SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
The carrot and the stick

Thursday, May 8, 2014

* Let’s revisit yesterday’s Daily Herald story about how some municipal groups were contemplating whether to back an extension of the state income tax in order to possibly get a bigger piece of the revenue sharing pie or to ward off an attack by Democrats.

The story was based on a letter that DuPage Mayors and Managers Executive Director Mark Baloga wrote to his members

You likely have seen recent news reports of Governor Quinn and Legislative Leaders discussing the opportunity for local governments to secure, or even increase, the local share of state income tax (aka “LGDF”) if the current 5% income tax rate is extended beyond its current sunset date of 2015. Senate President Cullerton directly addressed this topic with DMMC members on April 9 during our Springfield Drive Down. Since that meeting, our lobbyist has been in discussions with legislators and has conveyed the following:

    1. Extension of the 5% income tax is almost certain to pass regardless of municipal support, opposition, or neutrality.
    2. If municipalities and municipal groups uniformly oppose or fail to support the legislation, then it is also a near certainty that LGDF will be eliminated or severely cut. This would be framed as cutting state expenses to help balance their budget.
    3. If municipalities and municipal groups such as DMMC support the tax rate extension, this could secure an increase in the local share of income tax and direct deposit of LGDF revenue—both long- standing DMMC legislative priorities.
    4. Support for the tax rate extension would generate ongoing political capital for DMMC, other municipal groups, and municipalities themselves.
    5. “Support” can range from a simple statement of organizational support, to individual mayors actively supporting the legislation and the legislators who vote for it, and anything between. More active support would result in even more political leverage on LGDF and other current and future issues.

After extensive discussion, the DMMC Legislative Committee (by unanimous consent, on April 25) and the DMMC Board of Directors (by a 9-4 vote, on May 1) approved DMMC’s conditional support for continuation of the 5% tax rate as long as the bill adequately increases the current 6% LGDF portion of income tax and provides for direct deposit of LGDF revenue to eliminate delays in payments to municipalities. The Board’s motion further specified using this opportunity to pursue additional legislative action including:

    A. Stoppage of HB 5485 which would require negotiation of minimum staffing for fire departments and districts.
    B. Consideration of additional legislative priorities such as expenditure authority for non-home rule hotel motel tax revenue.
    C. Ability to participate actively in development of municipal public safety pension reform legislation.

That’s all really quite fascinating. A grand bargain laid open.

* OK, now back to yesterday’s Daily Herald story

Cullerton spokeswoman Rikeesha Phelon said she couldn’t confirm the conversations between her boss and municipal leaders.

However, Phelon said Cullerton has said for months that mayors would see a smaller share of state income taxes if the rates don’t get extended.

“That’s not a threat,” she said. “That’s just math.”

In order to cut the municipal share, new legislation would have to be passed.

“This certainly sounds to me like out-and-out extortion,” said Madeleine Doubek, chief operating officer of Chicago-based Reboot Illinois, a voter-advocacy digital media group. “This just pulls back the curtain on the worst of Illinois government in action. Who, in this equation, is looking out for the taxpayers?”

* As I also told you yesterday in an update, Sen. Donne Trotter unveiled legislation yesterday designed to put heat on the mayors…

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.

* The bill had a hearing today. Trotter eventually pulled the proposal out of the record, but the SDems tweeted extensively during the debate

Discuss.

- Posted by Rich Miller        


6 Comments
  1. - Formerly Known As... - Thursday, May 8, 14 @ 11:37 am:

    == After facing years of funding cuts, Illinois’ schools could get more than $1 billion in new funding ==

    Thought the “education surcharge” was supposed to address this. Ask for 1%, get 2%, and our schools still get neglected by legislators.

    I have little trust any more that those who talk about the importance of education in Illinois really means it. Good for Trotter on this, regardless of whether it is meant as a “stick” or an ambitious plan on its own.


  2. - Captain America - Thursday, May 8, 14 @ 12:47 pm:

    Cities need to be careful before jumping on the more tax bandwagon because many of them, such as Aurora, already have massive taxes from within (property, sales, etc). When you add more income tax to the overall tax burden on the taxpayer, it becomes too expensive to live or do business.


  3. - Anon. - Thursday, May 8, 14 @ 2:07 pm:

    ==However, Phelon said Cullerton has said for months that mayors would see a smaller share of state income taxes if the rates don’t get extended.

    “That’s not a threat,” she said. “That’s just math.”==

    The bill that created the higher tax rates reduced the percentage of income tax revenues that go to the local government distributive fund so that (roughly) all of the tax increase would go to the State. As the tax rates phase down, the percentage of revenues that goes to the locals goes back up. So the locals will get a bigger percentage share of income tax revenues when the rates go back down in 2015, and should get roughly the same dollar amounts.


  4. - wordslinger - Thursday, May 8, 14 @ 6:09 pm:

    –“This certainly sounds to me like out-and-out extortion,” said Madeleine Doubek, chief operating officer of Chicago-based Reboot Illinois, a voter-advocacy digital media group.–

    Gee, Maddy, why don’t you ask the Grifs to buy you a dictionary? Then you could look up the definition of the word and see how ignorant you are.


  5. - Just The Way It Is One - Thursday, May 8, 14 @ 7:16 pm:

    The Mayors and Village Presidents, deep down, want and need this money–and they’re GONNA take the bait with the Income Tax permanent extension as a result…!


  6. - Yellow Dog Democrat - Thursday, May 8, 14 @ 7:27 pm:

    Folks, it ain’t just the income tax.

    Local share of the sales tax will eventually shrink too.

    Call it math or call it political reality, but given a choice between cutting funding for schools or state programs that the General Assembly is accountable for, or sending a check to someone else to spend where lawmakers neither have a say nor get credit….


Sorry, comments for this post are now closed.


* State threatens to zap all Chicago GSA school funding
* Another optics problem
* This is why we can't have nice things
* Tiny, secluded county wants no part of ATV plan
* It's just a bill
* Feds drop drug conspiracy charges
* Governing ain't easy
* 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

          
        * How to play 'Louie Louie' on your Mac
        * “Zombie” Apps On The Rise – 83% Of Apps Not On Top Lists, Up From 74% Last Year
        * LG G4 screen resolution could exceed even the G3’s quad HD
        * iPhone wins big while Windows Phone runs on empty | Pocketnow Weekly 133 (Podcast)
        * Hand-drawn Steampunker game now available on Android tablet
        * How to trim a bloated Keynote presentation
        * Naughty Kitties are no nonsense cuties, will save Cat’s Planet

        * FCC Says Spectrum Auction Raised $41.3 Billion
        * How to Have a Social Life If You Don’t Work a Nine-to-Five Job
        * Fire TV Fire Sale, Cheap Metal Detector, and More Deals
        * BMW Closes Security Loophole To Prevent Unwanted Vehicle Break-Ins
        * Passenger Files Lawsuit Against Uber In US
        * Vine Rolls Out Children’s Version of Six-Second Video App
        * The Money Moves to Stop Procrastinating and Take Care of Now 

        * Inbox: How will new-look Sox lineup affect Abreu?
        * Keith Law likes the White Sox (more than PECOTA does, anyway)
        * Which prospects will make the Top 100 cut?
        * White Sox embrace their position as favorites
        * White Sox embrace position as contenders
        * What else is returning with Gordon Beckham?
        * Which prospects will make the Top 100 cut?

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


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

        Archives
        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


        * Is Wall Street ready for Mitt Romney?..
        * Bruce Rauner's continuous political campaign..
        * Another optics problem..
        * Illinois Gov. Rauner paying top staff higher sa.....
        * Governing ain’t easy..
        * Quick Hits: Remembering a Baseball Icon, Mr. Cub..
        * Standoff continues over CPS' snub of federal te.....
        * National Donors Pick Winners in State Elections..
        * Underfunded childcare assistance program could .....
        * Hundreds expected to attend Ernie Banks visitation..


        * Pro wrestler cheats at Wing Bowl, hides food in fanny pack
        * Chicago suburb to honor Harold Ramis during Groundhog Days
        * Crundwell court filing says she wants to keep horse trophies
        * SIU student newspaper bids farewell to old printing press
        * AbbVie reports better-than-expected 4Q on Humira sales
        * Cellphone providers bringing 4G coverage to Chicago subways
        * Visitation for Ernie Banks to be held in Chicago
        * On Super Bowl Sunday, veggies are most popular food
        * Missouri man gets 4 years in 1993 Tremont burglary
        * Federal prosecutors drop dozens of stash house sting charges

        * Top Rauner staff receiving higher pay than Quinn's
        * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
        * Rauner staff receiving higher pay than Quinn's
        * New DNR director Rosenthal touts experience
        * Rauner wants bureaucratic cuts in education, elsewhere
        * New DNR director touts experience
        * Springfield unemployment falls to 5.6 percent in December
        * Springfield gaming terminal up 46 percent in 2014; revenue hits $1M
        * Springfield gaming terminals up 46 percent in 2014; revenue hits $1M
        * Rauner among nation's top donors in 2014 elections

        * What people don't get about 'boring and bland' Scott Walker
        * CME loses bid for GFI: source
        * Romney: I'm out
        * At least one CEO isn't using currencies as an excuse
        * U.S. growth slowed in fourth quarter


          * Ban will cost Rita Jeptoo the Chicago Marathon title
          * Lake Bluff contractor accused of stealing $9,000 deposit
          * Rahm Emanuel counts on big donors, with many getting City Hall benefits
          * Tollway working with environmentalists to boost population of monarch butterflies
          * Cicero orders church closed, calls it a 'safety nightmare'
          * Mayoral candidates to square off again
          * U. of I. student from Chicago reported missing since Sunday
          * Top Rauner staff more highly paid than Quinn's
          * Parking, rats among problems Wrigley Field neighbors cite in renovation
          * Car fleeing cops causes city workers to fall into trench


          * Guzzardi Wants Parents To Be Able To Opt Kids Out Of Testing
          * Rauner Staff Receiving Higher Pay Than Quinn's
          * National Weather Service Latest Snow Projections
          * Rauner Tells U Of I To Cut Bureaucracy
          * Group Says Railroad Threatens To Isolate East Side
          * Proposal Would Ban Conversion Therapy For Minors
          * Speaker Madigan: How Can Illinois Prevent A Sandy Hook?
          * Listen to State Week - January 23, 2015
          * Art Beat: Hip Hop Battles, Foreign Film & More
          * Meet The New Springfield Area Arts Council Director


          * Our Opinion: Residency not the best gauge of loyalty
          * Cary Collins: Other options for fixing Illinois' pension problems
          * E.J. Dionne: For the Patriots, without apology
          * Esther Cepeda: Paid sick leave is a worthy prescription
          * George Will: Bud Selig's winning legacy
          * Quote of the Day: Friday, Jan. 30, 2015
          * Top Rauner staff receiving higher pay than Quinn's
          * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
          * New DNR director Rosenthal touts experience
          * Rauner wants bureaucratic cuts in education, elsewhere


          * Boil order issued by Devil's Kitchen Water District
          * Boil order issued in Harrisburg
          * 01-30-15 Penny for Your Thoughts
          * Clerk candidate withdraws from race in Fairview Heights
          * Landshire sells wholeale and manufacturing operations
          * IYB sneak peek: Second Jet's up and running
          * Bloomington issues parking ban ahead of expected winter storm
          * Crundwell court filing says she wants to keep horse trophies
          * Indianapolis-Chicago Amtrak service extended to April 1
          * Chicago suburb to honor Harold Ramis during Groundhog Days


          * Blackhawks legend Mikita suffering from dementia
          * Magic coach Vaughn blocking out talk of his job security
          * Parts of Iowa, Missouri nearing drought status
          * US stock markets mostly lower on mixed US economic data
          * Ramon Santiago agrees to minor league deal with Blue Jays

          * Democratic Congressman Condemns Chicago Su...
          * REP. DANNY K. DAVIS NOW SUPPORTS DR. WILLI...
          * Andrew HS Student Among Rep. Lipinski's Pi...
          * Lemont HS Student Among Rep. Lipinski's Pi...
          * Danny Davis Defeats Robert Bumpers In Illi...
          * Rep. Lipinski Announces Service Academy No...
          * Rehab of Affordable Housing Building in Ol...
          * Rep. Danny Davis Hopes to Keep His Seat fo...
          * Rep. Lipinski Recognizes and Celebrates Na...
          * Illinois House Dems agonize over vote to f...

          * Dick Durbin: Senate Democrats will block H......
          * New Congress stumbles through its first month...
          * Cuba's still not a vacation spot, but a bi......
          * Senate passes Keystone Pipeline despite Ob......

          * Senate Hard-liners Press Ahead with New Ir......
          * Kirk: Frontlines to Lifelines Program Give......
          * Introduce Resolution Commemorating the 70t......

          * Ben Shapiro: The First Amendment is Dead [video]
          * Local Music Notebook: Who Is Lydia Loveless?
          * The College Football Report: The Season Is Over But Beanies Are Forever
          * Kirk pushes economic "pressure" on Iran over nuclear deal
          * Mayor Emanuel's red light hypocrisy revealed
          * Bruce Rauner wants us whistling a little Dixie.
          * Rahm famously told the unions to go screw themselves. These union leaders just did.
          * Illinois Watchdog Radio - Live on IR
          * Obama’s radio ad.
          * Lunch.


          * IDHS reminds eligible workers to take advantage of free tax help and the Earned Income Tax Credit (EITC) - More than 30 sites offer free tax services Statewide
          * IEMA, American Lung Association Launch Health House - Radon Excellence Program in Savoy - Two Champaign builders coordinating with Heyworth radon mitigator in program to reduce radon-related lung cancer risks in new homes
          * One Confirmed Case of Measles in Illinois
          * Governor announces latest round of agency appointments
          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around




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