Legislative
Action

By DIANE ROSS

Solvency and the fall session

THE LAME DUCKS didn't lay any eggs. No pay raises, no pension raises, no per diem raises. In fact, the postelection session was a model of efficiency. Almost all of Gov. James R. Thompson's vetoes went through, and his surprise request for extraordinary powers to cut spending to solve the fiscal 1983 crisis was granted without a fight.

Thompson got his way on most matters, with one significant exception. The Democrats killed H.B. 2485, which Big Jim had used as a vehicle to neutralize the property tax multiplier. The Democrats wouldn't accept Thompson's provisions; they said they would rather abolish the multiplier. As it now stands, the system remains the same (see details below).

The other major amendatory vetoes accepted provide: 1) Under H.B. 2588 Illinois will no longer tax conglomerates on the income from their foreign subsidiaries, but it will continue to do so on their domestic subsidiaries; 2) the partial repeal of the Illinois inheritance tax takes effect January 1, 1983, under H.B. 93; and 3) at least part of Illinois' curious practice of levying one public utility tax on another ends January 1, 1983, under H.B. 991.

The nearly unanimous votes accepting the amendatory vetoes were mildly surprising. The transfer of fiscal power was astounding — the General Assembly acceded to Thompson with such aplomb. Mike Lawrence of Lee Enterprises quoted Secy. of State Jim Edgar as saying "I'm glad Senator Arrington is not alive to see this." Twenty years ago W. Russell Arrington was fighting for the powers the legislature has today. (For details, see "Executive Report," January, p. 35.)

Thompson got the power to cut appropriations, but he also may get the blame that goes with it. Apparently he thought that was a small price to pay for keeping the State of Illinois, and his fiscal record, solvent. The deeper Thompson cuts spending, however, the louder the school boards, the welfare clients and the highway contractors will yell to raise revenue. Only the legislature has the power to raise the state income tax; however, the impetus to do so may appear to come from Thompson.

Lawmakers did their fall session business in just six days. They upheld all eight total vetoes. They upheld 30 amendatory vetoes overrode only one, and killed three others (including the neutralized multiplier) when they couldn't agree on what action to take. And they upheld 67 line item and/or reduction vetoes, and overrode only one. They also passed one supplemental appropriations bill and 12 new "emergency" substantive bills.

The one amendatory veto override was on an insurance bill, S.B. 1581. It now provides that those health insurance policies which already cover physical exams must also cover exams after rape and sexual assault. The one line item/reduction veto override restores $1.5 million cut from capital (not operating) funds for veterans' projects.

The General Assembly didn't override a single dollar that Thompson vetoed in general revenue funds. Nor did the legislature pass a single dollar in supplemental appropriations of general revenue funds. The one supplemental appropriation of $162.3 million resulted in a net cut of $2 million in general revenue funds ($5 million of the supplemental appropriation was in general funds, but the bill also transferred $7 million from the general funds to the road fund; most of the rest was for federal funds).

The other "dead" amendatorily vetoed bills include H.B. 1648, which required tax appeal boards to notify states attorneys when property assessments are disputed, and S.B. 1387, which outlawed decoding devices to unscramble television signals. In addition to the bills used to grant the governor the new budget-cutting power (S.B. 1652 and H.B. 900), lawmakers passed two other "emergency" bills with merit. Farmers must share the assets of bankrupt grain elevators with financial institutions that made loans to the elevators, under H.B. 2501, sponsored by Rep. Sam Vinson (R-90th, Clinton). Farmers apparently made the concession to ensure that financial institutions continue to make the loans. Municipalities selling revenue bonds will lose their tax-exempt status unless they sell to bonded buyers, under S.B. 1667, sponsored by Sen. Stan Weaver (R-52nd, Urbana). The feds now require such bonding; the state is following suit.

For the record, the legislature sent the governor 315 bills in 1982; 203 substantive, 112 appropriations; about what they sent in 1980, the last off-year devoted to budget matters. The governor signed 205 bills: 161 substantive, 44 appropriations; about 60 less than two years ago. Thompson vetoed 110 bills in 1982: 8 total vetoes, 34 amendatory vetoes and 68 line item and/or reduction vetoes. That was about 40 more than he vetoed in 1980, with about three times as many line item and/or reduction vetoes (see "Legislative Action," October, p.31).□

February 1983 | Illinois Issues | 26