They’re reconvening tomorrow at 10. But word is there will be no override votes until Thursday because of attendance issues, but that hasn’t been formally confirmed. It’s just what members have been told.
Senate Republican Leader-Designee Bill Brady (R-Bloomington) offered the following reaction after the Illinois Senate voted to override the Governor’s veto of a budget passed with a permanent income tax hike and no substantial reforms.
“I want to acknowledge the bipartisan participation that this chamber has seen over the last few months, and compliment colleagues on both sides of the aisle for their work. It’s regrettable that I stand today not able to support this package because it is incomplete. We need a comprehensive solution for this state. We’ve negotiated in good faith, but I regret to say, that we have not come to a conclusion on that solution.
“We still need to address the high property taxes in Illinois, and the burden on they place on people and job creators in this state. We still need to address workplace reforms that will bring jobs to and keep jobs in Illinois. We need to address government consolidation and education funding reform. I regret that I cannot support a comprehensive package today, but I hope, and trust, that we will be able to come together and complete our work soon.”
* Keep in mind, these are official, for the permanent historical record veto messages…
Veto Message for SB 6
To the Honorable Members of
The Illinois Senate,
100th General Assembly:
Today I veto Senate Bill 6 from the 100th General Assembly, which is part of Speaker Michael Madigan’s 32% permanent income tax increase forced upon the hard working people of Illinois.
The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt, and holds schools hostage to force a Chicago bailout.
This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system.
Even with the Madigan permanent 32% income tax increase, this budget remains $2 billion out of balance for fiscal year 2018. This budget will require even more tax hikes to balance the budget and pay down the bill backlog. This budget puts Illinois on track for major future tax increases and will lead us to become the highest taxed state in America in the coming years.
Moreover, this budget package holds K-12 school funding across Illinois hostage to force a bailout of Chicago Public Schools. Hidden in this budget are terms that withhold school funding unless the school funding formula is rewritten to shift money from suburban and downstate school districts to CPS.
Budgets in Illinois will not be balanced or stay balanced unless our economy grows faster than our government spending. We have been ignoring that truth for 35 years. This budget package includes no changes to create jobs and grow our economy. It will push more families and businesses out of our state.
Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 6, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.
Sincerely,
Bruce Rauner
GOVERNOR
Veto Message for SB 9
To the Honorable Members of
The Illinois Senate,
100th General Assembly:
Today I veto Senate Bill 9 from the 100th General Assembly, which is part of Speaker Michael Madigan’s 32% permanent income tax increase forced upon the hard working people of Illinois.
The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt, and holds schools hostage to force a Chicago bailout.
This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system.
Even with the Madigan permanent 32% income tax increase, this budget remains $2 billion out of balance for fiscal year 2018. This budget will require even more tax hikes to balance the budget and pay down the bill backlog. This budget puts Illinois on track for major future tax increases and will lead us to become the highest taxed state in America in the coming years.
Moreover, this budget package holds K-12 school funding across Illinois hostage to force a bailout of Chicago Public Schools. Hidden in this budget are terms that withhold school funding unless the school funding formula is rewritten to shift money from suburban and downstate school districts to CPS.
Budgets in Illinois will not be balanced or stay balanced unless our economy grows faster than our government spending. We have been ignoring that truth for 35 years. This budget package includes no changes to create jobs and grow our economy. It will push more families and businesses out of our state.
Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 9, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.
Sincerely,
Bruce Rauner
GOVERNOR
Veto Message for SB 42
To the Honorable Members of
The Illinois Senate,
100th General Assembly:
Today I veto Senate Bill 42 from the 100th General Assembly, which is part of Speaker Michael Madigan’s 32% permanent income tax increase forced upon the hard working people of Illinois.
The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt, and holds schools hostage to force a Chicago bailout.
This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system.
Even with the Madigan permanent 32% income tax increase, this budget remains $2 billion out of balance for fiscal year 2018. This budget will require even more tax hikes to balance the budget and pay down the bill backlog. This budget puts Illinois on track for major future tax increases and will lead us to become the highest taxed state in America in the coming years.
Moreover, this budget package holds K-12 school funding across Illinois hostage to force a bailout of Chicago Public Schools. Hidden in this budget are terms that withhold school funding unless the school funding formula is rewritten to shift money from suburban and downstate school districts to CPS.
Budgets in Illinois will not be balanced or stay balanced unless our economy grows faster than our government spending. We have been ignoring that truth for 35 years. This budget package includes no changes to create jobs and grow our economy. It will push more families and businesses out of our state.
Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 42, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.
Ah, the joys of message synergy. Madigan, Madigan, Madigan. This will most definitely continue indefinitely.
* The Institute has also posted a cartoon shaming Republicans for bipartisanship…
* Press release…
State Senator Jason Barickman (R-Bloomington) released the following statement after Senate Democrats passed an unbalanced budget: “It’s extremely disappointing that after all the progress we have made in negotiations, Democrats would simply ram through an unbalanced budget that doesn’t offer any fixes or reforms for the systemic issues that continue to plague Illinois. This budget does little to nothing to pay down the massive bill backlog nor will it stop the constant exodus of people and jobs from our state. We need bipartisan solutions, not more of the same failed ideas and policies that got us here.”
The Tribune reports today that the package would allow the state to generate $8 billion, mainly from federal matches, to pay down the backlog. The rest is gonna be the governor’s problem unless another deal is cut, I suppose.
* And another…
State Senator Dan McConchie (R-Hawthorn Woods) releases the below statement following the House and Senate passing a budget plan, which includes a major tax increase:
“To say I am disappointed would be an understatement. Raising taxes and failing to address any of the fundamental issues that plague our state is detrimental to taxpayers. We’ve seen this before and it doesn’t work. This is the exact same failed approach the state took in 2011—increase taxes without addressing the underlying issues hurting our state. Continuing the mistakes of the past will not bring us a brighter future.
“This budget plan is bad for businesses and especially bad for families, and it certainly isn’t attracting people and businesses to Illinois. We had a real opportunity to come together and find bipartisan compromise. Unfortunately, today was a missed opportunity.
“Although I am saddened by the votes today, I remain committed to working to make Illinois competitive and a state that people can be proud to call home.”
* Keep in mind that these are Senate bills, so the Senate has to go first, and as of 12:01, the bills aren’t on the governor’s desk according to LIS, but Cullerton’s spokesman said a short while ago that he believed they had been delivered. The Senate Democrats told me they would send them to Rauner as soon as possible.
But, man this could be cutting it close because the markets and the ratings agencies re-open tomorrow morning…
Extra confirmation. Madigan spokesman Steve Brown says the House won't vote TODAY to override Rauner's pending vetoes of budget bills.
Speaker Michael J. Madigan issued the following statement Tuesday:
“I’m disappointed that Leader Durkin has chosen not to attend our leaders meeting for the second day in a row. Democrats are committed to working with Republicans to find common ground on the remaining non-budget issues that have long been prioritized by the other side of the aisle, but we can only do so if Republicans are willing to negotiate with us. It is my hope that Leader Durkin will return to the table to discuss the issues that he and Governor Rauner have insisted by considered alongside the state budget.”
Senate GOP Leader Brady has indicated that if Durkin doesn’t go to the meetings then he won’t go, either.
JB Pritzker released the following statement following the passage of a bipartisan state budget by the Illinois General Assembly:
“For nearly three years, Bruce Rauner has driven our state into crisis and inflicted pain on tens of thousands of Illinoisans,” said JB Pritzker. “Now, as Republicans and Democrats come together to declare enough is enough and finally pass a budget, for Bruce Rauner, not even the threat of a complete meltdown can get him to do his job.
“Bruce Rauner has no intention of letting this crisis end. As he has for 734 days, Rauner will continue using school children, college students, seniors and people with disabilities as pawns in his game to drive this state to bankruptcy and junk status. Rauner is a one track mind with a single goal of ramming through a special interest agenda that leaves most Illinoisans behind.
“Democrats and Republicans in the General Assembly did their job. And while the damage caused by Bruce Rauner can never be undone, for the sake of our children and families, I hope Governor Rauner will step up and sign the bipartisan budget plan that’s being delivered to his desk.”
So, Pritzker is openly willing to own support for a tax hike. Interesting.
* Biss campaign…
Daniel Biss released the following statement as the House and Senate reached agreement on a budget.
“The House and Senate have agreed on a budget, and sent it to Governor Rauner’s desk. This budget has support from Democrats and Republicans—it’s far from perfect, but it will open schools in the fall, fund vital social services, pay public sector employees, and put our state within the realm of financial solvency. Governor Rauner has committed to veto it.
“Rauner’s obstructionism is nothing new to Senate Democrats, or to the people of Illinois. What is new, however, is that he is losing control of his own party. In response pressure from their constituents, many of my Republican colleagues, including members of both houses, voted in favor of the budget and in defiance of Rauner. This isn’t about political parties or ideological commitments, it’s about doing what is necessary to save our state — and we will be prepared when it becomes necessary to override the Governor’s veto.”
…Adding… Press release…
Ameya Pawar, 47th Ward alderman and Democratic candidate for Illinois governor today issued the following statement in response to Gov. Bruce Rauner’s decision to veto a bipartisan and balanced budget bill that passed both chambers of the Illinois General Assembly:
“Republicans and Democrats in both houses came together this week to pass a responsible budget that protects middle class families and finally puts our state on a steady fiscal path. With his veto, the governor made very clear that he doesn’t care about the future of our state and the hard-working families that make it great.”
“Instead, he is holding our future hostage to achieve two selfish and dangerous goals: to destroy organized labor and the fundamental protections they have won for workers, and to use Chicago schools as a scapegoat now that he’s done paying to clout his own child into the public school of his choice. Today’s actions make it clear that only one person stands between a bankrupt state and a bright future. It’s time for Bruce Rauner to go.”
*** UPDATE 1*** Raw audio of Sen. Righter’s media availability thanks to our very good buddy Dave Dahl…
*** UPDATE 2*** Righter said he’s had several conversations over the past several day which helped him come to the conclusion that a “Yes” vote was the right vote…
“This state has to start balancing its budgets. That is the first and most important thing. Every dollar that we throw on to the backlog of bills is a dollar that the next generation has to pay for even though we got to spend it. That’s simply wrong.” […]
“Obviously, I am elected and work for the people of the 55th Senate District and that’s who made the call today.” […]
Righter said the impasse has been “very harmful” for EIU and the “university system as a whole.”
“In the end you vote your district, and my district told me to vote for this package.”
Asked what people should cut from their household budgets to pay for the tax hike, Righter said, “Everyone’s gotta balance their budget at home.”
Righter said he spoke to the governor’s office and Leader Brady and “both were very respectful” of how he was planning to vote.
“Today, I represented my district,” he said at the end.
[ *** End Of Update *** ]
* So, why did Republican Sen. Dale Righter break with the governor and vote for a tax hike, budget and BIMP bills? His local Eastern Illinois University president worked him…
* The Senate approved SB 9, the revenue bill, on a vote of 36-18.
Senate Republican Leader Bill Brady asked for more time to negotiate. But the bill’s sponsor, Sen. Toi Hutchinson, replied “We don’t have any more time. We know we don’t.”
“We are faced with the fierce urgency of now,” Hutchinson said. “We don’t have any more time.”
Hutchinson claimed the package before the Senate was the result of two years of bipartisan talks and a “lot of give and take.”
“It is time to be the independent legislature the framers demanded,” Hutchinson said, urging her colleagues to show they are members of a “co-equal branch,” which was a clear dig at Gov. Rauner.
…Adding… Sen. Dale Righter, a Republican, voted for the bill. Democratic Sens. Tom Cullerton and Julie Morrison voted against the tax hike.
…Adding More… Roll call…
Roll call on revenue bill in Senate. Sen. Righter, a Republican, who voted yes. pic.twitter.com/FO0m87cBAl
*** UPDATE 1 *** The Senate has approved SB 6, the omnibus appropriations bill with 39 votes. It should’ve had 40, but Sen. Martinez said her button wasn’t working. Roll call…
Republican Sens. Anderson, Fowler, McCann and Righter voted for the bill.
*** UPDATE 2 *** The budget implementation bill passed 36-17 without any debate at all.
…Adding… The Tribune’s headline writer strikes again…
* Rep. C.D. Davidsmeyer, R-Jacksonville, voted in favor of both bills. “I was concerned about the downgrade. I was concerned about the backlog of bills growing from $15 billion to $25 billion. At the end of the day, we ended up with a 4.95 (percent) income tax, as opposed to next year, where it would probably be a 5.55 income tax. I was trying to decrease the impact on my constituents.
“I’ve talked to a lot of my constituents, and after I explain, they understand. There’s a lot of people from outside of my district that are upset. I’ve had threats of hanging from a tree and things like that … just words, on Facebook.
“At the end of the day I think we can be civil and have a discussion, but I think it’s fiscally conservative to lower the amount that we’re spending currently today. We’re spending $39 billion. We’re taking it down to $36.5 billion. I think that’s a fiscally responsible thing to do.”
Their inboxes and social media feeds are jamming with hate mail, but three suburban Republicans say they wouldn’t change their votes on a state income tax increase, given what’s at stake. […]
[Rep. Mike Fortner (R-West Chicago), a former mayor, said the $36.5 billion budget proposal was less than the nearly $39 billion spent last year and included reforms such as a government consolidation bill.
“Increasing the income tax has never been my preferred option,” Fortner said. But “my balance point was reached. This was a real balanced budget, there were real reductions in spending levels, and sufficient reforms to move forward.”
Suburban Democrats who voted for the budget bill but against raising taxes included Marty Moylan of Des Plaines, Michelle Mussman of Schaumburg, and Sam Yingling of Grayslake.
Assists from the 15 Republicans gave Democrats in volatile districts leeway to defect. But Moylan and Yingling said any legislation without property tax reforms was a nonstarter.
If a property tax freeze had been included, “maybe it would have made a difference,” said Moylan, a former Des Plaines mayor. “I don’t want to raise taxes on the middle class and working class. This could hurt job creation.”
Yingling is concerned about the state’s bond rating tanking but hoped negotiations will continue between Rauner and party leaders for a resolution.
“Regressive property taxes are forcing people out of their homes,” Yingling said. “As long as they stay in place they’ll continue to struggle.”
The lone Republican to do the same thing, Rep. Dave Severin, was not asked about his votes by local media. Instead, they focused solely on his “No” vote on the tax hike.
Voters, take note: The 10 Democrats and one Republican who voted against the tax hike but in favor of spending have to be held accountable to their own endless rhetoric about the need to pass honest budgets.
Remember, Democrats control this process in both houses. They have been the party insisting for years the budget could not be balanced through spending reductions alone. Higher taxes had to be part of the equation: Illinois can’t possibly cut its way out of this mess … Until Sunday, that is, when 10 of them slithered away from their party’s long-held position.
They’re hoping you won’t notice their double talk. We hope you will. It’s called hypocrisy.
Madigan told reporters that Republican leaders skipped out on a leaders meeting on Monday afternoon but said he will continue to work with Republican leaders about changes to workers’ compensation and a property tax freeze.
While he described Republican support for the income tax as a show of resistance against Rauner, Republican leaders believe Democrats abandoned the negotiating process by moving forward with the votes. Illinois Republican Leader Jim Durkin’s office confirmed he wouldn’t attend a leaders meeting on Tuesday.
At issue are some of the requests made during negotiations. Durkin’s office contends Democrats asked for a “good faith” vote from Republicans on the spending plan, which they came through with last week, and an assurance they would help to override the governor’s veto of a bill which, in part, authorizes phone carriers to pay out 911 centers.
Both of those happened, yet Madigan — despite ongoing negotiations on reforms — moved forward with votes.
Good points. But 15 of Durkin’s own members broke ranks to support the tax hike. They clearly saw different writing on the Statehouse walls.
…Adding… From comments…
Also, the day before, when Madigan announced his plans to not hold votes on Saturday and Sunday, Durkin went to the floor to excoriate Madigan for not getting a budget package to the floor that very day. And then the House GOP applauded Durkin wildly, and one GOP member even heckled the Speaker.
So Madigan called his bluff.
Don’t gamble unless you are willing to have your bet called. Durkin has no leg to stand on here.
“We worked with Republicans today on those issues; we’ll continue to work with the Republicans on those issues until they’re resolved,” Madigan said.
Republicans appear unconvinced. Rauner spokeswoman Catherine Kelly said the speaker is “clearly trying to distract from his 32 percent permanent tax hike.” Spokeswomen for Senate Minority Leader Bill Brady and House Minority Leader Jim Durkin would not say why the two men didn’t attend Monday’s meeting, but Durkin’s office said he would not attend Tuesday. Brady’s spokeswoman indicated without all leaders attending, Brady won’t either.
The absences raised questions in Cullerton’s mind about where negotiations, particularly on the tangential Rauner demands, stand.
“We have to do something,” Cullerton said. “The House has acted but we’d prefer to do it in agreement with Republicans.”
Southern Illinois University System President Randy Dunn, according to a spokesman, called the vote by Bryant and the other 14 Republicans a “heroic stand” in the midst of a historic political standoff. Bryant said she’s also received words of encouragement and thanks from regional school superintendents, health care providers and others. […]
Southern Illinois’ economy is more vulnerable to the effects of the ongoing impasse than other regions because large percentages of people are employed by the state — at prisons, mental health facilities, and public aid, driver services and other government offices — or by entities that are directly supported by state funding, including hospitals, social service agencies, universities and community colleges and K-12 schools, she said. […]
Bryant and the others who supported the bill, “stood up not just for SIU, but the entire Southern Illinois region,” Charles added.
Dunn also thanked Rep. Brandon Phelps, D-Harrisburg, who joined with the majority of Democrats voting in favor of Senate Bill 9. The bill would raise the personal income tax from 3.75 percent to 4.95 percent, and the corporate income tax from 5.25 percent to 7 percent.
It’s about time that a university president finally stepped up on this. Their institutions are on the verge of death. They need to speak out.
Also, where’s AFSCME been? Where’s SEIU? Where are the trade unions that rely on road construction work?
The groups that are against a tax hike have ginned up an intense social media firestorm. But the groups which rely on government have stayed mostly mum.
* Both of the teachers’ unions have announced support for the tax hike, however. This is from the Illinois Federation of Teachers President Dan Montgomery…
“Last night, we breathed a sigh of relief as a bipartisan supermajority of lawmakers found a way out of our state’s two-year budget crisis. As we prepare to celebrate the 4th of July, it finally felt like we had gained independence from Governor Rauner’s political threats and radical agenda that lowers taxes on the wealthy while working families struggle.
Of course, it didn’t last long.
The Governor’s pledge to veto this strong, bipartisan agreement and worsen the damage is deplorable. Five universities have reached junk bond status. The state owes more than $1 billion to our K-12 schools and $15 billion to businesses who have provided goods and services expecting to be paid. Social services are shuttered.
But Governor Rauner couldn’t care less, because he’s never wanted resolution.
He said he would happily shut down government and create a crisis for leverage to enact his agenda. And while claiming to negotiate in good faith, he spent millions of dollars on political ads attacking those with whom he was supposed to be working.
On behalf of more than 100,000 educators, staff, and public employees across Illinois, we want to thank lawmakers for doing the right thing, particularly the fifteen House Republicans who courageously stood up to Bruce Rauner who would rather see Illinois crumble than prosper.
We urge the Senate to follow the example of their House colleagues and vote for this bipartisan revenue and spending plan, and when approved, we urge Governor Rauner to end this madness and sign the bills immediately.”
Tonight, the Illinois House of Representatives took a major step toward stabilizing the financial crisis Illinois has been in for more than two budget-less years.
We thank the members of the House for taking this step to vote on a full and balanced budget – especially those Republicans who saw the dire circumstances our education systems in this state were facing – and stepped up to support them.
We urge the Senate to concur with this budget plan and we strongly urge Gov. Bruce Rauner to sign it.
“From the preschool student learning to write his name and add his numbers to the university student planning her future career, this budget bill gives our state hope,” said IEA President Cinda Klickna.
“Education and the state of Illinois are too important to be allowed to crash and burn. Thank you for finding common ground for the good of us all.”
*** UPDATE *** Shortly after the Senate’s votes today, the U of I sent this to legislators…
We are grateful to the legislators who voted to support the budget that provides funding for the second half of FY17 and for the full year of FY18. This financial support is crucial to ensure the continued excellence of the University of Illinois System, which enrolls more than 81,000 students and plays a key role as an engine of progress for our state. We hope the lessons learned during this long and difficult impasse will help to restore long-term stability and provide predictable funding year after year so we can plan our future and expand our impact on the public good. We urge the governor to sign the legislation.
Thank you!
Jennifer M. Creasey
Director State Relations
Office of Government Relations
Statement from the office of Illinois Senate President John J. Cullerton. Please attribute to spokesman John Patterson.
The Illinois Senate will be in session Tuesday morning to vote on a balanced budget.
The Senate President attended a leaders meeting this afternoon with the expectation of finalizing an agreement on workers compensation and property tax relief legislation as part of the ongoing effort to win the governor’s signature on a balanced budget. Unfortunately, the Republican leaders skipped the meeting.
The Senate is committed to finishing the work it began in January and hopes to finally find bipartisan agreement to put an end to this chaos and restore stability to our state.
I think what you saw with Republicans engaging in bipartisan support of the [tax hike] bill, in my judgement, was a reaction to the positions adopted by Gov. Rauner; the tactics employed by Gov. Rauner and his staff over several months.
So, we have not had a normal legislative process in the Illinois legislature. There’s been an undue level of intimidation by the governor and his staff relative to people in the legislature. […]
Despite what the Tribune says about me, I only engage in persuasion. I work with my members. We thoroughly discuss these issues in our caucus. My method is to use intellectual persuasion, to persuade Democratic members and sometimes Republicans on the wisdom of a position or a vote. I don’t engage in intimidation. I don’t engage in threats. And you won’t find one member of the legislature who would ever tell you that… I’ve been here long enough to know that it doesn’t work.
“Persuasion” can sometimes be in the eye of the beholder. Also, he doesn’t have to issue threats because people already know what crossing him entails.
I will veto Mike Madigan’s permanent 32% tax hike. Illinois families don’t deserve to have more of their hard-earned money taken from them. pic.twitter.com/7F9xkl2S5X
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.
* Speaker Madigan told reporters today that he “would move to override” all three bills the House has passed over the past couple of days. Those would be the tax hike, the approp bill and the BIMP.
Those are all Senate bills, however, so the Senate Democrats would have the first crack at an override motion, and they have their own issues right now. But Madigan predicted the Senate would approve the bills.
* Madigan said he thought the two Republican leaders “should have been here” for today’s scheduled meeting of the four tops.
The House Speaker said he would schedule another meeting tomorrow at 10 o’clock in the morning..
“We’re continuing to work on what we call the ‘off-budget’ issues,” Madigan claimed. “We will continue to work with [the Republicans] until it’s resolved.”
* Senate President John Cullerton just told reporters that the two Republican leaders did not attend today’s leaders’ meeting, which had been scheduled to begin at 1 o’clock.
I told subscribers earlier today that this might happen. After yesterday’s tax hike vote, the Republican leaders wanted to avoid “negotiating the terms of their own surrender.”
Cullerton told reporters that he was still very willing to work on non-budget issues like workers’ comp and a property tax freeze. “We are still ready to move legislation regarding reforms, not just what the House has acted on, pending caucus talks,” Cullerton said.
* When asked whether he had enough Democratic votes to pass the tax hike on his own, Cullerton said he’d have to ask his caucus first, but said it would be “very difficult” to do it without GOP votes. The Senate Democrats put 32 votes on SB 9 in May, but they’ll need 36 to pass it this time around.
As I also warned subscribers, Cullerton said he had some missing members today.
Below is a statement from State Rep. Steve Andersson (R-Geneva) on his support of the budget compromise that passed the House on Sunday with bipartisan support.
Yesterday I voted to create a balanced budget for the State of Illinois for the first time in more than 2 years by voting for SB 6 and 9. In addition to reducing spending by approximately 3 billion dollars, we needed to also increase revenue, which required an income tax increase to slightly lower than what Illinoisans were paying in 2014. I did not want to vote for a tax increase, and like my fellow Illinoisans, I do not want to pay a tax increase. However, it was, at this juncture, the only viable option.
Why? Here are the realities that we faced that led us to this place:
1. If we had not acted, as the bond markets opened today, the State would be downgraded to junk status- the first time for any state in the entire country. “Junk” is more than just a clever name. With a junk rating, most institutions legally cannot buy our bonds. This makes our ability to borrow virtually non-existent which is essential to even keeping minimal state services functioning. Without funding, our universities and community college faced de-accreditation. This would gut our institutions of higher education which not only are commercial drivers in the state, supporting entire communities, but provide education and opportunities keeping our students in Illinois to help build the future of our state. Instead, those students would be uprooted in the middle of their education, and they would have to find alternatives, if that is even possible.
2. The Comptroller advises that starting in July the state’s cashflow will enter a stage where we won’t have enough money to pay our core bills (these include items such as bond interest payments, state employees’ salaries or anything else) because we will only be paying back due bills. In other words, Illinois will have no money at all for expenditures, and being in junk bond status, no ability to borrow. Further, last week a Federal Judge ordered the state to prioritize payment of back due Medicaid payments to the tune of 600 million dollars a month in addition to everything else we are required to pay. It is not an exaggeration to say that there was the very real possibility that the state of Illinois would not be able to survive this added burden.
Simply put, the state was out of money and about to actually shut down and we were out of time as key financial raters threatened to reduce the credit rating of the state as soon as Monday. Yesterday was the absolute last chance to avoid this catastrophe and absolutely, the last and final resort we had.
Of course, nobody wants a tax increase.
Some have argued to “hold out” and pass a better designed budget with just budget cuts. This would require cutting as much as 45% of anything that was “cutable”. This means police, fire protection, schools, higher education and social services. The reality is “cuts only” did not have the votes. Without the votes, even the best budget will never become a reality. And in this case those votes simply did not exist and would not exist.
So, we were left with two bad choices and only two bad choices. As your legislator, I was sent here to govern and I had to pick the least bad of the two horrible choices. I chose to save the state first and continue to fight for reforms. The other option was to me unthinkable, irresponsible, and immoral. To allow the state to fail was in my eyes, just not an option. If I allowed that to happen, the resulting damage would spell disaster for our state and be decades in the recovery, if at all.
Now as a result of this action, the State can live on. More negotiations can and are happening and we continue to have a chance to improve our state. The other choice effectively ended the State of Illinois. As my friend Rep. David Harris said, I was not elected to preside of the destruction of our great state. That was not an option for me, either - I chose survival for the State of Illinois. And I believe I made the right choice given the circumstances.
* Meanwhile, Rep. John Cavaletto (R-Salem) explained his vote for a tax hike to a local radio station…
Cavaletto said the turning point for him came when the Republican caucus was given information on the devastating impact and scary situation the state’s bond rating being reduced to junk status would have on Illinois. He questioned how the state could build itself back from the bankrupt situation and said an increase in the income tax didn’t worry him as much.
Cavaletto said you could have heard a pin drop in the Republican caucus after the presentation.
“I hate tax increases, hate them, and it will hurt small business to do this, but I also think it hurts small business when you ask them to do business with the state and then you don’t pay them,” she said. “We must have a balanced budget, and if that means that we must increase taxes right now to do it, I, like one of my other colleagues, know I’m probably going to get primaried on this,” she said, referring to the possibility of losing her seat in the next primary election.
“Do I want to raise taxes? Absolutely not. Do I think it’s the right thing to do down the road? Absolutely not. But I want you to remember what we’re doing here today. We’re paying the bills for our bad behavior, even before I came here.”
“There are a couple of organizations in the state that are extremely far right, and their preference is to burn the place down and then build it back up again, and they are never going to think it’s ok to vote for a tax increase. “
If Rauner does veto the plan, he will be able to run for re-election without the albatross of having been the Republican responsible for permanently bringing the income tax rate up from 3.75 to 4.95 percent—a 32 percent jump.
That’s only if the GA successfully overrides him (or even tries). But, yeah. I and others have been saying this for weeks and weeks. A veto override gives the governor all the benefits of the new state revenues and the anti-tax political issue.
In voting for the tax hike before Rauner’s sought-after reforms, the governor loses leverage in future negotiations.
But [Rep. Steve Andersson, R-Geneva] says Democrats still have incentive to work with Rauner on his [non-budget]wish list.
“The governor still needs to sign this,” he said. “There is a motivation to get to a ‘yes’ from him so that we don’t have to come back and override”—something there is no guarantee would succeed.
Rauner has repeatedly threatened to veto a permanent income tax hike unless it’s tied to a permanent property tax freeze, and the bill the House passed was a permanent income tax hike.
The increased likelihood that Illinois (BBB-/Watch Neg) will soon have a budget in place is a development with significant credit implications, in S&P Global Ratings’ view. Passage of tax and spending legislation by Illinois’ House of Representatives on July 2 represents a meaningful step toward the enactment of a comprehensive budget for fiscal 2018.
We had previously indicated that, in our view, because of the state’s structural deficit and the magnitude of its unpaid bills, its fiscal trajectory was unsustainable. More immediately, a recent federal court ruling (and the potential for others) compelling the state to fund more of its obligations each month threatens to provoke a liquidity crisis. The protracted failure of Illinois’ lawmakers to assert governing control over the state’s finances has, in effect, begun to directly undermine the state’s discretion over the allocation of its resources.
Enactment of a comprehensive budget with revenue and expenditure alignment could help put a halt to this erosion of the state’s sovereignty over its fiscal affairs. In this way, the legislation passed by the House could represent the first step in a stabilization of Illinois’ fiscal outlook and may lead to an easing of pressure on the state’s credit quality.
Even with a budget, however, it’s likely that Illinois’ finances would remain strained and vulnerable to unanticipated economic stress. In addition to having accumulated record amounts of payables, the state’s university system has been deprived of state funding since January 2017. If a budget is enacted, the degree to which it closes the state’s structural deficit, provides a pathway for addressing the backlog of unpaid bills, and its impact on cash flows, will be important factors in our review of its effect on Illinois’ credit quality.
Conversely, in the event progress toward a budget falters, the weakened condition of Illinois’ finances and liquidity provide it with minimal margin at its current rating level, as detailed in our June 1 CreditWatch placement statement.
* Starting right now and running through the remainder of this overtime session, I’m banning the use of exclamation points in comments. If you use an exclamation point, your comment will have to be approved manually - by me - and it will only be approved if you use it in a humorous, ironic or other acceptable manner. I’m sick of the uptick in shouting, particularly from the newbie trolls on both sides. Yeah, tensions are high, but go scream on Facebook if you feel such urges. Get it out of your system and then you can come back here.
If I could, I’d also ban the use of all capital letters, but I’m not able to do that. I’d love to ban the improper use of “your” when it’s used as a contraction of “you are.” I’d also love to ban the misspelling of “lose” as “loose,” or “ad” as “add,” or “moot” as “mute.” Alas, none of that can be done, either. But lemme tell ‘ya, that stuff drives me up a wall when I see it.
* The Question: What word or words would you like to see banned from the comment section? Explain.
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.”
* This is a huge blow to the Illinois House. Bipartisan, hard-working, tenacious and an all around good guy…
State Representative Chad Hays (R-Catlin) announced today that he will not seek reelection in 2018. He has served in the General Assembly since December of 2010 and as Assistant Minority Leader since 2013.
“Serving in the Illinois House of Representatives has been a supreme honor and a tremendous privilege,” said Hays. “I have been a passionate advocate for Vermilion and Champaign Counties and the East Central Illinois area, and sincerely appreciate the opportunity to temporarily occupy the seat representing the 104th District.”
Hays pointed to a changing political climate in Springfield as a contributing factor of his upcoming exit from State politics. “The functionality of the Illinois General Assembly today is simply untenable and counterproductive,” said Hays. “Legislators who care deeply and have the courage of their convictions and the intestinal fortitude to do what is right regardless of consequences are increasingly silenced. I believe we are in serious jeopardy of independent thought being a relic in our public discourse.”
The current dislike and distrust between the Governor and Speaker of the House has paralyzed government in Illinois. Ego, money and power eclipse the desire of well-meaning and honest public servants. Blame, press conferences and talking points have replaced governing. Voices of moderation and reason are increasingly elbowed out by well financed fringe elements.
Our State faces financial calamity due to years of spending well beyond its means and the collective inability of leaders to put petty, partisan differences aside for the common good.
The Governor’s office has struggled with identifying which fights to fight and what constitutes victory. Politics is the art of the doing the doable, particularly when you are in the minority. The pathway to success for the Administration is to seek and build upon incremental progress.
The rules of engagement in the House of Representatives are the conduit to one man unilaterally controlling the Legislative process in a total and complete end run around Democracy. The stifling nature of the House Rules render “we the people” void of a voice or even a venue from which to be heard. The House has become a remote outpost in relation to what our Founding Fathers had in mind.
There truly are legislators who care deeply, have the courage of their convictions and the intestinal fortitude to do what must be done regardless of consequences. They are increasingly silenced and dwarfed by monied bullies. We are in serious jeopardy of independent thought being a relic in our public discourse.
The functionality of the Illinois General Assembly today is simply untenable and counterproductive.
* 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.
Rep. Sue Scherer, D-Decatur, voted for the spending bill but against the tax increase legislation.
* By my count, 11 House members did the same thing. Just one was a Republican (Dave Severin). The rest were Democrats who are either considered targets or think they are…
* Rep. Scott Drury voted “Yes” on the tax hike and “No” on the spending bill. Rep. David Harris voted for the tax hike, then didn’t vote on the approp bill. Rep. Michael McAuliffe voted against the tax hike, then didn’t vote on the spending bill.
Over the weekend the State of Illinois made concrete progress on reaching an agreement to break the two-year long budget impasse, according to Fitch Ratings. The state House of Representatives passed both spending and revenue measures with some bipartisan support in special session on Sunday. The tax increase legislation, an amendment to Senate Bill 9, would permanently raise the personal income tax rate to 4.95% and make other revenue enhancements. There is also apparent accord on significant budget reductions to align spending with expected revenues. The bills now return to the state Senate for concurrence, where a super-majority vote is required to raise taxes. The governor has threatened to veto the revenue increase although there appear to be sufficient votes to override the veto
Fitch downgraded Illinois’ rating to ‘BBB’ on Feb. 1, 2017 and maintained the rating on Rating Watch Negative. At that time, Fitch indicated that the Rating Watch would be resolved within six months based on an assessment of the state’s fiscal trajectory as it starts fiscal 2018 and that failure to enact a balanced budget for fiscal 2018 would result in a further downgrade.
Fitch will continue to monitor the developments in Illinois. Enacting a budget that sets the state on a path toward budgetary balance and provides a means to address the state’s accumulated budgetary liabilities would stabilize Illinois’ Issuer Default Rating and related ratings. Temporary or partial measures, or a failure to enact a budget within the context of this session, would result in a downgrade. The continuation of spending without sufficient revenues, particularly in light of the ongoing legal challenge to the state’s prioritization of other payments ahead of Medicaid payments, will increase liquidity pressure. The state risks losing full control of its budgetary decisions, which would be inconsistent with the current rating.
