The Last Six Months in Springfield (Our Legislative Recap.)

Lame Duck and Spring Legislative Sessions
By Adam Andrzejewski
For The Good of Illinois | CEO
July 20, 2011

“When the legislature is in session, your life, liberty and property are not safe.” Mark Twain.

In the 2010 national elections, voters resoundingly rejected politicians who sponsored big government. In Illinois, voters did the opposite. Then, our elected officials raised taxes, increased spending, and compromised our freedoms.

The Springfield legislative record described below should outrage fiscally responsible citizens of all backgrounds. Sadly, such outrage isn’t being generated. Illinois deserves better – both better leadership, and more active citizens.

(For positive news, read our For The Good of Illinois “IMPACT REPORT“- click here. Alongside activists and public officials, For The Good of Illinois pushed forward and helped enact solid reforms across all levels of government.)

Two income tax hikes and the passage of an internet sales tax.- The 67% income tax hike (SB2505): hard working taxpayers were punched with the largest income tax hike in state history. The corporate tax rate is now the fourth highest of the fifty states and stands at 9.5%. Illinois Democrats said “the tax is temporary.”
- Internet sales tax (HB3659): required out-of-state merchants who advertise on websites based in Illinois to collect taxes from all Illinois customers. Amazon immediately terminated all affiliate marketer relationships, costing Illinois thousands of jobs. Estimates put 9,000 jobs at risk. Legislation also further codified purchaser responsibility for sales taxes when buying from out-of-state merchants. In lieu of reporting sales taxes on internet purchases, taxpayers have the option of paying an extra income tax (one half of one percentage of adjusted gross income)!

A State Budget that spends more…
- A bi-partisan “House” budget put together by leadership increased spending by as much as $1 billion versus last year. Gov. Pat Quinn and Senate Democrats proposed spending a gaudy billion more; Senate Republicans proposed a menu of budget cuts up to $6.2 billion. The 67% income tax hike ($6 billion) mostly funded the pension payment. $300 million of general spending was cut, but $1.1 billion of Medicaid/Medicare reimbursement payments were extended into next year.

During the past decade, our analysis shows spending annually averaging increases of $1 billion. For example, FY08 budget was $30.2 billion and FY12 (this year) $34.2 billion; the FY02 budget was $23.4 billion. Even though taxes are hiked, Springfield spends even more. Comptroller Judy Barr-Topinka estimates unpaid bills of $8.5 billion at year end, so the real work to reduce state spending and stop a permanent tax increase is ahead of us.

Senator Kyle McCarter (R-Lebanon) summarized, “it (budget) almost guarantees the so-called temporary state income tax increase passed in January will become permanent.”

Another massive gambling expansion…
- Gambling Expansion (SB 744): Opens five new gambling licenses, including Rockford and Chicago; Increased the number of gambling positions at the nine existing casinos; Slot machines installed at racetracks, hotels, and Illinois State Fairgrounds. Illinois is only chasing Nevada (Las Vegas) in the most gambling of the 50 states. Last year, the legislature also approved a billion dollar massive expansion of gambling: the highly contentious 45,000 video poker machines into every corner of Illinois. Makes government reform more difficult- more money, revenue, “influence”, and patronage infused into the Illinois political system.

Government transparency? Freedom of Information? “…None of your business!”
- Undermining the Freedom of Information Act (HB 5154), (HB 1716): HB 5154 exempted the personnel employment records of all public employees. Your legal ability to hold government accountable is being curtailed. Under HB 1716, government to label citizens as “recurrent requesters” if they submit more than 50 FOIA requests in one year, 15 in 30 days, or seven in seven days. Original legislation labeled the citizen “vexatious”. Once someone is labeled, there is no requirement for government to provide the requested information for one year.

“Tax money for unions,” says John Stossel of Fox Business. Springfield passed it.
- Project Labor Agreements (HB 2987): Any government unit under the control of the Governor will require a project labor agreement (PLA) on any public works project. 87% of Illinois companies are non-union and therefore excluded from biding. This stifles competition. By signing a PLA, a private company loses control of their own workforce. The union then controls who to hire, fire and the work rules. For the taxpayer, the cost of government construction increases by 18-30%.

Illinois moves toward worker’s comp reform, but more work needed
- Worker’s Compensation Reform (SB1349), (HB1698): Current workers’ comp premiums are up to three times higher than neighboring states, crushing manufacturing and other private sector jobs. Business groups say that at least $400 million of savings will be achieved from reforms included in HB1698. But there’s more work to be done. “Illinois business will continue to pay for injuries not primarily related to employment (causation),” says Rep. Dwight Kay (R-Glen Carbon). To reform “causation,” Sen. Kyle McCarter brought forward SB1349 which was opposed by personal injury lawyers. 28 Democrats voted “present” to defeat the real reform. Current law still allows employees to be fully compensated for injuries found to be caused by as little as 1 percent at work and 99% mowing the grass.

Education reform?
- Education Reform (SB 7): The universal praise for this measure may be overstated, but lawmakers do deserve credit for taking a start down this road. Although we would have preferred an education reform bill where money started following children rather than the education bureaucracy, this legislation did bring a measure of reform. School districts will have an easier time dismissing tenured teachers deemed ineffective based on student performance. The legislation also makes a Chicago teachers strike more difficult. In this regard, the reform was landmark. This should just be the first step. We would encourage more “landmark” reforms- i.e. passage of tax credits and vouchers to further improve the quality of education.

The Dream Act
- The Dream Act (SB 2185): New program- makes Illinois first state to provide a private scholarship fund for children of undocumented parents residing in Illinois on an illegal basis. Legislation enables high school counselors and college admissions officers to provide information on 95,000 scholarships available to these high school graduates. Once graduating from college, the degree holder can’t even legally be hired.

The Democrats foreclose on the democratic process…
Congressional map redistricting (SB 1178): the attempt by Illinois Democrats to terminate competitive democracy. All eight democratic congressional incumbents are thoroughly protected in safe districts. While most republican congressional incumbents will have to move districts, retire or run in geographically contorted, gerrymandered districts. Dennis Byrne at the Chicago Tribune says, “The new map violates constitutional requirements that the districts be compact and laws that demand that the districts group together shared community interests.” In fact, the close-knit rural town of Herscher with population 1,500 (on the border of Kankakee and Iroquois counties) is now in the congressional district of Chicagoan Jesse Jackson.

Want to know how your state representatives and state senators voted?
Visit our “FOR THE RECORD- SCORECARD 2011” by clicking here.

If you are outraged toward Springfield, let’s do something about it!

To get involved, please contact me directly at adam@forthegoodofillinois.org.