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Senate Week in Review: June 21-25, 2010 |
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 With a second credit downgrade this month, Illinois has overtaken California as the worst credit risk in the United States, according to Senator Dale Risinger.
Also this week, several bills were signed into law including pay day loan reform, research and development tax credits, and STAR bonds.
The credit default swap spread for the Illinois general obligation bonds increased to 313 basis points for a five-year contract, which means a bondholder must pay over 3% of the bond’s face value per year to be insured against default. California’s five-year credit default swap is currently at 293.
Eight credit downgrades have occurred under Governor Pat Quinn compared to only three under former Governor Rod Blagojevich. Illinois has been downgraded 17 times in its history, with almost half of those occurring during Governor Quinn’s one-and-a-half years in office.
 The Governor also signed several financial bills this week.
Senator Risinger said House Bill 537 (P.A. 96-0936) will reform the Payday Loan Act and Consumer Installment Loan Act to protect consumers from excessive fees and predatory lenders who take advantage of those who utilize these short-term loan programs.
Senate Bill 3655 (P.A. 96-0937) extends a tax credit meant to encourage research and development, which should help the economy by giving businesses more incentive to spend money on research in Illinois.
Senate Bill 2093 (P.A. 96-0939) creates the sales tax and revenue (STAR) bonds that will be used to develop the $378 million Millennium Development in Marion. The developer, Swansea-based Holland Construction Services, has estimated that the project would create 6,000 jobs during construction and 5,685 full-time jobs when completed.
Other legislation signed into law this week includes:
Historic preservation (SB 2534/PA 96-0933): Creates an income tax credit equal to 25% of qualified expenditures incurred by a qualified taxpayer in the restoration and preservation of Père-Marquette hotel in Peoria.
Free healthcare practice (HB 5744/PA 96-0931): States that any healthcare professional authorized by law to provide services at a free medical clinic may do so without being licensed under any Act administered by the Department, provided certain regulations are followed.
Cooperative association income (SB 1826/PA 96-0932): Allows Illinois to treat cooperatives differently than the federal government. States that such determination shall be made without regard to the prohibition against offsetting losses from patronage activities against income from non-patronage activities; except that a cooperative corporation or association may make an election to follow its federal income tax treatment of patronage losses and non-patronage losses.
Clean Air Act (SB 2812/ PA 96-0934): Authorizes the Illinois Pollution Control Board to stay (hold) the effectiveness of certain actions taken or permit conditions imposed by the Environmental Protection Agency in the course of administering the Clean Air Act Permit Program.
Tax deductions (SB 3646/PA 96-0935): Amends the Illinois Income Tax Act. In provisions concerning a deduction for income distributable to an entity subject to the Personal Property Tax Replacement Income Tax, restores the deduction for publicly traded partnerships for taxable years ending on or after December 31, 2009. |
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Contact information
Senator Risinger's e-mail
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Legislative offices
Peoria
5415 North University
Suite 105
Peoria, IL 61614
309-693-4921
309-693-4923 fax
Galesburg
4 Weinberg Arcade
Galesburg, IL 61401
309-343-8176
309-343-2683 fax
Princeton
400 N. Main St.
Princeton, IL 61356
815-872-1964
815-872-1965 fax
Springfield
M103F State Capitol
Springfield, IL 62706
217-782-1942
217-782-9586 fax
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