GROUPS KEEP THE PRESSURE ON FOR FISCAL REFORM AND EITC IMPROVEMENTS IN ILLINOIS

 

Advocacy groups across the state continue to urge legislators to act upon comprehensive fiscal and school funding reform.  A+ Illinois and other advocates remind us that comprehensive funding reform is NOT dead, and we have an incredible opportunity to get something done in the overtime session.

 

Continue to call your Representative and Senator and urge them to pass a comprehensive school funding and fiscal plan that:

• Increases school funding and quality so that every child has access to a quality education,

• Restores Illinois' fiscal health, and

• Ends Illinois' over reliance on property taxes to fund schools.

Read a column from Sunday's Chicago Sun-Times by Ralph Martire, CTBA's executive director, urging our elected officials to set aside political differences in order to capitalize upon this unique opportunity in Illinois for real tax reform.

 

Illinois Earned Income Tax Credit (EITC)

 

Improvements to the state EITC is an important component to any final budget package that gets passed in Illinois.  Groups across the state have called for a stronger state EITC, including the Making Work Pay Coalition and the State Journal-Register's editorial board; click here to read an SJR editorial from March 15, calling for an increase in the state's minimum EITC benefit.

 

Background

The EITC provides a strong work incentive for low-income families by “making work pay,” allowing them to hang onto more of their hard-earned money at tax time.  The Illinois EITC equals 5 percent of the federal credit, providing an average credit of only about $220 per recipient family. That makes it the smallest of the nation’s 21 state EITCs, which range as high as 30 percent and even 40 percent of the federal EITC.  Raising Illinois’ EITC to 20 percent of the federal EITC would increase our top state credit to $880, greatly increasing its value for struggling families. We recommend reaching this goal by gradually increasing the size of our credit over three or four years.

 

EITC Legislative Initiatives

Two different EITC initiatives have been moving through the legislature this session.  One initiative is SB 338.  This bill amends the Illinois Income Tax Act by removing statutory language that inhibits states from giving families the entire amount of EITC funding for which they qualify. Those most strongly affected by this bill are foster parents, parents of children partially or totally disabled, childless adults, and adults who have children under the age of 24 who are full time students.  SB 338 has passed both chambers of the General Assembly and is waiting to be signed into law.  We applaud legislators for supporting SB 338.  Click here to read more about SB 338.

 

SB 12 in a second initiative moving through the legislature that seeks improvements in the state EITC.  SB 12 would ncrease the amount of the earned income tax credit from 5% of the federal credit to: (i) 7.5% of the federal tax credit for taxable years ending in calendar year 2007; and (ii) 10% of the federal tax credit for taxable years ending in calendar year 2008 or thereafter. SB 12 passed has strong support; the bill passed the Senate unanimously but then got held up in the House Rules Committee.  Legislators have sent a letter to the state's leaders, urging them to implement an EITC enhancement.  Click here to see the legislators that have signed onto this letter.

 

READ: Top 10 Reasons Why Illinois Should Increase the EITC.

 

What you can do

You can also support improvements to the EITC by sending a letter to the editor of your local newspaper.  Click here for a sample letter.

 

A PRIMER ON HOW ILLINOIS FINANCES LONG-TERM CARE FOR OLDER ADULTS

 

THE ECONOMIC COST OF HUNGER IN AMERICA IS EXPENSIVE FOR OUR NATION AND STATES   

 

A new report commissioned by the Sodexho Foundation finds that hunger in America leads to $90 billion in yearly societal costs.  The report, The Economic Cost of Domestic Hunger, estimates that the nation spends $14.5 billion a year on charitable anti-hunger efforts. At the same time, $66.8 billion is spent each year fighting depression, anxiety and other aspects of poor health that can accompany food insecurity. Further, $9.2 billion is spent each year on hunger-related school dropouts and absenteeism at work.  The report concludes that boosting anti-hunger spending by an additional $10 billion to $12 billion a year is cost-effective and could even "virtually end hunger" in America. 

 

Click here to learn the economic cost of hunger by state.

 

Hunger:  Efforts in Congress

The food-stamp program is up for renewal this year and several politicians, including Oregon Governor Theodore Kulongoski and Representative Jim McGovern of Massachusetts, have highlighted the need for increased anti-hunger spending by attempting to live on $3-a-day food-stamp allotments. Critics have chided the politicians, noting that food stamps are intended to augment -- not comprise -- a family's normal food budget. 

 

Hunger:  In the press 

The Washington Times covered The Economic Cost of Domestic Hunger in a recent article.