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 Weekly Review
Provided through the Generous Support of the McCormick Tribune Foundation
CTBA Weekly Review February 5, 2008  
CTBA Quick Links
In This Issue
New CTBA Publications on Illinois Budget & Taxes
Illinois Honor Roll
Comptroller Report on State Spending
Business Tax Amnesty Program
Calendar
Budget & Tax Policy  
CTBA Issues New Issue Briefs:
 
CTBA released the following issue briefs in January:
 
Issue Brief on the Illinois Structural Deficit examines the 2008 Illinois deficit, the affect of the required state retirement system payments on the deficit and the affect of the structural deficit on the state's ability to meet demands for public services.
 
Issue Brief: Tax Fairness in Illinois examines why taxation in Illinois is unfair.  Although low to middle income residents of Illinois have seen their incomes decline on an inflation adjusted basis over the past 25 years, they pay more of a percentage of their incomes in taxes than the wealthy.  This issue brief analyzes the regressive nature of the Illinois tax system, how it worsens income inequality, the impact of regressive taxation on the economy and what the state should do to fix the problem.
 
 
For more information on the budget and revenue process contact Chrissy Mancini, director of budget and policy analysis, at cmancini@ctbaonline.org
Education Update  
ISBE and NIU Announce 2007 Illinois Honor Roll; Nearly 1,200 Schools Singled Out for Academic Excellence
 
Annual list recognizes continued academic achievement; 97 schools on the list fourth & fifth consecutive year
 
 
The Illinois State Board of Education (ISBE) and Northern Illinois University (NIU) announced that 1,177 schools made the Illinois Honor Roll and are being recognized for their continued academic progress. The 2007 honor roll includes 97 schools that are being recognized for the fourth or fifth consecutive year. All of these outstanding schools are being honored for their accomplishments in making progress toward or maintaining academic excellence.

NIU Outreach worked with the ISBE to establish criteria, identify winners of the awards, and administer the Illinois Honor Roll, which is divided into three recognition categories - Spotlight Schools; Academic Excellence and Academic Improvement. Each award has unique criteria that best reflects the diverse circumstances of Illinois schools.

  • Spotlight Schools - Recognizes 508 high poverty, high performing schools that are beating the odds to overcoming the "achievement gap."
  • Academic Excellence Awards - 166 schools have sustained high performance over at least three years.
  • Academic Improvement Awards - 607 schools are showing substantial gains over three years.

The 2007 honor roll roster includes elementary, middle and high schools and represents 382 school districts statewide. A number of districts have multiple schools named to the Honor Roll, including: City of Chicago 299, 279 schools; Elgin U-46, 32 schools; Springfield District 186, 19 schools; Rockford School District 205, 18 schools; Decatur District 61, 15 schools; Waukegan Community Unit School District 60, 14 schools; Joliet Public School District 86, 13 schools; Peoria District 150, 11 schools; West Aurora School District 129, 10 schools; and East Aurora District 131, 10 schools.

Other 2007 Illinois Honor Roll facts:

  • At all of the 607 Academic Improvement Award schools, the number of students meeting or exceeding standards increased by at least 7.5 percent over one year or 15 percent over two years.
  • In 2007, 29 schools won the Academic Improvement Award for a third time, and 223 schools won the award in both 2006 and 2007.
  • 40 Spotlight schools earned the distinction for a fourth time.
  • 42 Academic Excellence schools sustained their long-term high achievement and won a fourth award in 2007. 46 schools are being recognized for the third time (2005-2007) and 29 for the second time (2006-2007).
  • 30 Academic Improvement Award schools raised scores by more than 30 percentage points over two years.
  • 71 Academic Excellence elementary schools showed increases in scores over last year, even though they started at a baseline above 90 percent of students meeting or exceeding standards.
  • 83 percent of Illinois Honor Roll schools made Adequate Yearly Progress (AYP), as defined by the federal No Child Left Behind legislation, thus ensuring that all students increased their academic knowledge and skills.

A complete listing of the 2007 Illinois Honor Roll Schools can be found online at the Illinois Interactive Report Card

State Spending  
New Report from the Comptroller's Office Analyzes State Spending
 
The January 2008 issue of Fiscal Focus examines state spending for operations since fiscal year 2002.
 
The report finds that although the Early Retirement Initiative (ERI) helped to reduce the number of state employees by 12,175 between fiscal year 2002 and fiscal year 2003, by fiscal year 2007 personal services expenditures had grown.  The largest growth was realized in health care costs. 
 
For more information on the Early Retirement Initiative see page 20 of the CTBA report, the Illinois Pension Funding Problem: Why it Matters here.
 
A closer look indicated that personal services spending out of the General Funds declined, but personal services spending from other funds, particularly the Road Fund, increased.  The Comptroller remarked that personnel services are one of the largest, but slowest growing, area of operations spending.
 
Included in personnel services for state employees (including elected officials and judges) are the following categories:
  • Wages
  • Social Security (Only 22% of state employees are eligible for Social Security benefits).
  • Retirement
  • Health Benefits
  • Equipment
  • Telecommunications
  • Auto Equipment
  • Electronic Data Processing
  • Travel
  • Printing
  • Commodities (paper, pens, etc.)
  • Contractual Services
  • Lump Sum Payments
Health Care Costs

The fastest growing area of operations spending is for health care.  Illinois state government, like most other public and private entities, has realized substantial increases in medical costs.  Since Fiscal Year 2002, the state has seen an increase of 56.4% or almost $500 million in group insurance spending. 

For more information on health care costs read the report:  Liabilities of the State Employees' Group Health Care Program, by the Illinois Commission on Government Forecasting and Accountability. 
 

To reach the Comptroller's Office please contact (217) 782-6000 in Springfield, (312) 814-2451 in Chicago, or via the web site at www.ioc.state.il.us.

Business Taxes
 

Franchise Tax and License Fee

Amnesty Act of 2007

Feb. 1, 2008 - March 17, 2008

The Corporate Business Tax Amnesty Program was authorized by the Illinois State Legislature in Public Act 95-233 entitled, "Franchise Tax and License Fee Amnesty Act of 2007." Amnesty will:

Provide forgiveness of all accrued penalty and interest fees due for past delinquencies upon payment of franchise taxes, license fees, and filing fees currently due.

Eliminate any civil or criminal prosecution.

Eligibility

 

All corporate businesses owing past due franchise tax or license fees to the State of Illinois are eligible.

 

Limited Liability Companies, Limited Partnerships, Limited Liability Partnerships, and not-for-profit corporations are not eligible for this program.

 

Amnesty shall not be granted to taxpayers who are a party to any criminal investigation or to any civil or criminal litigation that is pending in any circuit court or appellate court or the Supreme Court of this State for nonpayment, delinquency, or fraud in relation to any franchise tax or license fee imposed by Article XV of the Business Corporation Act of 1983 (805 ILCS 8/5-10).

Filing period

The amnesty program filing period begins Feb. 1, 2008 and continues through the close of business March 17, 2008.

The Department of Business Services in the Office of the Secretary of State must receive all Amnesty Petition forms, associated tax forms and payments before 5 p.m., March 17, 2008.

 
Overview
Regardless of size, all business in Illinois must file annual reports and pay and $75 filing fee each year.  Additionally, businesses pay a franchise tax, which ranges from $25 (for 94% of all businesses) to $2 million for large companies.  About 30,000 companies have failed to pay these fees.

*Information is available online, www.cyberdriveillinois.com, or by contacting the business services office of the secretary of state, 782-6961 in Springfield, or (312) 793-3380 in Chicago.

Calendar of Events  

 

 

 

 

 

 

 

 

 

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? Center for Tax and Budget Accountability and the Paul Simon Institute at Southern Illinois University Annual Downstate Symposium

WHEN? April 23, 2008

Details to Follow

 

 

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