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Chicago Region Transit
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Will a Transit Deal
Happen?
Tomorrow begins the Special
Session that the Governor called to address
the transit funding crisis. The legislature
will take-up HB4161,
developed by the House Republicans and
supported by the governor. Since the
Session has been called specifically for
transit, House Speaker will not entertain a
companion capital package. This presents a
new twist in the ongoing saga of wrapping-up
a deal on transit.
In September, several
legislators and the governor indicated that
they could not support the legislation at
that time, SB572, because it raised taxes
and did not include provisions for a state
capital bill, which prior to this funding
crisis, has always been part of a transit
funding package in Springfield. Given these
dynamics, it remains to be seen whether the
bill will make it out of the House.
(Read last week's
analysis of SB 572 here).
From a policy
perspective, this new version conflicts
with the original percepts used in
crafting SB572, including:
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Create regional funding
source to support transit
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Strengthen the RTA to
ensure that capital and service
expansions meet planning requirements;
that the RTA can coordinate services,
ensure connectivity and reduce
redundancy
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Allow the planning
processes to determine service, giving
RTA right to review, endorse or require
adjustments
HB4161 misses the mark on
several points. Revenues do not derive
from regional sources, since the gas tax
furnishes the funding for the system.
Chicago is no longer required to fund a
portion of the costs of CTA budget
through the Real Estate Transfer Tax
(RETT). At the time of this writing, it
is unclear whether the sources of
funding will be
sufficient to fund the regional transit
system in out years. For example, the
RETT has been replaced by a flat-funded
amount for CTA, $100 million, that does
not grow with inflation or demand.
The bill arbitrarily
funds two special projects, one in NW
Cook and the other in South Suburbs.
Member initiatives like these only
perpetuate fiefdoms of transportation
services across the region, fragmenting
services and defying planning
requirements. Clearly, these two
micro-regions experience the demands for
transit felt throughout the region.
These kinds of demands should be
addressed in statute to benefit the
whole region.
Resources:
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FY 2008 Budget Update |
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 Still
Waiting on Governor to Sign BIMP
SB 783 House
Amendment 5 or the The Budget
Implementation Bill "BIMP" was passed by
the General Assembly over three weeks
ago on November 2nd. However, the
Governor has yet to sign the bill into
law.
That means schools, health care and
human services are still waiting for
their FY 2008 budget appropriation.
The Governor received the BIMP bill
on Nov. 5 and has 60 days to act on
the bill or it automatically becomes
law.
Affect on Schools
Without the BIMP schools receive
their state aid payments based on
last years funding levels.
State School Superintendent
Christopher Koch said, "We need
to provide schools the GSA
payments they are due at 2008
funding levels...Thousands of
schools around the state are
counting on this funding to pay
teachers, utilities, buy text
books and fund after school
programs..."
Koch and other officials held a
news conference in late October,
warning that most Illinois
school districts would get less
money from the state unless the
BIMP was signed into law.
For the past couple of months,
Illinois State Board of
Education officials have based
school districts' state aid
payments on their funding levels
from FY 2007. That means
schools are missing out on a
$400 per pupil increase in the
foundation level and a $1,000
increase for special education
teacher reimbursement approved
for FY 2008.
Many schools have had to draw
down on reserve funds to make
ends meet and are now losing
interest they would have
otherwise earned.
A comparative breakdown of state
allocations to school districts
based upon the pending BIMP bill
is available
here.
See how the lack of a BIMP
affects schools in the areas
of:
Human Services
Lose Funding Even With
the BIMP
The legislation
also includes other
provisions, such as
boosting payment rates
for some nursing homes
and providers that serve
the developmentally
disabled.
While local school
districts can receive
their increased payments
retroactively, many human
service providers rely on
Medicaid funding, which can only
be paid prospectively. That
means some human service
programs have lost funding this
year because of the stalemate.
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Gaming |
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New Report Details Illinois Gaming
Industry
The Illinois Commission on Government
Forecasting and Accountability has released
the 2007 update of the report
Wagering in Illinois.
Past reports examined the legally-sanctioned
forms of wagering in Illinois to determine
their economic impact and the potential for
further expansion of the gaming industry.
The 2007 report updates previous
releases and provides further analysis
of state gaming with the focus on
riverboat gambling, lottery, and horse
racing. The report
contains 30 tables and charts.
Read the report here.
There
continues to be numerous discussions on
some type of gaming expansion in
Illinois to fund a much needed capital
program. These discussions surround HB
2035 and include adding additional
gaming positions at the current
riverboat facilities, allowing slot
machines at Illinois horse tracks,
adding new riverboats/casinos, and
reissuing the 10th casino license.
Highlights of the Wagering
in Illinois Report:
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In FY 2007, the state's share of
horse racing, lottery, and riverboat
revenue reached $1.316 billion, a
$54 million or 3.9% decrease from FY
2006 levels.
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Statewide adjusted gross receipts
(AGR) for Illinois riverboats in FY
2007 were up 4.7% while admissions
were up 2.8% from FY 2006 levels.
This is the third consecutive year
that AGR and admissions have
experienced increases.
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Lowering the tax rate from a maximum
70% tax rate to a maximum 50% tax
rate is likely one of the main
reasons for the increase in
riverboat figures over the last
several years.
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Because of the lower tax rates in FY
2006 and FY 2007, state revenues
from Illinois riverboats in these
years were slightly lower than FY
2005 levels.
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Increased competition from other
states threatens to slow these
positive revenue trends.
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Under a 70% tax rate it appeared that
Illinois had lost potential riverboat
patrons to other states.
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Competition from other states in casino
gambling is likely to intensify. Two new
riverboats are set to open in Missouri
near St. Louis in the next year. New
casinos have opened in Iowa and
Michigan. Indian tribes in Wisconsin
continue to discuss developing casinos
near the Illinois border. In addition,
Indiana just approved slot machines at
their racetracks.
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Illinois' AGR per Table Game and AGR per
Electronic Gaming Device are
significantly higher than neighboring
states. Possible reasons for this
include: Illinois gamblers spend more
money on gambling than other states,
Illinois limits the number of positions
allowed, and gaming positions in
Illinois are being utilized more
frequently than other locations. This
also suggests that Illinois has not yet
reached its gaming saturation point.
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In FY 2007, lottery sales totaled
approximately $1.984 billion, slightly
below FY 2006 total of 1.985 billion. It
represented the second highest sales
total realized since the inception of
lottery in 1975. The amount transferred
into the Common School Fund was $622
million. While this was a 7.2% decrease
from FY 2006 levels, it was still the
second highest transfer amount in
lottery's history.
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The largest dollar increase in lottery
sales came from the Instant games, which
rose $42 million or 4.2%.
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The instant games continue to comprise
the largest percentage of lottery sales
at 53% followed by Pick 3 (16%), Mega
Millions (10%), Pick 4 (9%), Little
Lotto (6%), and Lotto (6%).
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In 2006, $952 million was wagered on
horse racing, which generated
approximately $10.3 million in state
revenue and $11.3 million in local
revenue.
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State of Working Illinois Policy Forum |
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Illinois's
ability to remain competitive in the 21st
Century can be questioned. Low wage jobs
dominate growth. The service sectors
continue to expand rapidly, replacing
high wage jobs with low wage ones, even
as the tide of job loses in
manufacturing has stemmed. Real wages
are declining and income inequality is
still on the rise. The 21st
Century has ushered in a complex period
for Illinois. How we prepare our
workforce and address our economic
well-being will, in large part,
determine our future.
Northern Illinois University
(NIU) and the Center for Tax and
Budget Accountability (CTBA) are
preparing a comprehensive
analysis of Illinois' long-term
employment trends, with data and
assistance from the Illinois
Department of Employment
Security. This report is one of
the most detailed analyses of
Illinois' economic well-being.
We cordially invite you to join us
for a symposium on the release of
the results of our 2007 analysis. We
have convened national and local
experts to discuss the findings in
the context of national trends, of
what responses Illinois will need to
consider in order to maintain
competitive and how our regions and
communities are impacted.
A brief presentation of the report's
highlights will be given by: Dr.
Paul Kleppner, NIU-OSPR; Ralph
Martire, executive director, Center
for Tax and Budget Accountability;
and Dr. Robert Gleeson, NIU-RDI.
The policy implications of the
report and its findings will be
discussed by an expert panel,
moderated by Cornelia Grumman,
Editorial Board Member for the
Chicago Tribune.
Keynote address by David
Wilhelm.
Mr. Wilhelm was selected by
President Clinton to head the
Democratic National Committee
and previously served as
executive director of Citizens
for Tax Justice. He is now
Founder and President of
Woodland Venture Management,
which aims to foster shared and
sustainable economic growth in
regions of the county that lie
between the coasts.
Panel experts include:
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Prof. Nathan B.
Anderson,
University of Illinois at
Chicago
Tom Balanoff,
President, SEIU Illinois
council
Liana Fox, Economic
Policy Institute
Representative David E.
Miller (D, Dolton)
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State Representative
Donald L. Moffitt (R,
Gilson)
David Thigpen, VP
Policy/Research, Chicago
Urban League
Prof. Norman Walzer,
Illinois Institute for Rural
Affairs
Doug Whitely,
President, IL Chamber of
Commerce
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The State of Working Illinois
report is one of the most
detailed state analyses ever
conducted on the Illinois
economy. The report tracks the
effects of national and global
economic trends on working
families throughout the state
and provides a wealth of
information on jobs, income, and
unemployment for each county in
the state. The report also
identifies industrial sectors
and occupational growth by
sector, employment, education
and income changes in each
region.
With over
400 tables and charts, The State
of Working Illinois is the
comprehensive reference on the
Illinois workforce. Visit the
State of Working Illinois
website
for all of the State of Working
Illinois reports and data.
Special thanks to The Joyce
Foundation and the Woods Fund of
Chicago for their financial support
in this project.
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News From the Capitol |
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General Assembly Calendar
The General Assembly has announced
its 2008 Spring Session calendar.
◊ Senate:
click here.
◊ House:
click here.
New Issue of First
Reading
The Legislative Research Unit has
released the First Reading report,
which summarizes selected bills as
they passed both houses of the
General Assembly, and reports on the
Governor's actions and legislative
responses to vetoes.
A total of 745 bills passed both houses
in 2007's extended session. This issue
summarizes 291 bills of general interest
in 13 categories.
Major bills that passed both houses provide
for electric rate relief and reform
(including creation of an Illinois Power
Agency to plan and generate electricity for
the state's needs); state participation in a
project to reduce carbon dioxide releases to
the atmosphere from coal-fired power plants;
banning smoking in almost all enclosed
public places; controlling
"superbug" infections in hospitals; and
supporting stem cell research. Other
measures offer relief from rising property
tax rates; tighten restrictions on young
drivers cited for moving violations; and
deny drivers' licenses for, and allow
immobilization of vehicles of, persons
seriously delinquent on child support. |
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Calendar of Events |
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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.
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
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Do you have something to share in
the Weekly Review?
Please email Chrissy Mancini
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