Governor Rauner’s staff are “dropping like flies,” with a total of 20 staff members out after the legislature over-rode his budget veto, a devastating political blow for the governor on the eve of an election year. And this week, Rauner’s ‘body man,’ who had a history of racist and homophobic tweets was fired, despite the fact that his behavior isn’t so far off from past staff members, one of whom beat up a man, punched two women, and drug a third by her hair through a parking lot (all in one night, no less).
A staff shakeup won’t change Rauner’s disastrous leadership. There’s a reason he’s one of theleast popular governors in the country – because he’s ineffective.
American Bridge spokesperson Lizzy Price made the following statement:
“When Bruce Rauner doesn’t get his way, he takes his toys and goes home. No staff shakeup will change the fact that Rauner would prefer no budget, a near junk bond rating, job losses, stalled construction work, and cutting scholarships for college students instead of working with the legislature. Rauner is no leader; he’s a coward whose obstinance has made a mess in Illinois. ”
Check out the lowlights of Bruce Rauner’s tenure:
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February 2017: Rauner proposed a permanent property tax freeze in exchange for a permanent income tax hike, which would result in less money for public schools in a state where they can’t afford more cuts. And property taxes? They have no impact on the state budget at all.
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June 2017: Rauner proposed making $120 million in budget cuts to the community care program for seniors, which would force elderly recipients to move from their own homes to nursing homes.
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March 2017: PolitiFact rated Rauner’s claim that he proposed a “balanced budget” as “Pants on Fire.” Experts in Illinois government finance agreed that Rauner’s proposal was not balanced.
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Hundreds of Illinois social service programs had not been paid as a result of the Illinois budget crisis that included programs for homeless teens, AIDS patients and victims of domestic violence.
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The budget impasse this year forced Illinois universities to lay off staff, mandate furlough days, and force low-income students to worry their state-funded scholarships would be “pulled out from under them.”
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June 2017: The Illinois Department of Transportation warned contractors they would not be paid starting July 1, 2017 if a budget was not passed, putting 25,000-30,000 people out of work. Rauner vetoed the budget sent to him.
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A $3.8 million bridge replacement project over Range Creek would be placed on hold without a budget by July 1st. Rauner vetoed the budget.
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Rauner vetoed budget bills that the majority of legislature approved, which kept Ilinois from having a budget for years.
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Rauner’s failure to compromise on a budget resulted in an historically low bond rating, one grade above “junk” rating.
Rauner Held State Budget Hostage To Reduce Public Worker Benefits, Freeze Property Taxes
2015: RAUNER’S BUDGET PROPOSAL DEMANDED ALTERING THE STATE’S CONSTITUTION TO ALLOW THE REDUCTION OF PUBLIC WORKER BENEFITS
2015: Rauner Called For “Permanent Pension Relief” By Amending The Illinois Constitution, Which Prohibited The Diminishment Of Public Worker Benefits. According to Reuters, “Illinois Governor Bruce Rauner laid out on Wednesday an ambitious and controversial agenda that includes constitutional fixes for the state’s public pension system and budget. In his inaugural state of the state address, the Republican, who holds political office for the first time, also took aim at public labor unions. ‘It’s make-or-break time for the Land of Lincoln,’ Rauner told state lawmakers.[…] Rauner’s policy agenda calls for ‘permanent pension relief’ by amending the Illinois Constitution, which prohibits the impairment or diminishment of public worker retirement benefits..” [Reuters, 2/4/15]
OpEd: Rauner “Immediately Poisoned” Budget Negotiations With Democrats By Proposing A Right To Work Plan
Crain’s Business Chicago HEADLINE: “What’s More Important Than A State Budget To Rauner? Killing Unions.” [7/1/17]
RAUNER REPEATEDLY VETOED BUDGET BILLS SENT TO HIM
Rauner Repeatedly Vetoed Budget Bills Majority Democrats Approved, Leading The State To Not Have Full Budget Enacted Into Law Since 2014. According to Politifact, “Illinois has not had a full budget enacted into law since 2014. In 2015, Rauner vetoed the budget bills majority Democrats approved, except for the bill that funded pre K-12 education. His 2017 budget proposal is his third since taking office after winning election in his first run for a public position. He previously worked as a highly successful private equity financier.”[Politifact, 3/9/17]
Illinois Had Not Had An Operating Budget Since Rauner Took Office In 2015, After He Vetoed A 2015 Budget, And Demanded His Own Policy Changes Be Implemented As A Condition Of The Budget. According to Politico, “The state hasn’t had an operating budget since Rauner took office in 2015, after the Republican locked horns with a Democratic-dominated legislature. Rauner vetoed a 2015 budget, saying it was out of balance. He has demanded his own policy changes be implemented as a condition of the budget. Democrats opposed his changes, calling them “extreme” and anti-middle class. The protracted political clash caused unpaid bills to pile up to $15 billion and left an operating deficit at $6 billion this year alone.” [Politico, 7/4/17]
Rauner Said He Would Not Agree To Higher Taxes Until Democrats Agreed To Prioritize Workers’ Compensation Reform, To Lower Property Taxes, To Pass Government Changes Like Term Limits. According To WTTW, Chicago Tonight, “The framework is gaining attention given that Rauner rode into office bolstered by support from business organizations – support he maintains, at least from the likes of Illinois’ wealthiest man, hedge fund manager Ken Griffin, whoon Wednesday contributed $20 million to Rauner’s campaign.[…] Thus far, that plan has been to prioritize making workers’ compensation less expensive for businesses, to lower property taxes, and to pass government changes like term limits. Rauner says he won’t agree to higher taxes until Democrats get onboard. ‘Clearly the budget matters. Clearly it matters. People care. Everybody cares about having a balanced budget. The tragedy for Illinois is we haven’t had balanced budgets in decades. It’s one of the reasons we’ve had terrible job growth for decades,’ Rauner said Thursday. “It’s not because of one budget impasse these past 18 months. It’s because we’ve had constant budget deficits.” [WTTW, 5/18/17]
2017: RAUNER OFFERED A BUDGET PROPOSAL THAT AGREED TO TAX HIKES IN EXCHANGE FOR A PERMANENT PROPERTY TAX FREEZE
February 2017: Rauner Offered Up Potential Changes To The Budget Proposal, Saying His Ideas Were “Reasonable.” According to Chicago Tribune, “Gov. Bruce Rauner defended his suggestions on how Senate lawmakers can alter their budget proposal to win his support, saying his ideas are ‘reasonable.’ The Republican governor offered up potential changes during his annual budget address last week, touting the evolving Senate proposal as a way to break the state’s unprecedented budget impasse. But some Democratic lawmakers criticized the move, saying it could derail sensitive talks.” [Chicago Tribune, 2/24/27]
- Rauner Proposed A Permanent Property Tax Freeze In Exchange For A Permanent Income Tax Hike. According to Chicago Tribune, “Rauner’s parameters include a permanent property tax freeze in exchange for a permanent income tax hike. The Senate plan currently calls for a two-year property tax freeze. The governor also wants a limit on spending and further changes to the workers compensation law for employees hurt on the job, as business groups say the Senate’s plan to curb workers’ compensation costs doesn’t go far enough. ‘We should do these things, and they should in no way infringe on or hurt the ability to get a final deal,’ said Rauner, who noted the House approved a permanent property tax freeze earlier this year.[…] Local schools and towns oppose a property tax freeze, saying it would hurt their ability to tap into money for day-to-day operations. ” [Chicago Tribune, 2/24/27]
OpEd: Rauner’s Proposal To Balance The Checkbook By Freezing Income “Made No Sense” And Only Hurt Local Schools
Phil Kadner: Governor Rauner’s Demand To “Balance My Checkbook” By Freezing Your Income, Made “No Sense.” In a Chicago Sun Times oped, Phil Kadner wrote, “In order to balance my checkbook, I am going to freeze your income. If you’re saying that makes no sense, you are absolutely right. Yet, that is what Gov. Bruce Rauner, the Illinois Senate and even House Speaker Michael Madigan want to do. Rauner has repeatedly called for a property-tax freeze, noting correctly that Illinois and New Jersey have the highest property tax rates in the country. Rauner mentions the property taxes whenever he talks about his efforts to balance the state budget. But not a penny of property-tax revenue goes to the state, nor does it come out of the state’s pocket. Property taxes primarily fund public schools, although some money also goes to counties, municipalities, library and park districts, and other local governments.”[Chicago Sun Times, 6/27/17]
Phil Kadner: Rauner Demanded A More Permanent Tax Freeze And Promised To Veto A Democratic Budget That Included A Two Year Tax Freeze Proposal, Even Though “Property Taxes Have No Impact On The State Budget.” In A Chicago Sun Times OpEd, Phil Kadner wrote, “On average, however, 67 percent of every Illinois property tax bill funds your local public schools. That’s because this state has failed to adequately fund public schools for 30 years. This state ranks dead last in the nation in the percentage of the education budget it provides. Yet, Democrats in the Illinois Senate this spring, in an effort to appease the Republican governor, voted to place a two-year freeze on property taxes in the process of passing a budget bill. Republican senators refused to vote for that because the governor said he wanted a more permanent property-tax freeze and promised to veto the Senate bill. Did I mention that property taxes have no impact at all on the state budget? ”[Chicago Sun Times, 6/27/17]
2017: RAUNER PROPOSED BUDGET SAVINGS BY CUTTING SERVICES TO SENIORS
Governor Rauner Proposed Making $120 Million In Budget Cuts To The Community Care Program For Seniors. According to KFVS 12, “Due to the ongoing budget crisis, Illinois officials are evaluating whether or not to do away with something called the Community Care Program – which is something many seniors are speaking out against. Governor Bruce Rauner has proposed to make $120 million in cuts to the program, which provides home care for elderly. AARP Illinois, Illinois Council of Case Coordination Units, SEIU Healthcare Illinois, local Carbondale senior and caregivers gathered to speak out on Thursday morning at the Senior Adult Services of Jackson County. ‘It is devastating, horrifying, frightening and traumatic experience for us,’ says Phyllis Dees, a Community Care recipient. ‘If this proposal goes through, it’s going to take every cent that we have… and probably going to have to cash in insurance policies just to have the additional help that we need. So our children may have to bury us – I don’t know where this is going to go or what we are going to end up with.’” [KFVS 12, 6/29/17]
- Opponents Of Rauner’s Proposal To Cut The Community Care Program Alleged That It Would Force Elderly Recipients To Move From Their Homes To Nursing Homes. According to The Telegraph, “Hemberger and other speakers said the governor’s proposal to cut the funding for the state Community Care Program (CCP) and replace it with the Community Reinvestment Program (CRP) would affect 36,000 senior citizens in Illinois not eligible for Medicaid. Rauner submitted the rules to the Joint Committee on Administrative Rules that would replace current home care workers with other service providers. Democrats in the Illinois House of Representatives blocked such a plan in 2015. The contingent said the change could force people to move from their homes, where they receive CCP services at less cost to the state, to nursing homes at greater expense to the state — and taxpayers. Others who stay in their homes then would need more help from family members, who may have to quit their jobs to provide care, some speakers said.” [Telegraph, 6/29/17]
2017: RAUNER CLAIMED HIS BUDGET PROPOSAL WAS BALANCED, A CLAIM POLITIFACT RATED “PANTS ON FIRE”
Rauner Claimed That His 2017 Budget Proposal Was “Balanced” Through A Grand Bargain That Included New Or Increased Taxes Along With Business And Political Reforms.According to Politifact, “Since his 2017 budget speech last month, Democratic opponents have suggested Rauner’s plan is $4.6 billion to $7 billion out of balance. Page 30 of the budget book released the day of the speech by the governor’s office of management and budget includes a fiscal year 2018 summary page that has a line that says the budget is balanced with $4.57 billion by ‘working together on a grand bargain.’ The ‘grand bargain’ refers to efforts by Illinois Senate President John Cullerton, a Chicago Democrat, and Senate Republican Leader Christine Radogno of Lemont to strike a complicated, 12-bill compromise on several major topics that combine new or increased taxes to generate revenue along with business and political reforms aimed at strengthening the state economy and boosting public confidence in government. To date, such a bargain has not come to fruition. [Politifact, 3/9/17]
PolitiFact Rated Rauner’s Claim That He Proposed A “Balanced Budget” As “Pants On Fire” False. According to Politifact, “Gov. Rauner said he proposed a balanced budget. ‘Today we present you with a balanced budget that shows what is possible if we all come together on a comprehensive approach to state finances and job creation” the governor told lawmakers. Yet, the budget book produced by the governor’s office of management and budget suggests the budget is balanced by “working together on a grand bargain.” A so-called grand bargain budget compromise, though, has not been achieved or enacted. Illinois government finance experts agree Rauner’s proposal is not balanced. We rate this claim Pants On Fire. [Politifact, 3/9/17]
Experts: Rauner’s Budget Relied Unrealistic And “Unconstitutional” Pension Reform Savings To Claim It Was “Balanced”
Ralph Martire, Center For Tax And Budget Accountability: Rauner’s Budget Proposal “Cannot Be Considered Balanced By Any Objective Standard” Because It Relies On Over $1 Billion In Savings From Unspecified And Likely “Unconstitutional” ‘Pension Reforms’ And Another $4.572 Billion In “Ambiguous” Savings. According to Politifact, “Ralph Martire, executive director of the Center for Tax and Budget Accountability, a liberal-leaning think tank, didn’t concern himself with rhetoric. “The FY2018 General Fund budget proposed by Governor Rauner cannot be considered balanced by any objective standard for two reasons: first, it relies on over $1 billion in unspecified and unlikely savings from ‘pension reforms’ that are not only unlikely to pass, but if they did, would likely be ruled unconstitutional; second, and even more troubling, is the $4.572 billion in ‘savings’ the governor anticipates from ‘working together on a grand bargain’ — which is so ambiguous that it cannot credibly be valued at all.” [Politifact,3/9/17]
Sheila Weinberg, Truth In Accounting On Whether Rauner Proposed A Balanced Budget: “Mostly Likely The Governor Is Not Including All Of The State’s Employee Compensation Costs In His Calculations.” According to Politifact, “Sheila Weinberg, a certified public accountant and the founder of Truth in Accounting, a government finance think tank said, “Our elected officials have been claiming ‘balanced’ budgets for decades, but the state owes more than $187 billion. Mostly likely the governor is not including all of the state’s employee compensation costs in his calculations.” [Politifact, 3/9/17]
ILLINOIS BUDGET SITUATION NEARED CRISIS
Illinois State Comptroller Susana Mendoza Warned The State Government Would Fall Nearly $200 Million Short By August 2017 Without A Budget
Illinois State Comptroller Susana Mendoza Warned That The Illinois State Government Would Fall Nearly $200 Million Short In August Without A State Budget. According to Associated Press, “Illinois state comptroller Susana Mendoza is warning that even the autopilot state government will fall nearly $200 million short in August without a state budget. The Democratic comptroller posted a YouTube video Wednesday laying out in painful detail the consequences of having no budget agreement by the Saturday start of the fiscal year. Government has continued to function on court-ordered payments. But she says even required payments will outstrip revenue by $185 million by August. Mendoza says the two-year budget stalemate between Republican Gov. Bruce Rauner and Democrats who control the Legislature have created a ‘series of disasters.’ But she says without a budget deal soon: ‘It’s going to get much worse very quickly.’” [WANDTV, 6/28/17]
Illinois’ Bond Rating Neared “Junk” Status
Reuters HEADLINE: “Fear Of Junk Bond Ratings Hangs Over Illinois Budget Crisis.”[Reuters, 5/11/17]
2017: S&P Global Ratings Warned Illinois Bond Ratings Would Likely Be Downgraded To Junk Status If A Budget Was Not Passed By July 1st. According to Bloomberg, “Illinois had its bond rating downgraded to one step above junk by Moody’s Investors Service and S&P Global Ratings, the lowest ranking on record for a U.S. state, as the long-running political stalemate over the budget shows no signs of ending. S&P warned that Illinois will likely lose its investment-grade status, an unprecedented step for a state, around July 1 if leaders haven’t agreed on a budget that chips away at the government’s chronic deficits. Moody’s followed S&P’s downgradeThursday, citing Illinois’s underfunded pensions and the record backlog of bills that are equivalent to about 40 percent of its operating budget.” [Bloomberg, 6/1/17]
Hundreds Of Social Service Programs Remained Without Funding
Hundreds Of Illinois Social Service Programs Had Not Been Paid As A Result Of The Illinois Budget Crisis—“For Homeless Teens, AIDS Patients And Victims Of Domestic Violence.” According to NPR, “This is a story that’s repeating itself across Illinois — it’s been a sort of stealth government shutdown. There are hundreds of programs that also haven’t been paid — for homeless teens, AIDS patients and victims of domestic violence. But this aspect of the state budget crisis is happening largely out of public view.” [NPR, 6/29/17]
The Budget Impasse Forced Layoffs, Furloughs At Illinois Universities
The Budget Impasse Forced Illinois Universities To Lay Off Staff, Mandate Furlough Days, And Forced Low-Income Students To Worry their State-Funded Scholarships Would Be “Pulled Out From Under Them.” According To CNN Money, “The schools are laying off staff and mandating furlough days. Library hours have been reduced. Campus buildings are closed over spring breaks and summer weekends. Maintenance work has been put off. Low-income students are worried their state funded scholarships will be pulled out from under them. Funding for state colleges fell 61% for the 2015-2016 school year, according to data from the Illinois Board of Higher Education. The schools received slightly more money for the most recent school year, but it still was about half of what was received before the cuts — and was mostly spent on unpaid bills from the previous year.” [CNN Money, 6/29/17]
Illinois Department Of Transportation Warned That Tens Of Thousands Would Be Laid Off Due To Project Stalls And Delayed Payments To Contractors Without A Budget
June 2017: The Illinois Department Of Transportation Warned Contractors They Would Not Be Paid Starting July 1st, 2017 If A Budget Was Not Passed – Putting Between 25,000 – 30,000 People Out Of Work. According to Chicago Tribune, “Late last week, the Illinois Department of Transportation warned contractors that they would not be paid starting July 1, the start of the next fiscal year, if the state does not pass a budget. This would affect about 700 projects now underway throughout the state, valued at $2.3 billion and put up to 25,000 people out of work, according to IDOT. The International Union of Operating Engineers Local 150 puts the number at 30,000. Another $2.2 billion programmed for fiscal year 2018 would be hit as well.” [Chicago Tribune, 6/19/17]
Illinois Department Of Transportation Warned That A $3.8 Million Bridge Replacement Project Over Range Creek Would Be Placed On Hold Without A Budget By July 1st.According to Effingham Daily News, “The $3.8 million bridge replacement project over Range Creek south of Greenup is nearing completion — and just in time as Illinois heads toward a third year without a budget. Failure of the governor and state legislature to reach a budget by the end of Friday means that any state-funded road project will be put on hold. ‘Due to the General Assembly’s refusal to pass a balanced budget, the Illinois Department of Transportation loses its ability to pay contractors starting July 1,’ said Gianna Urgo, an IDOT spokesperson. ‘While we are hopeful the situation is resolved before then, the department is notifying contractors that all construction work is to shut down on June 30. Contractors will be advised to secure work zones to ensure their safety during any potential shutdown.’” [Effingham Daily News, 6/28/17]
JULY 2017: DURING SPECIAL SESSION, REPUBLICANS BROKE WITH RAUNER DESPITE “HARSH TACTICS” FROM THE GOVERNOR’S OFFICE
Rauner Threatened To Extend The Legislative Special Session Until They “Get The Job Done” on The Budget Impasse. According to Associated Press, “Illinois Gov. Bruce Rauner says if legislators fail to send him a budget by Friday, he’ll extend a legislative special session until they ‘get the job done.’ The Republican issued the news in a statement Wednesdayafternoon as lawmakers met in special session for an eighth straight day at the Capitol. The new fiscal year starts Saturday. If legislators fail to reach an agreement before then, Illinois will enter a third straight year without a spending plan. Rauner called lawmakers back to Springfield last week after they blew past a critical budget deadline last month. Now any budget deal will require a three-fifths majority vote instead of a simple majority. Several dueling budget plans are before the Democrat-controlled House and Senate, along with proposals for pro-business reforms that Rauner has demanded.” [WANDTV, 6/28/17]
The Illinois House Approved A $5 Billion Tax Hike And Spending Bill, With Republican Support
The Illinois House Approved A $5 Billion Tax Hike And Spending Bill, With Some Republicans Breaking With Governor Rauner. According to ABC 7 Chicago, “The Illinois House approved a $5 billion tax hike and a spending bill Sunday night, capping a dramatic weekend of wrangling to end the nation’s longest-running budget stalemate. The tax increase vote was 72-45, one more than needed, with some Republicans breaking from Gov. Bruce Rauner. The body also approved a budget bill, 81-34, which will then go on to the Senate and governor. House Speaker Mike Madigan, D-Chicago, celebrated, but Rauner immediately issued a statement saying he would veto the tax increase. Under the revenue legislation, the personal income tax rate would go from 3.75 percent to just under 5 percent. The corporate rate would jump from 5.25 percent to 7 percent.” [ABC 7 Chicago, 7/2/17]
15 Republicans Broke From The Governor To Vote In Support Of The July 2017 Spending Plan. According to Politico, “The Illinois Senate already voted to override the veto and the House is expected to follow suit this week. Lawmakers say it’s beyond late for more bickering with Illinois having already entered its third fiscal year without a budget. Legislators – including 15 Republicans in the House who broke from the governor – say they want to end a crisis that turned Illinois into a national disgrace, drew the intervention of a federal judge, sent university enrollments plummeting, threatened to close K-12 schools in the fall and resulted in a staggering eight bond rating downgrades. ‘We are in a moment in time,’ state Sen. Toi Hutchinson, among the Democratic leaders in negotiations said on Tuesday. “We are faced today with the fierce urgency of now.’ ” [Politico, 7/4/17]
Politico: Republican Legislators Claimed Of The “Harsh Tactics Used By The Governor’s Office To Advance His Agenda,” And At Least Two Planned To Leave The General Assembly As A Result Of The Budget Impasse. According to Politico, “Without a veto override, the state’s bond ratings would be sent to junk status, a black mark on his governorship from which it would be difficult to recover. Supporters point to $2.5 billion in cuts, including across-the-board reductions to state government and another $1.5 billion in pension savings contained in the budget. The income tax would jump from 3.75 percent to 4.95 percent. Rauner, who has stayed out of the public eye during the last round of negotiations, must attempt to regain the trust of his legislative caucus, with members complaining of harsh tactics used by the governor’s office to advance his agenda. The state Senate’s GOP leader resigned last week, amid frustrations over the impasse. And on Monday, a House member in GOP leadership said he’d had enough. ‘The current dislike and distrust between the governor and the speaker has paralyzed government in Illinois,’ Republican state Rep. Chad Hays said in a statement. ‘Ego, money and power eclipse the desire of well-meaning and honest public servants, and blame, press conferences and talking points have replaced governing. Sadly, voices of moderation and reason are increasingly elbowed out by well-financed fringe elements.” [Politico, 7/4/17]
JULY 2017: AS ILLINOIS’ BOND RATING NEARED “JUNK STATUS,” RAUNER VETOED BUDGET
Rauner Vetoed A $36 Billion Spending Plan, Citing Its Permanent Income Tax Increase, Even As Illinois Sought To Avoid Becoming The “First State Ever To See Its Bond Rating Downgraded To ‘Junk’ Status.” According to Politico, “Attempting to avoid becoming the first state ever to see its bond rating downgraded to “junk” status, the Illinois legislature on Tuesdaysent Republican Gov. Bruce Rauner a $36 billion spending plan in a dramatic showdown that culminated in an extraordinary Fourth of July vote. Rauner, who called the legislature into a special session to pass a budget, quickly vetoed the measure, citing its permanent income tax increase; the governor, who is attempting to salvage his precarious 2018 reelection prospects, has sought a temporary tax hike and a property tax freeze.” [Politico, 7/4/17]
Rauner Immediately Pledged To Veto The Income Tax Increase. According to ABC 7 Chicago, “The Illinois House approved a $5 billion tax hike and a spending bill Sunday night, capping a dramatic weekend of wrangling to end the nation’s longest-running budget stalemate. The tax increase vote was 72-45, one more than needed, with some Republicans breaking from Gov. Bruce Rauner. The body also approved a budget bill, 81-34, which will then go on to the Senate and governor. House Speaker Mike Madigan, D-Chicago, celebrated, but Rauner immediately issued a statement saying he would veto the tax increase. Under the revenue legislation, the personal income tax rate would go from 3.75 percent to just under 5 percent. The corporate rate would jump from 5.25 percent to 7 percent.” [ABC 7 Chicago, 7/2/17]
Rauner Claimed The Legislation Did Not Make “Sufficient Spending Reductions” And Opposed Provisions For A Permanent Income Tax Increase
Rauner Vetoed The Illinois Budget Proposal That Increased The Personal Income Tax Rate From 3.75 Percent To Just Under 5 percent And the Corporate Tax From Just Over 5 Percent To 7 Percent, Claiming It Did Not Make “Sufficient Spending Reductions.” According to Associated Press, “‘The package of legislation fails to address Illinois’ fiscal and economic crisis – and in fact, makes it worse in the long run,’ the first-term governor wrote after his veto of the tax-increase bill. ‘It does not balance the budget. It does not make nearly sufficient spending reductions.’ Rauner acted about three hours after the Senate voted to hike the personal income tax rate by 32 percent, from 3.75 percent to just under 5 percent. Corporations would pay 7 percent instead of just over 5 percent. ” [Associated Press, 7/4/17]
Illinois Senate Immediately Voted To Override Rauner’s Veto
July 4, 2017: Illinois Senate Voted To Override Rauner’s Veto Of A $36 Billion Budget Package. According to Associated Press, “The Illinois Senate voted to override Gov. Bruce Rauner’s vetoes of a $36 billion budget package Tuesday, including a $5 billion tax increase designed to start digging out of the nation’s longest budget crisis since at least the Great Depression. The Democratic-controlled chamber completed its work within 30 minutes of the Republican governor’s vetoes, sending the package back to the House for an override vote that would give Illinois its first annual budget since 2015.The House did not plan to take up the action Tuesday.” [Associated Press, 7/4/17]
Media: Rauner’s Leadership Lead To A “Massive Fiscal Catastrophe” And State Taxpayers Are Still Waiting For The Full Relief He Promised.
Rich Miller: “Since Rauner Took Office, State Government Has Suffered A Massive Fiscal Catastrophe, And State Taxpayers Are Still Waiting For The Full Relief He Promised.” In a Crain’s Chicago Business op-ed Rich Miller wrote, “During his 2014 campaign, Bruce Rauner pledged to roll back the state income tax rate to 3 percent from 5 percent in just four years, reversing Gov. Pat Quinn’s 2011 tax increase. Rauner’s tax plan was a fantasy. He insisted that his ‘reforms’ would create enough economic growth to mostly replace revenue lost from tax cuts. here was some tax relief after Quinn lost to Rauner. On Jan. 1, 2015, days before Rauner was sworn in, the income tax rate automatically dropped to 3.75 percent. And while Rauner demanded that the rate be allowed to fall, the Democrats in charge of the General Assembly were the ones legally responsible. And then all heck broke loose. Since Rauner took office, state government has suffered a massive fiscal catastrophe, and state taxpayers are still waiting for the full relief he promised.” [Crain’s Chicago Business, 7/1/17]
Published: Jul 19, 2017