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* Another legislative battle is brewing…
Embattled Gov. Rod Blagojevich signaled Tuesday that he will block an attempt by the Legislature to restore budget cuts he made last fall.
On the final day of the current General Assembly, the Illinois Senate approved legislation aimed at restoring millions of dollars to the state budget.
Included in the financial fix was money that could help the state avoid paying a nearly $10 million penalty to the federal government for taking money out of special wildlife funds to help pay for other state services.
But, the governor, who has been impeached and now awaits a trial in the Senate, said the cash-strapped state can’t afford the proposal.
Since the General Assembly which passed this bill is now adjourned sine die, if there’s a veto the new GA will have to pass another bill, which will get vetoed, and then overridden. That’ll take weeks, if not months, to work out.
Wonderful.
* And a new tax hike is on the table…
The cost to light up may go up exponentially this year.
State Sen. Jeff Schoenberg, an Evanston Democrat, said Tuesday he’ll push to add $1 in taxes to a pack of cigarettes in the new legislative session that begins today.
The state tax is currently 98 cents per pack. Counties and some cities can and do tack on their own substantial taxes.
Smoking opponents said the increase is a public health issue.
* Meanwhile, a federally mandated change to our state’s new ethics law was sent to the governor yesterday…
Many lucrative road and bridge contracts would be excluded from the state’s new “pay-to-play” ban under legislation the Senate sent Tuesday to impeached Gov. Rod Blagojevich.
Senators begrudgingly voted 56-1 for the measure following a threat from the Bush administration that the new ethics law needed to be watered down or federal funding for Illinois would be in jeopardy.
The state’s new ethics law prohibits businesses that have or seek state contracts worth more than $50,000 from donating to the campaign funds of statewide officeholders who assign the contracts.
Federal transportation officials told Illinois the law restricts who is eligible to bid for the business, potentially making projects cost more. State officials said the restriction could impact projects going to bid this month if an exception isn’t carved out.
* Related…
* Smoking opponents to push higher state tax
* Cigarette tax hike mulled by state lawmakers
* Smokers: They’re picking on us
* Smoking ban and budget restorations
* Senate approves revision to smoking ban
* Awkwardness to prevail when Rod Blagojevich swears in members of Senate
* Governor won’t make grand Senate entrance
* Britt: What happens when Blagojevich arrives at the Illinois Senate
* Ill. General Assembly OKs “pay to play” exception
* Emil Jones says goodbye to Legislature
* Ill. Senate president says farewell after 36 years
* Illinois state treasurer warns of dismal financial outlook: His office estimates the state will earn $130 million in interest for the budget year ending June 30. But that amount could drop to anywhere from $15 million to $86 million during the next budget year, based on the treasurer’s projections. That’s a far cry from the $431 million Illinois earned in interest at its high-water mark in 2001.
* New legislative term begins today
posted by Rich Miller
Wednesday, Jan 14, 09 @ 10:29 am
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Raise the tax if you want for revenue, but don’t try to save me from myself (yes, I’m a smoker). I had a mommy and daddy, but now I’m a big boy and can make my own choices, whether you like them or not.
On the other hand, I might want to look into some bootleg runs to the Carolinas.
Comment by wordslinger Wednesday, Jan 14, 09 @ 10:35 am
The shirt the Governor will wear to the Senate swearing in ceremony is on Illinoize.
Comment by Cal Skinner Wednesday, Jan 14, 09 @ 10:37 am
Well, if money is short, why would the legislature
restore funding? Is the state running out of money or isn’t it? If it is, what will be done to offset the restoration of monies already cut? Blago’s travails aside, these folks can’t seem to get together on a budget story.
I seriously doubt that we can balance the budget on a cigarette tax. If we could, why haven’t we done it already. After all, smokers have to be a dwindling proportion of the voting population. And that’s another problem for revenue stabiliy.
Anyway, before we get all scared and nervous, let’s see how much our federal bailout will be.
I suspect a lot of problems will suddenly be solved. And a lot of campaign chests and state contractors will get very very rich.
Comment by Cassandra Wednesday, Jan 14, 09 @ 10:37 am
The House and Senate have 30 days to present the Governor with the bills passed in the 95th. They can hold on to them until after the Senate trial.
Comment by Anon Wednesday, Jan 14, 09 @ 10:37 am
I think everyone ridiculed Blago last fall when he said this part of the ethics bill was in violation of federal law.
You know what they say about clocks…
Comment by ironic Wednesday, Jan 14, 09 @ 10:38 am
A tax on smoking is not a public health issue, it’s taking money from an unfavored group to pay for projects supported by the “connected”.
Comment by John Bambenek Wednesday, Jan 14, 09 @ 10:42 am
My state senator, Schoenberg, proposed the cigarette tax increase probably because he was elected to a four-year term, two months ago. He probably thinks that when he runs, in 2012, the voters will forget what he did, in Jan. 2009. Some Republicans want to oppose him, but the districts will be different, because of redistricting.
Comment by Phil Collins Wednesday, Jan 14, 09 @ 10:44 am
Apparently, grasping the law of diminishing returns continues to elude our legislators.
So-called sin taxes, while effective to a point, are the fallback option for weak-minded pols who lack the spine and creativity to address head-on our state’s fiscal woes. Raising the cigarette tax by more than 100% will cause some people to quit, cut back, or make purchases in WI or IN or MO or IA, thus resulting a in a steep decline in the revenue, although I’m certain the GA’s projections are optimistic, as usual.
I’m all for the health benefits and quality of life issues as a non-smoker, but this is a band-aid on a gunshot wound.
We’ve already seen this econ 101 phenomenon at work with gasoline purchases and casinos.
Enough is enough. Somebody needs to display some leadership here, and begin a real, substantial discussion about sales taxes on services, or internet purchases, or a progressive income tax, or whatever.
Comment by The Doc Wednesday, Jan 14, 09 @ 10:55 am
Doc, I agree. In about 1992, the New Jersey legislature passed a law that increased the special sales tax on farm vehicles. The majority of New Jersey farmers bought their tractors and combines in Penn., and the NJ revenue, from that tax, decreased. Illinois legislators should learn from the mistakes of other states. If our legislature wants to increase the cigarette tax revenue, they should decrease the tax rate, slightly. More people would buy cigarettes, in IL, and the state government would get more money.
Comment by Phil Collins Wednesday, Jan 14, 09 @ 11:32 am
I agree with The Doc. I live in a border community. Illinois raised the tax on cigarettes; Illinois smokers crossed the river to buy their smokes in Iowa. Iowa raised the tax on cigarettes; Illinois smokers went back to buying smokes in Illinois and Iowa smokers crossed the river to buy cigarettes in Illinois. If Illinois raises the cigarette tax again, Illinois smokers are heading back across the river and Iowans are staying in Iowa to buy smokes. Replace Iowa with Wisconsin or Indiana. Replace cigs with gasoline or any other commodity. Illinois has major population centers on its borders. Do the math.
Comment by puzzler Wednesday, Jan 14, 09 @ 2:56 pm
Am I missing something here? Short-time Rod says we can’t afford the $9M or $10M in funding, but apparently if we don’t fund it, the state is penalized $17 million by the feds. I’m no math major, but $9M sounds like a better deal for taxpayers (not to mention the benefits for conservationists) than ignoring the feds out of spite and having to spend $17M in fines for nothing to show for it.
Anyone know the timeline on when the $17M fine would kick-in? I’ve seen major pieces of legislation passed by both houses within hours. If the GA wants to avoid a $17M fine, they can do the approp pretty quickly.
Comment by dznuts Wednesday, Jan 14, 09 @ 3:15 pm
I already save $15/carton by buying my personal cigarettes in Missouri…and they don’t have to be the self-extinguishing kind! Adding another $10 to a carton will force many more people to make the trip (and gas is cheaper across the river too!). If they are that bad for us, then ban them entirely….or start taxing grams of fat in food.
Comment by Vote Quimby! Thursday, Jan 15, 09 @ 6:32 am