From State Senator Karen McConnaughay:
Tax Hike and Budget Without Reforms is Wrong for Illinois
The state’s two-year budget impasse came to an end this week as the General Assembly overrode Governor Rauner’s veto of a budget containing a permanent 32 percent income tax increase, while failing to incorporate any meaningful government reforms.
Throughout session I remained hopeful we could find a bipartisan compromise on a balanced budget with real reforms. Unfortunately, that did not happen.
I will continue to work with my colleagues on both sides towards structural reforms that will help stabilize our state and make Illinois a place for families and businesses to call home.
Only through true property tax relief, meaningful workers’ compensation reform and a fair and equitable school funding reform model will Illinois have a strong foundation for future job growth and education excellence.
It is my hope that we can move forward on these important issues in the coming weeks.
Below are some highlights of the budget:
The state’s personal income tax rate, which goes into effect retroactive to July 1, will increase from 3.75 percent to 4.95 percent, and the corporate income tax rate would increase from 5.25 percent to 7 percent. Here is the breakdown:
• A single person who earns $34,000 a year would pay an estimated additional $382 a year.
• A family of three making $75,000 a year would pay an estimated additional $822 a year.
• A family of four earning $150,000 a year would pay an estimated additional $1,695 a year.
• A 66-year-old retiree who has $5,000 in taxable earnings plus Social Security and pension income, which are not taxed in Illinois, would pay an estimated additional $22 a year.
• The rise in the corporate income tax rate would bring in roughly $460 million.
School funding, was increased by $350 million.
However, language was slipped into the budget tying these funds to the enactment of an evidence-based model (EBM) for school funding reform.
Senate Republicans have introduced SB 1124, a EBM that would treat all schools fairly and equitably.
This measure must be part of any discussions moving forward regarding school funding reform.
The budget contains $3 billion in “surplus” revenue, which the state can couple with federal funds (bringing the total to $8 billion) to begin paying down our backlog of bills.
Also, the budget includes a plan fund two City of Chicago worker pension funds, which the governor had vetoed when lawmakers passed it as a stand-alone bill earlier this year.
I hope you keep updated with what’s happening at the Capitol by signing up for my email newsletter.
I also encourage you to send me your feedback regarding this legislative session at [email protected]>
. As always, more information can be found at www.senatormcconnaughay.com.Sincerely,Karen McConnaughay
State Senator 33rd District
Conversation with Local Leaders
Join Senator McConnaughay and East Dundee Village President Lael Miller for a wine Wednesday about current events happening in East Dundee and throughout the 33rd senate district.
Bring your questions Wednesday, July 12 to The Depot in East Dundee from 6 p.m. to 7 p.m. for an open forum with your local leaders.
Senator McConnaughay recognizes Naomi’s House as ‘Human Trafficking Hero’
This week, Senator McConnaughay recognizes the organization Naomi’s House as the “Human Trafficking Hero” recipient.
Naomi’s House is a faith-based organization committed to the healing of all victims of human trafficking. Read more.
“Their dedication to survivors shows a true effort to help combat this horrible exploitation of women,” said Senator McConnaughay.
“It’s reassuring to see organizations such as Naomi’s House that have committed themselves to helping some of the most vulnerable, in hopes they can seek a healthy, smooth reco