By Greg Bishop / INN Radio -
House Committee of the Whole focuses on Motor Fuel Tax and CCAP
There’s still no budget solution for the state of Illinois. The Illinois House held a Committee of the Whole hearing Tuesday about a couple of different programs that are tied up because of a lack of a state budget. One panel focused on Motor Fuel Tax funds where the Chicago Department of Transportation Deputy Commissioner, Mayor of Macomb and County Engineers from Johnson and Union counties testified to the importance of the funds for road salt purchases and pothole repairs. The second panel featured organizations and other recipients reliant on funding through the Child Care Assistance Program. It’s now Day 57 of the current fiscal year with no budget in place.
House hearing on local government bankruptcy
A looming economic slowdown could lead to increased financial pressure for state and local government and politicians may not have the will to drastically cut services or raise taxes — that’s why local governments should be able to reorganize their debt. That’s according to a supporter of allowing local governments to declare Chapter 9 bankruptcy. During a hearing on Governor Bruce Rauner’s pension proposal, Brad Erens said if there’s another recession the state could take a sizable hit in revenue from a slowed economy.
“Frankly, if this does happen — obviously I hope it doesn’t happen — but look, none of us control the future, it will be politically unpalatable to raises taxes in that kind of environment. Presumably we’ll see an increase in unemployment in the state and that is not the time to increase taxes on the citizens,” said Erens.
Erens said the political will from local leaders may not be to raise taxes or cut services and reorganization bankruptcy would allow for that pressure to be removed and for the problems to be addressed. The committee also heard from an opponent of allowing Chapter 9 bankruptcy saying it’s “bad public policy.”
Views differ about Chapter 9 being work around labor
Bill Brandt, a prominent bankruptcy attorney, is against the idea saying it’s only used to work around labor contracts.
“They were contracts and the pensions are enshrined in constitutions is these people are not members of the Social Security system. If their pension are cut they do not wander down the street to the Social Security office and say ‘oh well, nice try, I’d like to sign up for my benefits.’ They don’t get any,” said Brandt.
But Republican Representative Ron Sandack, who served as Mayor of Downers Grove, said without relief through bankruptcy or other measures to ease the pension burden on local governments, the local economy and city-provided services would take a hit.
“Guess how municipalities solve their financial problems right now when they have tough labor situations. Guess what they do? They stop hiring people is the first step,” said Sandack.
Sandack has his own measure to allow for municipalities to declare Chapter 9 bankruptcy but the measure is also included in the Governor’s plan to reform pensions. Tuesday was the latest in a series of hearings on the Governor’s pension reform proposal.
State picks up air quality regulation authority
Beginning next year the state of Illinois will join 41 other states in having their own permitting process for air quality standards after the Governor signed Senate Bill 1672 into law. The measure allows for permits to be issued on a state level for new construction or major expansions of certain manufacturers instead of the businesses having to work with federal regulators. Republican Senator Sue Rezin says the law will help manufacturers in her district.
“This will go a long way to helping our manufacturers create jobs, boost our economy while protecting the environment. It’s great news for Illinois, it’s great news for my district as the energy and chemical corridor for America,” said Rezin.
Rezin also heralded the measure as a true bipartisan bill, something Todd Maisch with the Illinois Chamber of Commerce echoed. Maisch also said the measure ensures environmental regulatory decisions are more localized.
“But we’re gonna have a process that we think is more responsive to the business community and be more flexible to make sure that we’re getting the right balance between environmental protection and economic development that is so important part of the process as well,” said Maisch.
A group representing various entities with environmental concerns applauded the measure for also including public commenting in the permitting process.
