House Democrats plan to roll out property-tax freeze plan

01 July, 2017, 00:57 | Author: Malcolm Fuller
  • State Budget Battle:

The deadline is important because credit rating agencies have threatened to downgrade the state's creditworthiness - this time to "junk" status - if a budget isn't in place before the start of the next fiscal year. Lawmakers are working to avoid starting a third consecutive fiscal year without an annual spending plan.

Leader Durkin reported the following this week regarding term limits, "To clarify my position regarding House Republican priorities, it is my intention to designate House Republican members to address consolidation and term limits and I ask the same from the House Democrats".

IL is at risk for entering its third year without a budget, a stunning development never seen in the state's 199 year history. The state remains without a budget. Madigan said more work needs to be done, including final negotiations on a tax increase package that is needed to ensure the budget will be in balance.

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The proposed budget relies on more than $2 billion in spending cuts and a likely increase in the income tax to raise $5 billion.

Whatever plan the House passes will need to clear the Senate before going to Rauner for a vote. Speaker Mike Madigan says it's a good sign.but notes there are still details to hammer out and a vote on the actual bill must still be taken. Credit agencies have threatened to downgrade IL debt to "junk". They include a four-year property tax freeze, cost-cutting pension-benefits changes and reforms to workers compensation. Senate Democrats approved a budget in May in the last days of the legislative session - without a single Republican vote - but Madigan did not bring it forward for consideration.

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