Illinois could see its first budget in almost three years by the end of the day. The Illinois House is due back in Springfield this afternoon to try to override Governor Rauner's budget veto. The governor also vetoed the 32-percent income tax increase that fuels the budget. Democrats are once again counting on more than a dozen Republicans to vote with them.
Governor Bruce Rauner says a 32-percent income tax increase will be like hitting Illinois taxpayers in the face with a two-by-four. The governor yesterday pleaded with Republican lawmakers not to override his vetoes of both the five billion-dollar income tax increase and the 36 billion-dollar state budget that it fuels. The Illinois House will take up the vetoes later this afternoon.
Even with a 32-percent income tax increase, Illinois could soon have junk credit. Moody's Investors Service yesterday said the five-billion-dollar tax increase on the table with a new state budget is a positive step forward for the state. But Moody's said because the budget doesn't deal with Illinois' 250-billion-dollar pension debt or the state's 15-billion-dollar backlog of unpaid bills, Illinois' credit is still in jeopardy. Republicans say the warning is another reason not to move forward with the tax increase and the budget that it fuels.
