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State Budget Struggle Continues; Expanded Sales Tax Is On The Table

After 19 months without a state budget, Illinois senators were struggling Tuesday to move forward on a compromise plan intended to end the impasse.

Democrats and Republicans spent hours behind closed doors, arguing about whether the deal negotiated by their leaders was good enough to end the unprecedented Illinois budget fight.

The failure of Gov. Bruce Rauner and the General Assembly to agree on a spending plan has devastated state support for people in need and forced public universities to lay off hundreds of people.

Senate President John Cullerton, a Democrat, made the case for his so-called grand bargain in a speech Monday in Chicago.

“If not this plan, then what?” he asked. “If not now, then when?”

A spokesman for Cullerton says Democrats will continue to work on the deal, which would include a state budget, tax increases, and changes in law meant to help businesses.

One area of possible progress Tuesday came in discussions of expanding the Illinois sales tax. The proposal would include food and drugs as taxable items, but at a lower rate – cut by one cent for every two dollars in spending.  

Democrats discussed the matter in private for three and a half hours.

"A number of us came out of there thinking, if anything, we picked up votes," Sen. Heather Steans, D-Chicago, said Tuesday evening. "So I was happy about that."

One outstanding question is how many Senate Republicans will join the effort, especially with Gov. Bruce Rauner's refusal to say whether he would support the measure.

But, after a closed-door meeting with fellow Republicans Tuesday evening, Sen. Pamela Althoff of McHenry dismissed those concerns.

“I thought the conversation was on target," she said. "I think, in general, the members are committed to trying to move this forward. I believe that there is great opportunity here.”

But even if the compromise can get through the Senate, it faces an uncertain future in the Illinois House -- and with the governor.

  • Statehouse Reporter Brian Mackey contributed to this report.