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Chamber@Work | Chicagoland Chamber of Commerce

June 2, 2014

Springfield Session Recap

The Illinois House adjourned its spring session on the evening of May 30 and the Illinois Senate did so shortly after midnight, thus ending an Illinois General Assembly session that proposed a lot of grandiose plans, but did not see many of them come to fruition. From the Chicagoland Chamber’s perspective, there were some victories and some frustrations.

The FY 2016 budget adopted by the legislature does not adequately address the state’s current spending obligations and is expected to be revisited before the end of the fiscal year, with the possibility of a tax increase after the November election.

A complete legislative report will follow next week, but below are some highlights:

Extension of the Income Tax Increase: Due to expire on December 31, 2014, the “temporary” higher rates of the personal and corporate income taxes were not extended, nor was Governor Quinn’s $500 property tax rebate plan advanced in the legislature. (Chamber opposed.)
Graduated Income Tax: The proposed constitutional amendments (SJRCA40 and HJRCA 33) to permit graduated income tax rates in Illinois did not pass in either chamber. (Chamber opposed.)
Minimum Wage Increase: Originally contained in SB 68, the legislation was not called for a vote. An advisory referendum will be on the ballot in November, if the governor signs HB 3814, which passed both houses. (Chamber opposed.)
Millionaire’s Tax: A proposed constitutional amendment to adopt additional rates on income over $1 million (HJRCA 51) did not advance, but an advisory referendum (HB 3816) will be on the ballot in November if the governor signs the legislation. (Chamber opposed.)
Pension Reform: An overhaul of Chicago’s public employee pensions (SB 1922) passed both houses in April and awaits the governor’s action in early June. A Cook County reform plan (HB 1154) passed the Senate, but was not called for a vote in the House. (Chamber supported both of these plans.)
House Revenue and Finance/State Government Joint Committee: After months of hearings, testimony and comprehensive documentation of the tax and economic development climate in Illinois, the Joint Committee issued a report on May 28 which included recommendations regarding the Illinois corporate franchise tax, corporate income tax, income tax credits, Illinois EDGE program, and Manufacturer's Purchase Credit. The Joint Committee did not propose any implementing legislation. Instead, a separate proposal to make significant changes to the EDGE program was put forward by Speaker Madigan (first in HB 3890, and on the last day of the session, in SB 346 passed the House, but not the Senate. (The Chamber participated in the Joint Committee’s hearings and deliberations, but did not support the separate EDGE proposal.)
Fracking: An end-of-session proposal to put a moratorium on hydraulic fracking in northern Illinois (SB 649) until the proposed rule-making process that implements last year’s fracking authorization legislation (SB 1715) could be expedited did not advance out of the House. (Chamber opposed.)
Soda Pop Tax: A proposal to put a penny-per-ounce tax on sugar-sweetened beverages (first contained in SB 3524 and later in HB 397) did not pass out of either chamber. (Chamber opposed.)
Illinois Secure Choice Savings Program Act: Legislation to establish a retirement savings program in the state treasury in the form of a mandated automatic enrollment payroll deduction IRA (SB 2758) passed the Senate but did not get called for a final vote in the House. (Chamber opposed.)

For information on these and other bills, please contact the Government Affairs staff or go to the Illinois General Assembly website, www.ilga.gov and click on Bills and Resolutions.

The General Assembly is not expected to return to Springfield until the start of its veto session on November 19.

Prepared by Joan A. Parker for the Chicagoland Chamber of Commerce

Public Policy Legislative Report

Throughout 2013, the Chicagoland Chamber of Commerce fought to protect the interests of the local business community and push for reforms to ensure future growth and success for our region. Our recently released 2013 Public Policy Legislative Report includes a summary of Chamber activities and results as measured against priorities established in the Chicagoland Chamber of Commerce 2013 Legislative Agenda.

Public employee pension reform topped the Chamber’s agenda, in addition to supporting a land-based casino in Chicago, hydraulic fracturing in Illinois, and expansion of Medicaid. The Chamber opposed an increase in the minimum wage and mandatory disclosure of corporate tax returns, and weighed in on concealed carry of firearms. Most notable, the Chamber took aggressive action against burdensome and illegal taxes by successfully suing Cook County.

Download the Full Report