CHICAGO (CBS) — Moments after the Illinois House passed a spending plan that includes a 32 percent increase in the state’s income tax, Gov. Rauner said he would veto the legislation.

The House passed both a tax hike and spending bill late Sunday evening.

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The plan would increase the personal income tax to 4.95 percent, from 3.75 percent. The corporate tax would increase to 7 percent. Both increases would raise about $5 billion.

The Senate passed a similar bill last month, but the new legislation still needs to go back to that chamber before it would even reach Rauner’s desk.

“Under Speaker Madigan’s direction, legislators chose to double down on higher taxes while protecting the special interests and refusing to reform the status quo,” Rauner said in a statement. “It’s a repeat of the failed policies that created this financial crisis and caused jobs and taxpayers to flee.”

“I will veto Mike Madigan’s permanent 32 percent tax hike. Illinois families don’t deserve to have more of the hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs.”

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In a statement after the vote, Madigan said: “Today, Democrats and Republicans stood together to take a crucial step toward reaching a compromise that ends the budget crisis by passing a fully funded state budget in a bipartisan way.

While none could say this was an easy decision, it was the right decision; it’s clear that a budget package that cuts billions of dollars in state spending and also provides new revenue is the only path forward. I’m grateful legislators worked together to provide for our schools, protect medical care for the frail elderly, services for survivors of domestic abuse and others in great need.

“There is more work to be done, and we will continue working with Republicans to ensure the issues still on the table are fully resolved.”

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The new fiscal year started on Saturday and the state has operated without a budget for two years, jeopardizing the state’s bond rating, which is now teetering towards junk status.