Illinois’ legislative leaders and the Governor are set to meet December 1 to talk about the state budget impasse, but several factors could delay action on passing a budget until early next year.
In other news, the state’s ranking has improved in an annual assessment of how states’ tax structures impact businesses climates.
Factors may further delay budget resolution
With Illinois’ budget impasse about to enter its sixth month, a budget meeting between the four legislative leaders and Governor Bruce Rauner is set to take place December 1 in Springfield.
In addition to the challenges of coming to an agreement on spending and revenue levels for Fiscal Year 2016, there is also the difficult task of getting lawmakers back to Springfield during the holiday season, as well as getting the support of individual lawmakers who are concerned about constituent backlash over tough fiscal decisions.
Waiting another month, however, would ease the pressure to forge a compromise. Illinois’ Constitution states that after May 31, a three-fifths vote, not a simple majority vote, is required in both chambers to pass a bill that will take effect prior to July 1 of the next year. In January, a budget agreement would require fewer votes, a simple majority – 60 in the House and 30 in the Senate.
The Democrat legislative majorities need to negotiate in good faith, so Illinois can achieve progress on structural reforms necessary to right the state’s fiscal ship, create jobs, boost the economy, and move Illinois forward.
Illinois’ tax ranking improves, but reforms needed
The Tax Foundation is giving Illinois a better ranking this year in its assessment of how states’ tax structures impact business climates. Illinois moved up from 31st to 23rd this year because the state’s temporary income tax hike was allowed to expire after four years.
In January 2011, Democrat leaders forced through a temporary hike in the individual and corporate income tax rates. The temporary increase was supposed to be used to address the state’s pension crisis and Illinois’ staggering pile of unpaid bills.
The increase generated more than $32 billion over the four-year period, but under Democrat control during that time, the state’s fiscal problems remained. Today, the state’s pension debt is $132 billion, the credit rating has been downgraded several times, and unpaid bills are estimated at more than $7 billion (expected to grow to $8.5 billion by the end of the year).
The combined corporate income tax rate now stands at 7.75 percent, and the individual income tax is 3.75 percent.
The key to boosting revenue in the state is making structural reforms to state government and creating a better business climate so more jobs are created and the state’s economy moves forward.
Attorney General releases Safe Shopping Guide
The Attorney General’s office has released its annual Safe Shopping Guide highlighting hazardous toys, children’s products and household items that have been recalled over the past year to help families ensure their home is safe for the holidays.
The 2015 Safe Shopping Guide includes descriptions and photographs of nearly 100 children’s products recalled in the last year – from popular children’s toys and games that pose choking hazards, to children’s furniture and playsets that pose entrapment or falling risks.
The Guide also details practices that should be used with many popular holiday gifts with Internet access, including smartphones, gaming consoles, and tablets.