News Detail

Lawmakers return to Springfield January 9 with two days to conclude the work of the 99^th General Assembly prior to the new 100^th General Assembly convening on January 11.

Though it’s not known what issues may come up during the “lame duck” session January 9-10, our top priority should be passage of a full-year balanced budget containing the reforms needed to grow the state’s economy and alleviate the property tax burden on homeowners, all of which will help put Illinois on the path toward fiscal stability.

New Year demands action on budget

With the expiration of the stopgap budget on January 1, swift and decisive action is needed to ensure those who rely on state assistance continue to receive the funding they need to function.

Budget talks have been ongoing over the last several months, as legislative leaders and the Governor tried to find common ground on a budget plan and good-government reforms to create jobs, encourage greater economic investment in Illinois and re-establish fiscal solvency and stability in the state.  However, Republican leaders and the Governor have said that they will not agree to a plan that simply maintains the status quo.  Instead, they said the people of Illinois deserve a balanced budget accompanied by the structural changes necessary to address the state’s significant fiscal challenges.

Action on a fiscal package could be taken January 9-10 when the General Assembly returns to Springfield for what many call a “lame duck” session – a legislative session convened following the November election, but prior to the seating of newly elected members of the Senate and House of Representatives.

In the past, controversial legislation has been pushed through the General Assembly during this short period of time when outgoing lawmakers, who are no longer accountable to the voters, are recruited to vote on particularly sensitive issues.

At this time, it’s not certain what legislation will come before the Legislature on January 9-10; however, the focus should remain on the most pressing issue at hand – a state budget resolution.

Bipartisan legislation to save EDGE tax credits for employers

Expiration of the state’s EDGE tax credit at the end of 2016 has many lawmakers and employers calling for swift action to reinstate the program, which supporters claim has created 34,000 jobs and retained an additional 46,000 jobs in Illinois since the program was created in 1999.

Bipartisan legislation has been filed (Senate Bill 3459) to create the Transforming, Helping, and Reviving Illinois’ Versatile Economy (THRIVE) Job Creation Tax Credit Act, which would revive key components of, and improve upon, the state’s EDGE tax credit program.

Under the legislation, companies would receive credit for 50 percent of the Illinois withholding attributable to created jobs.  The credit would offset the corporate income tax for that year.

Furthermore, companies must create 10 percent of the current global workforce or 50 new jobs, whichever is less.  They must also have a capital investment of $2.5 million at the project location in the state unless the company employs fewer than 100 employees.

Proponents of the legislation say that the state’s economy relies on its ability to create and maintain jobs.  The incentives provide employers with a reason to stay in Illinois instead of continuing to move in record numbers to neighboring states.

We have a well-trained workforce, some of the best Universities in the world, some of the best farm land in the world, one of the best tourist draws (Chicago); and we are a transportation hub for the country.  But the politicians in Springfield—led by House Speaker Michael J. Madigan—keep screwing up our state, resulting in a pension system with the largest unfunded liability in the country, one of the highest overall tax burdens and $11 billion in unpaid bills causing an exodus of jobs, businesses and people from Illinois.

THIS MUST STOP.  We must get the common-sense reforms proposed by the Governor like workers’ comp reform, term limits, property tax relief, redistricting reform, and pension reform.  Without such reforms, programs like THRIVE will only slow the exodus.  With the reforms, we will send a strong message that entrepreneurs and businesses are welcome in Illinois.  We could probably even withstand a temporary tax increase to pay off our unpaid bills and stabilize our state.  If politicians like Speaker Madigan cared more about the future of our state than political power or money, we could reach a successful, bipartisan budget agreement.