Weekly Review
Provided through the Generous Support of the McCormick Tribune Foundation
In This Issue
Springfield Update
Education Funding
EITC
State Pensions
Calendar
CTBA Quick Links
CTBA Weekly Review September 4, 2007
Springfield Update - FY 2008 Budget  
Governor Submits Vetoes Capitol Dome
Now that the Governor has officially vetoed and reduced funding for line items in the Fiscal Year 2008 budget, the bill's fate remains unclear.
 
The budget will go back to the House (the chamber where it was initiated) for a vote to accept or override the vetoes.  It will then be sent to the Senate.  However, Senate President Emil Jones has stated he will not call the budget for a veto override in his chamber. 
 
Several Senate Democrats were quoted in state newspapers calling for restoration of some of the cuts or possibly passing a supplemental appropriation bill that would have the same affect.
 
For a full analysis of all 1,504 items vetoed or reduced in funding read the CTBA report:
Education Funding:  School Construction  
More Than 20 School Districts Around the State Denied $150 Million in Construction Money
As leaders in Springfield argue over a capital construction plan, school districts across the state are caught in the middle. 
 
SB 241, which passed the General Assembly on May 31, 2007, contained $150 million in school construction funding for 24 districts across the state.  The districts have been waiting five years for the funding.
 
 
Examples of school districts slated to receive funding under SB 241 were:
Chicago Public Schools - $29.7 million
Joliet Public Schools - $26.7 million
Rochester School District - $10.2 million
Winfield School District 34 - $2.3 million
Westchester School District - $26 thousand
 
A provision of the bill required schools to complete an agreement form with the Capital Development Board (CDB), a state agency that supervises construction projects, by June 30.
 
However, because the Governor did not sign the bill into law until August 13 it was impossible for schools to complete the agreement with the CDB.  The constitution grants the Governor 60 days from the time it is delivered to sign a bill into law.  The bill was delivered to his office on June 14. 
 
The bill also contained pay raises for legislators, the Governor and other top state officials.
 
The Governor's office has issued a statement urging the legislature to approve a capital plan as a remedy. However, in the Senate, Republicans withheld their votes from a bond authorization bill that would have funded the capital plan.  The Republicans said they were concerned about getting assurances that their projects would come to fruition.  Senate President Jones has called the capital budget "dead."  Currently, the capital bill has no revenue source.
 
Bills Introduced as a Solution
Senator Larry Bomke (R-Springfield) proposed an amendment to HB 3860, which would reappropriate state funds from the fiscal year 2008 budget to pay the districts.  Additionally, in the House, Representative Lisa Dugan (D-Bradley) filed HB 4130, which would re-appropriate $150 million to the Capital Development Board for school construction grants this fiscal year.  HB 4130 currently has 25 co-sponsors.
 
 
About the School Construction Grant Program
The School Construction Grant Program received no new appropriations in FY 2005 or FY 2007.  For FY 2006 the program only received $18 million for projects.  The 24 schools slated to receive funding this year have been on the waitlist since 2002.  Failing to receive state construction dollars puts additional pressure on local property taxes to make up the difference. 
 
Another Reason Why Illinois Needs Comprehensive School Funding Reform
Illinois relies more on local property taxes to fund the total cost of education than any other state, ranking first in the nation. 
 
The only solution to the school funding problem is school funding REFORM, requiring the state to fund its fair share of education and granting local property owners tax relief.
 
 
 
For more education funding resources visit:  http://www.ctbaonline.org/Education.htm
 
Read the A+ Illinois letter about the FY 2008 education budget that appeared in the Chicago Tribune.
Earned Income Tax Credit  
More Eligible for the EITC Under New Law 
More working families than ever before are now eligible for the Illinois Earned Income Tax Credit (EITC) as SB 338 was signed into law.   
 

The new law simplifies the Illinois EITC statute, ensuring that all low-income, working Illinoisans who receive the federal EITC also get the full amount of the state EITC. 

 

Background:  Because of confusing and unnecessary statutory language regarding the refundable portion of the state EITC, the Department of Revenue (DOR) has excluded the following groups of taxpayers from receiving EITC refunds:

 
  • Foster parents
  • Parents of totally and permanently disabled adult children
  • Parents of children under age 24 who are full-time students
  • Parents of children turning 18 in a taxable year
  • Childless adults

The existing statutory language also has led the DOR to create a complicated eligibility worksheet in its tax-form instructions, confusing many Illinois taxpayers and causing them not to apply for the state EITC even though they are eligible for it. 

 

Sadly, Illinois taxpayers are up to three times less likely to receive their state EITC than taxpayers in other states. 

 

SB 338 removed the confusing and unnecessary statutory language, granting Illinois working families an additional $4 million in EITC assistance next year.

 
Congratulations to members of the Make Work Pay Coalition whose efforts helped this bill become law.
 
Also, many thanks goes to House Majority Leader Barbara Flynn Currie and Senator Jacqueline Collins, as well as Senators Don Harmon, Carole Pankau and John Millner and Representatives Will Davis, Patricia Reid Lindner and Bill Black.
 
 
There's Still Work to Be Done
How can the EITC be improved?  Illinois' maximum EITC of $220 per family is the smallest of the nation's 21 state EITCs, which range as high as $1,892 (Wisconsin) and $2,024 (Minnesota). 
  • SB12, which passed the Senate unanimously on Feb. 23, would increase EITC assistance for struggling families through a stairstep approach.
  • In FY 2008, the Illinois EITC would rise to 7.5 percent of the federal credit, for a maximum value of approximately $330 per qualifying family;
  • In FY2009, it would rise to 10 percent of the federal credit, for a maximum state EITC of about $440.
SB 12 has 100 co-sponsors in the House but has yet to have a House hearing.
 

Top Ten Reasons Working Poor Families Need the EITC

 
If you would like to join the Make Work Pay Coalition contact Chrissy Mancini at cmancini@ctbaonline.org
Illinois Retirement Security Initiative  
IRSI
 

Illinois' burgeoning unfunded pension liability affects everyone, not only those who receive state retirement benefits. 

 

Unlike many other services, the state's duty to pay the unfunded liability for its public employee retirement system is directly mandated in the Illinois Constitution. The absolute nature of this responsibility means the pension unfunded liability cannot be legislated away; the debt must be repaid.  This means that when Illinois eventually decides to deal with the burgeoning unfunded liability, money will have to be taken from elsewhere, i.e education, transportation, human services, etc. 

 
For more information read:
 
 
In case you missed it, check out the IRSI September newsletter:
 
 
For more information contact Jourlande Gabriel, Director of the Illinois Retirement Security Initiative at jgabriel@ctbaonline.org
 
Visit the IRSI website for more information about state worker's pensions at http://www.ctbaonline.org/pensions.htm 
 
"The Illinois Retirement Security Initiative is a project of the Center for Tax and Budget Accountability. The goal of the Illinois Retirement Security Initiative is to ensure public retirement benefits in the state are adequately financed and designed to attract high quality employees to the public sector.  The Initiative will research, formulate and advocate for public policies towards that end."
Calendar of Events  
WHAT?  State of Working Illinois - Carbondale

WHEN? Wednesday, September 5,  3:00 to 5:00

WHERE?TBA

Contact Dia Cirillo at dcirillo@ctbaonline.org for more information

The forum, funded by the Grand Victoria Foundation, will bring together key leaders in the area to discuss the regions economic trends and opportunities.

 

WHAT? Single-Family Development: Community Housing Developers Institute

WHEN? September 11-12, 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? Monday, September 17,  9:00 to 11:00

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. 
 
Legislative speakers will include Senator Don Harmon, Senator James T. Meeks, and Representative Paul D. Froehlich (invited).   Additional distinguished guests will also join us as speakers, including Ralph Martire of the Center for Tax and Budget Accountability and Lawrence J. Suffredin, Jr., Cook County Commissioner.
 

Co-Hosted by The Center for Tax and Budget Accountability and the Donor's Forum

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

Contact Chrissy Mancini at cmancini@ctbaonline.org for more information

 

WHAT? State of Work Illinois Community Forum - Vermilion County

WHEN? Tuesday, September 18, 3:00 to 5:00

WHERE? University of IL Extension - Vermilion County 12190 U.S. Route 150 Oakwood, Il

View a flyer

Contact Dia Cirillo at dcirillo@ctbaonline.org for more information

The forum, funded by the Grand Victoria Foundation, will bring together key leaders in the area to discuss the regions economic trends and opportunities.

 

WHAT?Making the Connection Basic Training

WHEN?Tuesday, September 18

WHERE?Lincoln Library, Springfield, 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? Your Pension and You

WHEN? Thursday, September 20, 3:00 to 5:00

WHERE? UIC Medical Center

Contact Carol Humble at JHumble368@aol.com for more information

 

WHAT? PIE Network Chicago: Summit on Transforming Low-Performing Schools

WHEN?September 20-21, 2007

WHERE?Hyatt Regency, Chicago

More Information

 

WHAT? National Association of Social Workers (NASW) IL Chapter's Statewide Conference, "Bridging Health Disparities: Help Starts Here"

WHEN? September 24-26, 2007

WHERE? Holiday Inn Chicago Mart Plaza, Chicago, IL

Click here for more information. 

 

WHAT? State of Working Illinois Community Forum - Peoria

WHEN?  Tuesday, September 25,  7:30 am to 9:00 am

WHERE? The Central Illinois Workforce Development Board

               One Technology Plaza

               211 Fulton Street, Suite 300

Contact Dia Cirillo at dcirillo@ctbaonline.org for more information

The forum, funded by the Grand Victoria Foundation, will bring together key leaders in the area to discuss the regions economic trends and opportunities.

 

WHAT? State of Working Illinois Community Forum - Macomb

WHEN?  Friday, September 28,  10:00 am to 12:00 pm

WHERE? TBA

Contact Dia Cirillo at dcirillo@ctbaonline.org for more information

The forum, funded by the Grand Victoria Foundation, will bring together key leaders in the area to discuss the regions economic trends and opportunities.

 

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 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? 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? 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? 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
Director of Budget and Policy Analysis