Lawmakers Back in Session Monday as Illinois Continues to Gain Negative Attention

Please note: The Week in Review is written by a staff member of the Illinois Senate Republican Caucus and approved by legislators. It is meant to provide constituents with information about legislative action and activities during the week.

State lawmakers will return to Springfield beginning Dec. 12 to try once again to approve a package of tax law changes designed to prevent several major employers from fleeing the state.

The Illinois House plans to convene on Monday, Dec. 12, with the Senate going into session the next day. Sen. Ron Sandack said that while Republican lawmakers continue to negotiate with the governor and the Democrat majority to craft the changes, there is frustration among GOP lawmakers who warned their Democrat colleagues last year that the 67 percent tax increase approved in January would have a disastrous effect on Illinois' jobs climate.

Many Republicans are also frustrated because Gov. Pat Quinn has demanded a major increase in cash payments that many consider to be nothing more than a welfare expansion, at a time when Illinois cannot pay the bills it already owes.

When lawmakers reconvene Dec. 12, they are expected to take up at least three main proposals.

The first is a series of business tax changes:

• an apportionment change that would assist the Chicago-based Chicago Mercantile Exchange trading group
• a tax credit and other provisions to assist Illinois-based retailer Sears
• an extension of a research and development tax credit to encourage research investment in Illinois
• other business tax law changes, including a tax credit for a car filter manufacturer in downstate Albion and a cut in estate taxes designed to help farms and small businesses

“There’s a bigger issue behind negotiating these tax breaks,” Sandack said. “We are setting a precedent which will lead many more businesses to Springfield to ask for similar concessions. We need better fiscal solutions overall, not just catered to one business here and there.”

Another measure that may be considered would redistribute income by increasing cash payments to persons whose incomes are below the threshold for paying state income taxes. Also under consideration could be legislation that would provide a small increase in the personal exemption for individual taxpayers.

Meanwhile, Illinois continues to draw unwanted attention for the state's financial mismanagement. Recently Illinois' problems drew international attention when the British publication, The Economist, published a Dec. 3 article that began, "The state finances in Illinois are an ugly mess of deficits, unpaid bills and tax refund backlogs."

Sandack said he is growing tired of reading these kinds of headlines and stories.

“I think it is safe to say that we are all getting worn down by continually hearing about these stories,” he said. “What is worse is the lack of recognition or backbone to change the environment which creates these headlines, stories, and even late-night jokes. This kind of attention on a national level should raise even more red flags that we must change our course in Illinois.”

Also last week, impeached former Gov. Rod Blagojevich received a 14-year sentence on federal corruption charges. Sandack cautioned that while the Blagojevich sentencing may close the chapter on one era in Illinois politics, the need for further political reform continues in Illinois. The abuses that brought down the former governor did not occur in a vacuum, and many of his staunchest supporters remain active in state government.

“A horrible chapter in Illinois politics has concluded,” Sandack said. “Rod Blagojevich hurt Illinois very badly and in many ways. Some, not all, of the state’s serious financial problems were a result of his political games and ridiculous arrogance, and Illinois received national attention for all the wrong reasons. His children deserve sympathy and compassion ... and Illinois deserves to move on and away from corrupt politicians.”