Appellate Court Strikes Down State Public Works Plan

By Chuck Sudo in News on Jan 27, 2011 3:19PM

Gov. Quinn's construction program, which he had been touting as a major source of job creation for the state, was dealt a setback yesterday when an appellate court tossed out the $31 billion 2009 bipartisan plan, saying legislators didn't do due diligence in nailing down the funding for the project. The funding for the public works plan relied on legalizing video poker and raising taxes on such items as beauty products, liquor, candy and license plate stickers.

Quinn maintained his composure after the decision, saying in a statement, "Capital bill projects are putting thousands of people to work in every corner of the state while supporting local businesses, improving our infrastructure and increasing energy efficiency." Attorney General Lisa Madigan said she'll go to the Illinois Supreme Court today to file an injunction to keep the program moving along while the state appeals the decision.

The appellate court ruled that one piece of legislation creating the construction program violates a state constitution provision requiring that laws address a single topic and that the four laws that represent the backbone of the program are unconstitutional. The ruling stemmed from a lawsuit filed by Wirtz Beverage Illinois, who objected to how the state imposed stiffer taxes on harder liquor for the plan. The higher the alcohol content, the higher the tax.

As a result of the ruling the following tax increases are at risk:

• A jump in annual vehicle registrations from $78 to $99.
• A hike in the state sales tax from 1 percent to 6.25 percent on soft drinks, candy and medicated health and beauty aids.
• A boost of 2.6 cents on a six-pack of beer, 13 cents on a bottle of wine and 80 cents on a gallon of hard liquor.