SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 *** Question of the day

Wednesday, May 7, 2014

* Back in 2011, several mayors openly opposed the income tax hike plan. As a result of that, and the fact that Democrats wanted to get every state dollar they could get in a very tough time, the revenue from the 2 point tax hike was not shared with local governments.

Things are apparently different this time around

In a May 1 letter to members that was obtained by the Daily Herald, the head of the Oak Brook-based [DuPage Mayors and Managers Conference] urges municipal leaders to support keeping the state’s income tax rate at 5 percent to curry future “political capital” and possibly increase the local share of the income tax revenue.

“More active support would result in even more political leverage on (the Local Government Distributive Fund) and other current and future issues,” the agency’s executive director, Mark Baloga, wrote in the letter. […]

Baloga’s letter indicates the group’s support for keeping the higher tax rate would be “conditional” on increasing the share of income taxes that goes to towns and on direct deposit of that revenue into municipal coffers to end delays in state payments. […]

“It’s a statement of political reality,” he said. “We have heard again and again from our advisers that the extension is likely to happen regardless of anything DuPage Mayors and Managers does or does not do. The best way to protect or enhance those funds is to support the extension.” […]

Meanwhile, officials at the Illinois Municipal League, which also receives taxpayer funding from dues paid by member towns, has publicly announced its support of the tax rate’s continuation, but on the condition that the local share be increased to 10 percent.

* The Question: Should the state share any of the revenue from the 2-point tax hike with local governments if the tax hike is made permanent? Take the poll and then explain your answer in comments, please.


survey hosting

*** UPDATE *** As if on cue, here comes the heat. From a press release…

After facing years of funding cuts, Illinois’ schools could get more than $1 billion in new funding as State Senator Donne Trotter (D-Chicago) is urging his colleagues to truly make education the priority they claim it is.

Currently, mayors and village presidents get a cut of the state’s income tax with no strings attached. Trotter’s proposal ends that giveaway and instead steers the dollars – $1.45 billion in the upcoming budget year – to the state’s public schools in an effort to have the state finally live up to its education funding commitments.

“We cannot afford to ignore the fact that a strong education system is the key to our state’s future, especially with the looming proposition of extreme budget cuts when across the board tax breaks kick in at the end of this year,” said Trotter, a longtime advocate for public schools students. “Money with no restrictions on how it may be used in the hands of mayors and local officials is not a prudent expenditure of taxpayer dollars given the realities we face. If we have to prioritize state funding, I believe that education should always be at the top of our list.”

Existing law takes 6 percent of all the individual income money and nearly 7 percent of all corporate income tax net collections and sends it to local governments. The funding is based solely on population. Need is not a factor.

Meanwhile, Trotter’s plan would reverse the recent trend of the state failing to live up to its own school funding expectations, with the current budget only providing 89 percent of what the state says it should be providing. To help remedy this situation, Trotter’s plan would fill that gap and potentially allow for an increase.

“We face a lot of tough decisions in our budget. In a funding fight between city hall and the classroom, I’m always going to side with the school children. If our students and schools aren’t our top priority then our future is truly in trouble,” Trotter said.

- Posted by Rich Miller        


27 Comments
  1. - Arizona Bob - Wednesday, May 7, 14 @ 1:17 pm:

    It’s old truism that to get $1 of spending with merit through a legislature, you need to make an additional $9 of unnecessary spending to get that $1 passed into law.

    That sure seems to be proving out regarding this income tax increase!

    The answer is NO. We shouldn’t increase state revenue sharing. If taxes are increased, they should be minimized to only go for unavoidable state expenses.


  2. - VanillaMan - Wednesday, May 7, 14 @ 1:21 pm:

    Absolutely.
    The rules of common thievery demands a fair split of any loot or booty with the ring leader’s portion being equal to two of the other thief’s portion.


  3. - Better Gov - Wednesday, May 7, 14 @ 1:35 pm:

    If passed the state should restore the 10% local distributive share to local governments. This would help hold down property taxes by providing some funding toward paying for unfunded mandates required by the state.


  4. - Ahoy! - Wednesday, May 7, 14 @ 1:43 pm:

    I voted no. I think it would be more appropriate if the State used the funds to pay off it’s bills and get it’s own finances in order. That being said, the State should have a thorough review of unfunded mandates on all units of local governments and at a minimum reduce the unfunded mandates at a dollar for dollar ratio of what the units of local government would have received from the income tax share. That is a minimum, higher savings should be the goal.

    All that being said, I think the State should reduce the income tax a 1/4% a year until it is at 3.75%.


  5. - Bored Chairman - Wednesday, May 7, 14 @ 1:43 pm:

    No. Let them eat cake!


  6. - ejhickey - Wednesday, May 7, 14 @ 1:49 pm:

    No sharing. let local governments enact their own income tax


  7. - the Cardinal - Wednesday, May 7, 14 @ 1:56 pm:

    Yes and they should get restoration to 10% share of the LGDF. if for no other reason to help pay for all mandates the State has shoved down on local governments.


  8. - Jim'e' - Wednesday, May 7, 14 @ 1:56 pm:

    I say yes. The state has continued to increase police and fire pension benefits without providing municipalities with resources to pay for those benefits. On the other hand, the state can keep it all if they cut the police and fire pension compounding cola.


  9. - Demoralized - Wednesday, May 7, 14 @ 2:06 pm:

    No. Local governments can raise their own revenues.


  10. - Capo - Wednesday, May 7, 14 @ 2:14 pm:

    No. The state is broke.


  11. - Ghost - Wednesday, May 7, 14 @ 2:17 pm:

    Yes; it helps secure more uniform distribution of funds statewide with less need to make special projects to try and capture revenue. As cities spend money they help stimulate local economy


  12. - Arthur Andersen - Wednesday, May 7, 14 @ 2:30 pm:

    For once I agree with AZ Bob. No. Local Governments are generally in much better shape than the State and have more options in balancing their budgets. Plus Jim Ardis.


  13. - Walker - Wednesday, May 7, 14 @ 2:59 pm:

    Absolutely NO.

    Not only are local government more flush already than the state, but they waste much more every year than the state ever did. No contest.


  14. - Jimbo - Wednesday, May 7, 14 @ 3:11 pm:

    Perhaps we could send some of that money to airport security. Kidding aside, I don’t understand how robbing Peter to increase Paul’s funding helps the situation at all. Property taxes will be raised to fund schools, or to fund local governments. Silly plan is silly. Or am I missing something?


  15. - Jimbo - Wednesday, May 7, 14 @ 3:14 pm:

    To answer the question though, no. The increase is to keep funding where it is, not to increase local budgets. It is hard to plead poor with new programs, increased budget lines, and a bigger giveaway to locals. Look, if the choice is stable funding for necessary programs or a doomsday budget, I’ll take the stable funding provided by the tax increase. I won’t however take the tax increase if any portion of it goes to increasing spending on unnecessary expenses, like increasing the local match.


  16. - Anonymous - Wednesday, May 7, 14 @ 3:35 pm:

    Local govt depends dramatically on LDGF share, especially non- home- rule towns that can’t just raise prop tax( they have none). The problem is the foolish, lavish spending and the refusal to cut waste and expenses. My gut hurts from Madigan passing $100M for an Obama library when we have NO money. I can save $99m , lets pay Hawaii $1m to take it! The worst state debt in the country - where are the accomplishments from the temporary tax? Did we pay off long term debt? Why not allow 10 gaming machines per location instead of 5 - anyone see the $$ pouring into the Illinois Gaming Board? Www.igb.com- ok the answer is not yes or no- never that simple - local LDGF should be “untouchable” so local govt can maintain services. The State needs to clean their own mess


  17. - WhoKnew - Wednesday, May 7, 14 @ 4:03 pm:

    Said Yes!!

    Monies spent locally are always (let me emphasize ALWAYS) better spent!


  18. - Reality Check - Wednesday, May 7, 14 @ 4:20 pm:

    I vote yes. To all those who said, “let’s local governments raise their own taxes”–a little education is needed. Many local governments are tax capped and cannot raise taxes. The only solution is a referendum. I wonder how many of my neighbors would vote to raise their local taxes to help pay for the pension obligations that the state grants, but for which local government has to pay. Bottom line is that this money comes from me and I would prefer to see it go toward services that directly affect me–not to some unknown expenses of the state.


  19. - Michelle Flaherty - Wednesday, May 7, 14 @ 4:36 pm:

    Reality Check,
    What do you think happens to schools when the state cuts their funding? City Hall isn’t in charge of educating generations of youth but somehow city hall gets priority in the budget?


  20. - Shemp - Wednesday, May 7, 14 @ 4:57 pm:

    Uh, everyone gets that the shared income tax is one of the top funding streams for local police, fire, and public works right? As in, it makes up more than 15% of our local general fund revenue….


  21. - Shemp - Wednesday, May 7, 14 @ 4:59 pm:

    Local governments aren’t in better shape. We have to comply with the State’s rules on everything, particularly non-home rule cities. We can’t change our local pensions, and realistically, are pretty limited in controlling fire and police contract costs due to the interest arbitration setup the State imposes.


  22. - DuPage Bard - Wednesday, May 7, 14 @ 6:15 pm:

    No, if the tax is passed it won’t matter the support or lack of support from Mayors throughout the State. Mayors consistently bash Springfield legislators, increasingly laying blame on State officials for their own budget issues and City issues. So Mayors should get 10% of the pie without any accountability of that funding, wait until the last minute to support the increase and still blame Springfield to their constituents?
    I surely can see the Legislators jumping all over that deal???


  23. - DuPage - Wednesday, May 7, 14 @ 6:25 pm:

    @Shemp4:57

    I would say no. The state police are at about 65% due to state budget cuts. So the state has to cut more state police to give “extra money” to local police. This is not a “cut” of the local kickback, just not increasing it.


  24. - Streator Curmudgeon - Wednesday, May 7, 14 @ 8:21 pm:

    In Illinois, more always means less, except when it comes to debt. It seems easier to vote out incompetent locals than incompetents in Springfield. Better schnooks you can keep an eye on locally than schnooks you have to rely on the media to keep an eye on in the capital.


  25. - Mama - Wednesday, May 7, 14 @ 8:48 pm:

    Yes, but only share a half of a percent for now. Increase the rate down the road when the money situation is better.


  26. - Soccertease - Wednesday, May 7, 14 @ 10:02 pm:

    No. When you are broke you don’t share as much. Since the “temporary” tax increase was not share with locals, why should that change? It’s not like the temporary increase solved all of the state’s financial problems.


  27. - Harley - Thursday, May 8, 14 @ 1:51 am:

    Give cities their full share of the LGDF. They are the unit of government that is closest to the people and the one where residents can see where their tax dollars are spent. Some cities, towns and villages rely on the LGDF to fund as much as 40% of their budgets.


Sorry, comments for this post are now closed.


* Question of the day
* *** UPDATED x2 - GOMB, COGFA stand by projections *** Rauner issues his own stopgap deficit projection
* More horrible pension news
* Dealing with the "Rauner question"
* Caption contest!
* *** UPDATED x1 - Ad already on the air *** Oppo dump!
* GOP chairman says Rauner criticism "drives me crazy"
* The power of the cyber
* Edgar, Kennedy take turns whacking Rauner, Trump
* New AFSCME TV ad: "Rauner is so far disconnected from how real people live"
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............
<


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Skype for iOS Devices Updated With Siri and CallKit Support
* App Store Search Ads Go Live October 5, Developers Now Able to Purchase Ad Spots
* SoundCloud may be acquired by Spotify
* GoTenna Mesh evolves off-grid network to extended ranges
* CEO wants to open 1,000 Xiaomi stores in three years
* Spotify in 'Advanced Talks' to Purchase SoundCloud
* Mercedes Benz, Kia add to Android Auto options

* White Sox and Rays delayed due to rain
* Ventura declines comment on expiring contract
* Anderson flirts with cycle as Sale wins 17th
* Sale accomplishes mission in possible last start
* Anderson flirts with cycle as Sale wins 17th
* Gonzalez looks to get back on track vs. Rays
* Eaton thinks White Sox can rebound in 2017

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Mitchell: Chicago State University needs to cle.....
* Audit: College of DuPage severance outpaces sim.....
* Illinois sets sale of up to $1.7 billion of bon.....
* Editorial: Equal opportunity for all voters alw.....
* Illinois House Revenue Committee Holds Hearing .....
* Rauner administration says budget deficit is $2.....
* Rauner, legislative panel have $2.4-billion def.....
* Rauner Continues Denying To Comment On Presiden.....
* State leaders recommend flu vaccination - Illin.....


* Chicago teachers set Oct. 11 strike date if deal not reached
* Man who spent decades in prison gets $15 million settlement
* Despite harsh reviews, Trump resists new debate approach
* CPS hiring review follows arrest of teacher with past record
* Audit: College of DuPage severance outpaces similar deals
* Regulators: Doctor concocts vaccines with cat saliva, vodka
* Excerpts from recent editorials in newspapers in Illinois
* Despite harsh reviews, Trump resists new debate approach
* Diagnosed concussions among Illinois youth up 83 percent
* Police issue warrant in U. of Illinois fatal shooting

* State: Chicago-area doctor puts cat saliva in vaccines
* Diagnosed concussions among Illinois youth up 83 percent
* Federal judge OKs improvement plan for Illinois child agency
* Audit: College of DuPage severance outpaces similar deals
* Doctor subpoenaed in Illinois medical marijuana investigation
* IMA says workers' comp reform, broader sales tax base will help manufacturing jobs
* Former Gov. Edgar, Chris Kennedy both oppose a Trump presidency
* Edgar, Kennedy both oppose a Trump presidency
* Data shows just 86 freshmen enrolled at Chicago State
* Data show just 86 freshmen enrolled at Chicago State

* Chicago Teachers Union sets Oct. 11 strike date
* The best gender-neutral restroom signs we've seen
* Sears, Claire’s at high risk in Fitch study of retail failures
* Senate passes bill for stopgap spending, Zika
* Sandwich chain Cosi files for Chapter 11 bankruptcy


* Sneed: Trump pumps up the room in Bolingbrook fundraiser
* Mark McNeill is still waiting for his big Blackhawks break
* One in custody when police chase ends in crash on West Side
* Bidder loses appeal of biggest rail car contract in CTA history
* Brown: A vulture is circling Chicago
* Ex-NBA player Bobby Simmons to testify in Hobo super gang trial
* On same day Cubs keep their man, White Sox stumble around
* Rauner, legislative panel have $2.4-billion deficit disagreement
* Next man up? Kyle Fuller absence a fillable hole for Bears
* Jack Higgins’ Perspective for September 29, 2016


* Windsor school 'tasting menu' a big hit with students
* Police say man California police shot a minute after arrival took a 'shooting stance'
* Chicago Teachers Union sets Oct. 11 strike date
* Trump opponents, supporters clash outside suburban fundraiser
* Audit details lax leadership at College of DuPage, offers 19 recommendations
* VW plots Beetle for the electric-car era to overcome scandal
* New charges in boy's killing after wrongfully convicted man is freed
* Chicago Heights agrees to $15 million settlement for man in prison for 20 years
* Federal judge approves plan to overhaul state's child welfare system
* All downhill for Kyle Fuller since early in his rookie season


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* State: Chicago-area doctor puts cat saliva in vaccines
* Diagnosed concussions among Illinois youth up 83 percent
* Federal judge OKs improvement plan for Illinois child agency
* Audit: College of DuPage severance outpaces similar deals
* Doctor subpoenaed in Illinois medical marijuana investigation
* IMA says workers' comp reform, broader sales tax base will help manufacturing jobs
* Former Gov. Edgar, Chris Kennedy both oppose a Trump presidency
* Michael Gerson: Out of his depth, Donald Trump clings to deception
* E.J. Dionne Jr.: Clinton shifts the election in her direction
* Catherine Rampell: Another year of Congress, another string of broken promises


* LIVE! IlliNOISE Night
* JC Soccer: Parkland Vs. Lincoln Land
* PODCAST: SportsTalk 09-28-16
* Harrisburg murder suspect charged with attempting to kidnap state's attorney
* House approves amendment introduced by Bost to aid Len Small Levee repair
* Group urges supporters to pressure candidates on redistricting reform
* Police issue warrant in U. of Illinois fatal shooting
* Channel Cat to suspend operations
* 09-20-16 News-Gazette Prep Sports Podcast from Mahomet-Seymour High School @mshsbulldogs @coachpogue @terrancet47 @stevekreps @ngpreps @mdaniels_NG @adzilis
* PODCAST: Club Krannert -- Tyrone Phillips, director of Dontrell, Who Kissed the Sea


* Can Blackhawks' Darling make the leap to starting goalie?
* Three Barrington elementary schools win Blue Ribbon Awards
* Life sentence upheld for Arlington Heights man who killed his father
* Auditor: College of DuPage needs to improve oversight, operations
* The military's ritual of saluting for the national anthem

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Kewanee airport to get federal grant for r......
* $1.7 million in grants to Illinois organiz......
* Peoria Police receive grant for laser scan......

* Mark Kirk Doubles Down on Tammy Duckworth'......
* Mark Kirk Doubles Down on Tammy Duckworth'......

* Wall Street CEO Pay Graphic
* CTU Sets October 11 Strike Date
* Random thoughts. Crash.
* Blues people (an art project).
* Man Wins $15 Million Wrongful Conviction Settlement In Chicago Heights
* Federal Judge Approves Of Illinois DCFS Changes
* Cartoon of the Day - 9/28/16 Trump snorting at the debate
* Cartoon Of The Day
* AFSCME Launches New Ad Amid Stalled Contract Talks With Rauner Administration (VIDEO)
* Report: U.S. Taxpayers Subsidized $725 Million In Wall Street CEO Bonuses In The Last Four Years


* First 2016 Human West Nile Virus Deaths in Illinois
* Schools Encouraged to Participate in International Walk to School Day on Oct. 5
* Governor Rauner Cuts Ribbon for Grand Opening of Obed and Isaac's Peoria
* Governor Rauner Encourages Illinoisans to Serve Those Who Served
* Governor Rauner Proclaims First Gold Star Family Day in Illinois




      Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller