Farm, manufacturing groups skeptical about proposed Senate deal to end impasse

Posted on February 7, 2017

IFB President Richard Guebert, Jr. addressing the delegates at IFB Annual Meeting.(Courtesy RFD/Farmweeknow.com)

By Greg Bishop/Illinois Radio Network

SPRINGFIELD – Corporate income taxes and the quality of workers’ comp reforms are just some of what the Illinois Manufacturers’ Association (IMA) is watching while the Illinois Farm Bureau (IFB) pushes for an outcome to solve the budget impasse.

It’s been 19 months since Illinois has had a full-year budget. Some argue it’s been over a decade since the budget has actually been balanced.

IFB President Rich Guebert said he hopes whatever the deal is, it’s balanced. Guebert said any deal should “pay down our outstanding bills, look at pension reform and hopefully … not have any new spending until we get Illinois’ fiscal house in order.”

Guebert said there’s a lot in flux with the package of bills out of the state Senate, including what rate the income tax for individual and corporations could be. One proposal would put the new rate for individuals up to 4.99 percent and corporations up to 7 percent.

IMA Vice President Mark Denzler said the proposed workers’ comp reforms don’t go far enough and if causation isn’t addressed, then the payment schedules for injuries need to be lowered.

Denzler also said the state has to address the crushing government sector pension debt. The plan “has the consideration model in it, and certainly we have to do something on that.”

Denzler added that any talk about raising the income tax or a tax based on payroll can be a negative.

“Overall, we’re pleased that they’re talking,” he said. “There’s a lot of work to be done. In the current form, it’s not something that the IMA would support, but we’re happy that leaders are actually talking and trying to move the ball forward.”

Senators are scheduled back Wednesday where they could take up a dozen bills meant to end the budget logjam. If the measures pass, the plan’s future in the House is uncertain.

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