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*** UPDATED x5 - Vertical capital, horizontal capital, gaming bill, budget surface *** Gaming, capital and the budget all await action

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*** UPDATE 1 *** The operating budget bill has surfaced. Click here.

The operating budget will begin in the House and the capital budget will start in the Senate.

*** UPDATE 2 *** The gaming/sports betting bill has been filed. Click here to read it. Click here to read a summary. It’ll be heard today at 1:30 in House Exec.

*** UPDATE 3 *** The horizontal capital bill is here.

*** UPDATE 4 *** From the Journey to the Center of the Square outfit

A source with knowledge of the spending plan in SB262 said it increases funding for K-12 education to $375 million, which is $25 million more than is required by the evidence-based funding formula lawmakers implemented several years ago.

Early childhood education will get a $50 million increase, the source said. For higher education, including community colleges, there are increases ranging from 3 to 9 percent above the current fiscal year.

The spending plan includes a 9 percent increase for the Department on Aging, a 10 percent increase for the Department of Children and Family Services, a 10 percent increase for public health programs that focus on breast cancer screening, vaccines and immunizations, lead screening and safety net hospitals.

The Illinois Department of Corrections would get 7.4 percent more to help comply with various consent decrees.

The Illinois Department of Transportation would get a 20 percent increase from the current fiscal year to increase its headcount and administer capital projects.

*** UPDATE 5 *** The vertical capital bill is here.

[ *** End Of Updates *** ]

* Mark Brown

Chicago would get a new mega-casino with the proceeds earmarked to pay for police and fire pensions under a mammoth gambling expansion deal in the final stages of negotiation, a key legislator said Thursday.

State Sen. Terry Link, D-Vernon Hills, the Senate sponsor of the bill, said the Chicago casino would allow for 4,000 gaming positions, making it more than three times larger than any casino currently operating in Illinois.

Link said it would be part of a broader deal creating six new casinos across the state and bringing slot machines to three horse racing tracks, essentially turning them into casinos as well.

In addition, the nearly 7,000 businesses that offer video gambling would be allowed to add one machine per establishment — in itself the equivalent of almost six more casinos.

The Chicago casino would not be city-owned, the oft-stated preference of previous mayors, but the city would get a better deal than other municipalities that host casinos, receiving 33 percent of the adjusted gross receipts, Link said. Other communities only get 5 percent.

* From that Journey to the Center of the Square site

Big items left unresolved late Thursday included how to pay for a proposed $41 billion, six-year infrastructure plan. State Sen. Martin Sandoval, D-Chicago, said he wasn’t ready to reveal details about how it would be funded. However, he said that motorists can expect to see the state’s gas tax double.

“There’s full agreement the 19 cent gas tax indexed is part of the revenue stream that is needed,” Sandoval said. […]

State Sen. Jim Oberweis, R-Sugar Grove, said he was told a proposed $1 surcharge on ride-sharing services was nixed. Oberweis also said one plan to fund the state budget may have been dropped.

“No bag tax at this point, so a few of these things are supposed, but you know the problem is by [Friday] these things could change,” Oberweis said.

I kid that company and its constantly changing name, but they do have some good reporters and they put out a lot of content.

* WTTW

Key budget negotiators say the fiscal year 2020 spending plan, which will take effect July 1, is not banking on the passage of gambling; revenues would instead be key to a large capital program.

Nor, they say, does the budget depend on Illinois legalizing marijuana, though that is close to passage: Late Thursday night a House committee advanced a broad package that would allow Illinois residents ages 21 and older to purchase and possess up to 30 grams of marijuana come January.

* The working group meetings that have been tackling these issues have become secret committee hearings and it’s getting to be a bit much

Gov. J.B. Pritzker is counting on a host of new revenue streams to fund the budget he proposed to the General Assembly. Those include higher taxes on cigarettes and other tobacco products, higher taxes on video gambling machines, a new plastic shopping bag tax, and a new assessment on managed care organizations that manage the state’s Medicaid program.

But as lawmakers head into the final scheduled day of the 2019 spring session today, none of those bills has been passed. In fact, no one outside the General Assembly has even seen a final draft of them.

Nor, in fact, have they seen a final version of a budget bill, the multi-year capital improvements plan or a gaming bill that would include the legalized sports betting that Pritzker has proposed.

“Stay tuned tomorrow,” Rep. Mike Zalewski, D-Riverside, chairman of the House Revenue and Finance Committee, said in an interview late Thursday evening.

Private negotiations are essential to legislating. The working groups go way beyond that, however.

posted by Rich Miller
Friday, May 31, 19 @ 10:06 am

Comments

  1. Tiny state income tax cut for the middle class will be eaten up by a higher gas tax at the pump. Government sure is expensive in Illinois.

    Comment by Steve Friday, May 31, 19 @ 10:14 am

  2. The General Assembly loves the Open Meetings Act, except when it applies to their own behavior.

    Comment by Just Me Friday, May 31, 19 @ 10:14 am

  3. “Working groups” and “secret committee hearings” — does that mean Republican legislators are actively engaged in the negotiating and drafting processes?

    Comment by wordslinger Friday, May 31, 19 @ 10:17 am

  4. “Tiny state income tax cut for the middle class will be eaten up by a higher gas tax at the pump.”

    Citation needed.

    – MrJM

    Comment by @misterjayem Friday, May 31, 19 @ 10:17 am

  5. Any Chicago casino needs to be mega, or it doesn’t make sense. Glad the city doesn’t own it or that would guarantee poor execution. Also great to see race tracks get a piece of the action. Let them have a sports book as well as slots and you can save those facilities from certain extinction.

    Comment by SSL Friday, May 31, 19 @ 10:20 am

  6. Given the budget and omnibus Bill’s haven’t even had a first reading as of today, is it still possible to get them passed before midnight tonight? I did try the Google but couldn’t find a definitive answer.

    Comment by Fixer Friday, May 31, 19 @ 10:25 am

  7. * From that Journey to the Center of the Square site…” Ruth Buzzy chief navigator

    Comment by Annonin' Friday, May 31, 19 @ 10:33 am

  8. Mr/Ms Fixer
    likely those matters will be an amendment to a bill in the second chamber –bang bang

    Comment by Annonin' Friday, May 31, 19 @ 10:34 am

  9. ===Citation needed.===

    A filer who makes $75k in taxable income (so after personal exemptions, deductions, etc.) would save about $85 under the proposed tax rates. An average driver would need to purchase about 450 gallons of gas in a year to reach $85 in gas taxes paid, assuming the gas tax doubles to $0.38/gallon.

    US Energy Information Administration data says that the average American driving a light-duty vehicle with a short wheelbase (e.g. most passenger vehicles) consumes 475 gallons of gasoline a year.

    So yeah, the gas tax would probably cost a middle class taxpayer more than they get back from the income tax.

    Comment by OutOfState Friday, May 31, 19 @ 10:39 am

  10. ==Tiny state income tax cut for the middle class will be eaten up by a higher gas tax at the pump.==

    But, as an added bonus, we get bridges that don’t collapse.

    Government gets more expensive the more we put things off. If we’d done a cap bill four years ago, probably could have raised the gas tax less.

    Comment by lakeside Friday, May 31, 19 @ 10:47 am

  11. For those complaining about taxes, how do you think that roads, bridges, mass transit, and schools get built? Would you prefer to all of these assets be deprived of investment and be allowed to continue to decay? If not a tax on fuel, how would you pay for it? My god, I look around at what has been done in the past — vast highway systems, mass transit to include above and below ground, municipal buildings — how could we get that done today when every joe thinks that every penny he earns belongs in his pocket. Even worse, if every Joe (or Steve for purposes of this post), really understand how these things get done, but still complain and criticize the system, aren’t they the problem? Aren’t they compounding the problems we face today with people’s lost faith in government? We need a capital bill. We need roads and we need the people who build them to have work so they can support their families and pay taxes. Enough with the whiners. If we listen to them nothing gets done.

    Comment by Threat level midnight Friday, May 31, 19 @ 10:48 am

  12. I’d just like to state for the record, that I support the suite of tax increases/changes for improving Illinois. I simply wanted to provide evidence for the claim that the gas tax will wash out any income tax savings.

    Comment by OutOfState Friday, May 31, 19 @ 10:52 am

  13. –”So yeah, the gas tax would probably cost a middle class taxpayer more than they get back from the income tax.” –
    Generally speaking, the math sounds right, but the math completely gives $-0- dollars value to what the increased taxes will provide for the middle class guy at the pump. $41 Billion transportation/infrastructure program for six years!! That’s alot of asphalt and concrete and job!
    The resistance has predicated its political attacks on increasing taxes and only receiving less services (to compensate for decades of PAST financial shenanigans and pension deferments. The bill is now due.)
    This increase in the fuel taxes is part of a bigger realignment with financial realities and fact based needs!!!
    Haven’t you hit any potholes lately?

    Comment by northernwatersports Friday, May 31, 19 @ 10:53 am

  14. If a bunch of Chicagoans wake up tomorrow and most learn for the first time that the state legislature just approved a massive casino, there’s been a democratic error. It’s not all on the legislators; it’s also the breakdown of local news. Anyways, it’s not good.

    Comment by ZC Friday, May 31, 19 @ 10:55 am

  15. –”I’d just like to state for the record…”–
    Evidence stipulated and accurate. Fair. Much appreciated.
    My earlier comment…./s

    Comment by northernwatersports Friday, May 31, 19 @ 10:56 am

  16. Yes government is expensive, and it costs money to build and maintain infrastructure. But we already have a high total tax burden in this state, and once all the new revenues are put into place, Illinois will lead the league in some key categories. What you call whining is actually some people requesting a fair return on their tax investment.

    Comment by SSL Friday, May 31, 19 @ 11:01 am

  17. == What you call whining is actually some people requesting a fair return on their tax investment. ==

    1) you got it when the taxes stayed artificially low since 1975

    2) recovering from the deliberate waste, destruction and debt of the Rauner years will cost money that could have been used to better deliver services

    Comment by RNUG Friday, May 31, 19 @ 11:34 am

  18. I assume you mean income taxes, since Illinois has had high sales, gas and property taxes for some time now. And for that we have the largest unfunded pension deficit in the nation, by a wide margin. And that was before Rauner took office. But I get your point.

    Comment by SSL Friday, May 31, 19 @ 11:43 am

  19. –=If a bunch of Chicagoans wake up tomorrow and most learn for the first time that the state legislature just approved a massive casino, there’s been a democratic error. It’s not all on the legislators; it’s also the breakdown of local news. Anyways, it’s not good.=–

    One of the odd side effects of representative democracy is that huge chunks of negotiations happen without public input, and people don’t get to vote directly on most issues, including major issues that impact them.

    That being said, if the final gaming bill looks anything like current law, the City of Chicago will still have huge sway over any proposed casino. Even if state gaming law allows it, Chicago can absolutely shut it down through zoning and the like. The municipalities have always had huge influence on gaming. Look at the deal Rivers made to get licensed, or the many towns opting out or adding their own licensing requirements for the video gambling.

    Comment by Chip Friday, May 31, 19 @ 11:44 am

  20. What happened to RHA in the Senate?

    Comment by Honeybear Friday, May 31, 19 @ 11:55 am

  21. Do we have a total dollar amount on the budget yet & how it stacks up to projected revenues?

    Comment by 62656 Friday, May 31, 19 @ 12:03 pm

  22. =Illinois has had high sales, gas and property taxes for some time now. And for that we have the largest unfunded pension deficit in the nation, by a wide margin.=

    And which of these taxes are intended to cover the state’s pension obligation?

    Comment by Pundent Friday, May 31, 19 @ 12:21 pm

  23. Points to ponder:

    1)Chicago casino. “The Chicago casino would not be city-owned, the oft-stated preference of previous mayors, but the city would get a better deal than other municipalities that host casinos, receiving 33 percent of the adjusted gross receipts, Link said. Other communities only get 5 percent.” Why should Chicago get so much again?? The “better deal” is another example of why some people can’t stand the State of Chicago. The other communities deserve the same deal.

    Threat level midnight is right about paying for infrastructure through taxes. The problem is that the public generally has zero desire to pay for their own voting sins, far less sins of the past, especially when they are paying 2019 bills with 1970’s wages (real wages have not kept pace with inflation).

    Comment by revvedup Friday, May 31, 19 @ 12:40 pm

  24. Looks like the operating budget has had $50M slashed from the Early Childhood budget, relative to the Gov’s initial proposal of an additional $100M statewide. Not a great look, given his background and his campaign pledge of statewide universal Pre-K.

    Comment by sweedee Friday, May 31, 19 @ 12:52 pm

  25. Rich How about a few more tollways…Rauner took I-80 past Joliet so take it to the big river. Make I-55 toll to St L and the bridge they just built a toll. That Blogo was a dumb guy.

    Comment by Anonymous Friday, May 31, 19 @ 12:53 pm

  26. Pundent, do you disagree that property taxes are high due to the state failing to fund education in any meaningful way? And since the state doesn’t fund education, they should be funding the pensions at a much higher level. But they haven’t, so we have high taxes and a worst in the nation unfunded pension obligation.

    Illinois has been poorly served by elected officials on both sides of the aisle for decades. The population of the state is stagnant at best. The proposed “fair tax” barely addresses the structural deficit, meaning at some point JB will have to propose an “unfair tax”, or a permanent moratorium on pension funding. Since the latter is not an option, guess what’s next.

    Comment by SSL Friday, May 31, 19 @ 12:54 pm

  27. Is Rockford still part of the casino expansion? Because Wisconsin’s lining things up to drop a Ho-Chunk in Beloit, and it’s hard to think of an area that could use two casinos less.

    Comment by Roadrager Friday, May 31, 19 @ 1:17 pm

  28. –EDIT– Serves me right for not reading the summary at the top. It is, and that’s bad news for a vulnerable population.

    Comment by Roadrager Friday, May 31, 19 @ 1:18 pm

  29. I question the propriety of having the Williamson County casino specifically limited to one developer. Shouldn’t competing applicants be welcomed as in the other locations? Yes, the Walker’s Bluff folks have done a lot of work on this but their proposal should stand on its merits against any others.

    Comment by dr. reason a. goodwin Friday, May 31, 19 @ 1:49 pm

  30. - Annonin’ - Friday, May 31, 19 @ 10:33 am:

    * From that Journey to the Center of the Square site…” Ruth Buzzy chief navigator
    —————–

    Is that website in memory of Paul Lynde?

    Comment by Leatherneck Friday, May 31, 19 @ 2:27 pm

  31. I can’t wait to see where they decide to put that casino in Chicago.

    Comment by Almost the weekend Friday, May 31, 19 @ 2:39 pm

  32. The city didn’t build Marriott a free hotel because they expected it to be filled with DePaul fans.

    Comment by Roadrager Friday, May 31, 19 @ 2:43 pm

  33. ===Is Rockford still part of the casino expansion?===
    yes

    Comment by Been There Friday, May 31, 19 @ 4:47 pm

  34. Can’t spend at the rate the “Once Great State” has for the past 15 years and not expect the chickens to come home to roost. Price of pretty much everything going up. The minimal tax cut is a sham as will be the property tax “relief” under the impending Con Amend. It wont support education because the inconsistency of funding.

    Comment by theCardinal Friday, May 31, 19 @ 6:21 pm

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