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Free Trade Agreement & Illinois Agriculture
Why does Illinois need trade?
The U.S. exported $1.57 trillion in goods and services in 2009, benefiting all U.S. states.

• Every state benefits from global trade because U.S. exports support jobs and businesses and  help sustain the economy during times of domestic economic crisis.
• Merchandise exports from Illinois in 2009 were $41.6 billion largest merchandise exporter out of the 50 United States
• Illinois largest export markets are Canada, Mexico, China, Germany, the UK, and Japan ? Illinois leading export is machinery, which account for 23% of total merchandise exports
• Other top manufacturing exports from Illinois are chemicals, computer and electronic products, and transportation equipment.
• High-tech product exports from Illinois were $5.9 billion in 2009: ? Illinois is also the 7th largest exporter of high-tech products.
• 32,600 Illinois jobs are supported by tech exports ? Exports and jobs for ILLINOIS:
• 15,807 companies exported goods from Illinois in 2007
• Of those, 89% are small and medium-sized companies (less than 500 employees)
• Small and medium-sized companies generate nearly 1/5 of Illinois total merchandise exports ? 7.1% of the total private sector employment in Illinois is linked to export supported manufacturing jobs
• 25% of all manufacturing jobs in Illinois depend on exports
  

• Illinois ranks as the 6th
• Illinois is an agricultural production powerhouse that is consistently one of the top 3-5 agricultural exporting states in the U.S.
• On a national scale, Illinois produces some 20% of the corn and soybeans and is a major player in production of pork (4th), wheat, beef, and dairy products.
• Producer organizations estimate that Illinois exports 30% or more of its corn, soybeans, and wheat production.
• Every dollar of ag exports creates another $1.47 in supporting activities such as processing, packaging, shipping and financing of ag products.
  

• The agri-food chain generates about 16% of the U.S. gross domestic product and employs 17% of the American workforce.
• Illinois agribusinesses that are major employers and also depend on trade include: ? ADM (headquarters:  Decatur)
• Caterpillar (headquarters:  Peoria)
• CFI Industries (headquarters:  Deerfield)
• Dean Foods (headquarters formerly in Illinois, now in Dallas)
• Deere (headquarters:  Moline)
• GSI (headquarters:  Assumption)
• Sloan Implements (headquarters:  Assumption)
• These firms, their employees, and local communities benefit tremendously from trade:
• Caterpillar, with facilities in East Peoria, Joliet, Decatur, Aurora and Mossville among other Illinois cities, exports more than half of its production.  In 2010, Caterpillar more than quadrupled its 2010 fourth-quarter profit (from $232 to $968 million).
• Deere & Co., with facilities in Illinois and Iowa, states in its Form 10K that the company's profitability and growth are tied directly to the global marketplace.  Third quarter 2010 profits rose by 47% with operating profit for the ag sector almost doubling over 2009.  The company  forecasts an 8% increase in the next year's global ag equipment sales.
• ADM is headquartered in Decatur and has multiple Illinois and U.S. facilities.  ADM sees its core mission as continuing to serve vital global needs for food and energy worldwide, acknowledging that these growing needs will fuel the company's profitable growth strategy.  2010 net earnings were up 15% over 2009 to $1.9 billion while operating profit increased nearly 33% from $2.5 to $3.2 billion.  ADM cites record oilseeds processing profit "supported by record demand for North American protein exports" as a key driver of that profit performance last year.
• Kraft Foods, with corporate offices Glenview and locations in Champaign, Charleston, Chicago, Effingham, Granite City, Ottawa, Peoria, and Schaumberg is a "global snacks powerhouse" according to Irene Rosenfeld, Chairman and CEO.  This, along with Kraft's "significant presence in high-growth developing markets" will deliver consistent growth for the company in the coming years.  More than 50% of Kraft's revenues are generated outside of North America and almost 60% outside of the U.S. according to Rosenfeld, who also cites higher growth developing markets as having a major positive impact on its revenues in recent years.
• Sara Lee (Downers Grove) as a major global player in coffee, meat, and bakery products, directly benefits from global population and economic growth.  Like Kraft, Sara Lee purchases vast amounts of agricultural commodities, including beef, pork, wheat, corn, corn syrup, soybean and corn oils, and butter to produce branded food products.  Also like Kraft, Sara Lee cites rapid growth in markets outside the U.S. as a major factor affecting future earnings and profitability.
  

All Below Information to soon be archived...

LEGISLATIVE ALERT....

DECEMBER 17, 2010

CCFB Members...
Thank you for your phone calls and emails! We are pleased the House voted in favor of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which passed by Senate earlier this week.

As we’ve discussed, securing meaningful estate tax reform for farm families has been a top priority for us. We are pleased the House left intact the estate tax provision that provides a $5 million exemption and maximum rate of 35 percent. Other tax provisions included in the legislation, which are important for farmers, include lower capital gains and income taxes and tax incentives for renewable fuels.
 
We must commend President Obama and our Congressmen for being committed to securing passage of this tax bill. It offers considerable relief that will help many of us during these economic times.

 

ESTATE TAX!!!

As you know…If Congress fails to act on the federal estate tax, it will return in full force in 2011 with a $1 million personal exemption and 55% tax rate. Contact your U.S. Senators.

The future of American agriculture depends on the estate tax exemption, and whether or not farmers can afford to stay on the land they farm and can afford to purchase the land they need!  Because estate taxes influence the sale of land, this tax can interfere with the orderly transfer of farmland to the next generation of farmers.
 
Facts/Talking Points:
* Individuals, family partnerships or family corporations own 98 percent of our nation's 2 million farms and ranches.
* Estate taxes threaten family-owned farm and the livelihoods of families who make their living in production agriculture.
* It takes two and half years of farm returns for a moderate-sized farm operation to pay off the estate tax owed.
 
Your messages are critical in making sure that federal estate taxes are acted upon this year!  
 
IDEAS OF WHAT TO SAY IN YOUR PHONE CALL:

1. I urge you to please take action now and support a higher exemption of the federal estate tax.
2. Individuals, family partnerships or family corporations own 98 percent of U.S. farms.
3. Estate taxes destroy family-owned businesses when the tax forces surviving family members to sell land, buildings or equipment to generate enough money to pay the tax.
4. A higher estate tax exemption and lower rates will give my farm a better chance to remain in operation when transferring from one generation to the next.
5. Thank you for your consideration of this request
   

Senator Contact Information
US Senator Dick Durbin
DC Phone: 202-224-2152

US Senator Roland Burris
DC Phone: 202-224-2854

SUMMER LOOK AT STATE LEGISLATION
The Governor took action on several key pieces of legislation to put the FY 2011 state spending plan in place.  The Governor, his Chief of Staff, several agency directors, and the Governor's Budget Director held a press conference to announce the actions of the Governor.
 
Specific actions taken were:
HB 859
Omnibus Appropriations
 Reduction and Total Veto used to decrease appropriations by $155.2 million.
 
SB 1215
Technical Appropriation Clean Up to HB 859
 Approved by Governor.
 
SB 3660
Emergency Budget Act
 Approved by Governor.
 
SB 3662
Budget Implementation Act that puts the appropriations into action.
 Approved by Governor.
 
The Governor spent a large amount of time in his opening comments discussing the actions he has taken since taking office to address the financial collapse of the State.  Most of the press conference was spent answering questions about how all this was going to work and wheter this will really "fix" the crisis.
 
What is clearly apparent in looking at the raw numbers and listening to the Governor and his budget staff is the state budget is still not balanced, state tax revenues continue to decline, and it will be a long, long road before recovery is reached.  The statement that sums up the feeling that we are not even close to ending this budget crisis was made by Governor Quinn.  He stated; "This is a day by day, case by case, agency by agency, program by program enterprise to make sure we still provide basic services that are needed…"
 
The main thrust of his action was the use of the line item veto  to cut an additional $155 million from the General Assembly's action  and $3.45 billion in lump sum funding under his discretion for what he determined as key programs that need to remain operational.  82% of the $3.44 billion lump sum went to human service programs ($2,836 billion).  An additional $288 million went to the State Board of Education for the General State Aid (GSA) formula to keep per pupil funding for elementary and secondary school students at $6,119, which is the same as last year. Other categorical and grant funds, including Agricultural Education, were eliminated.  The GSA hold harmless appropriation of $15.7 million, that would have made sure school districts did not receive less funds than the previous year, was entirely eliminated also.
 
You are probably wondering why the budget is not final.  The reason that the state "budget" is NOT FINAL is the Governor was granted unprecedented "emergency" powers in the Emergency Budget Act of FY 2011 to build reserves, transfer funds, and make further reductions if necessary.  Part of the emergency powers gives the Governor a maximum level of funding that can be spent through a formula based on the current unpaid bills the state has.  The formula states the Governor can hold funds in reserve from appropriated levels up to $2 billion.
 
Based on information relayed yesterday,  the Governor's office will be spending  the month of July analyzing each and every state program to see where further cuts can be made.  Director of the Office of Management and Budget, David Vaught, stated, "No meat axe approach" will be used in looking at further spending reductions.  He further indicated they will not just make blanket percentage cuts.  He and the Governor on several points also emphasized that no employees will be let go because that would go against their commitment to bring jobs to Illinois.  Their stated goal is to cut approximately $900 million additionally.
 
The question that comes to the top of our minds is will the millions in cuts be announced at the end of the July review or trickled out over several months or back loaded to come out right before the December 31st deadline as established in the Emergency Budget Act.  From a business sense it would make sense that the cuts and reserve holdings would be announced at the end of July so agencies and outside groups who rely on the funding would know how to best prepare.  But we have to remember that state government does not run under a "business" decision making model.  For some reason, there is something in our minds that the date of  November 2 may be a key date in when the cuts are announced.  Oh, yea!  November 2nd is a gubernatorial election day in Illinois.
 
The Governor also stated that since the Senate has not taken action on the pension borrowing plan or the plan in the House to delay the pension payments, the current requirement in law to pay the state pension payment obligations monthly will continue.   The challenge is that the pension payment is not in the budget he just approved, so the state will make the mandated payment every month of approximately $317 million.  Since no funds were appropriated for this and they must be made regardless, other programs will see their fund allocations delayed or eliminated through the Governor's emergency budget powers.
 
So in the never ending, real life soap opera of Illinois state politics we will have to stay tuned for the outcome.  During this time Illinois Farm Bureau and our agricultural partners will continue to work with the Illinois Department of Agriculture, other state funded agricultural programs, and key budget-decision makers about the impact of further cuts and emergency budget transfers.
 
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Agricultural Related Appropriations
The most recent casualty to the budget knife is the funding for the Facilitating Coordination of Agricultural Education (FCAE) program.  Last week the Illinois State Board of Education (ISBE) recommended to the Governor that $70.5 million in ISBE grants be eliminated and as a part of that action was the $3 million for agricultural education programs.  ISBE sent a letter to the Governor that FCAE be considered for part of the Governor's lump sum discretionary funding, but at yesterdays release of those funds FCAE was not one of the recipients.
 
The Governor's line item veto of HB 859 did not make any further cuts to the other agricultural related state programs.  The lump sum amount of $9,337,300 will be appropriated from the General Revenue Fund to be used to fund programs that are not fully funded through specific line items.    Of course most of the agricultural related programs and Illinois Department of Agriculture funding was reduced and will be competing for the lump sum ag appropriation.  The challenge with the lump sum appropriation is that the total balance available is less than the amounts being requested by each of the affected programs.  
 
We anticipate that the decision of how the lump sum appropriation will be allocated will be included in the Governor's Office of Management and Budget analysis and review being conducted in July.
 

IF YOU MISSED THE GALC CONFERENCE AND WOULD LIKE TO VIEW THE WORKSHOP HANDOUTS, CLICK HERE

Rural Illinois Needs to Be Counted in Census
Illinois Farm Bureau encourages its members to complete the 2010 census as quickly and accurately as possible. Farming and rural populations are shrinking, but are no less vital to the nation’s economy and security. That’s why it is so important that Illinois farmers and rural communities complete the census to ensure their fair share of:
 

• Political Power: Census data determines how many seats each state will have in the U.S. House of Representatives as well as the boundaries of legislative districts. It is crucial to ensuring that farmers are represented.
  

• Local Funding: Every year, the federal government can allocate more than $400 billion to states and communities based, in part, on census data.
  

• Needed Services: Census data guide planning for new hospitals, job training centers, schools, social services, grants and other programs essential to rural communities.
  

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August 5, 2009

Contact your US Senators and Request their no vote on the Proposed Cap and Trade Legislation

Climate change will be a key focus for the Senate when it returns in September.   Illinois Farm Bureau opposes cap-and-trade legislation.  Farm Bureau members are encouraged to contact the U.S. Senators to express opposition to a flawed cap-and-trade bill that would drive up energy prices, increase farm production costs, provide little in the way of Ag offsets, push industry overseas, and do next to nothing to reduce global temperatures.   

The legislation would hurt farmers financially. There are projections that production costs for farmers in Illinois would increase by $515 million per year by 2020, mostly in the form of higher gasoline, diesel and fertilizer costs. That's $34.50 per acre of corn and $9.91 in increased soybean production costs.

Under the cap-and-trade, energy costs will rise throughout the economy. Not all farmers can afford methane digesters, wind turbines and set-asides to plant trees. The offsets offered would not outweigh the extraordinary production cost increases we will face

 Cap-and-trade would have a negligible impact on global warming. EPA Administrator Lisa Jackson said in Senate testimony: “cap and trade would reduce global temperatures by a fraction of a degree by 2050.”

Acting alone, the U.S. effort will not influence the global climate. Cap-and-trade creates a gaping hole in the nation’s energy supply. This legislation relies heavily on nuclear power and other alternatives to coal.

The time period from permitting to construction on a nuclear power plant is 10+ years. Carbon capture isn’t anticipated to come on-line until 2014, conservatively (some say it will take a decade; others say it’ll never happen). International direct land use changes could undo three decades of progress in developing renewable fuels

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LEGISLATIVE UPDATE-JULY 16^TH 2009

Budget Deal - What's That Mean?

After a month and a half of overtime session and political positioning, the Illinois General Assembly finally came to an agreement on the budget.  The budget as passed appropriates lump sum funds instead of line items and allows the Quinn Administration to dole out the money as it sees fit.

Many legislators spoke on the floor of both chambers that this budget is not what they had hoped for.  It cuts the Illinois Budget to the quick and requires Illinois Government to borrow from its employee's pension plan to provide a balanced budget.  Ultimately, many stated that they made the decision to support this budget in order to avoid shutting down State Government in Illinois.

The agreement was officially made this afternoon as each leader worked with their respective caucus to garner sufficient votes for passage. Once that was done, final versions of the following budget bills were made available to the public very shortly before the House and Senate passed them.  Therefore, the following are highlights or points of interest.  This budget was put together in a very unconventional way and therefore will require extensive review to surface all the implications of the bills.

In the case of the Budget Implementation bill, SB 1912, there were provisions from other Budget bills that had previously been passed by the General Assembly, sent to the Governor, or Vetoed by the Governor.  Ultimately, we have done our best to provide highlights of the Fiscal Year 2010 budget that was just passed.  We will provide any pertinent new information as it is surfaces.

Where The Money Comes From

The General Assembly passed SB 1292 that allows the State of Illinois to borrow against the state's pension system.  The bill generates a total of $3.46 billion in short term bond funds.  $2.23 billion will be dedicated to community based human service programs and services.  The remaining $1.23 billion will be provided to the Governor to appropriate at his discretion.  SB 1216 as mentioned above sets a skeleton like framework for how and where the Quinn Administration will appropriate the dollars generated by SB 1292. SB 1292 passed the House 88-24-00 and the Senate 43-12-0.

How The Money Is Implemented

SB 1912 is the Budget Implementation bill that directs the State of Illinois on how the newly passed budget will be implemented.  This budget implementation bill provides for many provisions by which the State of Illinois will operate, the following are some key points of those provisions:

·         Allows for up to $1.1 billion dollars to be held back as a reserve from any and all state agencies under the direction of the Governor

·         No Cost of Living increases for General Assembly members

·         12 furlough days for all General Assembly Members (that represents approximately 4.5% of each legislators salary and stipends)

·         Sets the Foundation level for education funding at $6,119

·         Fund Sweeps from nearly all segments of State Government

·         The ability for emergency rules to be adopted to implement the budget in short order (JCAR approval is still required)

SB 1912  passed the House 114-0-0 and the Senate passed the bill 55-0-1

Where The Money Goes

Simply put, the Fiscal Year 2010 budget agreement is for one year and it funds state government at approximately 80% of the Governor's introduced budget levels.  The Illinois Department of Agriculture will receive a total of $32,413,700 that will be split as follows:

SB 1216 contained the operations money for each of the State Agencies and appurtenant services and programs offered by the State of Illinois.  As stated before, the Quinn Administration will be given the discretion as to what programs and services will be funded instead of the common practice of the General Assembly passing a bill with specific line items and amounts.

SB 1216 passed the House 90-22-02 and the Senate passed the bill 45-10-0.

Fee Increase Bill Not Included - SB 1846

The fee increases proposed in House amendment # 2 to SB 1846 were not included in the final budget.  SB 1846 was amended to increases agricultural and conservation related fees.  The bill passed out of the House Executive Committee but was never voted on by the full House.

Illinois Farm Bureau opposed HB 1846 as amended by House Amendment # 2.  HB 1846 is on 2nd Reading in the House.

End of Session?  For now…

Well, it appears that the end is finally here.  At least for now.  Both the House and the Senate adjourned to the call of the Speaker and President respectively.  In both cases the plan was laid out that a return to Springfield was not expected until November for Veto Session.  The Governor's signature is all that is left in order to enact this newly crafted and agreed upon FY 10 budget.

In November, inventory will certainly be taken of revenues generated to that point.  This will provide the General Assembly with the information necessary to know whether a new funding source will be necessary to finish out the year for state government in Illinois as well as provide key information to know how much will be needed for FY 11.

legislative update-may 21, 2009

Budget

What will the General Assembly do on the budget and will Governor Quinn agree and sign it?  That is the million dollar question.  Discussions in the Capitol have centered around that very question for some time.  Now is the time that question needs to be answered.  The legislative leaders have met off and on regarding the budget and the discussions have jumped all over the place.  The good news is that they have been talking.

The easy part is discussing what everyone wants out of the budget, while the hard part is determining how to pay for it.  The funding sources are often unpopular and certainly the most discussed funding source this year, an income tax increase, falls into that category.  Leaders including the Governor have been leaning towards an income tax increase for a while, but are increasingly hearing concerns and opposition from rank and file legislators.  Even the proposal for a temporary income tax hike has been shot down.  Constituents have been vocal about the negative impact of an income tax increase in a very difficult economic time.

Given that turn of events, talks now center on what is being deemed a "Doomsday Budget".  This is a bare bones budget with necessary cuts, little or no new dollars and likely a host of new fees and fines to attempt to balance the budget.  State agencies and programs under this approach will have to operate with less and prioritize efforts.  Governor Quinn has spoken of 37% cuts across the board at all state agencies with the "Doomsday Budget" scenario.  An example of the cuts could be no new State Fair funding and possible closure of 50% of Illinois' state parks.

We will keep you posted on developments with the State Budget as the Session winds down.

Capital Budget

Senate President John Cullerton is pushing a proposal for a Capital bill that will provide $25 billion dollars in bond funds for state construction projects and include 80,000 pounds access on Illinois roads.  The State will have to generate $1 billion dollars in new funds in order to leverage the $25 billion in bond funds. 

Currently discussed funding sources are as follows:

Increased Driver's License, Vehicle Title, and Vehicle Registration Fees - $330 million

Tax on wine and spirits - $100 million

Permitting video gaming/poker - $375 million

Let contracts to manage the Illinois Lottery and allow internet sales of lotto tickets - $150 million

Streamlined Sales Tax Component on items like candy and various beauty products - $150 million

The proposed vehicle/license fees would increase $20-$30 depending upon the item.  The tax on wine and spirits would add an estimated 13 cents per bottle on wine, 80 cents per bottle on spirits and potentially 6 cents per six pack on beer.  The sales tax on candy and beauty products has yet to be specifically spelled out.

Both the Senate Democrats and Senate Republicans are working to garner support for the revenue generating side of the plan.  We will work with the Senate and House to make the plan as beneficial to Illinois Agriculture as possible. 

Bills of Interest

SUPPORT

SB 260 - Finance Authority Aggie Bonds - (Frerichs/Black) House 3^rd Reading

SB 286 - County Farmland Preservation - (Althoff/Tryon) House Rules Committee

SB 1413 - Forestry Development - (Sullivan/Myers) Passed Both Chambers

SB 1434 - Repeal Commercial Dist Fee - (Sandoval/Burke) House Executive Committee

SB 1450 - Max Width of Vehicle - (Dahl/Pritchard)  Passed Both Chambers

SB 1467 - 65 MPH Trucks Speed Limit - (Sullivan/Reis) House 3^rd Reading

SB 1526 - DNR Use of Fees - (B. Brady/Froehlich) House Rules Committee

SB 1743 - Insurance Ag Alien Worker - (J. Jones/Cavaletto) House 3^rd Reading

SB 1897 - Off Highway Vehicles - (Haine/Mautino) House 3^rd Reading

SB 1912 - IFA Renewable Energy - (Jacobs/Black) House Executive Committee

SB 1972 - Drainage CD Bids - (Sullivan/Myers) House 3^rd Reading

SB 2121 - NPDES Storm Water Fees - (Demuzio/Mautino) House 3^rd Reading

HB 5 - Lobbyist No State Agencies - (Franks/Clayborne) Sen Assignments Committee

HB 36 - Finance Conservation Transfers - (Reitz/Sullivan)  Passed Both Chambers

HB 364 - Vet Student Loan Repay Program - (Reis/Frerichs) Passed Both Chambers

HB 466 - Annexation Agreements - (Jakobsson/Frerichs)              Passed Both Chambers

HB 629 - EPA NPDES Construction Fees - (Mautino/Demuzio) Senate 3^rd Reading

HB 704 - County Code Commissioners - (Phelps/Cullerton) Passed Both Chambers

HB 1003 - Annexation Agreements - (Poe/Frerichs) Passed Both Chambers

HB 1087 - Forestry Development - (Reitz/Sullivan) Senate 3^rd Reading

HB 2442 - Seed Law Cool Weather Grasses - (Reitz/Frerichs) Senate 3^rd Reading

HB 2535 - Vehicle Code Biodiesel Use - (Poe/Cullerton) Passed Both Chambers

HB 2598 - Off Highway Vehicles - (Mautino/Haine) Sen. Assignments Committee

HB 3956 - Vehicle Code 65 MPH Trucks - (Reis/Sullivan) Passed Both Chambers

HB 4030 - Biodiesel ASTM Standard - (Myers/Cullerton) Senate 3^rd Reading

OPPOSE

SB 1647 - Farm Credit Patronage Limitation - (Haine/Watson) House Executive Committee

SR 127 - Animal ID - (Luechtefeld) Sen. Order of Resolutions

HB 3854 - Illinois Energy to Jobs Act - (Reitz/Clayborne) Senate 2^nd Reading

MONITOR

SB 32 - Plumbing Reclaimed Water - (Garrett/Ryg) House Executive Committee

SB 38 - Animals Humane Euthanasia - (Steans/Fritchey) House 3^rd Reading

SB 90 - Animal Abuse Cross Reporting - (Harmon/Mendoza) House Rules Committee

SB 99 - EPA Composing Facilities - (Steans/Osterman) House 3^rd Reading

SB 138 - Local Building Codes - (Link/Verschoore) House 2^nd Reading

SB 178 - EPA Household Waste Dropoff - (Garrett/May) Passed Both Chambers

SB 328 - Residential Building Code - (Haine/Phelps) House 2^nd Reading

SB 1830 - Vet Med and Surgery Practice - (Frerichs/Black) House 3^rd Reading

SB 1866 - Low Speed Vehicle Reg - (Sullivan/W. Davis) House 3^rd Reading

SB 1923 - Enterprise Zone Wind Farms - (Garrett/Holbrook) House 3^rd Reading

SB 2103 - EPA Used Tire Citations - (Hunter/Jakobsson) House 3^rd Reading

SB 2184 - Water Use High Capacity Wells - (Garrett/Winters) House 3^rd Reading

HB 26 - Horse Racing Delete Recapture - (Turner/Sullivan) Sen Assignments Committee

HB 37 - Lease Closed State Parks - (D. Brady/Risinger) Senate 3^rd Reading

HB 78 - Farm Fresh Schools - (Cole/Koehler) Passed Both Chambers

HB 170 - Private Sewage Surface Discharge - (Tryon/Althoff) Senate 3^rd Reading

HB 228 - SWCD License Plate - (Rose/J. Jones) Sen Assignments Committee

HB 229 - Wildlife Owner Permit Rounding - (Rose/Righter) Passed Both Chambers

HB 255 - Estate & Generation Skipping Tax - (Nekritz/Harmon) Senate 3^rd Reading      

HB 338 - Renewable Fuels Grants - (Franks/Althoff) Passed Both Chambers

HB 402 - Private Sewage Act - (Beaubien/Cullerton) Senate, Failed 26-23-2

HB 473 - County Code School Tax - (J. Mitchell/Cullerton) Sen Assignments Committee

HB 543 - Agricultural Fair Act Funding - (Reitz/Sullivan) Sen Assignments Committee

HB 562 - Animal/Child Abuse Reporting - (Mendoza/Harmon) Senate 3^rd Reading

HB 680 - Renewable Fuels Grant Addition - (Moffitt/Risinger) Passed Both Chambers

HB 770 - Storage Tank Fund Sweeps - (Cavaletto/Jones) Sen Assignments Committee

HB 942 - Alternate Fuels Notice - (Eddy/Righter) Senate 3^rd Reading

HB 1013 - Green Buildings Act - (Boland/Cullerton) Senate 3^rd Reading

HB 2328 - Alternate Fuels Rebate - (Winters/Cullerton) Senate Approp II Committee

HB 2455 - Non Highway Vehicles - (Reitz/Frerichs) Senate 3^rd Reading

HB 2533 - Grain Code Electronic - (Reitz/Cullerton) Senate 3^rd Reading

HB 2664 - Excessive Idling Fines - (Currie/Hunter) Senate 3^rd Reading

HB 3685 - Liability Companion Animals - (May/Garrett) Tabled Senate Ag Committee

HB 3859 - EPA Clean Air Fast Track - (Franks/Harmon) Passed Both Chambers

HB 3828 - Great Lakes Task Force - (Bellock/Althoff) Senate 3^rd Reading

HB 3990 - Food Farms and Jobs Act - (Hamos/Collins) Senate 3^rd Reading

HB 4036 - Animal Welfare Microchip - (Bellock/Cullerton) Passed Both Chambers

HB 4153 - Hay Harvesting Permit - (Bost/Luechtefeld) Senate 3^rd Reading

HB 4177 - Civil Damages to Crops - (Smith/Cullerton) Senate 3^rd Reading

HB 4245 - Renewable Fuels Commission - (Reis/Cullerton) Senate 3^rd Reading

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ILLINOIS GOVERNOR PAT QUINN’S BUDGET ADDRESS INFORMATION

AGRICULTURE PROGRAMS

Illinois Department of Agriculture
The Department of Agriculture (IDOA) will see a decrease of approximately $1.7 million in overall funding.  IDOA is proposed to receive a total appropriation for operations and pass through programs of $109.2 million for FY 2010.  The number of employees IDOA will have is 438.  This is a slight increase of 4 employees compared to last year, but a significant decrease from 2002 when IDOA had 669 employees.

The only new initative IDOA is listing for the upcoming year is the hosting of an international homeland security training exercise in June 2009, sponsored by the U.S. Department of Agriculture (USDA). The event will include a two-day tabletop exercise that will simulate a Foot and Mouth Disease (FMD) outbreak, including deployment of the National Veterinary Stockpile. Participants will include the USDA, federal homeland security advisors, representatives from the 13 states that comprise the Multi-State Partnership for Security in Agriculture. This exercise will encourage collaboration among the U.S. government, the Canadian government and the states.

INCOME TAX

The Governor is proposing to increase the income tax for individuals from 3% to 4.5%.  The corporate income tax rate would increase from 4.8% to 7.2%.  He also proposed to increase the personal exemption from $2,000 to $6,000.  That means that a family of four making $24,000 or less per year would pay no income tax in Illinois.

It is estimated that the increase will generate an additional $2.8 billion in individual income tax receipts in fiscal year 2010, and $350 million in corporate income tax receipts. If the General Assembly passes the income tax changes proposed in the budget, total net individual income tax deposited into the general fund is forecast at $11.8 billion. The net figure translates into gross individual income tax revenue at $14.7 billion.

The Governor also indicated that he would close $100 million in "corporate business tax loopholes."  No details were give as to which tax incentives were targeted to be eliminated. It also appears that the proposed revenues generated from the income tax increase will not include the transfer of funds to the Local Government Distributive Fund (LGDF) which is split amongst counties and municipalities on a per capita basis.  Currently 10% of all state income tax collections go into this fund.  The proposed budget will transfer the current 10% to the LGDF from the current 3% tax and state taxes collected from the increased 1 1/2% would be used for the capital funding program.

INCOME TAX INCREASE CALCULATOR

Click here to learn how the tax increase will affect you: http://www.budget.illinois.gov/taxcalculator.htm

This is an interactive calculator where you can insert your information.

SPENDING CUTS

The following are some of the general budget reduction measures the Governor is proposing:

• Ordering spending reductions from fiscal year 2009.  It is estimated that an additional 2% reduction is made across the board on many budgetary line items from the current budget year reductions.  No cost savings estimated.
• Requiring state employees to take four furlough days. This excludes workers who provide direct patient care or public safety, such as corrections workers and state police. It is estimated that this will save $36 million.
• Increasing healthcare contributions for state employees and state retirees. The Governor's office estimates this could save $200 million.
• Targeted reductions and other efficiencies throughout various agencies, including consolidating the Historic Preservation agency into the Department of Natural Resources, with a projected saving of $1.2 million annually.

Across-the-board 2 percent reductions in grant programs, excluding healthcare and education programs. Estimated savings of $80 million.

Elementary & Secondary Education
The Governor's proposed budget includes $173.4 million in new state funding for elementary and secondary education.  Some of the highlights of that funding are:

§         General State Aid. The fiscal year 2010 budget includes an increase of $114 million to raise the foundation level by $130, from $5,959 to $6,089.

§         Mandated Categoricals. This funding reimburses school districts for special education, transportation, and school breakfast and lunch costs. New funding in fiscal year 2010 will continue to fully fund these programs.

§         Early Childhood Education. The budget provides an additional $12.5 million for cost of living adjustments for existing pre-school programs and administrative costs. There are 96,000 children enrolled in state sponsored pre-kindergarten programs across the state.

§         Bilingual education. An $8 million increase for bilingual education is reflected in the fiscal year 2010 budget. This increase will help meet the demands of an estimated 10,000 new English Language Learners (ELL). In addition, an amendment of state law will be sought to change the distribution formula for these funds to be more equitable for all districts.

§         Statewide System of Support. The Statewide Systems of Support assists students and schools in meeting Adequate Yearly Progress through the development of new teaching and learning methods. A $1.5 million increase is proposed for improving low performing high schools.

§         New programs. The budget includes funding for a Longitudinal Data System to integrate student data across educational careers from preschool through postgraduate studies. P-20 Funds are also recommended for the American Diploma Project to review and revise the Illinois Learning Standards, to better prepare students for success in college and in their careers. Additionally, an investment in statewide licensing for on-line data bases will provide access to research resources for students throughout Illinois. This initiative will provide additional resources to local districts at no cost while enhancing learning. Reallocation from lower priority programs will ensure that dollars are spent in the most effective manner. Such program areas include Transitional Assistance.

GOVERNOR QUINN’S BUDGET LINK

www.budget.illinois.gov