From Crain's Chicago Business:
The House and Senate adopted a $36bn fiscal 2018 budget.
Gov Rauner vetoed the bills: the main appropriations bill, separate measure on revenue, and budget implementation bill.
which the Senate then voted immediately and passed 36-19 to meet the veto override. 1 Republican joined the 35 Democrats in passing that bill.
The House had already adjourned for the 4th of July holiday - they're expected to vote today, 5 July 2017.
If the House passes the bills to meet the veto threshold, then these are some of the things that will happen:
Mayor Emmanuel gets the OK to refinance pension funds; raise the city's 911 tax by $1.10 to $5.00 per phone line per month; receive $300mn next year for Chicago Public Schools.
The state will cut back on the share of income tax receipts that go to the CTA and Metra.
The individual tax rate goes from 3.75% to 4.95% permanently (at least, there is no sunset provision as the last income tax hike had).
The corporate rate goes from 5.25% to 7%.
Both take effect July 1 - but the Dems had wanted it to be retroactive to Jan 1.
The General Assembly expects the hikes to bring in add'l $5bn/year.
Dropped the idea of extending sales tax to services such as dry cleaning.
Budget includes a projected sale of the Thompson Bldg for $300mn.
Operations of most depts will be reduced 5%.
Colleges and universities payouts will be cut 10%.
Meanwhile, Wolf Richter at Wolf Street reports on just how well consumers are positioned to absorb the new and bigger cash grabs:
- The average monthly car payment jumped to a record $517/mo in June '17, from $510 in May.
- The length of average car loan is now 69.3 months.
- Average amount financed jumped by $631 from May to June 2017, to now be $30,945.
- Car and light truck sales fell 3% YOY, to 1.47mn vehicles
- 6th consecutive month of YOY declines
- Truck and SUV sales rose 4.1% to 933,378 units. But car sales fell 13.2% to 541,982.
- Sales to fleet customers fell 7.8% in June
- Manufacturers' incentives ranged from 12% of transaction price (GM, Ford, FCA) to 15% (Nissan, Kia)