* It’s never easy to do anything big in a legislature. This tax hike plan is no exception. The Republicans hate it, some conservative and/or politically vulnerable Democrats despise it, and even some liberals have found a way to diss it…
Leading black lawmakers, including former Chicago mayoral candidate James Meeks, vowed Wednesday to oppose any increase in the state income tax if it does not explicitly set aside money for schools and property tax relief.
Gov. Quinn, Senate President John Cullerton (D-Chicago) and House Speaker Michael Madigan (D-Chicago), who were expected to reconvene on more tax talks Wednesday afternoon, have discussed several tax-increase scenarios — though none appear to have the tax-swap features that Meeks helped pass through the Senate in May 2009.
That plan raised the individual income tax rate from 3 to 5 percent, increased exemptions for property taxes and imposed sales taxes for the first time on services like haircuts, auto repairs and dry cleaning.
“I cannot support anything that does not put money toward property tax relief and education. For eight years, I’ve carried a school funding bill, and its main essentials were money for education and money for property tax relief,” Meeks said.
“All of a sudden, the proposal we’re hearing about now does not have either of the two,” said Meeks, who made his position known during a closed-door Senate Democratic caucus earlier Wednesday.
* But Senate President John Cullerton told reporters yesterday that spending won’t go up…
Senate President John Cullerton told reporters tonight that raising the rate 2 percentage points is probably the most legislators can accept.
“Hopefully, that’ll be the last meeting because we have to have an agreement or we’ll run out of time,” Cullerton said of Thursday’s planned meeting.
Cullerton said spending in the next budget cannot go up.
“We have such a great loss in federal revenue dollars that we know that the spending can’t go up,” he said. “This is all premised on the fact that there will be no spending increases, moratorium on new programs and what we’re trying to avoid is deficit spending. That’s really what the fight’s about.”
* And watch Cullerton’s interview to see that he predicts property tax relief will be included in the final package…
State Sen. Dale Righter, R-Mattoon, said the proposal will return the “struggling” program to a safety net for the poor, instead of a catch-all for the potentially ineligible.
“It’s struggling for the people who need it the worst,” he said. “We’re talking about the people who are on the lowest rungs of the economic ladder, the people for whom access is a truly critical issue. The people who aren’t mobile. People who can’t drive two hours and take a day off because it’s not a big deal to make sure that their child can get to a medical provider.”
* But even though the Republicans had demanded Medicaid reform before considering a tax hike, Sen. Righter yesterday said that idea was now a non-starter…
“This (Medicaid) is an issue unto itself,” Righter said. “This is not a trading card in other areas of public policy.”
*Requires that 50 percent of Medicaid recipients be in managed care programs by 2015.
*Sets the income level for participation in the All Kids program to 300 percent of the federal poverty level, or about $66,000 per family.
*Ends the practice of automatically re-enrolling participants once they are part of Medicaid. They will be required to annually prove they are still eligible.
*Places a two-year moratorium on expanding eligibility for participation.
*Allows pharmacies to provide 90-day supplies of some maintenance drugs.
*Creates civil penalties for Medicaid fraud.
*Phases out the practice of paying Medicaid bills from one budget year with revenue from the following budget year.
* And in other news, the Senate-approved gaming bill has been altered in the House…
“[The new additions] provide that our race tracks in Cook County may relocate within three miles of their current location, under certain conditions. It provides a $2-million renovation tax credit to be utilized by all riverboats in the state of Illinois,” Lang said.
“The [legislation] provides that all of the [casinos] authorized under this bill might build temporary facilities. Because we know that it may take up to two years to build a new [casino]. We want to get the money flowing, we want to get people hired, we want to bring in this money.”
But those temporary sites would have to wait for Illinois’ other gambling expansion to get up and running first. Lang’s legislation requires that 2,000 video poker positions be opened before new casinos are established.
Existing casinos also would see a tax sweetener under Lang’s legislation. The nine current riverboats and the one casino being built in Des Plaines would receive a decade-long, 5-percent credit to help offset any losses to the new casinos.
* Madigan visits state Senate floor to press for tax hike: “This is Madigan’s, certainly his way of telling you that, ’something has to be done, and I’m going to be the one to do it,’” said Sen. Lou Viverito, D- Burbank, a longtime Madigan ally who spoke to the speaker for several minutes.
* Madigan Refuses to Be Pinned Down on Tax Increase Amount: Republican Minority Leader State Sen. Christine Radogno said she met with Gov. Quinn on Wednesday to talk about spending cuts. “He said they’ve already cut spending by $3 billion, but what they’ve done is not pay bills,” Radogno said.
* As income tax talks heat up, some suburban lawmakers remain cool to it
* Ill. lawmakers move closer to income-tax increase: But outgoing Rep. Elizabeth Coulson, R-Glenview, Ill., will not budge. “I am not going to all of a sudden change my mind where my district comes from and say, ‘take the money and run with it,’” Coulson said.
* VIDEO: House Rep. Lou Lang discusses gaming changes
* Sweeping teacher tenure, strike bill pushed in Springfield
* State Senate rejects Taylorville Energy Center clean-coal project: The loss came a day after state Sen. Kyle McCarter, R-Lebanon, announced he would vote against the project because of the high cost of electricity to commercial and industrial consumers. McCarter, who represents a district adjacent to where the plant will be located, had campaigned throughout the fall saying he supported the plant.
* Tenaska bill falls short in Senate: Sponsoring Sen. Deanna Demuzio, D-Carlinville, used a parliamentary maneuver to keep the bill alive for another possible vote, but time is literally running out for the General Assembly to act.
* VIDEO: St. Clair County Clerk Bob Delaney testifies in Springfield about his county’s late military and overseas ballots.
* Navy Pier to be leased, run by not-for-profit: Reilly said McPier will provide seed money for renovations and deferred maintenance at the pier. He estimated about $50 million might be available.
* It can’t be fixed: Lawmakers have had 10 years to reflect — and act — on the failures of a system that sent at least 20 innocent men to death row. Illinois hasn’t executed an inmate since 1999, the year before then-Gov. George Ryan declared a moratorium that continues to this day.
I guess Meeks doesn’t mind being a chronic deadbeat. It amazes me that folks can blah, blah, blah, about everything but getting right with the people you owe money.
- Retired Non-Union Guy - Thursday, Jan 6, 11 @ 7:55 am:
The Medicaid reform is a start but only a start. Why only half the caseload in managed care after 4 years? Why not all of them within a year or two?
It’s crunch time for the lame duck legislature. If this tax plans stalls and has to be considered by the incoming General Assembly, the heavy lifting is going to be much more difficult.
Rich, do the Republicans really “hate” the idea of a tax increase, or would it be more accurate to say most of them want the money every bit as much as the Democrats, but they think they can make the Democrats pay the full political price?
How does the State offer property tax relief when they don’t collect property taxes? I assume they raise the exemptions again, so that in response, cities, counties and schools raise their rates to offset the loss. What a farce!
Oh, and since police, fire and IMRF pensions are still out of control despite the reforms (which don’t stop the spiraling costs for another 15 years) and by statute those pensions are funded by uncapped levies, just how do they think they’re going to save the taxpayer from property taxes with a mere exemption. Well, I guess it sounds good to the average voter that doesn’t know how the system works. Maddening I tell you.
Fed up any actual facts or information behind your soundbite?
IL tax burden is low, accounting for fees, compared to the overwhelming majority of States; we have fewer state employees per capita etc.
We need some trimming, like dumping free mamograms for those who have insurance or money to pay for them etc; bu in the scheme of our budget, that wont close the shortfall. If we get rid of the sate police, and doc, let all the inmates go, fire all the State attorneys and Pubic Defenders and remove all the judges, we still wont save enought to cover the gap; but at least we will be too busy fending for ousevles to worry….
In the bill that passed the Senate, the state would rebate that portion of local property taxes that was assesed for education which is quite a large per cent of the total property tax bill. The current control of required referendums would remain in place. The bill also extends the state sales tax to services which are taxed in our border states. The easiest and best policy wise thing to do is for the House to pass that bill which would yield $6-7 billion in new revenue.Tack on the extra .25%, ram it through with 60 votes and be done with it.
Unless the income tax is made substantially more progressive, this continues to be a very bad deal for the middle class long term, especially if reduced access to Medicaid is thrown into the mix. Health care costs are going up and will continue to do so.
The Obama payroll tax holiday will help in that the burden of the income tax will be more than offset by the holiday. But that tax holiday will
end in the blink of an eye. And I don’t think the intent of the holiday was for local and state governments to scarf up the extra cash. It was to stimulate the economy. Some will say, same effect. But I doubt it. In Illinois, bluest of states, it apparently doesn’t matter as long as politicians and public employee unions get a big cut for themselves. With Quinn in charge, they will.
It is not possible to have have graduated income tax rates under the consitution.
You can affect progressivity by increasing or decreasing the personal exemptions or varying the use of credits, such as the 5 percent property tax credit.
If they want to expand gambling, that’s fine, but I think the best way to dramatically increase revenue as well as help the tracks and limit losses to existing operators is to go ahead and allow sports betting.
It’s happening anyway, so if you take it out of the black market, regulate it and tax it, it should be a great source of revenue.
Still nothing about taxing retirement income, although i know it was on the table last week. I have a bad feeling that even a 2.0% increase is way short of adequate unless Medicaid can be slashed more substantially, or better yet, simply eliminated. Our flat tax system has no chance of keeping up with its escalating costs even with the reforms proposed. This is another patch, not real reform.
Which middle class families will be cut off of Medicaid (or denied access) under proposed eligibility changes. And will federal funding be affected? The Legislature needs to widely putlicize this nformation before the vote–as well as charts showing the effect of the Democrats’ income tax increase on various income levels including various income levels of retirees, who stand to come out of all this pretty well, I think. Transparency, for at least a day before the vote.
How many of the Tenaska “no” votes took their money & ran? I know McCarter was one of them. Supporting jobs in November was a good campaign move.
- Quinn T. Sential - Thursday, Jan 6, 11 @ 11:44 am:
Speaking of herding cats; it appears Rezko is headed back towards the reservation, after wandering in the desert for a prolonged period of time.
{Sentencing was postponed today for a tired and gaunt-looking Antoin “Tony” Rezko in case he still testifies at the retrial of former Gov. Rod Blagojevich, scheduled to begin in April.
However his attorney made it clear that he is not willing to wait beyond September.}
Another good news/bad news story for Illinois. Good in that the leadership seems to be doing what many of us have been screaming for them to do — increase taxes to reduce this deficit/debt monster.
Bad news in that they are just proposing caps on spending instead of actual spending cuts (other than Medicaid) that many of us saw as being an essential part of the overall deficit reduction package. Where are Quinn’s promised cuts on non essential spending?
I hope the Republican throw some weight to balance out the tilting on this ship of state.
And a response to one of the above points about the payroll tax holiday offsetting a raise in state income taxes. Please consider that many of us pay both the employee and employer payroll taxes. So, we won’t be seeing as much of a payroll tax cut to balance these increased state income taxes. Our overall tax burden will grow significantly.
Gov. Quinn campaigned on a tax increase and prioritizes support for education. And he is for property tax reform. The Senate supported a tax increase to 5% last year. So if you don’t think Speaker Madigan is driving the train in this negotiation, you haven’t been paying attention. In fact it has been that way for quite some time, something like decades. The tax increase package is in Madigan’s hands and I am not sure we even know what his position is on it, besides “not your way.” And we can’t let his leadership (or not) on this slide as simply a challenge of herding cats. Someone is Speaker of the House and it isn’t you, me, Cullerton, or Quinn.
Plus, the Republican refrain of “no new taxes” is so discredited they should simply be ignored. If they don’t care about fixing a $13-16 billion dollar deficit now, they never will. They don’t care and they should be labeled as such. Besides, Republican county and village boards raise property taxes left and right in the suburbs and downstate as a basic “making ends meet” approach. In Springfield they are all about partisanship.
And for those public servants wasting time toward passing solutions that also involve borrowing, interest rates are going up almost daily.
Until now, I’ve been fairly sympathetic to the GOP position that the dems made the mess, at least recently, and have the votes to fix it but just don’t want to because they’ll be hurt at the polls. Time to move on from that. The fat’s in the fire, and the GOP has the ability to do something to help fix it - like making their goals clear and working toward compromise. I don’t let the dems off the hook, but the boat’s sinking with all of us in it and everybody had better get on their oar and start pulling for shore.
- Yellow Dog Democrat - Thursday, Jan 6, 11 @ 3:38 pm:
@Retired non-union guy: The last time we tried to do private management of public health care, there weren’t many takers.
There’s just not alot of profit in it because you can’t lower reimbursement rates or deny care.
They’ll be LUCKY if they can convince the private sector to pick up half of the caseload.
The repubs are MIA, but lest we and they forget the House R’s actively supported and voted for the FY04,05 and 08 budgets - the 08 being a purposeful deficit budget supported by all the caucuses (the Senate R’s voted for the 05 and 08 budgets). These were followed by 3 more on purpose deficit budgets (09,10,11) mostly by the Dems. But the R’s played a big role in all the spending they now want to hang on the Dems.
So when it come time to vote we hope they all keep their mirrors polished - and if they vote no, please no speeches on too much spending.
- Cassiopeia - Thursday, Jan 6, 11 @ 6:52 am:
So what happened to Quinn’s pledge to veto any increase over 1%?
I shouldn’t ask that since its become common for Quinn to re-think any promise no matter how he tries to act like he is somehow different.
- wordslinger - Thursday, Jan 6, 11 @ 7:28 am:
I guess Meeks doesn’t mind being a chronic deadbeat. It amazes me that folks can blah, blah, blah, about everything but getting right with the people you owe money.
- Retired Non-Union Guy - Thursday, Jan 6, 11 @ 7:55 am:
The Medicaid reform is a start but only a start. Why only half the caseload in managed care after 4 years? Why not all of them within a year or two?
- Honest Abe - Thursday, Jan 6, 11 @ 9:44 am:
It’s crunch time for the lame duck legislature. If this tax plans stalls and has to be considered by the incoming General Assembly, the heavy lifting is going to be much more difficult.
- just sayin' - Thursday, Jan 6, 11 @ 9:48 am:
Rich, do the Republicans really “hate” the idea of a tax increase, or would it be more accurate to say most of them want the money every bit as much as the Democrats, but they think they can make the Democrats pay the full political price?
- Shemp - Thursday, Jan 6, 11 @ 10:01 am:
How does the State offer property tax relief when they don’t collect property taxes? I assume they raise the exemptions again, so that in response, cities, counties and schools raise their rates to offset the loss. What a farce!
Oh, and since police, fire and IMRF pensions are still out of control despite the reforms (which don’t stop the spiraling costs for another 15 years) and by statute those pensions are funded by uncapped levies, just how do they think they’re going to save the taxpayer from property taxes with a mere exemption. Well, I guess it sounds good to the average voter that doesn’t know how the system works. Maddening I tell you.
- Fed up - Thursday, Jan 6, 11 @ 10:03 am:
To big of a tax hike to much spending. Maybe the dems could just do away with all the programs they passed without funding.
- just sayin' - Thursday, Jan 6, 11 @ 10:06 am:
At least it will be a Democrat governor raising the state income tax for once. A nice change of pace for Illinois.
- Ghost - Thursday, Jan 6, 11 @ 10:11 am:
Fed up any actual facts or information behind your soundbite?
IL tax burden is low, accounting for fees, compared to the overwhelming majority of States; we have fewer state employees per capita etc.
We need some trimming, like dumping free mamograms for those who have insurance or money to pay for them etc; bu in the scheme of our budget, that wont close the shortfall. If we get rid of the sate police, and doc, let all the inmates go, fire all the State attorneys and Pubic Defenders and remove all the judges, we still wont save enought to cover the gap; but at least we will be too busy fending for ousevles to worry….
- Skeeter - Thursday, Jan 6, 11 @ 10:14 am:
Meeks wants to spend more money. That’s so unusual for an Illinois Democrat.
- Bill - Thursday, Jan 6, 11 @ 10:25 am:
In the bill that passed the Senate, the state would rebate that portion of local property taxes that was assesed for education which is quite a large per cent of the total property tax bill. The current control of required referendums would remain in place. The bill also extends the state sales tax to services which are taxed in our border states. The easiest and best policy wise thing to do is for the House to pass that bill which would yield $6-7 billion in new revenue.Tack on the extra .25%, ram it through with 60 votes and be done with it.
- cassandra - Thursday, Jan 6, 11 @ 10:35 am:
Unless the income tax is made substantially more progressive, this continues to be a very bad deal for the middle class long term, especially if reduced access to Medicaid is thrown into the mix. Health care costs are going up and will continue to do so.
The Obama payroll tax holiday will help in that the burden of the income tax will be more than offset by the holiday. But that tax holiday will
end in the blink of an eye. And I don’t think the intent of the holiday was for local and state governments to scarf up the extra cash. It was to stimulate the economy. Some will say, same effect. But I doubt it. In Illinois, bluest of states, it apparently doesn’t matter as long as politicians and public employee unions get a big cut for themselves. With Quinn in charge, they will.
- OneMan - Thursday, Jan 6, 11 @ 10:48 am:
== Unless the income tax is made substantially more progressive ==
Don’t think that is possible under the state constitution is it?
- cassandra - Thursday, Jan 6, 11 @ 10:55 am:
It is not possible to have have graduated income tax rates under the consitution.
You can affect progressivity by increasing or decreasing the personal exemptions or varying the use of credits, such as the 5 percent property tax credit.
- Mikey - Thursday, Jan 6, 11 @ 10:57 am:
If they want to expand gambling, that’s fine, but I think the best way to dramatically increase revenue as well as help the tracks and limit losses to existing operators is to go ahead and allow sports betting.
It’s happening anyway, so if you take it out of the black market, regulate it and tax it, it should be a great source of revenue.
- Realist - Thursday, Jan 6, 11 @ 11:17 am:
I have this nagging feeling that with Quinn involved in these negotiations that this whole delicate process will become another train derailment.
And I think the Republicans may actually demonstrate some ideological courage and hold fast to their “let’s see the cuts first” mantra.
- Skirmisher - Thursday, Jan 6, 11 @ 11:19 am:
Still nothing about taxing retirement income, although i know it was on the table last week. I have a bad feeling that even a 2.0% increase is way short of adequate unless Medicaid can be slashed more substantially, or better yet, simply eliminated. Our flat tax system has no chance of keeping up with its escalating costs even with the reforms proposed. This is another patch, not real reform.
- cassandra - Thursday, Jan 6, 11 @ 11:33 am:
Which middle class families will be cut off of Medicaid (or denied access) under proposed eligibility changes. And will federal funding be affected? The Legislature needs to widely putlicize this nformation before the vote–as well as charts showing the effect of the Democrats’ income tax increase on various income levels including various income levels of retirees, who stand to come out of all this pretty well, I think. Transparency, for at least a day before the vote.
- Highland, IL - Thursday, Jan 6, 11 @ 11:36 am:
How many of the Tenaska “no” votes took their money & ran? I know McCarter was one of them. Supporting jobs in November was a good campaign move.
- Quinn T. Sential - Thursday, Jan 6, 11 @ 11:44 am:
Speaking of herding cats; it appears Rezko is headed back towards the reservation, after wandering in the desert for a prolonged period of time.
{Sentencing was postponed today for a tired and gaunt-looking Antoin “Tony” Rezko in case he still testifies at the retrial of former Gov. Rod Blagojevich, scheduled to begin in April.
However his attorney made it clear that he is not willing to wait beyond September.}
http://www.chicagobreakingnews.com/2011/01/rezko-sentencing-delayed-until-fall.html
- vole - Thursday, Jan 6, 11 @ 11:55 am:
Another good news/bad news story for Illinois. Good in that the leadership seems to be doing what many of us have been screaming for them to do — increase taxes to reduce this deficit/debt monster.
Bad news in that they are just proposing caps on spending instead of actual spending cuts (other than Medicaid) that many of us saw as being an essential part of the overall deficit reduction package. Where are Quinn’s promised cuts on non essential spending?
I hope the Republican throw some weight to balance out the tilting on this ship of state.
And a response to one of the above points about the payroll tax holiday offsetting a raise in state income taxes. Please consider that many of us pay both the employee and employer payroll taxes. So, we won’t be seeing as much of a payroll tax cut to balance these increased state income taxes. Our overall tax burden will grow significantly.
- Statewide - Thursday, Jan 6, 11 @ 12:13 pm:
“Realist” re: Quinn and the tax negotiations…
Gov. Quinn campaigned on a tax increase and prioritizes support for education. And he is for property tax reform. The Senate supported a tax increase to 5% last year. So if you don’t think Speaker Madigan is driving the train in this negotiation, you haven’t been paying attention. In fact it has been that way for quite some time, something like decades. The tax increase package is in Madigan’s hands and I am not sure we even know what his position is on it, besides “not your way.” And we can’t let his leadership (or not) on this slide as simply a challenge of herding cats. Someone is Speaker of the House and it isn’t you, me, Cullerton, or Quinn.
Plus, the Republican refrain of “no new taxes” is so discredited they should simply be ignored. If they don’t care about fixing a $13-16 billion dollar deficit now, they never will. They don’t care and they should be labeled as such. Besides, Republican county and village boards raise property taxes left and right in the suburbs and downstate as a basic “making ends meet” approach. In Springfield they are all about partisanship.
And for those public servants wasting time toward passing solutions that also involve borrowing, interest rates are going up almost daily.
- Excessively Rabid - Thursday, Jan 6, 11 @ 1:37 pm:
Until now, I’ve been fairly sympathetic to the GOP position that the dems made the mess, at least recently, and have the votes to fix it but just don’t want to because they’ll be hurt at the polls. Time to move on from that. The fat’s in the fire, and the GOP has the ability to do something to help fix it - like making their goals clear and working toward compromise. I don’t let the dems off the hook, but the boat’s sinking with all of us in it and everybody had better get on their oar and start pulling for shore.
- Yellow Dog Democrat - Thursday, Jan 6, 11 @ 3:38 pm:
@Retired non-union guy: The last time we tried to do private management of public health care, there weren’t many takers.
There’s just not alot of profit in it because you can’t lower reimbursement rates or deny care.
They’ll be LUCKY if they can convince the private sector to pick up half of the caseload.
- Real;Clear - Thursday, Jan 6, 11 @ 5:06 pm:
The repubs are MIA, but lest we and they forget the House R’s actively supported and voted for the FY04,05 and 08 budgets - the 08 being a purposeful deficit budget supported by all the caucuses (the Senate R’s voted for the 05 and 08 budgets). These were followed by 3 more on purpose deficit budgets (09,10,11) mostly by the Dems. But the R’s played a big role in all the spending they now want to hang on the Dems.
So when it come time to vote we hope they all keep their mirrors polished - and if they vote no, please no speeches on too much spending.
- Shemp - Thursday, Jan 6, 11 @ 6:07 pm:
I think it’s awesome that our governor, the champion for the little guy, used a 3 hour closed door meeting to hash out the deal. Lovin it!