Week of May 21, 2007
Most of the discussions in Springfield this past week centered around the realization that now that the Governor’s Gross receipts tax (GRT) has been defeated, a budget still must be crafted within the next couple of weeks to avoid an overtime session of the General Assembly. The scheduled adjournment date for the spring session is May 31st. It is significant to note that after that date, it will take a super-majority rather than a simple majority in order to pass a budget for FY08. The Democratic Party holds a simple majority (66 of the 118 seats) in the House and a super-majority (37 of the 59 seats) in the Senate. So, if the Democrats can agree on a budget prior to May 31st, that budget can pass without a single Republican vote. That is what has happened the past two years, Republicans simply refused to vote for a budget that relied on revenue sources like raiding dedicated funds, borrowing money and raiding the state pension funds. Those budgets were passed with all Democrat votes.
After May 31st, it takes seventy-one House votes in order to pass a budget. Since the Democrats have only sixty-six votes in the House, the fact that they have a super-majority in the Senate is of little consequence during overtime sessions. What this means is that if the Democrats are going to raise significant revenue through an income or sales tax increase, they will have to find at least sixty votes for that proposition prior to June 1st. Add to this the fact that the Governor has already pledged to veto any increase in income or sales tax and one can safely assume that Democratic Speaker of the House, Michael Madigan has to find seventy-one votes to ensure that a veto-proof majority is on board with any budget that increases income or sales tax.
It is not likely that the Speaker will be able to find sixty House Democrats willing to vote for a budget that includes an income or sales tax increase let alone finding additional votes on the other side of the aisle to get the seventy-one votes necessary to override the Governor’s promised veto. With record increases in gas prices, and the fact that Senate President Jones has blocked all attempts to roll back electric rates, the people of this state cannot be asked to provide the state with more money via a tax increase.
A couple of months ago, the idea of education funding reform coupled with some important accountability measures being passed was something that many in the General Assembly wanted to pursue. There were those interested in making sure that every person in Illinois had access to affordable health care and coverage. The Governor supported these concepts. I said all along that his goals were laudable, but I also said that the GRT was the worst possible way to fund these goals. Those two goals are now in serious jeopardy because we have not been able to confront the rising costs of energy and neither our State or Federal governments have taken the necessary steps to end the corporate greed which allows for record increases in electric rates and gas prices. We have not pursued a national energy policy that supports ethanol production to the level that we could. Even in Illinois, an agricultural state that would benefit greatly from making ethanol a first choice in fuel, there are still very few service stations that provide E-85 as a pump choice. Have you ever asked yourself why?
The resources that could have provided school funding reform and accountability, and possibly provide health care options for all citizens in Illinois are being consumed by record increases in energy costs. Our citizens cannot be asked to pay these costs and provide more money for health care and education. There are only so many resources that people have, and right now, most of those resources are being eaten up by energy costs while the entities providing the energy are making record profits! While officials in Springfield talk about taxing the people or imposing a GRT on all receipts no matter if the business or entity makes a profit, energy interests are laughing all the way to the bank as their profits soar. Shame on us for allowing this to happen. There should not be a single vote taken on any piece of legislation (barring a true emergency) until the electric rate issue is solved.
Unfortunately, that will likely not happen. In fact, it is possible that the General Assembly will act on matters like SB1007 while the air conditioners kick on and electric companies make even more money. SB 1007 is another attempt to restrict 2nd Amendment Rights that I will oppose. We will also likely discuss and debate a number of other measures that will impose new unfunded mandates on counties, municipalities and school districts.
I have introduced two pieces of legislation (HB4097 and HB4098) to suspend the six and a quarter percent sales tax on gasoline starting July 1st in order to provide at least some relief for consumers from the increases in gasoline prices. That Bill is bottled up in Rules Committee, not deemed by Speaker Madigan to be vital enough to the people to be enacted or even debated I suppose. However, HB920 did pass last week (99-17) and you will be happy to know that Illinois will provide tax credits for the Hollywood film industry if movies are made here in Illinois. I voted NO. When citizens in Illinois are paying record energy costs, Hollywood can wait for their tax credits! Maybe they will figure it out too when they pay these high rates for the air conditioning in the stars’ dressing rooms this summer.
Talk in Springfield has also occasionally turned to the possibility of passing
a “no-growth” budget. The term “no-growth budget” is
a bit misleading. Illinois expects about $900 million in natural revenue growth
in the next fiscal year. It is true that much of that increase will be eaten
up by payments necessary to pay off debt related to record borrowing and about
$550 million will go to make up for skipping the last two years’ pension
payments. Under this scenario there would be very little to spend on new programs.
Education would get some new money though, likely for the foundation level and
special education costs. At this point, this seems like the most reasonable
approach.
You can listen to the GRT hearing live at www.ilga.gov. Let me know what you are thinking.
E-mail me at (reddyunit1@aol.com); write
to me at Box 125, Hutsonville, IL 62433 or call us at 618-563-4128. You
can also keep up with important issues at my web site (now with audio clips)
- www.peopleforeddy.com