SPRINGFIELD, Ill. (AP) – A $36.5 billion foundation for rebuilding Illinois’ crumbling finances passed a critical test on Friday, but a powerful legislative leader said no deal would be reached before a critical midnight deadline – meaning Illinois will enter its third consecutive fiscal year without a budget.
The proposal would be fueled by a $5 billion income tax increase and $2.4 billion in spending reductions, according to Democrats who control the Legislature. The proposal was approved on a 90-25 vote in the House, but it was a test run.
The plan won’t get a final vote before the fiscal year starts Saturday. Without a budget, the state enters dangerous territory: Some universities may not be able to offer federal financial aid, road construction and Powerball ticket sales could halt, and the state’s credit rating could be downgraded to “junk.”
House Speaker Michael Madigan said lawmakers would return to work Saturday. He also said he would send messages to the major credit agencies, which have promised to downgrade Illinois’ creditworthiness without a deal by Saturday, seeking more time to finalize the pact.
The missed deadline marks another blow in the record-breaking budget stalemate, though it followed the strongest display of bipartisan cooperation in months.