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Illinois tax hike impacts Wisconsin's state budget

 

As Wisconsin works to pass its budget, a budget passed by Illinois last week is slowing down the process.

Over the next two years, Wisconsin is expected to pay Illinois $51 million dollars more.

It's thanks to tax increases approved in Illinois, for people living in Wisconsin, but working in Illinois.

"It's obviously not great anytime a state loses out on revenue," said State Rep. Jim Steineke, R- Kaukauna.

This comes as the Republican controlled legislature works to find common ground on its budget, specifically paying for road projects.

"The main thing that we're looking for is to make sure if we're going to do any bonding that there is a way to pay it back. And currently under the current funding structure for DOT there just isn't a way to pay it back,"explained Steineke. 

Republicans in the Assembly are calling for a higher gas tax or increases in vehicle registration fees, something Gov. Walker has had he would veto.

Last week, Walker suggested borrowing less than his original proposal of $500 million.

"We know the Assembly has some concerns and so we proposed lowering it by $200 million," explained Walker at a stop in Kewaunee County. 

The Senate originally proposed borrowing $850 million, but Senate leaders say they too are lowering that number.

"I think we are getting closer and closer to a solution on a budget with the Assembly so that we can get this done," State Sen. Roger Roth told FOX 11 last week. 

The state is also looking to apply for $341 million from the federal government to help pay for road projects.

Until a new budget is signed, Wisconsin will continue to operate at the levels set by the most-recent state budget.