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 Weekly Review
Provided through the Generous Support of the McCormick Tribune Foundation
CTBA Weekly Review December 4, 2007
CTBA Quick Links
In This Issue
Transit Funding
Capital Plan & Gaming
FY 2008 Budget & BIMP
New Issue Brief on the Property Tax
State of Working Illinois Free Policy Forum
New Financial Literacy Tool
Calendar
Springfield Roundup  
In the past week, the Governor has required the General Assembly to hold two more special sessions to discuss mass transit and a capital plan.  That brings the total number of special session to eighteen, an all time two year high.  No issues were resolved.  Below is a recap of three contentious topics that need solutions, mass transit, a state capital plan and the FY 2008 budget.
 
Mass Transit Funding
 
Special Session 17
 
Last week the Governor required the General Assembly to convene special session seventeen to discuss funding for the RTA, CTA, Metra & Pace.  SB 307, another mass transit funding bill, was voted down in the house during the session.  The bill only received 57 votes.  It was developed by Republicans and supported by the Governor.  SB 307 was modeled on HB 4161 and SB 572.  (Read last week's analysis of that legislation here).
 
SB 307 is bad public policy because its passage would have created a $385 million hole in the budget without providing a stable revenue source to fill the gap.
  The bill would have diverted the revenues collected from the sales tax on motor fuel in the six county transit region to the Regional Transit Authority.  Those revenues already go toward funding other state services.
 
SB 307 is the Governor and Republican alternative to SB 572.  SB 572 creates a new revenue source for transit by raising the sales tax in the six county transit regions.  SB 572 only received 61 or the 71 votes it need to pass the house.  Several legislators and the Governor indicated that they could not support the legislation because it raised taxes and did not include provisions for a state capital bill. (Read an analysis of SB 572 here).
 
Since the session had been called specifically for transit there was no discussion on a capital package. 
 
Special Session 18
The governor required the General Assembly to convene the eighteenth special session last Thursday to discuss long-term funding for the RTA, CTA, Metra & Pace as well as a capital plan.  Nothing happend during the session and both chambers adjourned.  The Governor held a press conference later that day and stated that if no progress was made in the leaders meetings on mass transit and capital, he will call the General Assembly into special sessions every day until Christmas.
 
Resources:
 
Capital Plan & Gaming  
 
Progress?
 
Year after year the state has gone without a capital plan. In fact, it has been seven years since the last one.  Whether or not this year is going to be a reincarnation of the past still remains to be seen.  Thus far, expansion of gaming seems to be the only idea to fund a state capital projects plan.  The plan on the table contains more than $25 billion for state construction programs, when federal and local dollars are combined with $13 billion in state funds. 
 
The problem is that no one can agree on exactly how to expand slots and casinos, whether or not some of the revenues from the expansions should go toward funding schools, how to revamp the Illinois Gaming Board so that it has stronger oversight of the industry and whether or not transit and gaming should be linked. 
 
Another obstacle is transit because many downstate legislators want trasit and capital linked.  Last week a transit funding bill died because many downstate representatives believed if they solved Chicago transit, a statewide capital bill would never be passed.  A transit funding bill needs downstate support to pass the General Assembly so downstate legislators are leveraging their power to tie the two together. 
 
Making the situation even more complicated is that a lack of trust in Springfield has left many legislators to worry that funding will be withheld for capital projects in their district.
 
House and senate Leaders met with the Governor again on Monday to discuss the capital plan.  House Republican leaders said "progress was made." 
 
When this is settled is anyone's guess.  One thing is certain; Illinois cannot go another year with a capital plan. 
 
 
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).
 
  • Read the latest Illinois Gaming Board Annual Report, 2006. Commission on Government Forecasting and Accountability report on gaming revenues, Wagering in Illinois: 2007 Update.

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

  • FY 2008 Budget  
     
    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 a month 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 and in some cases, have lost funding for the year. 
     
    While local school districts can receive
    their increased FY 2008 payments retroactively, many human service providers rely on Medicaid funding, which can only be paid prospectively.  That means programs like those that serve seniors and the developmentally disabled lose funding every day the Governor waits to sign the BIMP legislation.
     
    The Governor received the BIMP bill on Nov. 5 and has 60 days to act on the bill or it automatically becomes law.  His office state's that the Governor is still reviewing the legislation and that "there could be a way to actually put more money into education."
     
    Property Taxes  
    New Issue Brief on the Property Tax
    The property tax is the largest single revenue source in Illinois, even though Illinois does not have a state property tax.  The property tax is purely a local tax, imposed and administered by local governments (counties, townships, municipalities, school districts, special districts, etc.).  It is imposed on the value of real property (land, buildings, and permanent fixtures).
    • Statewide, about $20 billion is collected in property taxes.
    • Over 61 percent of all property taxes goes to fund schools in Illinois.
    • Illinois relies more on the property tax to fund schools than 48 other states.  Only Nevada relies more on the property tax to fund schools.

    Read more in the new CTBA Issue Brief: Property Taxes in Illinois.

    For more information contact Chrissy Mancini, Director of Budget and Policy Analysis at cmancini@ctbaonline.org
     
    For more information about taxes in Illinois visit:
     
    State of Working Illinois Policy Forum  
       swil
     
     
     
     
     

    Free Forum Tomorrow

    Illinois' 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:
     

    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)

     

    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     

     

     
    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.
    Financial Literacy  
    Treasurer Giannoulias Launches New Website
    Treasurer Giannoulias launched a free tool that all Illinois families can use to learn more about personal finance.  The Illinois Tomorrow's Money Site provides basic information on personal finance concepts to help individuals begin to save and invest.
     
    Created by The Bond Market Foundation, the site is an easy-to-use, highly accessible way for people to obtain useful advice. It offers financial calculators for adults, young people and those who have suffered an unexpected change such as the loss of a spouse or job.
    The Illinois Tomorrow's Money site is different from other financial websites because the information is research-based and advertising is prohibited.
     "The Bond Market Foundation created the Tomorrowsmoney.org suite of sites to help people gain the skills and confidence they need to take control of their financial future," said Kathryn Edmundson, executive director of The Bond Market Foundation. "We are thrilled to partner with Treasurer Giannoulias and his staff to provide Illinoisans with practical financial management tools, information and motivation."
     
    The site is available at http://www.illinois.tomorrowsmoney.org/ and is also accessible from the Treasurer's homepage or its Spanish equivalent, www.illinois.ahorrando.org.
    Calendar of Events  

     

     

    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