Next session dates: House & Senate in continuous session
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This week...
The beat goes on
As the temporary 30-day state budget expired at the end of July, legislators continued to huddle in Springfield trying to craft the FY08 budget. In an effort to reach consensus, the four legislative leaders have been meeting without Governor Blagojevich who remains adamant that any budget sent him contain his proposals for several billions of dollars in new spending for education, universal health care and pension reforms. Despite strong opposition in the House and Senate, the Governor seems unwilling to compromise with the legislature over his plans to impose billions of dollars in new taxes on employers to pay for his massive proposals.
During the record overtime session, the Governor has continued to use his executive authority to call the General Assembly into "special sessions" that allow legislators to receive a per diem payment and be reimbursed for travel costs. According to a legislative analysis provided by the Senate Republican Caucus, the special sessions have cost taxpayers nearly $1 million.
Legislators continue to wrangle over increased funding for education while trying to pass the first capital spending bill in five years to fund improvements in schools, roads, and bridges. As part of the budget process, a number of possible revenue sources have been floated including a potential cigarette tax increase, sweeping revenue from dedicated funds, and most recently, an expansion of gambling that includes a new casino in Chicago.
In all likelihood, the four leaders and General Assembly will continue meeting over the weekend to come up with a final budget for the year.
Concern about government shutdown
The State of Illinois is completing its first week without spending authority for the fiscal year that began July 1 and many interest groups, who represent various segments of our society, are beginning to express worry that the Governor could choose to shut down government and its vital public services. In fact, according to Thursday's State Journal-Register, the Governor has already told legislative leaders that if they pass a budget that's unacceptable to him, it will force a government shutdown.
While Governor Blagojevich has not participated in budget negotiations with the four legislative leaders in more than a week, he has publicly reiterated his insistence that the General Assembly approve his budget proposals.
According to many press reports, the Governor says he is "not in a hurry to resolve the budget dispute, even if it takes a couple more months." Later, he stated that there is nothing wrong with state officials taking a full 12 months to get the budget passed.
Cook County property tax shift to be considered
It is widely expected that another version of the so-called "7 Percent Solution" will be considered next week in the General Assembly in an effort to limit property tax increases for residential homeowners at the expense of commercial and industrial taxpayers. Under the plan, property tax assessments for residential homeowners will be artificially capped for three years during which time it will slowly be phased out. Unfortunately, given the voracious appetite of taxing districts (schools, cities, etc), the tax burden will be shifted onto businesses to make up the difference in revenue. According to the study by the University of Illinois, the previous three-year "7 percent solution" pilot program resulted in a tax shift of nearly $187 million annually from homeowners to employers.
The latest version, apparently agreed upon by leaders in the House and Senate, will be amended on to HB 664, an omnibus property tax bill, in the Senate Revenue Committee on Monday. The IMA opposes this measure and will fight for fairness in the Cook County tax system.
Sieben, Krause and LaHood announce retirements
Early this week, three more Republicans announced their retirement after years of public service.
Longtime State Senator Todd Sieben (R-Geneseo) who began serving in the Illinois House in 1987 before moving to the State Senate in 1993 will not seek reelection in 2008. Sieben, a true gentleman who is widely respected on both sides of the aisle, has long been a leader on agricultural policy. As Assistant Minority Leader, Sieben has been closely involved in crafting strategy and policy positions for the Senate Republican caucus. Sen. Sieben has been a great friend to the manufacturing community and his wisdom and civility will be missed at the Capitol.
Representative Carolyn Krause (R-Mt. Prospect) was first elected to the Illinois House of Representatives after spending 12 years as the mayor of Mt. Prospect. Krause represented the 66th District that included parts of Mt. Prospect, Elk Grove Village, Arlington Heights, Des Plaines, Rolling Meadows, and Schaumberg. Krause, a respected member of House leadership and recognized health care expert, is to be commended for her service.
Known for his civility, Congressman Ray LaHood (R-Peoria) announced that he will not seek reelection next year. Prior to being elected to Congress in 1994, LaHood served as chief of staff to House Minority Leader Bob Michel before following in his mentor's footsteps. LaHood was a member of the Appropriations Committee and House Select Intelligence Oversight Panel during his tenure and a strong advocate for the business community.
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