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 in maintaining 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 hard 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, the requirement for adoption
goes back to a simple majority. That is why the “lame duck” sessions are held
in January.
But
this week, HJRCA
62 (Franks, D-Woodstock) was approved to amend the State Constitution
to require a 3/5 vote until new legislators are sworn in. The resolution passed Thursday, Dec. 1 on a vote of 84-18-2, but still requires a vote in the Senate.
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. It is still unknown when/if the House will
act on the override.
THE USUAL FLURRY OF
LAST-MINUTE ACTION
As usual, bills and ideas that have sat
idle for the past year suddenly needed urgent attention. Bills designed to
allow two nuclear power plants to remain open, appropriate funds for the
Chicago Public Schools teacher pension fund, and test for lead in school
drinking water have all been under consideration in the Capitol.