House Democratic women request meeting with Gov 2 implore him to retract his threat to veto the budget & save our state from junk status. pic.twitter.com/pY3AxYnDCx
— Rep Sara Feigenholtz (@StateRepSara) July 3, 2017
Sit in by House Democratic women in Gov Rauners office demanding a meeting to save our state and keep schools open!! #DoYourJobpic.twitter.com/DL1T4pwkeU
GOP Reps. Barbara Wheeler, Keith Wheeler, Margo McDermed, Grant Wehrli, Tony McCombie, Lindsay Parkhurst, Jeanne Ives and Peter Breen showed up.
The group of anti-tax Republicans whipped out their own phones and apparently started asking the Democrats about their tax hike plan. The Democrats then returned to the floor. I’m hoping to find video of the latter exchange. If you see it somewhere, post a link in comments.
…Adding… From the Democratic women…
“We believe now is the time to end this state budget impasse and yesterday’s votes are an important step toward a solution. Our group today visited the Governor’s office to request a meeting with the Governor to ask him to approve this package.
We have made significant compromises and have seen bipartisan support for a balanced budget. Rather than issuing veto threats, we want to meet with the Governor to explain why this is the right solution and hope he will meet with us soon.”
* For months, newspapers, pundit, etc. have been screaming “Get a budget!” So, what happens when the House passed what appears to have been a balanced budget? Check out the headlines…
* Tribune: Madigan’s House approves major income tax hike as Republicans break with Rauner
* Sun-Times: Illinois House OKs income tax hike, spending plan; Rauner vows vetoes
* AP: Rauner says he’ll veto hike in Ill. income tax
* Daily Herald: Rauner promises to veto income tax hike
All tax hike, all Rauner veto, all the time. With a sprinkling of “Madigan!”
Polling consistently shows that Illinoisans do not want a tax hike. So, from that perspective, Gov. Rauner “won” today’s headline war.
*** UPDATE 1 *** From the Illinois Republican Party…
Hey Rich,
In addition to the headlines you posted, Governor Rauner’s message is also cutting through the clutter on social media. The Governor’s veto message on the Bruce Rauner Facebook page was the farthest reaching organic post ever for Rauner. That post has already organically reached over 300,000 individual newsfeeds.
Taken together, posts from Rauner and ILGOP pages about Madigan’s tax hike and last minute budget organically reached over 550,000 newsfeeds since yesterday. That’s not even including the Governor’s official side veto post, which received even more shares.
The prospect of Madigan’s massive tax hike - the largest in state history since it is a permanent increase - is activating voters who otherwise have been passive observers of the impasse so far.
* From Comptroller Mendoza’s statement last night…
We still have a long road ahead to a comprehensive budget plan to pay down our $15 billion backlog of unpaid bills that has tripled in the two years since Governor Rauner took office.
It’s actually worse than that. Except for K-12, last year’s stopgap budget only contained appropriations for half the year. Universities, social service groups, business vendors, etc., etc., etc. never got an appropriation for the second half of Fiscal Year 2017, which ended Friday.
The second half of FY 16 ended the same way and the state’s leaders just sent that down the memory hole.
So, they not only need to deal with most of that backlog (they don’t have to deal with all of it at once, just as long as they can get it down to a 30-day payment cycle), they also have to figure out what to do about the billions they never got around to appropriating in the first place.
* Aside from passing a temporary tax and then not preparing for its partial rollback, the other giant failure of the Democrats in 2011 was not dealing with the overdue bills. That debt was like a massive ball and chain being dragged around by the government’s neck, and it didn’t get resolved for four years, helping to convince folks that the tax hike “didn’t work” and that Pat Quinn was a failed governor. Borrowing to pay off that debt would’ve done wonders for Quinn, and so I’m curious whether the Democrats will “help” Rauner out this time.
The Illinois House of Representatives on Monday passed a bill for the final piece of the state’s fiscal 2018 budget that includes authorization for $6 billion of bonds to pay down a $15 billion bill pile.
The budget implementation bill was sent to the Senate on a 72-36 vote. The House on Sunday passed appropriation and revenue bills that require concurrence votes in the Senate.
In passing the budget implementation bill, a dozen House Republicans joined majority Democrats to reach a 73-vote threshold that could withstand a possible veto by the governor if the measure passes the Senate. Republican Governor Bruce Rauner has already said he will veto the revenue bill that includes a big income tax rate hike. […]
State Representative Greg Harris, the House Democrats’ budget point person, said enough money has been identified only to cover debt service on $3 billion of bonds and that the rest of the debt could be issued once additional revenue is available.
Sigh.
$3 billion is almost a point on the income tax.
There’s also some dispute over the language in the BIMP about when the bonds are supposed to be paid back.
*** UPDATE *** I’m told by the governor’s office that should the Senate pass the tax hike bills the governor will take “immediate action” when it hits his desk. “So members shouldn’t plan to go anywhere.”
[ *** End Of Update *** ]
* Press release…
Governor Bruce Rauner today issued the following statement following the House of Representative’s passage of a 32 percent income tax hike without any reforms to grow the economy, create jobs, or provide property tax relief:
“When I took office, I promised the taxpayers of Illinois that I would fight every day to take this state in a new direction after decades of failed leadership from both parties. Today, Springfield has decided to give the people of Illinois the largest tax hike in history and continue out of balance budgets with no real reform.
“Under Speaker Madigan’s direction, legislators chose to double down on higher taxes while protecting the special interests and refusing to reform the status quo. It’s a repeat of the failed policies that created this financial crisis and caused jobs and taxpayers to flee.
“I will veto Mike Madigan’s permanent 32 percent tax hike. Illinois families don’t deserve to have more of their hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs. Illinois families deserve more jobs, property tax relief and term limits. But tonight they got more of the same.
“For two and a half years we have been working to find common ground on a balanced budget. As recently as two days ago we believed that was possible.
“The legislature could have passed a no reform budget like this one two years ago. Instead, they allowed Mike Madigan to play his political games, passed phony budgets, racked up our debt and inflicted pain on the most vulnerable. All of this to force a permanent, 32 percent tax increase on Illinois families.
“Moving forward, this vote shows that if the legislature is willing to pass the largest tax hike in state history with no reforms, then we must engage citizens and redouble our efforts to change the state. “
*** UPDATE 1 *** Press release…
“Today, Democrats and Republicans stood together to take a crucial step toward reaching a compromise that ends the budget crisis by passing a fully funded state budget in a bipartisan way. While none could say this was an easy decision, it was the right decision; it’s clear that a budget package that cuts billions of dollars in state spending and also provides new revenue is the only path forward. I’m grateful legislators worked together to provide for our schools, protect medical care for the frail elderly, services for survivors of domestic abuse and others in great need.
“There is more work to be done, and we will continue working with Republicans to ensure the issues still on the table are fully resolved.”
*** UPDATE 2 *** House Republican Leader Jim Durkin…
“You have all heard the following statement: ‘it’s Déjà vu all over again.’ It has never been more true than today. What transpired is a repeat of the Illinois Democrats infamous temporary tax of 2011, with the only difference being today’s tax increase is permanent - yes, permanent. These votes confirm that the Illinois Democrats will never accept change and are only interested in the status quo – the status quo that placed Illinois in this squalid condition. The fight for Illinois families, workers and employers is not over.”
Except 15 of his own members voted for the bill today, unlike the 2011 tax hike when it was a purely Democratic vote.
*** UPDATE 3 *** Mayor Emanuel…
“I want to thank the host of Democrats and Republicans who came together tonight in bipartisan fashion to put the people of Illinois ahead of political party. This bipartisan budget is a major step forward to ending three years of inaction in Springfield. This bipartisan budget will prevent Illinois’ most vulnerable from losing their safety net, keep road projects active and keep people at work, ensure schools across the state open next month, and prevent Illinois from being downgraded to junk status. And this bipartisan budget will provide much needed stability to people in every corner of Illinois and from all walks of life.”
*** UPDATE 4 *** Press release…
Illinois Republican Party Chairman Tim Schneider released the following statement after the Illinois House of Representatives passed Speaker Mike Madigan’s permanent 32% tax hike without reforms:
“Today, Springfield politicians led by Speaker Mike Madigan voted to permanently raise taxes by 32% on the hard-working families of Illinois without passing property tax relief for homeowners, job-creating reforms, or term limits on politicians.
“Make no mistake about it - this historic vote was not the product of negotiation and compromise focused on pro-growth, citizen-empowering reforms. Last night, Madigan broke away from good faith budget negotiations with the intent of pushing his own plan to protect the broken status quo. Today, Madigan then introduced his massive 1,241-page tax-and-spend plan and gave lawmakers only hours to read, debate, and vote on the package.
“This 32% permanent tax increase, the largest in Illinois’ history, was the product of insider deal-making between special interests and entrenched politicians. Next year, voters will hold those politicians accountable for choosing Madigan over the people of Illinois.
“Now more than ever, Republicans across Illinois are standing with Governor Rauner and redoubling our efforts to end Madigan’s corrupt status quo.”
I don’t see how they can keep claiming this is the largest tax hike in Illinois history. 2011’s was larger.
*** UPDATE 6 *** Press release…
Comptroller Mendoza’s Statement on Sunday’s Budget Votes in the State House of Representatives
I want to thank all the members of the Illinois House of Representatives who courageously voted to step back from the fiscal disaster of the last two years and to take back their constitutional power of appropriation. In particular I want to thank the 15 Republican profiles in courage who were true heroes today, standing up for the people of Illinois and not for a Party of One.
We still have a long road ahead to a comprehensive budget plan to pay down our $15 billion backlog of unpaid bills that has tripled in the two years since Governor Rauner took office. I am disheartened but not surprised that he, as a Party of One, has announced that he will veto the bill. I hope that all the legislators who showed true courage on Sunday’s tough votes stay strong and steadfast in overriding his irresponsible veto.
Sunday’s vote sends a strong message to the financial markets that Illinois is serious about getting its fiscal house in order. I strongly encourage Republicans and Democrats in the state Senate to likewise forge ahead working together. Our office will continue working with members of the General Assembly to help in whatever capacity we can. When we come together in a bipartisan fashion, great things are possible for the state. Let’s keep this positive momentum going.
* The House passed an amended SB 9 tax hike bill on a vote of 72-45 today. 15 Republicans voted for the proposal. [Click here for the roll call.] The bill now heads to the Senate.
Several Republicans broke with the governor today. This bill was truly the result of a movement by the rank and file.
Reps. Andersson, Bryant, Cavaletto, Davidsmeyer, Fortner, Hammond, David Harris, Hays, Jimenez, Meier, Mitchell, Phillips, Pritchard, Reis and Unes all voted for the bill. Several of those members are also members of House GOP leadership.
The bill permanently raises the income tax rate to 4.95 percent. Gov. Rauner has opposed a permanent income tax hike if it’s not tied to a permanent property tax freeze. Brian Mackey hit the highlights of the bill on Twitter today. Click here for that.
* Quite a few of the members who spoke in favor of the proposal were Republicans. “This is the sword I’m willing to die on,” said Rep. Mike Unes (R-East Peoria). “If it costs me my seat, so be it”…
“Come tomorrow morning at the opening of business, if we don’t get this done, we will be the first state in the history of the United States of America to be in junk bond status.”
Rep. David Harris (R-Arlington Heights), who didn’t vote on the amendment, said during a thunderous speech that he wasn’t elected to the House to preside over the financial destruction of Illinois.
Rep. Jeanne Ives (R-Wheaton), who voted against the bill, insisted that the state’s economy was “too weak for a tax hike”…
The only people who are going to gain from this are the public sector unions … They are the only ones who are going to gain in this tax increase, not the hard-working people who live down the street from me and our small businessmen.
Another “Yes” vote, Rep. Terri Bryant (R-Murphysboro), described herself as being on the right and said “I hate taxes, I hate them.” But, she said, “As someone who’s on the right, who’s a fiscal conservative, we can’t have vendors, mom and pop places to be asked to do services for the state… and then after they perform those services say ‘Whoops, we don’t have the money to pay them’… and allow them to go into bankruptcy.
Bryant’s voice cracked at times, said she’s probably “get primaried” for her vote, but said, ” I don’t have to own what people did before I came here, but I do have to own what’s been done the past three years.”
Rep. Greg Harris, the bill’s Chicago Democratic sponsor, listed all of the calamities the state has survived, then asked as he closed debate: “If we defeat this bill tonight, will the state of Illinois survive us?”
* The bill now moves to the Senate for concurrence. The bill received 32 votes last May, which was two more than required at the time. But it’ll need 36 tomorrow when the Senate returns.
Sens. Tom Cullerton, Hastings, Stadelman and Morrison all voted “No” in May. Sen. Haine was absent and he’s not expected to be in Springfield tomorrow because he’s very ill. No Republicans voted for the proposal when it was last in the Senate.
* This post will likely be updated with reactions from various folks. Stay tuned.
*** UPDATE *** The ominibus appropriations bill just passed 81-34…
* Sun-Times: Illinois House approves income tax increase: With the state on the cusp of a catastrophic downgrade, the Illinois House on Sunday cleared the most controversial element of a budget package, a revenue measure that hikes the income tax rate to 4.95 percent to try to end a historic impasse.
* From the Illinois Policy Institute’s news service…
House Minority Leader Jim Durkin emerged from a Republican caucus meeting Sunday afternoon and said Democrats added a new amendment to their $36.5 billion spending bill.
Late Saturday, Speaker Michael Madigan announced a vote on a tax increase package would be held Sunday. But Durkin said that Republicans couldn’t put votes behind tax increases without knowing what’s in the spending plan.
“The Democrats made matters more complicated by filing a new spending bill within the last 15 minutes,” a visibly agitated Durkin said. “We have no idea what’s in it. To take a tax increase vote before knowing what you’re spending on, to me is irresponsible. As usual, we have not been advised what is in the new spending bill, and I think our caucus feels that is a sign of bad faith.”
Durkin said he wasn’t sure if Madigan would call the tax increase bill for a vote now or not. He said he spoke to Madigan this morning to see how the day would play out. it was “pretty brief.”
“The process gets extremely complicated and I will say it’s a step back in the negotiations on the reforms and bringing the impasse to an end,” Durkin said. “I want to do this in a fair, transparent manner. Today is not the day for it.”
* I checked in with Madigan’s spokesman Steve Brown, who said the amendment “reflects the discussions that the leaders and the budget/spending groups have been holding the past few days.” There have been “daily, multiple meetings,” he said.
Brown said he didn’t think it spent more than the omnibus appropriations amendment which passed Friday, but wasn’t sure.
* The House was about to start debating the new spending proposal (an amendment to SB 6), but the Republicans requested a one-hour caucus. They’ll be back by 4:40 this afternoon.
*** UPDATE *** I just spoke with Rep. Greg Harris, who is the House Democrats’ budget negotiator.
Rep. Harris said the newly filed amendment includes things like the Tier 3 pension savings the Republicans had asked for. It also increases the cuts in higher education from the House Democrats’ 5 percent to the Republicans’ preferred 10 percent. It does spend more on some stuff, like $15 million for the Department of Corrections.
Harris insisted that everything in the new amendment is identical to what the budget negotiators had agreed to. He said he didn’t know why Leader Durkin wasn’t briefed, but that Durkin would “know that it had to be filed.”
According to Harris, the new amendment spends $36.054 billion, compared to Friday’s spending plan which spent $36.449 billion. So the new amendment, according to Harris, spends $395 million less than the one which was adopted with an overwhelming bipartisan majority a few days ago.
Several Senate Democrats were holding an upbeat news conference about progress being made in talks when Madigan’s statement about the [Sunday] tax hike vote was issued. None of them knew it was coming. Just before its release, Sen. Heather Steans, D-Chicago, one of the Democrats’ budget negotiators, said, “We think we are really about nailed down now on all of the numbers for the budget and revenue side of this.”
If you missed that Madigan press release, click here.
* Sen. Toi Hutchinson looked stunned when a reporter read Madigan’s press release aloud to the gathered Senate Democrats…
State Sen. Toi Hutchinson, D-Olympia Fields, was surprised to hear the “revenue package” would be called. Hutchinson, who sponsored the Senate’s revenue bill, said it shows the “fluidity” of budget talks.
Hutchinson said recent negotiations about the revenue bill weren’t about elements in the measure but more about what Republicans wanted passed before they could declare support for an income tax hike.
“What we’re going to end up seeing when there’s final votes on this is that you will see Democrats who refuse to vote on revenue, and you’ll see some Republicans who change their minds,” Hutchinson said. “It’s going to be one of those situations where people are voting based on their districts and based on what they believe is the right course of action moving forward.”
[Madigan spokesman Steve Brown] said the “revenue package” is “the one that the Republicans endorsed.”
“It could be modeled on that,” Brown said. “There may be some changes.”
Top Republicans last month offered up a “compromise” budget plan, which included a four-year property tax freeze. While it assumed an income tax hike, Republicans never filed a revenue bill.
The “changes” reportedly include a permanent income tax hike, which the governor opposes.
The move by Madigan to call a vote without Republicans on board sets him up to collect ammunition against the opposition party, as he will be able to point to people who supported the spending plan on Friday but voted Sunday against the tax hike and accuse them of wanting to spend money without paying for it.
House Democrats who could be Republican targets in next year’s election also could vote against the tax hike in an attempt to inoculate themselves from Rauner-funded GOP attack ads.
Asked why Democrats would call the tax bill without a broader agreement with Republicans, [Rep. Lou Lang] said, “This cannot go on forever.
“There are members of Mr. Durkin’s caucus who are ready, willing and able to vote on a bill, and they want to do it right away, so we are going to oblige them,” he said.
I think members have told the Speaker that a number of Republicans are prepared to vote for the revenue bill.
* And from the Illinois Policy Institute’s Facebook page…
UPDATE: Our sources tell us there are two Illinois Republicans in the House who are confirmed “yes” votes on the $5 billion tax hike.
Rep. Sara Wojcicki Jimenez
Ph. (217) 782-xxx
xxxx@ilhousegop.org
Rep. Steven Andersson (Citizens for Steve Andersson)
Ph. (630) xxxxxxx
xxx@xxxxx
Andersson is apparently encouraging his colleagues in the House to join him in voting for Madigan’s tax hike.
Please contact both of these lawmakers and tell them to vote “NO” on the $5 billion tax hike.
The vote is expected to take place Sunday at 2 p.m.
The comments are quite something. And as subscribers know, it’s more than two Republicans.
* Rep. Andersson posted a photo of himself on Facebook last night having dinner with his wife. Check out a couple of the comments…
You are Madigan’s Toady. Switch parties traitor.
You are selling your soul to the devil. This tax increase will only drive more people out of this state. In fact we are prepared to relocate our entire family, not just my household, entire family. Hang your head low sir, you deserve it!!!!!!
*** UPDATE *** Rep. Steve Andersson responds to the Illinois Policy Institute Facebook post…
Rich,
Saw your post. FYI, there are 69 comments to the moment. A few supportive, mostly negative, some very offensive. But what’s far worse is that someone or some group has given out my personal cell phone number. Those calls and texts are about as nasty as you can imagine. Came in all night and day.
