<html><head></head><body><div style="color:#000; background-color:#fff; font-family:times new roman, new york, times, serif;font-size:16px"> <div class="qtdSeparateBR"><br><br></div><div class="yahoo_quoted" id="yui_3_16_0_ym19_1_1499094192329_9424" style="display: block;"> <div style="font-family: times new roman, new york, times, serif; font-size: 16px;" id="yui_3_16_0_ym19_1_1499094192329_9423"> <div style="font-family: HelveticaNeue, Helvetica Neue, Helvetica, Arial, Lucida Grande, sans-serif; font-size: 16px;" id="yui_3_16_0_ym19_1_1499094192329_9422"> <div dir="ltr" id="yui_3_16_0_ym19_1_1499094192329_9463"><font id="yui_3_16_0_ym19_1_1499094192329_9464" size="2" face="Arial"> On Sunday, July 2, 2017 11:33 PM, Austin Berg <digital@illinoispolicy.org> wrote:<br></font></div> <br> <div class="y_msg_container" id="yui_3_16_0_ym19_1_1499094192329_9429"><div id="yiv4059106849">
<title>permanent</title>
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<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">The Illinois House of Representatives passed a full-year budget July 2. It’s the first time in two years the body has approved such a plan.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">The <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage1.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=7cfbb3452d&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">revenue portion</a> of the budget, including a permanent income tax hike, passed on a <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage2.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=3a0b211bd3&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">72-45 vote</a>, with 15 Republicans voting in favor. The <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=06f179f7ca&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">spending portion</a> of the budget passed out of the House on a vote of <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=b28c692a4f&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">81-34</a>.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Unfortunately, this budget plan is no cause for celebration.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">The plan is defined by a massive, 32 percent income tax hike on Illinois residents, who are now witnessing the <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=c3453d2472&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">nation’s worst income growth</a>. If signed into law, the House plan will hike the state income tax rate to 4.95 percent from 3.75 percent, and the corporate income tax rate will rise to 7 percent from 5.25 percent.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">The budget package is devoid of any structural spending reforms to <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage1.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=63e1f03f41&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">slow growth in the cost of government</a>: It lacks comprehensive property tax reform, constitutional pension reform, collective bargaining reform, reforms to Medicaid and more.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">The spending bill has also been described as “booby trapped” in that it blocks money for schools unless Gov. Bruce Rauner signs an evidence-based school funding bill into law. This inaptly named education funding model has been a <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=a981497008&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">failure</a> in every state in which it has been adopted.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Illinoisans may recall the 2011 temporary income tax hike, which also took a tax-hike-without-reform approach. Despite $32 billion in extra tax revenue, the state’s unpaid bill backlog only declined by $1.3 billion (to $6.6 billion from $7.9 billion), and pension debt rose by $25 billion.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">This time, the tax hike is permanent.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">The budget bills now head to the Senate. If approved, they will then go to the governor’s desk.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">However, Rauner announced he will <a rel="nofollow" target="_blank" href="http://illinoispolicy.us1.list-manage.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=942837be9b&e=d98bbb7413" style="word-wrap:break-word;color:#ff4800;font-weight:bold;text-decoration:none;">veto</a> the budget in its current form.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Lawmakers could override the governor’s veto with a three-fifths majority vote in each of the House and Senate, which is currently the same share it takes to send the budget to the governor’s desk in the first place.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Below is the roll call for Senate Bill 9, which contains the permanent income tax hike.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Democrats voting yes (57): Ammons, Andrade, Arroyo, Beiser, D. Burke, K. Burke, Cassidy, Chapa LaVia, Conroy, Conyears-Ervin, Crespo, Currie, D'Amico, Davis, DeLuca, Drury, Evans, Feigenholtz, Fine, Flowers, Ford, Gabel, Gordon-Booth, Greenwood, Guzzardi, Harper, G. Harris, Hernandez, Hoffman, Hurley, Jones, Kifowit, Lang, Lilly, Madigan, Mah, Martwick, C. Mitchell, Moeller, Nekritz, Phelps, Riley, Rita, Sente, Sims, Slaughter, Soto, Stratton, Tabares, Thapedi, Turner, Wallace, Walsh, Welch, Williams, Willis, Zalewski.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Republicans voting yes (15): Andersson, Bryant, Cavaletto, Davidsmeyer, Fortner, Hammond, D. Harris, Hays, Jimenez, Meier, B. Mitchell, Phillips, Pritchard, Reis, Unes.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Democrats voting no (10): Connor, Costello, Halpin, Manley, Mayfield, Moylan, Mussman, Scherer, Stuart, Yingling.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Republicans voting no (35): Batinick, Bellock, Bennett, Bourne, Brady, Breen, Butler, Cabello, Demmer, Durkin, Frese, Halbrook, Ives, Jesiel, Long, McAuliffe, McCombie, McDermed, McSweeney, Morrison, Olsen, Parkhurst, Reick, Sauer, Severin, Skillicorn, Sommer, Sosnowski, Spain, Stewart, Swanson, Wehrli, Welter, B. Wheeler, K. Wheeler.</div>
<div style="margin:1em 0;padding:0;color:#000000;font-family:Helvetica;font-size:14px;line-height:150%;text-align:left;">Republicans not voting (1): Winger (excused absence).</div>
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