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 Weekly Review
Provided through the Generous Support of the McCormick Tribune Foundation
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In This Issue
Springfield Update
Capital Plan, Gaming & Transit Funding
Cook County Budget & Revenue
President Set to Veto Kid's Health Insurance
Calendar
CTBA Weekly Review October 2, 2007
Springfield Update:  FY 2008 Budget -                  House to Vote on Governor's Vetoes, BIMP  
Capitol DomeFall Veto Session Begins Today
Fall veto session begins today even as the regular overtime session still drags on.  A major focus of the veto session will be budget cuts made by Governor Blagojevich's vetoes. 
 
Committee of the Whole
The House convened a Committee of the Whole on Monday to
examine the affect of the Governor's fiscal year 2008 budget vetoes across the state.  The House will vote today to override the vetoes.   It remains to be seen how the Senate will react to the vetoes.  Senate President Emil Jones, D-Chicago, has said he will not allow senators to vote on restoring the budget cuts made by the Governor. However, many senators have expressed concerns that the vetoes cut far more than "pork" and "special interest spending" and instead cut legitimate and necessary programs like community clinics, programs for the mentally ill and funding for the home health care program. 
 
Budget Implementation Bill
Further confusing the budget debate, the General Assembly has not yet passed a "budget implementation bill" (BIMP). The BIMP authorizes how to spend any new money in the budget such as the $400 increase in the per pupil foundation level. Without a BIMP, The Illinois State Board of Education (ISBE) can only make payments to schools based on last year's per-pupil foundation level, making it difficult for school districts to determine their individual school year budgets.  When all FY 2008 budget legislation is adopted, ISBE will retroactively pay school districts to catch up with FY 2008 levels. 
While local school district can receive their increased payments retroactively, human service providers rely on Medicaid funding, which can only be paid prospectively.  That means some human service programs have lost funding this year.
Resources:
For a useful analysis of all 1,504 items vetoed or reduced in funding by the Governor, read the CTBA report
Capital Bill & Transit Update  
slot machineCasinos Fate Unknown 
Even though HB 2035, a massive expansion of gaming to provide funding for a long awaited capital plan, passed the Senate last Tuesday, there is still no sign of the bill's fate in the House.  The House has planned a hearing to discuss the capital and gaming plan on October 17th at 10:00AM in Chicago (Thompson Center Room 16-503).
 
Highlights of HB 2035:
  1. New land based casino in Chicago
  2. Two new riverboat casinos at unspecified locations
  3. An additional 6,000 slot machines or other positions at existing casinos
  4. More than $25 billion for state construction programs when federal and local dollars are combined with the $13 billion in state funds generated from gaming
  5. Additional funding for mass transit and education
Gaming Revenue Projections Overestimated?
Read testimony given in May 2005 by economist Dr. Victor Matheson to the Illinois General Assembly on the fiscal impact of riverboat gaming.  Dr. Matheson claims, among others things, that gaming would generate far less money than current speculations suggest and there are important social costs to consider when reviewing a gaming expansion proposal (such as increased crime and pathological gambling disorders).
 
Resources About Gaming:
  • Read the latest Illinois Gaming Board Annual Report, 2006

  • Commission on Government Forecasting and Accountability report on gaming revenues, Wagering in Illinois: 2006 Update.

  • Commission on Government Forecasting and Accountability report, Discussion on Riverboat Gambling in Illinois (2005) - complete with state by state comparisons.

    No Cure for Transit Problems 
    Discussed last week, HB 2035 does nothing to fix the Chicago region's transit funding problem.  It simply provides a $200 million loan (from gaming revenues) for Chicago's mass transit systems to fund operations for the next nine months.  At that point the system would again need additional funding.  The Governor has said the $200 million would give lawmakers more time to come up with a long-term transit funding solution in 2008.  However, all it really does is post pone the problem yet another year.  Further, there is no revenue source to pay back the $200 million loan to the state.
     
    SB 572
    (a regional sales tax bill to fund transit) fell 10 votes short of the 71 it needed to pass the House and is still placed on "Consideration Postponed."  Senate President Emil Jones, previously opposed to a regional sales tax increase for Chicago mass transit has stated, "I don't like a sales tax because it's so regressive, but I have voted for taxes in the past and will support them again."  Jones said he intends to pass some version of a transit funding bill in the Senate in October. 
     
    The next "doomsday" date for mass transit riders in the Chicago area is November 4th unless relief comes from Springfield.
     
     
    Highlights of SB 572:
    • Generates a total of between $386-$482 million in revenues
    • Local governments would receive $116 million of total revenue for roads
    • Transit (CTA, RTA and PACE) would receive between $270 and $366 million
    • Additional revenue would go to the Downstate and Metro-East Public Transit Funds
    • Increases the sales tax by .50% in Lake, McHenry, DuPage, Kane and Will counties
    • Increases the sales tax by .25% in Cook County
    • Increases the Chicago Real Estate Transfer Tax (by $300 for every $100,000)
    • Decreases CTA personnel retiree benefits

     

    Resources:
     

    Read the CTBA report, Transit Uncovered: How to Improve Public Transport in Your Community.  The report provides an introduction to public transit in Illinois:  what it is, how it's funding, who the major stakeholders are and how to get involved. 

     
    Read the RTA report Moving Beyond Congestion or visit the Moving Beyond Congestion website for more information on Chicago mass transit funding problem and potential service cuts.

     

     
    For more information about Transportation in Illinois visit http://www.ctbaonline.org/transportation.htm

     

  • Cook County Revenue Proposal  
    After hours of testimony Monday, a bill to increase the sales tax in Cook County was not called.  Rather than see the sales tax hike defeated, Commissioner Joan Murphy moved for it to be deferred until Oct. 16th.
     
    Cook County has now missed Monday's legal deadline that would have allowed it to begin collecting the sales tax Jan. 1, 2008. 

    A report released by CTBA analyzes the basic public services Cook County provides and the revenue sources that fund them.  The report also examines the Cook County fiscal system to determine whether it has the ability to fund and sustain the level of public services it currently provides. 

    The report also makes recommendations for designing a tax structure that supports thelocal public services Cook County Provides.
     
    Watch video interviews documenting the costs and consequences of the County's structural deficit by Ralph Martire, executive director of the Center for Tax and Budget Accountability.  Also on the video County Chief Financial Officer Donna Dunnings outlines the County's anticipated 2008 budget shortfall of $307 million, and County Board President Todd Stroger discusses challenges the County confronts in paying for core services.

     

    For more information about this report, contact

    Heather O'Donnell, Policy Director - Healthcare & Human Services, at 312-332-1348 or hodonnell@ctbaonline.org 
    State Children's Health Insurance Program  
    President Bush Set to Veto Expansion in Children's Health Care
     
    A bill to expand the State Children's Health Insurance Program or SCHIP (H.R. 976) was approved by the House of Representatives last Tuesday and the Senate last Thursday. The bill would increase funding for the program by $35 billion. Funding for the program would come from increasing the federal tobacco tax for cigarettes from 39 cents to a dollar per pack.
     
    President Bush has threatened to veto the bill, which did not pass the House by the two-thirds majority needed to override a veto. The White House argues that expanding SCHIP would inappropriately enlarge the government's role in health care and encourage middle-class parents to drop private insurance. Lawmakers from both parties disagree with these statements. 
     
    According to the Congressional Budget Office,
    two thirds of the children receiving health care as a result of an SCHIP expansion would be those who would otherwise not have health insurance. 
     
    Cigarette Tax
    Citizens for Tax Justice (CTJ) found that cigarette taxes (both federal and state) are regressive, meaning they take a larger proportion of income from a poor family than from a wealthy family.  However, CTJ finds the cigarette tax to be the most viable option for funding an important health care initiative at this time.
     
    CTJ states that it is true that if two smokers, one poor and one wealthy, are smoking the same amount and paying the same tax of one dollar a pack, that one dollar equals a larger percentage of total income for the poor smoker than for the wealthy smoker. It's always better to fund important programs with progressive taxes, but the health care crisis among low- and middle-income families requires compromise. Unlike President Bush, Democrats and many Republicans in Congress have shown that they are willing to make such a compromise.
     

    Background: The State Children's Health Insurance Program (SCHIP) was enacted with bi-partisan support in 1997 and provides over six million children across the country health insurance.  According to the U.S. Department of Health and Human Services, over 316,000 Illinois children are enrolled in the program.

    SCHIP provides matching federal funds to states to provide health coverage to children in families who income is about 200 percent of the poverty line (about $41,300 for a family of four). 

    Resources:

    Economic Policy Institute:  Why SCHIP Matters
     
    Center on Budget and Policy Priorities:
     
     
    More information on children's health insurance can be found here
    Calendar of Events  

    WHAT? Making the Connection: Public Benefits and Single Adults & Public Benefits for Youths up to 21

    WHEN?October 2, 2007

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Illinois School Funding- It's Time to Talk

    WHEN?October 6, 2007 1-4pm

    WHERE? National-Louis University, Chicago Campus, 122 S. Michigan Avenue, 2nd floor atrium
    FEATURING: Professor Allan Odden
    Professor of Educational Leadership and Policy Analysis at the University of Wisconsin-Madison and Co-Director of the Consortium for Policy Research in Education (CPRE), Honorable Luther Olsen Wisconsin State Senate, Honorable Miguel del Valle Clerk, City of Chicago, Mr. Ralph Martire Executive Director, Center for Tax and Budget Accountability, Honorable Kathy Ryg
    Illinois House of Representatives, Dr. Donald Schlomann
    Superintendent, School District 303, St. Charles

     

    Sponsored by:
    A+ Illinois
    National-Louis University
    Golden Apple Foundation

     

     

    WHAT? Illinois Alcoholism and Drug Dependence Association Annual Conference

    WHEN?October 1-3, 2007

    WHERE?The Wyndham Drake, Oak Brook, Illinois

    More Information and Registration Here

     

    WHAT? Making the Connection: Mental Health and Public Benefits & Understanding Spenddown

    WHEN?October 12, 2007

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Property and Asset Management: Community Housing Developers Institute

    WHEN? October 16-17, 2007

    WHERE? ICAA Training Facility, 3435 Liberty Drive, Springfield, IL
    Contact:
    nate@housingactionil.org or 312-939-6074 x 201 More info: www.housingactionil.org.

     

    WHAT? 2008 Illinois State Budget Briefing:  What Nonprofits Need to Know.

    WHEN? Wednesday October 24, 9-11am

    WHERE? Spertus Institute - 618 S. Michigan, Chicago

    Hear what experts have to say about the areas of the state budget that will have the greatest impact on the nonprofit sector and get answers to your questions. 
     
    Donors Forum, the Center for Tax and Budget Accountability and Roosevelt University will co-host a budget briefing on the 2008 Illinois state budget. Hear what experts have to say about areas of the state budget that will have the greatest impact on the nonprofit sector, and get answers to your questions. Speakers will include Ralph Martire of the Center for Tax and Budget Accountability, and Lawrence J. Suffredin, Jr., Cook County Commissioner. A panel of legislators will also join us as speakers
     

    Register online or call 312-578-0090, toll free 888-578-0090.

     

    WHAT? Understanding Appeals & Domestic Violence and Public Benefits

    WHEN?October 24, 2007

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Immigrants and Public Benefits & Putting the Pieces Together

    WHEN?October 25, 2007

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Illinois Food Summit 2007 "Building on Success Through Collaboration"

    WHEN? November 8, 2007

    WHERE? Kankakee Community College, 100 College Drive, Kankakee, IL 60901
    More info: http://inc.aces.uiuc.edu/

    Sponsored by  Illinois Interagency Nutrition Council and the

    University of Illinois Urbana-Champaign Extension

     

    WHAT?

    Affordable Housing Month

    WHEN? November 1-30, 2007

    WHERE? Public education events and activities to be held throughout the state
    Contact:
    nate@housingactionil.org or 312-939-6074 x 201 More info: www.housingactionil.org.

     

    WHAT? Release of the 2007 State of Working Illinois Report and Policy Forum

    WHEN? Wednesday, December 5, 2007 from 8:30 to 12:30

    WHERE? Union League Club of Chicago, main Lounge, 65 West Jackson Blvd, Chicago, IL

    INFO:  This is the second detailed analysis of workforce and economic trends produced by the Center for Governmental Studies and the Office for Social Policy Research, both at Northern Illinois University and the Center for Tax and Budget Accountability.  Statewide data as well as data on individual regions and counties will be presented in the report. 
     
    For more information contact Tracy Bisacky at tbisacky@ctbaonline.org
     

    WHAT? Making the Connection Basic Training

    WHEN? Wednesday, January 23, 2008

    WHERE? Naperville, IL

    Presented by the DuPage Federation on Human Services the session contains practical information in an easy to understand format regarding many programs available to assist low income persons.

    Register Here

     

    WHAT? Making the Connection: Public Benefits and Single Adults & Public Benefits for Youths up to 21

    WHEN? March 5, 2008

    WHERE? Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Making the Connection: Mental Health and Public Benefits & Understanding Spenddown

    WHEN? March 6, 2008

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Understanding Appeals & Domestic Violence and Public Benefits

    WHEN? March 18, 2008

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Immigrants and Public Benefits & Putting the Pieces Together

    WHEN? March 19, 2008

    WHERE?Naperville, IL

    Presented by the DuPage Federation on Human Services

    Register Here

     

    WHAT? Making the Connection Basic Training

    WHEN? Tuesday, June 10, 2008

    WHERE? Naperville, IL

    Presented by the DuPage Federation on Human Services the session contains practical information in an easy to understand format regarding many programs available to assist low income persons.

    Register Here

    Do you have something to share in the Weekly Review?
     
    Please email Chrissy Mancini