Governor Rauner Offers Budget Blueprint - This week, Governor Bruce Rauner delivered a dose of tough medicine to a joint session of the General Assembly when he gave his inaugural budget address that cuts spending by $6.2 billion from last year’s budget that totaled more than $38 billion. Under the new budget blueprint, Illinois will have $32 billion in tax revenue to spend next year largely as the result of the reduction in income tax rates that occurred when the temporary income tax expired at the end of 2014. While critics chafed at reductions to spending cuts in nearly every state agency, it’s important to recognize that this is the first volley in the annual budget battle.
Governor Bruce Rauner Delivers State of the State Address - In his first major address before a joint session of the General Assembly, newly inaugurated Governor Bruce Rauner laid out a bold and comprehensive plan to create an “Illinois turnaround.” Key themes of the half-hour speech included working together with the legislature in a bipartisan fashion to create jobs, provide property tax relief, empower voters and invest in education and workforce development.
Departing General Assembly Gives Asbestos Gift To Trial Bar - In less than a week, the General Assembly introduced and passed legislation on partisan roll call votes in the House of Representatives and Senate that eliminates the ten-year statute of repose for asbestos court cases. An initiative of the Illinois Trial Lawyers Association, SB 2221 eliminates the current statute of repose meaning that there is no time limit by which individuals must discover that they have mesothelioma caused by asbestos. Once an individual determines that they have this disease, they still must abide by the four-year statute of limitations for filing a lawsuit.
IMA Annual Luncheon Featuring UI Manufacturing Lab Leader - In two weeks, hundreds of manufacturing leaders from across Illinois will gather in Chicago on Friday, December 5 for the IMA’s Annual Luncheon, our premiere event of the year. We are extremely pleased that Caralynn Nowinski, executive director of UI Labs that includes the $320 million Digital Manufacturing and Design Innovation Institute, will be the keynote speaker at the event.
JCAR Delays Vote on Hydraulic Fracturing Rules - For the second time in a month, members of the Joint Committee on Administrative Rules (JCAR) unanimously voted to delay a final vote on administrative rules while negotiations continue. It has been 487 days since Governor Quinn signed the Hydraulic Fracturing Regulatory Act into law after overwhelming passage by the General Assembly.
Tax & Budget Debate Continues - With less than ten days remaining in the spring legislative session, the House and Senate appear to remain far apart on passage of a state budget. As the IMA reported last week, the House of Representatives passed a $38 billion budget late last week that presumed revenue from making the temporary income tax hike permanent. Following passage, the House used a parliamentary procedure to keep the bills in the chamber pending discussions on the tax extension.
Gubernatorial Candidates Headline 2014 Business Day - Governor Patrick Quinn and Republican Bruce Rauner who are squaring off in the November election treated manufacturers attending the IMA’s annual Business Day to a riveting luncheon program featuring spirited remarks. More than three hundred manufacturing leaders and members of the Illinois Retail Merchants Association traveled to the State Capitol to meet with lawmakers to discuss key issues of the day including tax policy, minimum wage, and government regulations.
Progressive Tax Fails to Advance, Permanent Tax Hike on Table - With the clock counting down, Senator Pro Tempore Don Harmon (D-Oak Park) pulled the plug and did not call SJRCA 40 for a vote this week that would have created a graduated income tax in Illinois. State law requires proposed constitutional amendments to pass the General Assembly six months prior to the election meaning lawmakers needed to act by May 5 in order to meet the deadline. With the General Assembly failing to act this week, Illinois voters will not face a graduated income tax in the November election.
Senate Moves Forward on Graduated Income Tax
Less than a week after Speaker Michael J. Madigan introduced and moved forward with a new graduated tax on “millionaires” the Senate responded with their own graduated income tax proposal. Sponsored by President Pro Tempore Senator Don Harmon (D-Oak Park), SJRCA 40 as amended provides that “there may be a fair tax where lower rates apply to lower income levels and higher rates apply to higher income levels.” The IMA strongly opposes the imposition of a graduated tax that violates the basic tenets (broad-based and low rates) of a good tax system and penalizes successful job creators.
Governor Quinn Unveils Budget Blueprint - Six weeks after it was originally scheduled, Governor Pat Quinn addressed a joint session of the General Assembly to provide his blueprint for a new FY15 state budget totaling $38.6 billion. The new budget, if approved by the General Assembly, would represent an increase of nearly $1.8 billion in spending over the FY14 expenditures that totaled $36.6 billion. Funding for the new state budget is premised on Governor Quinn’s public desire to make the “temporary” income tax hike permanent.