Illinois budget

Carter Staley / NPR Illinois | 91.9 UIS

Five DeKalb-area panelists took part in an Illinois Issues discussion earlier this week about the effects of the two-year Illinois budget impasse and the state’s financial future. That’s the subject of this week's WNIJ Friday Forum.

Illinois was without a state budget for two years. That ended in early July when lawmakers overrode Governor Bruce Rauner’s veto.  It was a huge relief to schools, social service agencies, and programs that rely on state funding. But celebrations were tempered by the reality of the state’s fiscal situation.

www.planetofsuccess.com/blog

Illinois has taken another step toward paying down nearly $16 billion in overdue bills.
That money is owed to hospitals, electric utilities, drug rehab centers — basically anyone who has a contract with state government.

The state began issuing bonds Tuesday, effectively refinancing the debt to cut interest penalties, but it will be a long road back to normal.

The Wisconsin Legislative Bureau said the recently-passed income tax hike in Illinois will cost Wisconsin more than $50 million in revenue over the next two years. Why?

Illinois and Wisconsin have an income tax reciprocity agreement.  

Without it, residents of one state who work in the other would have to first file in the state where they earn income, pay taxes on that income, and then file again in the state where they reside, claiming a credit for taxes already paid to the first state. 

Brian Mackey/Illinois Public Radio

The two-year Illinois budget impasse is over.

The House of Representatives voted Thursday to override gubernatorial vetoes, giving final approval to a $36 billion spending plan and $5 billion tax increase. The laws are retroactive to July 1, the start of the current fiscal year.

There was not a single vote to spare. Ten Republicans who defied Gov. Bruce Rauner joined with Democrats for the 71 votes needed to end the crisis -- the nation's longest since at least the Great Depression.

niu.edu

It’s all up to the Illinois House of Representatives.

Speaker Michael Madigan announced Wednesday that he will call a vote on whether to override the veto of the spending plan and supporting tax increase that both chambers approved over the weekend.

After Gov. Bruce Rauner’s swift rejection on Sunday, the state Senate came back and rejected the veto later that day. The House has not taken up the matter yet, due in part to member absences. But more on that later.

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