Ill. Judge Rules Comp Fee Hike Improper

December 8, 2004

An Illinois Cook County circuit judge has ruled that a state increase in fees paid by employers into the state’s workers’ compensation fund was improper because it was used to help plug a gaping hole in the general revenue fund.

The fee hike, one of dozens targeting Illinois businesses passed by the Democratic-controlled state government in an attempt to balance the budget while avoiding income tax increases and government spending cuts, has brought in as much as $30 million. The Illinois Chamber of Commerce has estimated that it only costs $14 million for the state to administer the comp fund with the rest going into the government’s coffers.

The governor’s budget office will appeal the ruling, handed down by Circuit Judge Patrick E. McGann.

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