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Millionaire Tax Question 3 Votes Shy of Passing Illinois House

Democratic Speaker Michael Madigan's effort to ask voters to approve a measure to impose higher income taxes on millionaires failed in the House on Thursday, but provides the powerful Southwest Side politician ammunition to attack Republicans in next year's legislative campaigns.

By Monique Garcia and Kim Geiger

Democratic Speaker Michael Madigan's effort to ask voters to approve a measure to impose higher income taxes on millionaires failed in the House on Thursday, but provides the powerful Southwest Side politician ammunition to attack Republicans in next year's legislative campaigns.

The proposal needed 71 "yes" votes to pass, but received just 68. But now there's a roll call, and Madigan's Illinois Democratic Party could send out mailers criticizing Republicans who voted against the idea. Democrats already have sent out attack ads against Republicans who did not vote in favor of a property tax freeze last week.

Under Madigan's measure, a question would have been put on the November 2016 ballot asking voters to amend the Illinois Constitution to impose an extra 3-percentage-point income tax on those who make more than $1 million a year. Madigan first pushed the concept last year, but it failed to get enough support. Instead, he led efforts to put a similar advisory question on the November 2014 ballot, which voters approved by a wide margin.

Madigan estimated the proposal would generate $1 billion a year to be used for education, but the money wouldn't be coming until 2017 -- too late to help with this year's $6.6 billion budget shortfall that threatens major spending cuts.

Sen. Ron Sandack, R-Downers Grove, took the opportunity Thursday to quiz Madigan about past votes by lawmakers that added to the state's poor financial shape, including decisions to borrow money to make pension payments or skip payments altogether.

"Now, essentially the problem makers wish to be the problem solvers by asking taxpayers to come out of their pockets yet again without doing the real work necessary to solve our state's financial problems," said Sandack, who argued the tax would encourage high earners to leave the state.

Madigan said he had "no reason to disagree with your version of history" but said he was offering voters the chance to raise more money for local schools, which districts could use to ease their pension obligations.

"This simply says that for those that have done well in this state, we're going to ask you to provide a little more help for the state so our future children can do better in life," Madigan said.

The measure is viewed as a direct attack against Gov. Bruce Rauner, who used his personal fortune amassed as a venture capitalist to mount his successful bid for the state's top office.

The action unfolded just hours after Rauner, who has largely been out of the public eye this week as a May 31 deadline to pass a budget approaches, had an opinion piece published in a Springfield newspaper warning that legislators may be forced to stick around the Capitol this summer if they don't embrace his agenda.

Rauner has sought to leverage the budget-making process to win sweeping changes, including tougher union rules and lowering operating costs for businesses, saying he'd consider the possibility of a tax increase if lawmakers gave him what he wants.

But Democrats who control the legislature have so far refused to go along, with House Speaker Michael Madigan orchestrating a series of test votes to publicly reject key Rauner proposals, including steep cuts to human services and right-to-work rules that would limit how unions collect dues.

Indeed, Rauner's opinion piece in the State Journal-Register comes as the House is scheduled to consider two more issues on Rauner's wish list -- changes to workers' compensation insurance for employees hurt on the job and an overhaul to the civil lawsuit system to limit multimillion-dollar judgments, which is known as tort reform. Republicans have decried the House votes as political stunts meant to embarrass the new chief executive, while Democrats argue the governor should not hold the budget process hostage to his agenda.

In his opinion piece Thursday, Rauner acknowledged he was the "new guy" in Springfield, saying he may not be familiar with how things have been done in the past but that keeps him "idealistic and hopeful."

"I'm not jaded or cynical about what we can accomplish to make Illinois great again," he wrote. "But I've grown concerned by what I've seen in the legislature during the past few weeks. We're approaching the end of the regular legislative session with no apparent long-term solution to the state's budget, pension and economic mess.

"It's time to focus on what's really going on and what we must change now. Illinois needs a turnaround. The public understands that, but it appears many state elected officials do not," he continued.

Rauner did not name names in his piece, nor did he offer much in the way of specifics on which issues he's willing to trade. Getting an opinion piece published also allowed Rauner to avoid questions from journalists. The last time Rauner took questions from reporters was a week ago, as he has gone into a sort of bunker mode ahead of the session's scheduled conclusion. His predecessor, Democrat Pat Quinn, sometimes did the same thing.

The rookie governor ended with a warning that he won't give up easily, saying legislators should be prepared to work into their summer break if they don't embrace his ideas.

"If legislators are willing to reform how we do business, they will find me an eager partner," he wrote. "If they are not, then they should expect a very long extra session because I will keep fighting for major reforms that will grow jobs and help properly fund services by shrinking waste inside government."

Rauner also controls a $20 million pot of campaign cash that he could use to help lawmakers who support his agenda or attack those who do not. Last week, he doled out $400,000 to all Republican lawmakers, contributions that come as he's asked for unity from his party as he fights for his agenda.

Democrats were quick to dismiss the letter as proof that Rauner still has much to learn about how to work with lawmakers, not simply dictate what they should do.

"It demonstrates that he still has this 'my way or the highway' mentality," said Rep. Christian Mitchell, D-Chicago. "You would hope by now that more would have been learned."

(c)2015 the Chicago Tribune

Caroline Cournoyer is GOVERNING's senior web editor.
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