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Senate Budget and Reform Package Update

Senate lawmakers adjourned March 2, with negotiations continuing on several critical aspects of a Senate budget and reform package—including education funding and workers’ compensation reform and property tax relief.

While Sen. Connelly acknowledged there is an urgency to act on the remaining measures, it is important to make these measures are in the best interest of taxpayers. Connelly adds that any budget plan needs to emphasize cuts and reining in government costs, before asking the taxpayers for more. He underscored that a comprehensive package will not only include a balanced budget, but protect taxpayers while creating jobs.

Senate Republicans noted discussions are ongoing on measures to ensure real property tax relief, and thorough and significant workers’ compensation reform to make Illinois competitive again. Education also remains a top priority, and Senate Republican legislators said it’s critical to make sure the school funding formula, which is still being finalized, is complete before moving forward.

Legislation considered by the Senate last week includes:

  • Senate Bill 3 encouraged consolidation of Illinois’ nearly 7,000 units of local government—the most in the nation. Proponents of the proposal said these often unnecessary layers of local government have contributed to the state’s residents skyrocketing property tax bills. Property taxes are often listed as a primary reason for Illinois’ outward migration problem.

  • Senate Bill 5, if enacted, would allow the state to pick up the employer-share pension costs of Chicago public school teachers, just as current law provides for downstate and suburban public school teachers.

  • Senate Bill 6 contained appropriation language for the remaining months of Fiscal Year 2017, to establish spending authority for core state operations not covered by court order, consent decree or continuing appropriations.

  • Senate Bill 7 would expand gaming across the state, adding casinos in Chicago, Danville, Rockford, Lake County, South Suburban Cook County, and Williamson County. Additional provisions would also add incentives for the Illinois horse racing industry and allow for slot machines at racetracks.

  • Senate Bill 8 would allow for procurement reform estimated to save the state government entities tens of millions of dollars on an annual basis.

  • Senate Bill 16, which outlines reforms to the four state pension systems and the Chicago teachers’ pension fund, failed to generate enough support to pass this week. However, it can be voted on again when the complete framework is agreed upon.

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