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IL Democrats: Caps Will Control State Spending
SPRINGFIELD, Ill. (AP) -- Illinois taxpayers now have to fork over more money to the state, but Democratic leaders say new spending caps will ensure the money is handled carefully.

Republicans aren't convinced, however. They say the caps are too generous and include some possible loopholes.

Illinois is raising the income tax rate by two-thirds. The tax law also includes spending limits.

Basically, it says the new tax money can be used to pay long-ignored government obligations, but afterwards spending can't climb by more than 2 percent a year.

If official spend more, the tax increase is automatically reversed.
Republicans argue the caps allow spending to grow too much in the first year. They also claim Democrats could create new government funds that would be exempt from the caps.

(Copyright 2011 by The Associated Press. All Rights Reserved.)
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