DeLuca Urges Governor to Sign Monumental Debt Transparency Measure

August 4th, 2017

SPRINGFIELD, Ill. – As Illinois’ bill backlog sits at a record $14.3 billion, state Rep. Anthony DeLuca, D-Chicago Heights, is calling on Gov. Rauner to sign legislation that would reform how state agencies manage their finances and reveal the full extent of the state’s debt obligations.

“After two long years, Illinois now has a balanced and bipartisan budget,” DeLuca said. “Despite this, there is a lack of clarity on how many bills need to be paid since many agencies have not submitted them to the comptroller. This legislation will require agencies to report how many bills have not submitted for payment, and ultimately protect tax payers from paying late fees.”

DeLuca’s House Bill 3649 would require agencies to submit a monthly report to the Comptroller on the liabilities they are holding, plus an estimate of the amount of late fees that are accruing. According to the Comptroller’s Office, liabilities are not being reported quickly enough, and, as a result, millions of dollars in penalty fees are accumulating on the overdue bills. By reforming how state agencies report their liabilities, DeLuca is fighting to protect hard-earned taxpayer dollars from being used to pay for financial mismanagement.

“The Debt Transparency Act would give the Governor’s Office, legislators, the media and most importantly the taxpayers of Illinois a much clearer picture of the state’s finances and the amount owed on the state’s unpaid bills,” said State Comptroller Susana Mendoza. “We hope Governor Rauner follows the advice of his fellow Republicans and Democrats and signs the bill.”

House Bill 3649 has passed the General Assembly, and now awaits the governor’s consideration.


Springfield Budget Update 7-5-2017

July 5th, 2017
Over the past two years, I have regularly provided updates on the budget negotiations taking place in Springfield.  It is apparent Illinois’ ongoing financial challenges has finally reached its inevitable breaking point.  A huge contributing factor in the last couple years are the court orders mandating spending levels well above our revenues to pay for it.  All agree we will see catastrophic consequences if we do not pass a budget immediately.
The bond rating agencies, Fitch, S&P, and Moody’s, have declared Illinois’ bond rating would be reduced to “Junk Status” if a balanced budget is not passed by July 1st. (Due to the passage of the House budget plan on July 2nd, Fitch said, “Illinois made concrete progress” and has delayed a downgrade.  On July 4th, the Senate concurred with the House budget and sent it to the governor for his signature.  The Governor immediately vetoed the budget as promised.  The Senate immediately voted to override the Governor’s veto.  The House has not yet scheduled a veto override vote).  In addition to this downgrade which would cost Illinois taxpayers hundreds of millions of dollars in higher costs, it would also label Illinois as the first state in history to be reduced to such a status.  Furthermore, without a budget by July 1st, the Illinois Department of Transportation announced the suspension of road construction projects, laying off tens of thousands of hard-working, well-paid employees thus placing our states’ infrastructure at risk. Without action, our schools will be in jeopardy of an opening in the fall, preventing our children from furthering their education.
The deliberations of each issue deepened and were constantly delayed due to the variety of opinions and ideas expressed by each political party.  Various Democrats are upset the FY18 budget, specifically, Senate Bill 6, contains a $3 Billion decrease in spending, along with spending $800 Million less than Governor Rauner’s introduced budget.  Some Democrats believe the proposed income tax rate increase in Senate Bill 9, from 3.75% to 4.95%, should be higher especially for the wealthy.  Many Republicans asked for deeper spending cuts as well as an income tax rate much lower than 4.95%.
Included in the overall budget discussions are issues such as government consolidation, pension reform, procurement reform, property tax relief, K-12 education funding formula, worker compensation reform, as well as the states $15 Billion in unpaid bills piling up in the comptrollers’ office.  The already challenging process is further exasperated by the deep political divide between Governor Rauner and House Speaker Madigan, as the political attacks between the two have been personal, vicious, and crushes any level of trust complicating negotiations.
Both parties have been tirelessly negotiating to reach an agreement and this budget deal may be as close as we get.  It’s certainly not perfect and there’s plenty not to like.  But because it was close, Republicans and Democrats in the Illinois House of Representatives joined together as a super majority and voted Yes to pass this compromise budget plan for Illinois.  At least one organization has offered a “cuts-only” budget translating to an $8 Billion decrease in spending within FY18, which only a couple legislators in Springfield would even consider supporting.  The reality of the matter is a cuts-only budget would never receive the requisite number of votes for passage, which is why we included both a combination of cuts and taxes.
An outline provided below depicts the personal income tax rate a family may have in comparison to our surrounding states:
A family having an annual income of $50,000 will have the following personal income tax rate:
Illinois – (Currently 3.75%)  increasing to 4.95%
Indiana – 3.23%     (Imposes a tax on services)
Wisconsin – 6.27%
Iowa – 7.92%
Missouri – 6%
Kentucky – 5.8%
A family having an annual income of $75,000 will have the following personal income tax rate:
Illinois – (Currently 3.75%)  increasing to 4.95%
Indiana – 3.23%     (Imposes a tax on services)
Wisconsin – 6.27%
Iowa – 8.98%
Missouri – 6%
Kentucky – 6%
A family having an annual income of $150,000 will have the following personal income tax rate:
Illinois – (Currently 3.75%)  increasing to 4.95%
Indiana – 3.23%     (Imposes a tax on services)
Wisconsin – 6.27%
Iowa – 8.98%
Missouri – 6%
Kentucky – 6%
I hope you found this information helpful.  Thank you for your continued help and support!

DeLuca Urges Leaders and Governor to Compromise 6-1-2017

June 6th, 2017

SPRINGFIELD, Ill. – State Rep. Anthony DeLuca, D-Chicago Heights, issued the following statement on Wednesday to urge Gov. Rauner to resume negotiating with the House Democrats on a balanced budget:

“Our state has gone far too long without a responsible, balanced budget, which is hurting working families throughout the state. Working families throughout the state are experiencing the consequences of no budget. The governor must put politics aside, start compromising and put the citizens of Illinois first.

“Consistently, the governor told members of the General Assembly that we must negotiate and meet him in the middle on a variety of issues before he will consider signing a budget. We must work together to make Illinois a more business-friendly state. Without an inviting business climate, we fail to create new jobs. However, this cannot be accomplished at the expense of hard-working Illinois families. Instead of stripping the worker of their wages and workplace rights, the solution should be geared towards helping businesses grow. If the corporate income tax were to be cut by at least 50 percent, this will allow small and medium-sized businesses to compete with multi-million dollar corporations.

“Providing economic opportunity and growth with help provide relief for Illinoisans. We need to create a system that protects the wages of workers, and one way we can do that is by increasing the Earned Income Tax Credit. Our hard working families pay enough in taxes and by increasing the Earned Income Tax Credit (EITC), it will allow Illinoisans to keep more of what they earn.

“To pass a budget, we must compromise and work together. I am fully committed to accomplishing that. The most vulnerable citizens of this state, including veterans, children and seniors, are not tools for the governor to use to push an agenda that would destroy the working class in Illinois. I remain committed to protecting the most vulnerable, and will fight to pass an honest and balanced budget. I am ready to work with both sides of the aisle to pass a budget and ensure we continue to help low-income families.”

For more information, contact DeLuca’s constituent service office at 708-754-7900 or visit www.anthonydeluca.org.


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