This week the Governor presented the annual Budget Address, a constitutionally mandated event which has been repeated every year for our 198 year history. However, this year’s speech rapidly turned into a spectacle like President Trump’s news conference yesterday. No one remembers ever seeing anything quite like it before in Illinois.
There was even laughter at portions of the speech where, immediately after attacking and blaming his audience, the person who has spent hundreds of millions of dollars of his own money funding multiple front groups and dark money organizations to do political attacks not only on Democrats, but against his own fellow Republicans, stressed how important it was to put aside differences, stop attacking and blaming, and not let politics intrude.
There was more laughter from the audience after he outlined his “balanced budget” which included lots of new spending, over $1 billion in “unspecified cuts” to education and human services, added new MAP grants while abandoning current MAP recipients, counted on new taxes and tax increases, and still managed to be over $4.5 billion dollars out of balance.
The speech did include some praise for the ongoing work on the Senate’s Grand Bargain, along with a new list of demands. Members of the Senate and their Leaders deserve great credit for the hard work put into this effort. The final product is still currently being negotiated and changed. The latest new date that has been set for a vote is Feb. 28.
Meanwhile, the House Democrats issued a formal response to the Governor’s Budget Speech, which I delivered. We remind the Governor that the House has already gone on record voting for key elements of some of his demands for non-budget items, including property tax freezes, workers comp reform and redistricting reform. The House State Government Administration Committee will begin hearings next week on legislation authorizing the sale of the James R. Thompson Center, another revenue priority for the Governor.
We agree that it is important to incentivize small business and startups to grow, expand and create new good jobs in Illinois; however, we propose an alternative path to the Governor’s. While the Governor’s plan focuses on lowering worker pay, benefits and protections, the House Dems take a totally different view. We propose to reduce costs to small businesses and startups (which are the engines of job creation) by reducing their income tax burden by 50%, and re-establishing the EDGE Tax Credit program but ONLY for companies creating new jobs in Illinois.
We want to not only help create thousands of jobs in Illinois, but also help working families to earn more, and keep more of the money that they earn. The House Dems propose to increase the minimum wage and a major expansion of the Earned Income Tax Credit (EITC). In addition we propose adding a small tax surcharge to the income of the wealthiest (those who earn over $1 million per year) which will be dedicated to funding the education system in Illinois.
You can see the House Democratic Response to the Governor’s speech here: https://www.youtube.com/watch?v=8_WE8KAVnro&feature=youtu.be
As soon as actual budget bills with the details of the Governor’s proposed revenues and expenses are introduced, the House will immediately begin to consider them in the usual manner, which will include opportunity for public hearings, testimony and comment. Our Appropriation Committee chair people stand ready to work with the other 3 caucuses and the Governor’s Office to break this impasse. However, we also firmly stand by our values of uplifting middle class and working families, protecting our frail and vulnerable neighbors, reforming our education system to produce better outcomes for our children and increasing public safety.
As more details on the various budget plans emerge, I will keep you informed.