End-of-Session Legislative Review
2011 was a busy and controversial session. Even prior to starting the session, there were signals of things to come. The largest tax increase in Illinois’ history was passed very late in the 96th session, just one day before the new 97th General Assembly was swo in. The personal tax rate increased by some 66% from a 3% rate to a 5% rate. Additionally, the state’s corporate rate increased to 7% from 4.8%. The new dollars into the state system was estimated by some to total $6.8 billion and was supposed to be a start to dealing with the $8 billion deficit that currently exists for the state’s budget. The tax increase was intended to deal with a portion of that deficit, and a proposed borrowing plan would have dealt with the remainder. The legislature did not approve the borrowing plan and, there is some $6 billion in old unpaid bills still pending in state govement’s “debit” column.
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The regular session was heated with major issues, both partisan and those that crossed party lines, from the institution of legalized civil unions to major changes in the Worker’s Compensation system. Some of the most political issues of the year included: passage of “Smart Grid” legislation allowing for certain rate increases without ICC approval to upgrade the electrical grid; “concealed carry” legislation; expansion of gaming in Illinois with specific allowance for stations in Chicago; redistricting of boundaries for congressional and state legislative districts; as mentioned, Worker’s Compensation; and, of course, the state budget.
The end of the 2011 Spring Legislative session on the May 31 adjoument date was revisited during the month of June when the House and Senate retued to Springfield to deal with a remaining issue – capital construction in the current year. The budget was passed prior to the end of May, along with a host of other interesting and controversial pieces of legislation. The state budget was the final piece of the political puzzle dealt with during the session, after votes were already put in on redistricting. As it ended up going to the Goveor, the state budget was based on revenue estimates and spending proposed by the House. The House estimates for revenues were approximately $1 Billion different than the Senate. And while there was a feeling by some that a “happy medium” would be found, the House left Springfield without concurring with almost a bill that included almost a half a billion in additions by the Senate Democrats and instead, appointed a conference committee to address the issue during the summer.
What was not addressed and will surely come up again – changes in pension participation amounts from participants and restriction of collective bargaining for certain state employees. Both issues will likely come up again – potentially at the Fall Veto Session, scheduled for October 25-27 and November 8-10, 2011.
