State Budget Exceeds Revenues By Nearly $3 Billion

Springfield…Today, Democrats, breaking their promise with the people of the State of Illinois, passed a budget exceeding state revenues by nearly $3 billion.  State Rep. Barbara Wheeler (R-Crystal Lake) stated that the Democrats’ budget is ‘insane,’ deliberately unconstitutional, and guaranteeing the tax increase is made permeate by their votes.

“All told, this budget will spend $3 billion more than we are expected to take in, that is insane,” said Rep. Wheeler.  “Democrats essentially just voted to make the ‘temporary’ 2011 income tax increase permanent.  This goes against our agreed revenue projections, against our constitution, and against the trust of the people of the State of Illinois.”

The income tax increase of January 2011 is set to expire on January 1, 2015.  If the income tax increase is not extended or made permanent, personal income tax rates would decrease to 3.75% (3% prior to increase) and the corporate tax rate would decrease from 7% to 5.25% (5% prior to 2011 increase).

“Illinois residents can not afford one more single day of this tax increase,” said Wheeler.  “Every penny the state takes from our pockets is money invested into fiscal failure.  There is no sense in the state taking more while we lag behind the rest of the nation in all facets of economic recovery.”

Rep. Wheeler argues that the Illinois Constitution clearly states that no budget can exceed projected revenues for the year.  Without action on the income tax issue, the 2015 budget passed by House Democrats would exceed revenues by at least $2.8 billion.  The House budget bills are now in the Senate where Democrats are expected to pass this unbalanced budget.