A look at the Illinois Budget Plan

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SPRINGFIELD, Ill (WAND)- Illinois is one vote away from having a budget after more than 2 years if the Illinois House votes to override Governor Rauner's veto. Here is a look at some of the things you should know about the package. 

The $36.1 billion budget contains a mixture of cuts, revenue and borrowing. The plan will provide $2.5 billion in cuts by reducing spending in various state programs, grants and expenditures including a 5 percent cut to state agencies and departments. 

While the spending ensures there is money allocated for K-12 schools, it requires an evidence based funding model be in place. Currently, the only way for Illinois to move to an evidence based funding model would be to pass a new school funding formula into law. SB 1, is just that, and has passed both chambers, but Governor Rauner has said he would veto that measure. So, some are saying that Democrats tried to create a booby-trap within the school funding appropriation, but they disagree. 

"The Republicans version of SB 6 has the exact same language in there, that ties an evidence based funding school model to funding for school. How can we pull a trick on someone that they put in their own bill language?" said Representative Will Davis, D-Chicago, the House Sponsor of SB 1. 

Now onto the most talked about part of the budget plan, the unpopular income tax increase. The 32 percent increase brings up the income tax from 3.75 percent to 4.95 percent. This is predicted to bring in around $4.453 billion annually. The revenue bill will also raise the corporate income tax rate to 7 percent. That is predicted to bring in $514 million each year. The income tax increase is the main reason that Governor Rauner vetoed the entire budget package. 

"This bill, this permanent, permanent 32 percent tax hike will be devastating, it will not solve our problems." he said. 

This budget plan also tackles the state's nearly $15 billion in backlogged bills by borrowing money. Republicans however, say the borrowing plan is something they don't agree with. 

"The borrowing and not paying any principal payments for 13 years, that's really a very irresponsible budget that passed." said Senator Dave Syverson, R-Rockford. 

Some other things of note in the budget:

  • Map grants will once again be funded. 
  • A new education tax credit of up to $250 will be created for teachers who use their own money to pay for school supplies.
  • The Research and Development Tax Credit is reinstated 
  • Three Corporate Loopholes will be closed.
  • $1.5 billion in pension savings

The House is expected to vote to override Governor Rauner's veto Thursday.

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