Hello Everyone,
As some of you may have noticed, it has been a while since you received a newsletter about what is happening in Illinois. While I try to send them weekly, due to some things happening in district, as well as my schedule this holiday season, I missed a number of them. Therefore, I thought I would start by bringing you up to date with a recap of Veto Session and begin anew next week.
Thanks for your understanding.
Dan
MASS TRANSIT
Illinois Democrats Pass a $2.5 Billion Mass Transit Bill
House Democrats dropped multiple versions of their mass transit bailout in the waning hours of veto session. This came after the Senate Democrats had passed their own excessive mass transit bailout bill at the end of the spring session, a bailout funded by extremely unpopular taxes like a delivery tax on packages and food.
The House Democrats’ first version of their bill also contained extremely unpopular tax hikes, including a 7% statewide amusement tax on events and streaming services, a $5 large event ticket surcharge (on top of the 7% amusement tax), and automated speed camera enhancements in safety zones. The Democrats’ initial tax hike plan was so untenable that even Gov. JB Pritzker immediately threw cold water all over it.
On the final night of veto session, the House Executive Committee held a subject matter hearing on the yet-to-be-filed second version of the Democrats’ Mass Transit Plan. This meant that House Republicans had not even been provided with a copy of the legislation for them to review. House Republicans pointed out the absurdity of holding on hearing on legislation that hadn’t even been filed, read or analyzed by legislators or legislative staff.
Late on Thursday night, House Democrats finally filed their revised Mass Transit bill as Floor Amendment 3 to Senate Bill 2111. After debating the bill well past midnight, Democrats passed SB 2111 on a partisan roll call vote of 72-32-0. The Senate concurred by a vote of 36-21-0.
The Democrats’ plan includes $2.5 billion in spending, with approximately $500 million in anticipated future tax increases in the six-county Chicago Metro area and $1 billion in higher tollway charges. Furthermore, it took $800 million dollars that had been going to the road fund and gave it to transit. All of this was done to fix an anticipated $230 million transit deficit in Northeast Illinois at the Regional Transportation Authority.
Deputy Republican Leader Norine Hammond called the Democrats’ Mass Transit plan the largest Road Fund raid in Illinois history. SB 2111 breaks the longstanding transportation funding deal that was a 55/45 Downstate/Chicago split. The Democrats’ Mass Transit Bailout sweeps nearly $500 million from Downstate Road funding, resulting in an 85/15 Chicago/Downstate split for transit only.
Rep. Dan Ugaste pushed against the Democrats’ Mass Transit Bailout. “Earlier this morning during the final moments of a chaotic veto session, House Democrats passed a bill that includes excessive spending on mass transit and an unnecessary $1 billion toll hike on suburban drivers. This bad legislation needs to be vetoed by the Governor,” Ugaste said.
While I agree that we needed to do something to help mass transit in Illinois and do what is needed to meet the needs of its riders, I could not support spending $2.5 billion to cover what the RTA claimed would be a $230 million deficit the next year.
The bill passed largely on partisan lines.
ENERGY
Democrats’ latest Energy Package includes an $8 Billion Hit to Ratepayers
Controllable increases in the cost of living in Illinois did not end with Transit. The Supermajority also passed legislation, over Republicans objections, that will result in higher electric rates for consumers in Illinois.
Senate Bill 25 is another example of flawed energy policies that Illinois ratepayers are already all too familiar with. The primary purpose of the bill isn’t energy; it’s an unnecessary giveaway to battery storage companies, which also gives power to unelected bureaucrats to raise energy rates in the future.
Under the guise of “being environmentally friendly,” Illinoisans will see higher rates, fewer good-paying jobs, and a less reliable energy supply. As Illinois families continue to struggle with Illinois’ cost of living, this bill will raise their energy bills. With baseload generation being shut down, we can only expect rates to skyrocket even more than they already have.
Rate hikes are coming for families across Illinois as this bill passes on $8 billion of costs to families and businesses who pay electric bills.
House Republicans support a comprehensive, all-of-the-above energy approach that can meet demand, and is reliable, clean, and doesn’t cost consumers an arm and a leg.
While there is some good in this bill, such as the repeal of the nuclear construction ban, it’s crammed between handouts for special interests and rate hikes on consumers.
This proposal makes it less likely that job creators will locate their business in Illinois. Some small businesses this past summer saw their electricity rates double and triple from last summer.
BATTERY STORAGE
The battery storage portion is a newer technology that should not be subsidized with ratepayer dollars.
We should encourage innovation, but not at the expense of Illinois families. Battery storage may be needed for renewable energy supply, but not at this scale and not on the backs of Illinoisans. Other states have built battery storage facilities that were privately funded.
PROPERTY RIGHTS
SB 25 further takes away local control for renewable project siting. It also reduces the permit fees that counties may charge for renewable projects. It does not allow local counties to zone battery projects.
THE BOTTOM LINE
We should not believe the proponents when they tell us that this legislation will lower electricity bills. Past energy legislation has promised energy savings, only to deliver more expensive energy bills. Past energy bills have dramatically reduced energy production in Illinois through forced closures of power plants, as well as leading to early closure of others since companies will not invest large sums of money to keep plants open that will be forced to close in the not-too-distant future. If we are to have affordable and reliable electricity, we need to stop passing legislation in Illinois that forces clean generating plants to close and insisting on subsidizing inefficient technologies.
Once again, this bill passed largely along party lines.
TAXES
Decoupling from Federal Tax Relief Raises Concerns of Hurting Illinois’ Economy
Decoupling Illinois’ tax code from the federal tax code also passed the Illinois General Assembly with votes from the Supermajority alone in the early morning hours on Halloween.
During House debate late Thursday evening, state Rep. Dan Ugaste, R-Geneva, said decoupling Illinois from the federal tax code equals a tax increase for Illinois businesses.
“We’re putting our businesses at a competitive disadvantage again, by decoupling, while every other state that is still coupled to the federal tax law is going to see a savings for their business because the federal taxes have been lowered with us raising them again, which is essentially a tax increase,” Ugaste said. […]
State government spending has increased $16 billion, or 43%, since Pritzker took office in 2019.
The decoupling bill was approved by the Illinois Senate at 2 a.m. Friday.
Read more from The Center Square.
Have a great weekend and stay warm!
Dan