Illinois Senate Approves Tax Hike, $37B Budget Plan

Springfield
Politicians gather in the Senate chambers at the Illinois State Capitol in Springfield on Jan. 14, 2015. Seth Perlman / Associated Press
Springfield
Politicians gather in the Senate chambers at the Illinois State Capitol in Springfield on Jan. 14, 2015. Seth Perlman / Associated Press

Illinois Senate Approves Tax Hike, $37B Budget Plan

The Illinois Senate has approved a $5 billion income tax increase to fund what Democrats said would be a balanced, $37.3 billion budget.

A Democratic majority pushed the measures through despite opposition from Republicans.

Sen. Toi Hutchinson said there's little time left and the House must have a chance to debate the budget before the scheduled May 31 adjournment. The Olympia Fields Democrat sponsored the tax bill that increases the personal income tax from 3.75 percent to 4.95 percent. Sales taxes would also be applied to services for the first time.

Spending plan sponsor Sen. Heather Steans of Chicago said the $37.3 billion spending outline matches the one Republican Gov. Bruce Rauner introduced in February. She said many of the $3 billion in spending reductions were proposed by the GOP.

Democratic House Speaker Michael Madigan of Chicago released a statement saying his budget experts will carefully consider the proposals.

This is a developing story. Check back for details.