Six Weeks To Go – Legislative Session

The Illinois General Assembly returns to Springfield tomorrow, April 15th. This week both Houses will focus on legislation. The House deadline to pass bills on third reading is Friday while the Senate deadline is Thursday. In spite of not spending a great deal of time in session this spring, the legislature will be on vacation next week, not returning until April 29th. Adjournment is scheduled for May 29th, although it is doubtful that they will make that deadline again this year. Many legislators are already planning for another long summer in Springfield.

SJRCA 92 is scheduled for a hearing on Wednesday this week. This amendment would allow for a graduated income tax but does not require it, as did HJRCA 42 that was defeated in the House last week. This amendment would allow the legislature to set graduated tax rates and would have to be passed and placed on the November election ballot for approval. The earliest impact this amendment could have on State finances would be 2010.

In the meanwhile, legislators will continue to admire the same three funding options for the FY 09 budget. The “Tax Swap” plans found in HB 750 and SB 2288 would raise tax rates to fund schools and cut property tax rates. There is not much chance of these bills moving this year. Gambling expansion is still on the table but unlikely to advance to the degree that significant increases of money could be found. The Senate approved plan to allow the Governor to “sweep” $530 million in funds to reduce the $750 million shortfall is still in play and while it could help the fiscal problems of the present, is just bad policy to take designated funds in this manner. There is no doubt that the 2009 budget will be a last minute effort and focused on austerity! Perhaps the concept of a “temporary” tax rate increase such as we used back in the 1980's could help alleviate our problems. There is no doubt, as Speaker Madigan described the “civil war” underway that this will be another tough year for Illinois government agencies and families.