November 18, 2011

This week, a House legislative committee met to receive testimony on proposed tax incentives for Illinois businesses, while in other news recently released pension information shows the state’s annual pension obligation is set to increase by one billion dollars next fiscal year.

Lawmakers are scheduled to return to Springfield on Nov. 29 to discuss several outstanding issues, including ongoing budget concerns and proposed tax breaks for Illinois’ employers. However, as legislators work to address budget issues for the current fiscal year, a new report shows the state is facing significant pension expenses in Fiscal Year 2013.

Medicaid expenses were already projected to grow by more than $3 billion in the coming year, and new figures released by the state’s pension systems show that Illinois’ mandated contribution to the retirement systems is expected to increase by one billion dollars. Reportedly, the state’s pension obligation will increase from $6.4 billion in FY 12 to $7.4 billion in FY 13.

Legislative leaders and Gov. Pat Quinn met this week hoping to make progress on pending issues before the second week of the fall veto session.

State leaders discussed business tax relief and other incentives for the Chicago Mercantile Exchange Group (CME) and Sears, as well as small and mid-sized businesses. CME has threatened to leave Illinois if lawmakers fail to address what the company says is a significant tax burden imposed by the Democrats’ January 2011 tax hike, while Sears is seeking an extension to an expiring multi-million dollar incentive package the state passed in 1989 to persuade the company to remain in Illinois.

In other anticipated veto action, a gaming bill may still be on the table. Following a leaders meeting Nov. 3, the Senate President indicated a revised gaming bill could very well be considered next week. Reportedly, discussions between legislative sponsors and Quinn, coupled with reforms suggested by the gaming board, have led to progress on a gaming bill compromise.

October 28, 2011

Lawmakers finished the first week of the fall Veto Session passing “smart grid” legislation, though work on some major issues—pension reform, gaming and business tax incentives—still continues behind the scenes.

Also during the week, the Commission on Government Forecasting and Accountability (COGFA) issued a favorable opinion for four state facilities the Quinn Administration is seeking to close.

On Oct. 26, lawmakers sought updates to the state’s electric grid, overriding a gubernatorial veto of the initial smart grid legislation and passing new legislation that addressed several concerns with the previous utility upgrade measure.

A majority of Senate and House lawmakers voted in favor of a “trailer” bill that advanced changes to the initial legislation that was vetoed by Gov. Pat Quinn this fall. The follow-up legislation, House Bill 3036, sought to address concerns with that bill, requiring utilities ComEd and Ameren to pay $60 million into low-income assistance funds to help qualified families, senior citizens and veterans. The bill also added $200 million for additional storm-related relief, which was sought in response to the spring and summer storms that recently left many suburban residents without power.

October 27, 2011

If you are unable to view this video please click here.