The Senate today voted to send Governor Bruce Rauner a budget package that could put an end to the two-year stalemate that has crippled Illinois’ finances and has bond houses threatening to lower Illinois to an unprecedented “junk” credit rating this week. It's the same package the House passed on Sunday. Rauner has already said if it reached his desk, he would veto it.
Votes for both the spending plan and tax increase in both Chambers were veto proof, which means even if the Governor vetos both the spending plan and tax increase, the House and Senate will vote to override and the budget will become law.
The new budget increases the personal income tax from 3-point-7-5 to 4-point-9-5 percent, and the corporate tax from 5-point-2-5 to 7 percent. Both tax increases are permanent.
Democrats claim the 36-point-one billion dollar budget is balanced, with 2-point-5 billion in spending cuts and one-point-5 billion in pension savings.
Republicans wanted reforms in state spending, but didn't get any.
Reforms the Republicans wanted include statewide property tax relief, cost reductions in workers' compensation and benefits for state-employee pensions, and working toward dissolving or eliminating local governments.
Several Republicans in both chambers did vote for both the spending plan and the tax increase.
At mid-afternoon on Tuesday, the Senate was working to get the paperwork to the Governor so he could officially veto the budget, with the Senate remaining in session for the override vote late in the day on Tuesday.
House Speaker Michael Madigan has not announced when he'll call the House back in session for an override vote there.
Wall Street is watching the budget proceedings closely, as the state's bonds could end up in junk bond status if the budget isn't approved.