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Education Funding & Fiscal Reform |
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Schools and Kids Need Your Help!
SB 2288 Gained Another Co-Sponsor!
Is Your Senator a Co-Sponsor of SB 2288?
The lead
sponsors of SB 2288, Senator James Meeks and
Senator John Cullerton, are committed to
bringing the bill to a vote in November.
This gives us the spring and summer to work
for the passage of the bill.
Senate Bill 2288 provides a new, permanent
revenue source for schools, property tax
relief for homeowners and
$1 billion
for debt service for a state infrastructure
program. It is the only piece of legislation
that will truly reform the way education is
funded in Illinois by making the state the
primary funder of K-12 education. The bill also
provides $300 million for community colleges and
universities.
Read the bill here
SB 2288 makes significant changes to tax
and school funding laws.
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It
reduces our reliance on property taxes
to fund schools by mandating an annual
property tax abatement of $2.9 billion
(indexed to inflation for each
subsequent year) with every property
owner seeing a minimum of 20% property
tax relief on the portion of the bill
designated to education.
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The
Invest in Illinois Fund is created and
funded with $1 billion each year to
provide funding for debt service and
fees on bonds for capital projects, such
as roads and schools, throughout the
State.
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The
bill also mandates a $300 million annual
appropriation (indexed for inflation)
for grants to institutions of Higher
Education.
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Increases for Early Childhood education
are phased in, from $45 million in
2009-2010 to $180 million in 2012-2013.
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Increases to the Foundation Level are
phased in, raising it from $6,253 for
the 2009-2010 school year (from $5,734)
up to $7,809 for the 2012-2013 school
year. The Foundation Level and
Supplemental General State Aid (Poverty
Grants) are automatically tied to
increases to the Employment Cost Index
to control for inflation.
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Creates a School
Improvement Partnership Fund to target
resources to proven programs such as
smaller class sizes, literacy coaching,
longer school days and teacher
mentoring;
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Maintains and
expands grants for high-poverty schools
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The
personal income tax is increased to 5%
(from 3%), and the corporate income tax
is increased to 8% (from 4.8%).
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Family Tax Credits
are provided to single taxpayers earning
less than $26,695 and married couples
earning less than $53,694.
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State Debt
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State Borrows $1.2 Billion to Pay for Health
Care Bills, Capture Federal Funds
The Illinois
Commission on Government Forecasting and
Accountability reports that in April 2008, the
State sold $1.2 billion worth of General
Obligation Certificates to supplement the
Hospital
Provider
Assessment Program and other health care funds.
The State will
pay off $900 million of the Certificates in May
and $300 million in June, and pay approximately
$3.5 million in interest.
Federal
reimbursements would give the State an
additional $465 million for hospitals, $80 for
the General Revenue Fund and $50 million to
other State healthcare funds. This is the last
year of the three-year program which has allowed
the State to capture additional
Federal Medicaid
reimbursements.
RESOURCES:
For more
information on state issued debt, see page 12 of
the CTBA publication:
Citizens Guide tot he Illinois Budget and Tax
System.
For more
information on state short term borrowing, see
page 12 of the CTBA publication:
Analysis of the FY 2008 State Budget Proposal.
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From the Capitol |
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ONLY FOUR WEEKS OF SESSION LEFT
Constitutional Amendments
In
order to make the ballot, constitutional
amendment resolutions have to be passed at
least six months before the election by a
3/5 majority of both chambers. The deadline
for such resolutions was May 4, therefore no
constitutional amendments will be on the
November ballot.
Recall
Amendments
SJRCA 70-Lost
in Senate
SJRCA 70 fell three votes short
of passage in the state Senate
last Thursday. The Senate roll
call was 33-19 in favor of the
amendment. The proposal needed
36 "yes" votes to send the
measure to the House of
Representatives. The bill voted
on was wider reaching than HJRCA
28 (below). The Senate
proposal also would have applied
to judges and local elected
officials. In addition, it would
have required recalling a
governor and lieutenant governor
together.
HJRCA 28 -Held in Senate
Executive
HJRCA 28 is a resolution
sponsored by Rep. Franks and
supported by Lt. Gov. Pat Quinn
to put a constitutional
amendment on the November ballot
that would allow recall of State
Constitutional Officers and
members of the General
Assembly. On April 8, the House
passed the Resolution, which
required a 3/5 vote, on a vote
of 75-33-03. On Wednesday,
April 16, HJRCA 28 was heard in
the Senate Executive
Committee. Senator Trotter
(D-Chicago), the amendment's
sponsor, did not call it for a
vote and instead held the bill
in the Senate Executive
Committee
Redistricting
Amendment
HJRCA44-No
Action
Changes the way Illinois draws district
boundaries for lawmakers.
Redistricting refers to the process of
redefining the political geographic
boundaries including Representative
Districts, Senate Districts, and
Congressional Districts. Currently the
State Constitution gives the General
Assembly the responsibility for
redrawing legislative boundaries every
ten years after the release of the
decennial Census. If the governor and
General Assembly do not agree on a map,
the responsibility falls on an
eight-member commission of four
Democrats and four Republicans. If they
do not agree the Supreme Court submits
two names, one Republican and one
Democrat to the Secretary of
State who then randomly draws the name
of the tie-breaker.
The last
three legislative district maps in
Illinois - in 2001, 1991 and 1981 - have
been drawn by single parties after the
General Assembly, then the eight-member
commissions, deadlocked. Democrats drew
the map in 1981 and 2001. Republicans
won the draw in 1991.
HJRCA44 replaces
the random drawing of the
tie-breaker with a Special Master
chosen by the Chief Justice of the
Supreme Court and another Supreme
Court Judge selected by the Supreme
Court Judges from a political party
opposite the political party of the
Chief Justice.
RESOURCES:
REDISTRICTING IN ILLINOIS
By: John S. Jackson and
Lourenke Prozesky, an Occasional
Paper of the Paul Simon Public
Policy Institute.
Income Tax Amendments
HJRCA 42
-Graduated Income Tax - Lost in
House.
HJRCA 42 is a constitutional
amendment resolution that
would create a higher tired
individual income tax of 6%
for those people earning at
least $250,000. Those
individuals earning less
than $250,000 would be
subject to the current 3%
income tax rate and would
receive an increase in their
standard exemption of $2,500
from $2,000 to $4,500.
Revenues from the graduated
income tax would be used to
fund the increased standard
exemption and an education
and a capital program.
The amendment was voted down
in the House on April 10th.
That same day Rep. Gary
Hannig filed a motion to
reconsider the vote.
SJRCA 92
-Graduated Income Tax- Lost in
Senate.
SJRCA 92 is a graduated tax
constitutional amendment
resolution. SJRCA 92 would
change the income tax structure
from flat to graduated with the
8 to 5 ratio for the corporate
income tax based on the average
individual income tax rate.
The bill lost in the Senate.
RESOURCES:
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State Revenue
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April
Revenue Update
The Illinois
Commission on Government Forecasting and
Accountability (COGFA) reports that overall base
receipts increased $389 million in April, with
exceptionally strong performances from
personal income
tax as well as federal sources. April had one
extra receipting day than March, which was key
in the monthly jump in receipts.
Personal Income
Tax
Gross personal
income tax experienced a jump of $294 net of
refunds. The large increase primarily was due to
higher automatic extension payments [sometimes
called "estimated final payments"]. These
payments are made by taxpayers who are unable to
file their individual income tax return by the
due date. It provides them a means of
calculating and remitting their tentative tax
liability on or before the
original due
date of the return.
Public
Utility Tax
Timing also
seems to have been the reason for a large
increase in public utility taxes as receipts
grew $57 million. Public utility taxes are
usually receipted in the middle of the week. The
extra receipting day in April significantly
contributed to the monthly increase. COGFA
anticipates that receipts in May will fall due
to the same mid-week receipt timing issue.
Sales Tax
Due to a sales tax allocation issue experienced
last year in March and April, sales tax receipts
grew $33 million for the month. Once the value
related to last year's allocation change is
accounted for, base sales
taxes were
likely flat again.
Other
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Inheritance tax continued to excel with
receipts up $9 million
- Other
sources were up $1 million
- Gross
corporate income tax receipts were down $10
million net of refunds
- The Cook
County IGT declined $11 million for the
month
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Insurance taxes and fees dropped by $6
million
- Overall
transfers fell $107 million in April
- Lottery
transfers gained $10 million
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Riverboat transfers declined $5 million
- Other
transfers fell $112 million due to last
year's fund sweeps
- Federal
sources reversed the previous month's
decline by jumping $121 million due to an
exceptionally strong month for reimbursable
spending.
Remaining
Issues with FY 2008 Revenues:
COGFA reports the remaining months are not
anticipated to be very favorable for a number of
reasons:
- Timing
of personal income receipts may have
benefited April's total, but perhaps at the
expense of May.
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Corporate income tax is not expected to
demonstrate any growth in the remaining
months, and could in fact suffer declines.
- Sales
tax receipts, which benefited from last
year's allocation issues, are expected to
continue to struggle over the remainder of
the year.
- Public
utility taxes jumped in April due to timing.
That same reason will work against receipts
over the remaining two months.
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Riverboat transfers in the final month will
be significantly less this year as the "hold
harmless" provision no longer will supply a
last minute surge [$67 million last June].
- Lack of
chargeback activity will result in a
significant drop off in other transfers [$73
million in June of last year].
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Ethics
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Ethics Bill on the Move
It seems Illinois lawmakers have finally
agreed on how to crack down on "pay to play
politics." Next week HB 824 is expected to
be heard. The bill
will ban
campaign contributions from contractors
doing $50,000 or more in state business.
Key leaders,
like Rep. John Fritchey (D-Chicago) and Sen.
Don Harmon (D-Oak Park) have expressed that
there is support for the legislation in the
General Assembly.
Rep.
Fritchey said, "This is something that had
to be done, it was something the people of
Illinois deserved and something the people
of Illinois demanded."
Track HB 824 Here.
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Calendar of Events |
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WHAT?
Making Media Connections
WHEN?
June 11-12
National new-media experts like Beth
Kanter as well as some of Chicago's most
prominent journalists such as Renee
Ferguson from channel 5 will
keynote. For $150 you can take two
half-day workshops highlighting new
media tools that nonprofits are using to
tell their stories and raise money or a
one-day Media Boot Camp class. For
another $150 you can hear Chicago-area
journalists and veteran nonprofit
communicators offer advice on everything
from how to work with newspapers'
editorial boards to planning a nonprofit
public relations career.
The conference organizers, Community
Media Workshop, offer a range of
discounts and scholarships for
nonprofits; with budgets under $100,000,
they offer everything at half-price.
If you can't make it to the conference
but want free communication tools and
tips and info about communications
workshops in the future, you should
check out their home page,
www.newstips.org,
where you can also sign up for the
Workshop's free email list.
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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