Advanced Search

Evanston RoundTable | Evanston, IL
NU Vet Event


home : city news : city news July 22, 2017

7/14/2017 1:08:00 PM
State Rep. Gabel's Summary of the State Budget
Submitted by State Representative Robyn Gabel


I am pleased to report that last week, after two painful years, Illinois state government passed a bi-partisan budget into law. The budget is balanced and includes cuts and new revenue as well as reforms requested by the Governor. The Governor vetoed the bills that included many of his requests, but the legislature acted in a responsible manner and overrode his vetoes to enact the budget. This will begin to put Illinois on a stable path.

As many of you called or emailed about the budget, I want to provide my analysis and links to the appropriations, revenue, and implementation bills. These three bills represent where the money goes, what money the state collects via taxes and fees to pay for it, and then exactly how the money gets from one account into the places it needs to be. There were reforms and changes made to all three bills during the process.

Programs Funded

This budget reflects our state's and our district's values. It includes: 

  • $350 million additional funding for K-12 education
  • $50 million increase for early childhood education
  • Increases MAP grants by 10%
  • Includes human service programs the Governor had eliminated
  • Provides payment for human services and universities from last fiscal year 

Cuts

The budget enacted spends $800 million less than the budget the Governor proposed in February 2017. It includes billions in cuts mostly from a 5% reduction to state operations and a 10% cut to higher education as agreed to by the universities. 

Revenue

By reinstating the individual and corporate income tax to almost the level they were in 2014, an additional $5 billion will be generated to pay our current bills and begin to dig us out of the $15 billion backlog of bills accumulated since 2015. The increase in income tax to 4.95% was bipartisan and present in both the Democrat and Republican budget drafts, contrary to what you may have heard in the media.  

Our bipartisan revenue bill:

  • Immediately generates over $2 billion in cash to pay past due bills
  • Allows for $6 billion in bond authorization to continue to pay down our bill backlog  
  • Closes abused corporate tax loopholes
  • Raises additional revenue through modernizing the State Tax Lien Act and Revised Uniform Unclaimed Property Tax Act

Reforms

Pension reform was addressed in the budget bill that includes a Tier 3 plan for Tier 2 members (if they elect) and future non-covered hires in state government and teachers. The optional Tier 3 retirement plan has two parts - a defined benefit pension and a defined contribution plan similar to a 401(k). This plan is estimated to save the state roughly $800 million when the pension plans begin to implement the choice of Tier 3. 

A similar pension reform bill, Senate Bill 42, was passed by the legislature to what was proposed by Governor Rauner this spring but he vetoed it.

A worker's compensation reform bill was passed by the House that would give the Illinois Department of Insurance the ability to control the rates charged by insurance companies to businesses. Soon after the 2011 Worker's Compensation Act reform bill was passed, the national workers compensation board said that the rates in Illinois should be 18% lower. Due to the fact that the Illinois Department of Insurance has no regulatory authority, the savings were not passed down to the employers. HB 200 would fix this.

Also on the Governor's desk, per his request, are:

  • Changes to the Illinois state government purchasing laws
  • Authorization for the Governor to sell the James R. Thompson State of Illinois building
  • Elimination of the Abraham Lincoln Museum agency

Thank you for your patience, your emails, your calls, and your advocacy. Your support and ideas are much appreciated. We will all have to give a little more with this budget, but it will help the whole state.  





Reader Comments

Posted: Friday, July 14, 2017
Comment by: Miriam Solo

Does Rep.Gabel think the voters are stupid. Under cuts she writes: spending 800 million less than the governor proposed. That is not the same as "cuts." Apparently there were no cuts in prior spending levels or she would have described them. In other words, it is mismanagement as usaul, spending more than we have. Sigh!!!!



Article Comment Submission Form

The RoundTable will try to post comments within a few hours, but there may be a longer delay at times. Comments containing mean-spirited, libelous or ad hominem attacks will not be posted.

Note: Your full name is required. Your telephone number and e-mail will not be posted. You may type your comments in the space below, or you may type them in a word document and cut and paste them in the space below.

Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   



Click to View Upcoming Events
<July>
SMTWTFS
            1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31          
Submit Event




HomeVideosCommunity PostsObituariesClassifiedsAdvertiseAbout UsContact UsHow To
NU Vet Event

Copyright 2008-17 - Evanston RoundTable LLC, Evanston, IL 60202, 847-864-7741, All Rights Reserved
Software © 1998-2017 1up! Software, All Rights Reserved


: