Illinois
6:18 am
Mon June 2, 2014

Lawmaker Bothered By Interfund Borrowing

Democrats wanted to use the higher income tax rate to prop up the state budget. Instead, they turned to "interfund borrowing" which involves taking funds from hundreds of small pools of money earmarked for specific purposes.

Senator Dale Righter
Credit ilga.gov

Senator Dale Righter (R-Mattoon) doesn't support the idea.

"I'm concerned about how you're raising the money for those funds and whether or not you're spending the money from those funds the way you told the taxpayers or the contributors to that fund that you would spend it."

Fred Giertz is with the Institute of Government and Public Affairs at the University of Illinois.

"Even if you get through the year, the year after becomes increasingly more difficult, so it's really a very shortsighted kind of strategy."

Senator Daniel Biss (D-Evanston) says without extending the income tax, this is a viable option.

"Hey, let's be honest. We're passing a budget that delays some very important decisions. And in a situation like that, we need to give the governor the authority needed to manage his way through this situation."

Democrats say this one-time funding technique means they'll  have to revisit the income tax after the November election.