Senate Week in Review: October 17 - 21

</element><element id="paragraph-1" type="body"><![CDATA[Lawmakers will return to Springfield October 25 to begin the fall 2011 veto session, said State Sen. Dave Luechtefeld (R-Okawville). Though Gov. Pat Quinn used his veto powers to reject or alter 30 bills, the General Assembly is expected to address a number of other issues, which may include a new or modified gaming package and numerous business incentive proposals.

This week, Quinn publicly rejected the gaming package approved by lawmakers during the Spring legislative session. The massive gambling bill (Senate Bill 744) has not been formally sent to the Governor for consideration; however, Quinn said in an Oct. 17 press conference that after careful review of the proposal, he believes it "has major flaws in it."

Lawmakers may also take up the Governor's veto of legislation to improve and modernize Illinois' electric utility system. In September, Quinn vetoed Senate Bill 1652, which would allow utility rate increases to cover the cost of implementing so-called "smart-grid" technology to upgrade the state's electric utilities.

Quinn sided with opponents of Senate Bill 1652, contending the plan allowed for excessive and burdensome cost increases for consumers. The Governor also contended the bill gave Commonwealth Edison (ComEd) and Ameren too much autonomy when it came to state oversight of utility regulation and rate increases. However, the Smart Grid bill had received support from lawmakers from both parties, who claimed it would reduce power outages and lead to better quality and more reliable electric service. The new system is also reportedly thought to be a draw for both new and relocating businesses, in addition to the 2,450 jobs Ameren and ComEd would be required to create.

Other issues that may be considered during the fall veto session include:

Pension Reforms - Reforming the state's retirement systems continues to be one of the top issues facing Illinois. Though pension reforms that would impact new hires were approved in 2010, legislation to address costs associated with current employees and retirees has met resistance. Speculation continues over whether a major pension reform bill will be allowed to be voted on during the fall veto session. Several other pension reform measures have recently been introduced, including a bill that will give more accountability to taxpayers by reconstituting the City of Chicago and Cook County pension boards. Legislation was also introduced to repeal a portion of a pension loophole that allowed union leaders to collect millions of dollars from publicly-funded state pensions based on their time working for the union, not the public.

Budget Overrides - On June 30, Quinn cut $11.3 million from the state budget that was to fund regional superintendents' salaries. A proposal has been floated to use the Personal Property Replacement Tax to finance salaries for regional superintendents, who have worked without pay since July 1.

Legislative Scholarship Program - In August, Quinn amendatorily vetoed House Bill 1353, rewriting the legislation to veto the scandal-plagued legislative scholarship program in its entirety. Despite widespread legislative support to eliminate the program, House Speaker Michael Madigan recently stated he would not call the bill for consideration during the veto session-stymieing efforts to do away with the long-abused program.

CME and CBOE Incentives - The CME Group Inc. and CBOE Holdings Inc., which run the Chicago Mercantile Exchange and Chicago Board of Trade, are seeking tax incentives following the increase of the state's corporate tax increase last January. CME and CBOE have threatened to leave the state if lawmakers don't comply. According to news reports, a legislative proposal could be considered as early as next week.

Sears Incentives - In 1989, the state approved a multi-million dollar incentive package intended to ensure Sears remained in Illinois. The company agreed to move to a new campus in Hoffman Estates, where the company says it currently employs approximately 6,000 workers. The deal will expire next year and Sears is asking legislators to extend the incentive package another 15 years. The company, which is reportedly directly and indirectly responsible for as many as 30,000 jobs statewide, says it has received competitive relocation offers from several other cities.

Research and Development Credit - The state's R & D tax credit for businesses has expired. Lawmakers are looking at reinstituting the incentive before the end of the 2011 tax year.

Health Care Exchanges - A state task force continues to work on recommendations for the implementation of health insurance exchanges, which are required by federal law. The exchanges are intended as high-tech clearinghouses to assist individuals and small businesses in buying health insurance. Lawmakers are working on plans to govern the composition and oversight of both the exchanges and the supervisory board, with the goal of meeting federal deadlines necessary to ensure the state doesn't lose any federal financial resources.

For further information please contact Ron Deedrick at 217-782-0757 or email rdeedrick@senategop.state.il.us