Illinois Lawmakers Try to Break 2-Year Budget Logjam
June 28 2017 - 2:31PM
Dow Jones News
By Douglas Belkin
Illinois lawmakers are meeting Wednesday in hopes of ending a
two-year budget stalemate that has led to a nearly $15 billion
backlog of unpaid bills and economic pain across the state.
Democratic House Speaker Michael Madigan unveiled a $36 billion
budget proposal Tuesday, but didn't spell out how much taxes would
have to rise to get the state's fiscal house in order.
Lawmakers have until Friday to pass a budget. Credit-rating
firms have warned they will downgrade the state's rating to junk if
a budget isn't approved.
Mr. Madigan said most state operations would take a 5% cut from
their normal appropriation. A Republican budget blue-print included
an increase to the individual income tax. Mr. Madigan's budget
hasn't spelled out those details.
"I'm not saying that this is perfect, I'm not saying that this
meets every request of the governor, but I'm saying it goes a long
way toward giving the state of Illinois a good solid spending plan
that responds to the real needs of the state," Mr. Madigan told
reporters on Tuesday.
Now the Democrats will vote on several pieces of legislation
designed to meet demands by Republican Gov. Bruce Rauner, who has
said he wouldn't move forward unless tax increases are tied to
overhauls aimed at creating a more business-friendly climate in
Illinois. Among those demands: a freeze on property taxes and an
overhaul of the state's workers' compensation system.
The proposal, which builds on a version passed earlier by the
senate, will need some Republican support to pass the House. But
State Rep. Jim Durkin, the House minority leader, said it remains
to be seen if that would be forthcoming.
"New demands from the speaker overcomplicates closure to this
process and it clearly hampers my ability to provide votes for a
budget resolution," Mr. Durkin told reporters.
The shuffling of state revenue and expenses is necessary to
start digging Illinois out of a nearly $15 billion backlog in
unpaid bills and a $250 billion deficit to the state pension
system.
The state lottery is slated to stop selling tickets this week
and more than $2 billion in road construction projects will be
halted.
The politics in the state capitol have been so torturous for so
long that many believe the impasse won't be resolved until Mr.
Rauner faces re-election in 2018. Lawmakers tried to assure their
constituencies they are working toward passing something.
"I really do believe it's real, I mean we are four days away
from a catastrophe," said Senate Republican leader Christine
Radogno on Tuesday. "I think people realized that."
Write to Douglas Belkin at doug.belkin@wsj.com
(END) Dow Jones Newswires
June 28, 2017 14:16 ET (18:16 GMT)
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