(The Center Square) – Illinois taxpayers are on the hook for over a billion dollars of tax increases to fund a $55 billion budget, the most expensive spending plan in state history.
Before approving the plan in the House, state Rep. Robyn Gabel, D-Evanston, said the budget is compassionate and fiscally and socially responsible.
“Leadership in Washington has affected our economic outlook, our revenue projections, and even threatened federal funding for our most crucial services,” Gabel said during floor debate.
The package of bills weren’t completely filed until a few hours before the Saturday midnight deadline, despite the legislature being in spring session since January. State Rep. Amy Elik, R-Alton, said what Democrats are doing is a disservice to taxpayers.
“The people of Illinois deserve so much better,” Elik said during floor debate. “I hate this for them. This is my fifth spring session and I leave here each year sad for the state of Illinois and worried about my taxpayers.”
The plan includes about $130 million for the Health Benefits for Immigrant Seniors, non-citizens over the age of 65. The Health Benefits for Immigrant Adults program, or non-citizens between ages 42 and 64, is being cut.
Among the $1 billion of tax increases legislators approved separately to pay for the budget are a 45% tax on tobacco and vaping products, increased taxes on sports wagering, and various changes to corporate taxes.
The next fiscal year begins July 1.
Another round of tax increases to fund the mass transit fiscal cliff didn’t advance. One measure to consolidate transit agencies passed the Senate, but the clock ran out in the House. That measure would have added a $1.50 “fee” for retail delivery of things like pizza. Those funds would have been used to fund the looming mass transit fiscal cliff.
“Illinois has proposed to implement what could be the most anti-consumer, regressive tax package in years. We are looking at the highest delivery fees in the nation, stacked on top of the highest rideshare fees in the nation,” Illinois Retail Merchants Association Vice President Alec Laird said during a Senate committee hearing Saturday. “These policies hit hardest those who live in grocery, pharmacy, health care and transportation deserts.”
Also funding the transit consolidation fiscal cliff would have been an environmental impact fee and a “fee on the privilege of engaging in business as an electric vehicle power provider.” Legislators could come back in the months ahead to address the issue further.
