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Dear Friends,
 Yesterday I voted along with my colleagues in the Senate to end this long, destructive budget impasse and set our state on a path toward fiscal stability. I voted to ensure that our schools open on time, that our social service agencies can continue to support vulnerable citizens within our community, and for our institutions of higher education to finally receive funding support after two years without a complete budget.
This budget is the result of genuine compromise after years of bipartisan negotiations. It includes revenue and reforms to sustain the state while reducing spending. It will allow the state to pay down the nearly $15 billion backlog of bills so that social service organizations, universities, hospitals, nursing homes and small businesses can receive payment for their services.
The state’s budget impasse has gone on far too long, and too many Illinoisans have been negatively affected by it. Without this action, bond rating agencies threatened to lower Illinois to an unprecedented “junk” credit rating. It was time to put an end to the suffering.
Unfortunately, the governor did not share that belief. Shortly after the balanced budget passed in the Senate Tuesday, the governor vetoed the package in its entirety. The Senate quickly overrode his veto. Now the House must also override the veto for the budget to go into effect and bring relief to a state in crisis. This vote could happen as soon as Thursday.
I have said all along that resolving the impasse would require a combination of spending cuts and revenue. This bipartisan package includes $2.5 billion in reductions to state agencies and programs and spends $1.2 billion less than the budget the governor introduced in February. In total, our plan spends $36.1 billion and brings in $36.4 billion.
Importantly, the bipartisan budget includes a revenue plan that will provide our state with long-term stability. Raising revenue is a responsibility we took very seriously. Before considering a tax increase, we attempted to make as many cuts as possible without damaging services and agencies.
The revenue package increases the income tax from 3.75 percent to 4.95 percent – less than the 5 percent rate it was in 2014. The corporate income tax would increase to 7 percent. This budget also adds some progressivity to the income tax by increasing the Earned Income Tax Credit from 10 to 18 percent over the next two years and means tests income tax exemptions for the first time. The budget also eliminates three corporate tax loopholes, saving the state $125 million each year.
This budget supports communities, education and vital services. It includes an additional $350 million in funding to implement an evidence-based school funding model, which provides additional support for the neediest districts and aims to level the playing field. The plan also appropriates additional funding to support MAP grants for low-income students to attend universities and colleges in Illinois. It funds numerous human service programs the governor had gutted, such as immigrant services, addiction prevention and community youth services, among others.
Outside of budgetary matters, this spring the Senate passed pension reform, procurement reform, term limits, government consolidation and school funding reform. Many of these came at the request of the governor, and all were negotiated with Senate Republicans.
There is more work to do to alleviate the strain the budget impasse has placed on our state. For now, this is a giant step toward securing fiscal stability for Illinois. I am heartened by the progress and will continue to work with my colleagues to provide certainty for the state.
As always, please do not hesitate to contact my office at 773-769-1717 or reach out online with any questions or concerns.
Sincerely,
Senator Heather A. Steans
7th District – Illinois
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Under a new law that I sponsored, social service providers will have at least 30 days’ notice of a change in contracts with the state. House Bill 3110 allows authorized social service providers and the state to terminate, suspend or reduce a contract for any reason as long as the other party is provided with 30 days’ notice. This legislation only applies to non-governmental social service providers.
Senate Bill 1 implements an evidence-based school funding model which uses 27 evidence-based practices to improve student achievement. It strives to level the playing field by funneling new money into school districts that are the least able to offer a high-quality education based on student needs, local property wealth and a district’s taxing effort. Under Senate Bill 1, no school district would receive less funding than it did in Fiscal Year 2017.
