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The Illinois legislature worked until 1:30 am on June 1 but could not come up with a way to fill the $12 billion dollar budget gap. Failure to meet the scheduled May 31 date of adjournment means that now it will take a 3/5 majority to pass a budget and approve revenue sources to fund it sometime between now and January 1, 2010.
The legislature did approve SB 1433 on a party-line vote which authorizes more fund sweeps of $356 million. Agricultural programs were included in the list (again) with another $80,000 taken from the Agrichemical Incident Response Fund, $162,520 from the Fertilizer Control Fund and $625,000 from the Pesticide Control Fund, to name a few. The Agrichemical Incident Response Fund was 100% funded by fees paid by agrichemical facilities when they registered to get their first containment permit. The fund once had a balance of over $1 million. With this act, it could go down to just over $3,000. There is no mechanism to renew the funds (thank goodness) or it surely would continue to be swept. The fund sweeps have essentially killed a program that was created by the industry to demonstrate environmental responsibility in the wake of catastrophic fires or disasters at agrichemical facilities.
The budget bill that was debated contained proposals to raise the personal income and corporate tax rates plus add a slew of new taxes to 39 services such dry cleaning, landscaping, carpet cleaning, amusement park rides, admission to spectator sports and the list goes on. The bill did not get enough votes to pass but it will probably resurface. Click here http://www.ilga.gov/legislation/96/HB/PDF/09600HB0174sam002.pdf and go to page 62 of the bill to see the list of services that would have been taxed, and may still be considered for service taxes. A service tax is a troubling thing, because even if the legislature limits them at first, once they get established it will be far too easy for them to expand the list year after year.
IFCA also worked to help draft House Resolution 421 addressing concerns over aerial application. The resolution (which is non-binding) asks the industry to work with IDA to post information on the IDA website regarding crop protection products that are applied by air. The first draft of the resolution aimed at requiring the industry to notify IDA 24 hours prior to all aerial applications. IFCA opposed that and offered more constructive language which was accepted. Click here to see a copy of HR 421 which passed. http://www.ilga.gov/legislation/96/HR/PDF/09600HR0421lv.pdf
With regard to the state budget mess, it remains a mess. Insert your own metaphor here _________________ and contact IFCA if you have questions. Go to ifca.com and click on Legislation and Legislative Updates to see the bills we worked on this year.