Rauner Budget Makes Income Tax Increase Permanent and Raises Property Taxes

For Immediate Release     Rauner Budget Makes Income Tax Increase Permanent and Raises Property Taxes “Governor Rauner proved again today that he has never made a promise he couldn’t break.” February 14, 2018 – Governor Rauner delivered his final budget address this afternoon. The budget he presented will make the 32% income tax hike permanent and raise property taxes. While he promises to immediately roll back the income tax hike on the stump, Governor Rauner failed to budget to the goal of a rolled-back tax hike. In fact, the budget Rauner proposed today relies on the money the tax hike takes in. Instead of talking about real education funding reform, he touted the education bill that bailed out Chicago Public School pensions.  Instead of addressing outsized spending in Higher Ed administration, Rauner committed $100 million in capital funds to the state’s bottom line. The governor said, “The principles of reform and accountability guide our approach to Medicaid as well.” But he proposed no innovation to Illinois’ Medicaid system. This is critical, as the state’s Medicaid spending has doubled from $10 billion to $20 billion since the Obamacare expansion took effect. The state’s share of that cost has grown from $4 billion to $8 billion. States around Illinois have been pro-active in re-structuring their Medicaid systems to ensure that those most in need of services are protected. Illinois’ Republican governor has failed to do the same, resulting in a situation in which private healthcare providers are crowded out and the state’s budget is blown out. Additionally, Rauner remains unwilling to impose a Medicaid work requirement for able-bodied persons that conservative reform governors - like Matt Bevin - have pursued thanks to the flexibility provided on this by the Trump administration. Finally, Governor Rauner’s version of pension reform is to push pensions on to local districts. However, the governor fails to give those local districts any power in the process. If local districts are to pick up the cost of employee pensions, then they must also be given the option of whether or not they want to offer pensions or another retirement plan. Without doing that, Rauner pushes a massive unfunded mandate on to local districts. In order to sustain these new costs, schools will either have to cut programs and staff, or raise property taxes – or both. Governor Rauner was proud to sign an education funding bill that required families in the suburbs and downstate to pick up Chicago pensions. Yet he wants to force all other pensions back on to local districts. This hurts suburban and downstate families immeasurably. These are the two hallmarks of Rauner’s tenure: hypocrisy and betrayal.  “Governor Rauner outlined a budget that relies on the same income tax hike that he promises to ‘immediately roll back’ on the stump,” said State Representative Jeanne Ives, the conservative reform Republican for Governor. “And his promised property tax freeze – as inadequate as it is – becomes a massive property tax hike once he pushes pensions back on local districts. Today, Rauner proved again that he has never made a promise he couldn’t break.”   ### For more information or to book Jeanne Ives, contact Kathleen Murphy at 630-329-4680 orkathleenemurphy26@gmail.com.