Illinois House rejects potential budget

SPRINGFIELD - A $34.5 billion budget that would result in deep cuts to schools and social services next year has been dismissed by the Illinois House.  Lawmakers rejected it 103-6 Friday.

The budget plan was developed by legislative leaders after it became clear there weren't enough votes to support an earlier budget that relied on extending Illinois' temporary income tax increase.

The tax rate is scheduled to drop from five percent to 3.75 percent in January, which would reduce state revenue by $1.8 billion.

Democrats say the increase must be extended to protect social services and education.  However, Republicans oppose the tax hike.  They voted no because they say lawmakers could build a better budget.
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