SPRINGFIELD-"This is about doing the right
thing," Illinois Senate Democratic Leader Emil Jones said today following
the passage of the Fiscal Year 2001 budget agreement which contains an
Earned Income Tax Credit for low and moderate income working families.
Leader Jones took the measure to the budget
negotiation table this spring. An Earned Income Tax Credit was part of
the Senate Democratic Caucus Tax Relief Package introduced in January.
"Illinois' three percent flat tax was one
of the most regressive in the nation," Leader Jones said. "The passage
of a five percent EITC will help working families gain a solid foothold.
This is an investment in the economy of our state and furthermore, this
is about doing the right thing."
"Illinois has the eighth most regressive
tax system in the country. A state Earned Income Tax Credit could provide
the foundation for working families to boost themselves out of poverty
and save the state money in the long run." Ten states already have their
own state EITC.
An estimated 765,000 Illinois families
will benefit under this proposal. Of those families approximately 458,
714 are single parent families. The cost for the program is $35 million.
Leader Jones also hailed the passage of
the expansion of the Circuit Breaker and Pharmaceutical Assistance Act
for low income senior citizens. "This will allow 178,000 additional seniors
to quality for the program and expands the prescription drugs available
through the Act."
"While Senate Democrats pushed for the
passage of the Senior Citizen Prescription Drug Discount Program which
would have provided up to a 40 percent reduction in the cost of prescription
drugs to 450,000 middle income seniors, expanding the Circuit Breaker was
a positive and much needed step," Leader Jones said.
Other highlights of the budget agreement
included the establishment of a "rainy day fund," Leader Jones said, "In
the early 1999s, we saw many small businesses, nursing homes and hospitals
struggle with the state's inability to pay its bills. Some of them suffered
a financial crisis and closed. Others just refused to serve Medicaid recipients.
With the establishment of the 'rainy day' fund, Illinois will have a cushion
to fall back on if our economy takes a downturn."
Education funding increased $460 million
($330 for elementary and secondary and $130 for higher education). "That
increase brought elementary and secondary education to 53 percent of new
revenue spending. These increases will go directly into the classroom and
continue our commitment."
Leader Jones called the $150 million increase
in daycare spending (to $652 million) "an investment in our future. This
increase assists parents with daycare subsidies so they can work and become
independent." Leader Jones also applauded the 2.5 percent cost of living
increase for human-service providers.