NO SURPRISE: DEADLOCKED BUDGET
It looks like no deal on a budget. Though Governor Bruce Rauner and legislative
leaders met daily this week, no agreement has been reached on either another
stop-gap budget or a more permanent “grand compromise” budget. Although the
education budget adopted in June was for the entire fiscal year, the budget for
most state services is set to expire on Dec. 31.
House Speaker Michael Madigan continues to
insist that an agreement be made on the budget alone; no reforms included. The
governor persists that no budget, at least a budget with revenue enhancements,
will be signed without some reforms that will help the state grow the economy
in future years and help middle class taxpayers. At a minimum, the governor
wants to include provisions for term limits on state legislators and a property
tax freeze.
FUTURE TAX VOTES
Members of the House of Representatives went as far as
going on record to say that they do not think a “lame-duck” legislature should
be allowed to easily raise income tax rates. Historically, big-ticket items and
“hard votes” would be addressed in the few legislative days between a General
Election and the day the election winners are sworn into office (second
Wednesday of January). With no election accountability for those legislators
who lost (or did not run for) their seat, these “lame ducks” would have more
latitude to vote yes on the controversial questions, such as an increase in the
income tax rate.
Currently,
it takes a 3/5 vote for any bill that has an immediate effective date (like a
tax increase) from June 1 until the end of the year. Starting January 1, it
goes back to a simple majority. That is why the “lame duck” sessions are held
in January.
But this
week, the House approved HJRCA 62
(Franks, D-Woodstock) to amend the State Constitution to require a 3/5 vote
until new legislators are sworn in. The resolution passed Thursday on a vote of
84-18-2, but still requires a vote in the Senate. The Senate vote could occur
in January, but any such vote in that chamber is expected to have a more
difficult chance of passage.
CHICAGO TEACHERS PENSIONS
When the education appropriations bill was approved in
June there may – or may have not – been a deal between Governor Rauner and
Chicago Democrats on appropriating funds to help Chicago Public Schools make
payments to its teachers’ pension fund. In
SB
2822 (Cullerton, D-Chicago), $215 million was appropriated for the CPS
teachers’ pension fund. The governor says it was contingent on the legislature
approving pension reform legislation before the end of the year; Senate President John Cullerton says
there was no such deal.
The bottom line is that the governor vetoed SB
2822 today, firing a giant hole in the CPS budget. The Cullerton-led Senate
promptly voted to override the veto. The House had not yet taken up a vote on
the veto override motion at the time this report was sent.
Click here to read the entire Alliance Legislative Report 99-58, including other legislation debated during the second week of veto session.
Click here to read the entire Alliance Legislative Report 99-58, including other legislation debated during the second week of veto session.