In fact, the Commission on Government Forecasting and Accountability reported last week that state receipts are down $1 billion from the same time last year. Clearly, this highlights how dangerous it is for the state to be spending at 2015 levels without the revenue to back it up.
In lieu of a real compromise, Governor Rauner has simply said to the House and Senate leaders “pass a tax hike” because they have supermajorities in both chambers. Neither House Speaker Michael Madigan or Senate President John Cullerton have proposed any tax hikes to pay for the unbalanced budget they proposed, yet they continue to blame the governor as services get cut and vendors payments are delayed.
Capitol Fax, an online blog and subscription newsletter, reported this week that a bipartisan, bicameral group of rank and file lawmakers presented the governor with a compromise deal that reportedly included:
- A tax on retirement income, with a large exemption to protect those at the bottom of the income scale.
- A service tax and raising the income tax rate above the current 3.75 percent rate but lower than the former 5 percent rate.
- Eliminating the corporate franchise tax.
- Spending reductions.
- Reforms on labor-friendly programs such as workers’ comp.
