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Welcome to my legislative website. I am proud to serve as the State Senator from Illinois’ 48th District. I hope you’ll find this site a useful resource in keeping up-to-date with what’s happening in our district and in Springfield. Please contact any of my offices with questions or ways I can better serve you.

It is my honor to represent you in Springfield.

Sincerely,
ManarSig
State Senator Andy Manar
48th Legislative District

Manar07042017SPRINGFIELD – Senator Andy Manar (D-Bunker Hill) released the following statement today regarding his vote on to send the governor a budget package to prevent further financial upheaval in Illinois:

“Illinois is on the verge of insolvency. If we do not enact a budget immediately, it will take decades to recover from the economic damage that’s being inflicted upon our state – ironically in the name of achieving economic reforms.

“The district I represent is suffering perhaps more than any other area of Illinois because of its reliance on state government as both an employer and a customer and its dramatically underfunded public schools.

“The Illinois Senate passed a complete and balanced budget on May 23 prior to our scheduled adjournment. The governor then called the General Assembly into a protracted and expensive special session for the purpose of passing a bipartisan, balanced budget. And that is exactly what the General Assembly did today.

“This balanced budget will fully fund our schools so that they open on time. It cuts unnecessary spending and enacts reforms. It spends less that what the governor requested.

“I urge Gov. Rauner to withdraw his threat to veto this budget package. If he signs these bills, Illinois will begin to see stability and new economic growth for the first time in two years. Businesses owners and their employees will feel relief when they begin to receive long-overdue payments owed to them, and there will be a welcome influx of money into the economy right away.”

In the news: Rauner vetoes budget in Illinois budget showdown | Politico

In the news: Senate overrides Rauner's vetoes of budget, tax hike | The State Journal-Register

In the news: Illinois avoids credit downgrade to junk for now | Chicago Tribune

In the news: After 2 years without a budget, debt and pain are mounting in Illinois | NPR Illinois

In the news: Illinois is in a $6 billion budget budget hole and flirting with junk | Bloomberg

Continue reading for more details about what is contained in the budget package the General Assembly has approved.

 

Fact sheet

The Senate today voted to send Gov. Rauner a budget package that could put an end to the two-year stalemate that has crippled Illinois’ finances and has bond rating agencies threatening to lower Illinois to an unprecedented “junk” credit rating this week.

  • The House approved the same package of legislation on Saturday with support from both Republicans and Democrats.
  • Gov. Rauner threatened to veto the package if it landed on his desk and by 2 p.m. had followed through on his threat.
  • The Senate then voted to override the governor’s veto and sent the package to the House for an override vote.
  • Wall Street was waiting to see what happens. Junk bond status means it would cost more for state and local governments to borrow money to pay for services and institutional investors would be forced to sell Illinois bonds at deep losses.

 

Overview

It’s a $36.1 billion balanced budget. It authorizes less spending than Gov. Rauner introduced in his $37.3 billion plan in February. It incorporates key ideas from plans put forth by both Democrats and Republicans.

Key components

$2.5 billion in spending cuts, including 5 percent across-the-board cuts to state agencies and departments, plus reductions to various state programs, grants and other expenditures

$1.5 billion in pension savings

Ensures K-12 schools will open in the fall and includes money for an evidence-based school funding model

Offers stability to state universities and community colleges, which have not been fully funded in two years and have undergone dramatic cuts and tuition hikes, driving students to pursue degrees out of state

Funds Monetary Award Program (MAP) grants for college students

Pays down about $8 billion of the state’s backlog of unpaid bills – which currently stands at $15 billion – through a combination of borrowing and fund sweeps

Changes the state income tax rates, closes tax loopholes and offers tax credits for low- and middle-income individuals and families. Total revenue: $36.4 billion

• Personal income tax rate will go to 4.95 percent from 3.75 percent.. Generates $4.453 billion annually. This is a 1.2 percentage point increase, or a 32-percent increase in the tax rate.
• Corporate income tax rate will go to 7 percent from 5.25 percent. Generates $514 million annually.
• Both changes are permanent and both are retroactive to July 1, 2017.

There are no service taxes, no soda taxes, and no satellite or streaming taxes in this proposal.

Illinois would continue to be one of few states that does not tax retirement income.

Increases the Earned Income Tax Credit to 14 percent from 10 percent in 2017; increases to 18 percent in 2018.

Increases the cap on the Education Expense Credit to $750 per family from $500.

Creates a new tax credit of up to $250 for educators who use personal funds to purchase classroom supplies.

Means tests the Education Expense Credit, the Personal Exemption and the Property Tax Credit; they would only be available for those making less than $250,000 per year (single filers) or $500,000 per year (joint filers).

Reinstates the Research and Development Tax Credit

Closes three corporate tax loopholes worth a combined $125 million per year:

  • Eliminates the domestic production deduction (decouples Illinois from federal tax law; Wisconsin and Indiana already did this.)
  • Repeals the non-combination rule
  • Eliminates loophole exempting areas outside of standard U.S. from taxation, “outer continental shelf”

Removes the sales tax discount for gas and extends the discount for majority-blended ethanols until December 2023, worth $100 million per year

Creates the Uniform State Tax Lien Registration Act, a Republican initiative. Allows the Illinois Department of Revenue to file notice of tax liens in the registry, bypassing the need to file them with county recorders. Worth $40 million per year.

 

IL Income Tax Rate History JPG

 

 

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Contact Me

Springfield Office:
119A Capitol Building
Springfield, IL 62706
Phone: (217) 782-0228
Fax: (217) 557-3930

Decatur Office:
Macon County Office Building
141 S. Main St., Suite 502
Decatur, IL 62523
Phone: (217) 429-8110
Fax: (217) 429-8018

Bunker Hill Office:
115 N. Washington, P.O. Box 636
Bunker Hill, IL 62014
Phone: (618) 585-4848