tax hike


How much you'll pay in state taxes next year remains an open question, even as the Illinois House Thursday approved dozens of spending bills, that rely on a permanently higher tax rate. It sets the stage for a budget battle, just weeks before legislators are set to adjourn for the summer.

The Illinois House convened at 8 o’clock Thursday morning, and spent most of a very long day on the budget. Lawmakers began with a debate on funding Illinois' public education system, giving schools a slight increase over this year.

John Cullerton
Illinois Senate

  Illinois'  General Assembly is heading into its final stretch.  They've got a lot to resolve before their scheduled adjournment at the end of this month, including what to do about Illinois' income tax rate.  It's scheduled to drop midway through the next fiscal year, but Democrats,  including Senate President John Cullerton, want to make the current, higher rate permanent.  WUIS Statehouse Bureau Chief Amanda Vinicky spoke with Cullerton about it earlier this week, and about why, despite the financial fights ahead, he's proud of the state.

The Illinois House will take the lead on whether Illinois keeps its 5 percent income tax. It's scheduled to roll back at the end of this year unless legislators take action.

It's happened in the past. The Illinois Senate will pass a controversial measure -- like a tax hike -- only for it to languish in the House.

Not this time.

Senate President John Cullerton says the Senate will vote on the tax question if and only if it first passes the House.


  New data suggests just how big a hit most school districts would take if Illinois' income tax rate rolls back as scheduled at the end of the year.

Illinois' budget could play out a lot of different ways. But under one scenario -- the one Gov. Pat Quinn says will be the case if tax rates aren't kept at five percent -- kindergarten through high school classrooms across Illinois will get $450 million dollars less from the state.

Brian Mackey/WUIS

Illinois' pension overhaul is tied up in a court challenge.  But even if it remains law, cuts to state employees' and public school teachers' retirement benefits will not solve the state's budget problem.  That's the forecast from a report issued today by the University of Illinois' Institute for Government and Public Affairs. Amanda Vinicky spoke with the report's principle author, economist Richard Dye.

Although the search for a way out of the state’s public pension mess has been the focal point in Springfield for the past two years, it’s not the only fiscal question mark looming over Illinois’ political landscape.

But unlike the years-long build-up that led to the slow-motion pension train wreck, this potential debacle has a timeline that’s crystal clear. On January 1, 2015, the first phase of the state’s temporary 2011 income tax increase will expire, potentially blowing a projected $2.2 billion hole in the state’s revenue stream.