Published: Sat, July 08, 2017
Markets | By Terence Owen

IL bonds rally on end of impasse

IL bonds rally on end of impasse

In a statement emailed to Mic, Southern Illinois University president Randy Dunn said passing the budget on Thursday was a "tough decision" necessary to "effective governance".

Rauner described the override vote as "another step in Illinois' never-ending tragic trail of tax hikes". State law requires these owners awards to be paid even if the legislation doesn't fund them, and lacking state funding for the last two years, the awards have been deducted from tracks' purse accounts.

Sadly, this tax hike is going to hurt ordinary Illinoisans. In fact, the epic-sounding personal income tax hike - up by nearly a third - actually raises the previous 3.75 percent tax to just 4.95 percent. A married couple making $100,000 annually would pay around $574 more from 2016 to 2017 - a 16 percent increase. Without that step, IL was at imminent risk of another downgrade, which could have scared off individual investors who dominate the market and left some mutual funds unable to buy its debt.

The drama across the IL state capitol continued even as lawmakers gathered to cast their votes.

Rep. Steven Andersson, a Republican who supported the override of the GOP governor, said on the House floor that the past few days were "brutal" and that he received death threats and hate mail. "We continue to urge the governor to protect the state's workers by vetoing these proposals". And the corporate tax will rise to 7 percent from 5.25 percent - a rise of roughly 33 percent.

"Only through true property tax relief, meaningful workers' compensation reform and a fair and equitable school funding reform model will IL have a strong foundation for future job growth and education excellence", he said. "The impact of this hike would be felt much sooner than the budget impasse". That's remains a possibility, with Moody's Investors Service saying this week that it has placed the state on watch for a potential downgrade. And yet he has the audacity to call it a "balanced budget".

The veto overrides end the nation's longest state-budget stalemate since at least the Great Depression.

Sikkim stand-off not the longest since 1962: Army
But unlike in 1962, the Chinese side suffered far heavier casualties in the 1967 clashes, concentrated at Nathu La and Cho La. The Vietnamese deputy prime minister's visit comes at a time when Sino-US tensions are rising in the South China Sea.

Enhanced airport security in US could end laptop ban
Homeland Security Secretary John Kelly announced the rollout of the new rules Wednesday. "Today is just the starting point", Mr. The DHS officials said it would be "a mistake" that puts "passengers at risk" if they don't comply.

Peter Sagan elbows Mark Cavendish, booted from Tour De France
Peter Sagan's hockey move at the end of Stage 4 got him booted from the 2017 Tour de France on Tuesday. The 30-time stage victor said Sagan came across to apologise, but questioned the elbow.

But on Wednesday, a third credit-rating agency, Moody's Investors Service, put IL under review for a downgrade even if lawmakers reversed the veto.

"Illinois lawmakers ignored reality today and drove another nail in the coffin of job creators", said a statement from the Illinois Manufacturers' Association, in a common refrain from business groups. Everything from IL mental health services and domestic violence to public universities had been hurt by the crisis. "The political class, led by Speaker Madigan, said no way".

Lawmakers, culminating two straight weeks of a special session that began ahead of the July 1 start of the fiscal year, approved the bill to raise taxes by a 71-42 vote.

The two-year budget stalemate in IL is finally over - but the state's daunting financial troubles haven't gone away.

That's a recipe for more people and businesses leaving the state.

The lottery recently put a $25,000 cap on winnings that the state would pay immediately, and pulled out of the multi-state Powerball and Mega Millions games, because it lacked spending authority with no budget. Two agencies gave IL some breathing room Monday after the weekend tax vote.

Like this: