for now
* *** UPDATED x1 - Confirmed *** Report: Libertarians file charges
* Big guys dinged a bit, but little guys helped a lot
* Today's photo
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Greenify app gets update, boosts usage on non-rooted devices
        * IR 2.0 turns your phone into a universal TV remote
        * How Siri’s Founders Could Have Built The Next Google
        * The Week in iPad Cases: Looks and feel
        * Clearer Lenovo Vibe X2 images leak, see gradient design up close
        * Samsung partners with Nike for running app on Gear S
        * ORA-1 is a potential Google Glass killer, runs on Android

        * Apple iWatch Coming in September, But You'll Have to Wait to Buy It, Report Says
        * Obama Says Social Media Magnifies the Dangers of a 'Messy' World
        * Five easy ways to keep your business secure that you might not have considered
        * Your Mom's a Cat on the Internet
        * Top 10 Ways to Find Your Career Path
        * Twitter Gets a New Welcome Mat
        * Meet the computer scientist trying to digitize, analyze and visualize our past

        * Less may be more with Hawk Harrelson
        * Final stretch of at-bats a gauge for Avisail
        * Wins not representative of lefties' August outings
        * Rough fourth inning dooms Carroll, Sox to defeat
        * Sale locks arms with Scherzer; Bassitt to debut
        * Tigers 7, White Sox 1: Ugly fourth extends ugly stretch
        * Rough fourth inning dooms Carroll, Sox to defeat


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Illinois Governor, whoever he is, can use power.....
        * Voters don't need term limits, they need to vote..
        * 5 things to know about 2014 governor's races..
        * 5 things to know about House races this fall as.....
        * Fracking industry officials donating to Rauner..
        * Quinn campaign: Rauner plan would cost teaching.....
        * Obama's campaign no-fly zone..
        * Quinn grants 38 clemency requests..


        * GOP sees gains in Illinois voters tuning out
        * U of I smoking ban applies to football tailgaters
        * Man charged in hunting knife attack on Chicago bus
        * Engine trouble force cancellation of Amtrak train
        * Ingleside middle school teacher wanted for assault
        * State agency issues long-awaited fracking rules
        * U of I facing scrutiny over job-offer decision
        * Illinois governor grants 38 clemency requests
        * Highway interchange named for former Chicago mayor
        * 30-year prison terms in Decatur home invasion

        * State of Illinois posts applications for medical marijuana businesses
        * DNR issues long-awaited ‘fracking’ rules
        * Quinn grants 38 clemency requests
        * IDNR issues long-awaited ‘fracking’ rules
        * Court rules state retirees can stop paying health insurance premiums
        * Governor hopefuls rip each other on hiring, taxes
        * Fracking industry officials donating to Rauner
        * IDNR set to release fracking rules Friday
        * DNR: $1 hunting, fishing licenses for Illinois seniors not ready
        * Renovation of Illinois Supreme Court building completed

        * American Airlines fares back on Orbitz after deal
        * Meet Bruce Rauner, the big spender
        * Organic grocer pulls plug on plans for old Fox & Obel site
        * Chicago business barometer rebounds in August
        * Long-awaited fracking rules released


        * Aurora couple on O’Hare shuttle bus ‘landed in a pile of humans’ after crash
        * Joliet woman guilty in double-murder; two more to stand trial
        * Ex-Cook County worker charged with fraud in grant program
        * Women at work: Female ministers find obstacles on path to pulpit
        * Feds: Teacher allegedly coaxed teen into taking pornographic pictures
        * Firefighter among two injured in South Chicago fire
        * Renaming interchange a fitting tribute to Byrne
        * Critic of Israel doesn’t belong on Gaza fact-finding panel
        * Speed up DNA testing


        * Man killed, 10 hurt in city shootings
        * Police: Suspect cut man's face during CTA bus dispute
        * Police: Man killed in West Side hit-and-run
        * Quinn grants 38 clemency petitions
        * 2 firefighters on way to work come to aid of driver, passengers in bus crash
        * Fracking approaches final hurdle in Illinois
        * Judge limits Harvey from misusing water cash
        * Burr Oak Cemetery monument dedicated
        * Judge tosses challenge to flame retardant rules
        * Man convicted in Schaumburg hotel robbery acquitted of attempted murder


        * Donated Breast Milk Helps Sick Infants
        * DNR Releases Fracking Rules
        * Update From Ferguson Via KWMU's Rachel Lippmann
        * Listen to State Week - August 29, 2014
        * Inspector's Report Reveals Clout Hiring At IDOT
        * 'Belleville' The Movie Is NOT A Documentary
        * Journalist and doctor encourage honest conversations about death
        * Libertarians Survive Illinois GOP's Ballot Challenge
        * Undocumented Immigrants Call For Presidential Orders
        * State Retirees To Stop Paying Health Premiums


        * State of Illinois posts applications for medical marijuana businesses
        * DNR issues long-awaited ‘fracking’ rules
        * Dave Bender: Hope for the unfinished business of immigration reform
        * Quinn grants 38 clemency requests
        * E.J. Dionne: 2014 and the limits of rage
        * Esther Cepeda: Farmers markets, here I come
        * Rep. Tom Morrison: What Illinois could learn from other states
        * Court rules state retirees can stop paying health insurance premiums
        * Governor hopefuls rip each other on hiring, taxes
        * Fracking industry officials donating to Rauner


        * Prosecutors crack down on truancy; Marissa teen calls mom's charge 'bogus'
        * More than half of all East St. Louis public school students chronically truant
        * Quinn's appointee to Prisoner Review Board has Clayborne connection
        * LIVE! Illini season opener
        * Illinois vs Youngstown State WDWS Football Pre-Game 8-30-14
        * Animals put on good shows despite the heat
        * Saturday SportsTalk 8-30-14
        * Coffee with the Plant Experts 8-30-14
        * Birthday surprise for 8-year-old twins
        * Medical marijuana applications start Tuesday


        * Live game action: Maine West vs. Proviso East
        * Live game action: Glenbard North vs. Centerville (OH)
        * Live game action: IC Catholic vs. Bishop McNamara
        * EU to slap new sanctions on Russia over Ukraine
        * Ukrainian civilian plane crashes in Algeria

        * Once-Vulnerable Freshman on Safer Ground i...
        * Tom Kacich: Rauner's focus will soon shift...
        * Shimkus not taking anything for granted de...
        * Shimkus Supports Strikes, Criticizes Presi...
        * #DirtyDenier$ Day 5: Congressman John M. S...
        * Politics Notebook: Shimkus to meet with ve...
        * GOP congressmen from Illinois, Kentucky to...
        * Facebook, Local Chambers of Commerce Host ...
        * Shimkus seeks investigation of federal dis...
        * Congressman recognizes Thomasboro's 150th ...

        * Congressional Authors of E-Cigarette Marke......
        * Congressional Authors of E-Cigarette Marke......
        * Congressional Authors of E-Cigarette Marke......
        * Congressional Authors of E-Cigarette Marke......
        * Congressional Authors of E-Cigarette Marke......

        * Putin Hopeful Russia Won’t Lose Right to H......
        * Susquenita enters Tri-Valley League under ......
        * Soccer-Putin hopeful Russia won't lose rig......
        * Putin hopeful Russia won't lose right to h......

        * Inside Tarpgate
        * The Weekend Desk Report
        * American ISIS terrorist killed in Syria was born in Illinois
        * Economic activism: What happens when your money becomes theirs
        * WSJ says Rauner would face Christie-like challenges with Democratic majority
        * New York couple, fined $13,000 for not hosting gay weddings, closes venue
        * John Dillon. The state’s legal defense of pension theft? Think self-defense or insanity.
        * Keeping retirement weird. The color line.
        * Frustrated? No. We are people with a vision of a city that works for its people.
        * Circle Interchange Renamed For Former Mayor Jane Byrne


        * Quinn Refuses to Answer New IDOT Questions
        * IDNR Delivers Revised Rules to Implement Hydraulic Fracturing Regulatory Act - Rules strengthened to ensure public participation, improve transparency, toughen penalties and protect the environment
        * Governor Quinn Proclaims September as “Recovery Month” in Illinois - Encourages people to speak up about mental illness and substance abuse
        * Governor Quinn Dedicates Jane Byrne Interchange - Governor Renames Circle Interchange in Honor of Chicago’s First and Only Female Mayor to Date
        * Governor Pat Quinn Takes Clemency Action




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller