IVCA Provides Updates for State and Federal Legislative Issues - 07.19.17

IVCA Provides Updates for State and Federal Legislative Issues

UPDATE provided by Stricklin & Associates on July 19, 2017:

The General Assembly overrode the Governor’s veto of the budget package on July 6th. The spending bill (SB6), revenue bill (SB9), and budget implementation plan (SB42), are now effective.
Through our persistent efforts, coalition-building, and discussions with leadership, we were successful in preventing the inclusion of the 20% "privilege tax" proposal. We were also successful in maintaining opposition that prevented the standalone bill (SB1719) to be called or amended. We will continue to monitor this issue as it could arise in any veto session or next session.
The revenue package passed contains some ‘corporate loophole closures’ that are related solely to the oil and gas industry. The other measures include raising the personal income tax from 3.75% to 4.95%, and the corporate income tax rate from 5% to 7%. These tax increases are effective as of July 1st, 2017 and are anticipated to bring in approximately $5 billion in new revenue to the state. The revenue bill also included an expansion of the earned income tax credit.
The $36.3 billion spending bill contains $800 million in cuts over the Governor’s introduced budget, and $2.5 billion from current spending levels.
The budget passed will also substantially reduce the $15 billion unpaid bill backlog, primarily through $6 billion in borrowing, and prevent the state from reaching a junk status.
It is unclear if the chambers will be called back in the coming months to continue negotiations on workers compensation, property taxes, and pension reform. The General Assembly is also still expected to send the Governor an education funding reform bill.