Shortly after the vote, Rauner declared in a statement that he would "veto (House Speaker) Mike Madigan's permanent 32 percent tax hike". It's the longest any state has gone without a budget since the Great Depression. Today, Springfield has chose to give the people of IL the largest tax hike in history and continue out of balance budgets with no real reform.
Democrats said that negotiations continue with the GOP over Rauner's demands, including the statewide property tax freeze, cost-cutting measures to the workers' compensation program for injured employees and cuts to pension benefits to reduce a ballooning deficit.
The tax hike the most significant part of a spending deal that lawmakers hope will enable the state to resume paying its bills and stave off a looming credit downgrade to junk.
Lawmakers approved a $36 billion spending plan after the tax increase by a 81-34 vote.
But Andersson says Democrats still have incentive to work with Rauner on his wish list.
The House voted 72-45 Sunday on a 32 percent increase in the personal income tax rate. Corporations would pay 7 percent instead of 5.25 percent.
The Senate must first pass Senate Bill 9 before Rauner is to get that chance.
The measure sponsored by Harrisburg Democratic Rep. Brandon Phelps increases the telephone surcharge for emergency services. Such a downgrade would worsen Illinois's financial straits by likely increasing interest rates on all future borrowings. The plan will need another vote for final House approval.
The debate comes after two long years of stalemate over taxes and spending in IL government.
Yields on the state's 10-year bonds have soared to 4.8 percent, 2.8 percentage points more than those of benchmark debt. That surcharge would boost fees in Chicago to $5, an increase of $1.10, and to $1.50 in the rest of the state, a hike of 63 cents. Monday markes the second day of the new fiscal year.
"Today, Democrats and Republicans stood together to take a crucial step toward reaching a compromise that ends the budget crisis by passing a fully funded state budget in a bipartisan way". "We have $15 billion in back bills". Divisions between the state's Republican governor and Democratic-controlled legislative branch have lowered IL credit ratings to one notch above junk and have left the state with $15 billion in unpaid liabilities.
It's the third in a row the state has begun without a state budget. The state owes about $14.7 billion dollars in backlogged bills.
He didn't specify the legislation. He questioned how the state could build itself back from the bankrupt situation and said an increase in the income tax didn't worry him as much.
The plan is projected to raise $5 billion in revenue.