CHICAGO — Illinois Gov. Pat Quinn lacks the House votes needed to win approval of his plan to make an expiring tax increase permanent, despite a lengthy lobbying session with fellow Democrats who hold the House majority.
Quinn spent several hours lobbying the House Democratic caucus to support his plan, warning that the drop in revenue would damage the state's ability to pay its bills and adequately fund education, public safety, healthcare and social services.
Quinn has billed his tax proposal as central, along with pension reforms that passed in December, to stabilizing the state's finances and credit ratings.
"I think we need to make sure we properly invest in our schools," he said in response to questions after the meeting. He also pressed lawmakers to support his plan to increase property tax relief.
House Speaker Michael Madigan, D-Chicago, filed legislation on Monday that would make the current tax rates permanent and fund an additional $700 million in property relief, but he emerged from the caucus to say he lacks the 60 votes needed to approve the tax measure.
"I think it's significant that there was opposition expressed from all sectors of our caucus," Madigan said. "I'm going to continue to work to find 60 Democrats to vote for the governor's bill. We are significantly away from 60 today."
Madigan praised Quinn for appearing before the caucus and said it would take a "great deal of persuasion" to sway sufficient members and talks would continue on the "consequences" on state funding if the measure doesn't pass. He would not venture a guess at when a vote might be held or how many votes are needed. The General Assembly is scheduled to adjourn at the end of the month.
Republicans are opposed to extending the 2011 tax rate hike and the Senate, also controlled by Democrats, is awaiting action by the House before holding its own vote.
House Republican Minority Leader Jim Durkin, R-Western Springs, said Monday Madigan would not receive any GOP votes and warned the issue would take center stage in the November elections.
"It's kind of a defining issue between the parties," he said. "It's the whole issue about the fiscal stewardship over the past 10 years and continuing to request for more money."
Quinn said he would continue "working real hard to get those 60 votes" and attacked Republican opposition to the tax plan, saying they want to "starve" school funding and drive up property taxes.
Republicans, including Quinn's opponent in the November general election businessman, Bruce Rauner, say the state can make do without the revenue from the higher tax rate.
The House began last week approving spending bills that make up Quinn's "recommended" $38 billion fiscal 2015 budget.
That plan counts on the $1.8 billion in additional revenue expected if the current tax rates are left in place. Without action, those higher rates partially roll back Jan. 1, midway through the fiscal year.
Quinn's administration has warned that without the tax extension, deep cuts would be needed or the state's bill backlog could skyrocket.
The administration has projected that the state will carry $4.9 billion in bills over into the next fiscal year July 1. That's down from a 2010 high of more than $9 billion.
Quinn has also highlighted rating agency comments that have suggested that the state's weakened credit ratings could stabilize if income tax rates are left intact.
Some rating agency comments have said the continuation of the temporary taxes, along with pension reforms enacted in December, could prevent any further credit deterioration. The pension reforms are the subject of an ongoing legal battle over their constitutionality.
The state is the weakest rated state at the A-minus level with Fitch Ratings and Moody's Investors Service assigning negative outlooks.
