June 26, 2017

Honorable Member of the Illinois General Assembly

Illinois State Capitol
301 South 2nd Street
Springfield, IL 62701

Dear Legislator,

While the Illinois Chamber of Commerce acknowledges the hard work of the Governor and General
Assembly, the Chamber urges each and every legislator to work for a final resolution of the
unprecedented budget impasse this week. I know that we all recognize the terrible toll the lack of a
state budget has had on our employer community, our institutions and our reputation. The need for
real reform of government and the Illinois jobs climate remains critical but, finally, meaningful progress
on reforms and a balanced budget appear within reach.

The Chamber believes that the framework for a budget resolution laid out by the Republican caucuses
and the Governor on June 14 largely built upon the package passed by Senate Democrats in May is
the best framework available for a conclusion to the impasse. However, this framework is far from
perfect nor is it complete.

The Chamber calls for the following changes and additions in order to support a final package:

Omit the Unconstitutional Service Tax. SB 9, the most recent legislative proposal to tax certain
services is unconstitutional. The Illinois Supreme Court, in the case of Fiorito v. Jones held
unconstitutional for lack of uniformity, and for denial of due process and equal protection
guarantees a prior attempt to impose a tax on a limited number of services. The recent
amendment imposing a tax on a specific list of services (as opposed to all services) would
immediately be subject to constitutional challenge.
Stop the Road Fund Raid. Both Senate Democrat and Republican proposals would take $266
million out of the Road Fund and shift the bulk of it to Chicago area mass transit. While transit is
a priority, this is an unprecedented use of the Road Fund and will result in a $1 billion reduction
in IDOTs latest multi-year plan for roads and bridges.
Include a Transportation Bridge the Gap Proposal. Transportation funding is set to fall off a
cliff at the end of this construction season. The legislature can maximize the impact of modest
increases in road fund revenues by bonding them. This would increase transportation funding
over the next two years until a larger, more permanent fix to this problem is found.
Pass a Clear Plan for Reducing the Bill Backlog While the Chamber is an advocate for more
efficiencies in government and greater respect for taxpayer dollars moving forward, the state
simply must pay debts already incurred. Though not optimal policy, new bonding, backed by a
dedicated revenue source, is the best way to jump start a return to fiscal sanity.
Improve the Workers Compensation Reforms. While modest, the amendments to the
workers compensation act contained in HB 4068 do represent incremental progress. However,
 the language related to traveling employees must be strengthened and new employer
penalties related to electronic filing must be reasonable.
Rebalance the Tax Mix. Given the right package, the Chamber can support a major tax increase
to help produce a balanced budget. However, the current tax package unduly burdens specific
industries and ignores our largest job creator, small business. A final tax package should omit a
decoupling from the Domestic Production Activity Deduction (a change impacting agriculture,
manufacturing, technology and others), eliminate the unfair taxation of satellite and internet
streaming services, and create a new incentive for small businesses to invest and grow in Illinois.

The Chamber stands ready to work with all legislators and the Governor to find a resolution to the
current budget crisis. The time for a resolution is now.

Sincerely,

Todd Maisch
President and CEO