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.


* Reader comments closed for the weekend
* Rauner vetoes several union-backed bills
* This just in... Illinois Supreme Court accepts direct appeal of remap case
* Social service providers claim administration has "unchecked discretion" over paying off old contracts
* GOP poll: Kirk and Duckworth essentially tied, Clinton leads by 14
* Today's quotable
* The Roger Ailes connection to Illinois
* Even more editorial support for the Independent Map Amendment
* Question of the day
* Today in Illinois history
* *** LIVE COVERAGE *** Rauner education press conference
* Trump's best point of the night
* Mrs. Rauner appears to support Turnaround Agenda strategy
* Caption contest!
* Adding some context to Rauner's e-mail diatribe
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Oh, this ought to be good
* Rauner apologizes for making "unfair, untrue" comments in old e-mail
* 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

  
* iPhone 7 Pro specs and features, Galaxy Note 7 battery & more – Pocketnow Daily
* Evan Blass leaks Apple iPhone 7 release date
* SurveyMonkey proclaims peak Pokemon GO in US
* Instant hidden rebate for Moto G4 on Amazon
* Dots & Co. tweaks the Dots games by adding a friendly companion
* iPhone 7 Plus? iPhone 7 Pro? Here’s a video showing either or both of them
* T-Mobile upgrade fee for assisted service to affect few

* White Sox rumors: Chris Sale, Jose Quintana talk dominating discuss...
* Could Morneau help end Sox offensive woes?
* Morneau's blast not enough as Sox fall
* Rangers making effort to acquire lefty Sale
* Lawrie's sore hamstring won't lead to DL stint
* Tigers 7, White Sox 5: Carson Fulmer falters in first test
* Morneau's blast not enough as Sox fall

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


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

Archives
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


* Struggling municipal golf courses turn to video.....
* WATCHDOGS: State won't explain 'Chicago Fire' t.....
* It looks like a newspaper, but it isn’t..
* Illinois Democrats head to convention with Clin.....
* Our view: Illinois Constitution should serve th.....
* Gov. Rauner's feud with public school teachers .....
* Illinois governor apologizes for calling teache.....


* Gunfire injures 3 in Calumet City, including pregnant woman
* Special court in Madison County helps veterans avoid jail
* Tree planted 20 years ago to be rededicated to slain student
* EXCHANGE: Developmentally disabled musicians are dedicated
* EXCHANGE: Crystal Lake ballerina dances way into Juilliard
* Coroner's office: Illinois plane crash killed Florida man
* Illinois officials seeking dead birds for West Nile tracking
* East Peoria getting grant to demolish landslide homes
* Coroner's office: Illinois plane crash killed Florida man
* Rauner OKs regulating police use of cell-site simulators

* Rauner OKs regulating police use of cell-site simulators
* Illinois Supreme Court to consider remap ballot measure
* Rauner vetoes construction-wage, homecare-worker pay increases
* Rauner apologizes, Chicago teachers protest over 2011 email questioning their competency
* Providers: Stop gap budget won't have 'meaningful' impact
* Rauner apologizes for calling Chicago teachers illiterate
* Illinois ordered to rethink medical marijuana for migraines
* Rauner once called Chicago teachers 'virtually illiterate'
* Gov. Rauner signs early childhood law
* Rauner once called Chicago public school teachers 'virtually illiterate'

* Jury finds rooftop owner guilty on charges he cheated Cubs
* Coming Soon: Joffrey Ballet on Navy Pier
* Airlines rake in cash as fares stay cheap. What's wrong with this picture?
* Ulta on State Street permanently closes its doors


* Person in custody following attempted bank robbery
* ISIS attack on Afghan protest kills at least 80, wounds 231
* Emma Roberts, Dave Franco prove they sure have ‘Nerve’
* Police say Munich suspect was obsessed with mass shootings
* Dems, Clinton prepare for DNC in Philadelphia
* To his neighbors, Kaine is just mountain jack
* Pregnant woman among 3 shot in Calumet City
* BROWN: On the Chicago River, ‘somebody is going to get killed’
* WATCHDOGS: State won’t explain ‘Chicago Fire’ tax credits
* Sunday Sitdown: Dr. Stephen Devries on heart health via nutrition


* As Democrats' convention nears, hacked DNC emails are posted online
* Police say Munich shooting suspect was obsessed with mass shootings
* Review: Joe Rogan tears himself apart, for laughs, at Civic Opera House
* Islamic State claims attack on Afghan protesters demanding electricity; 81 dead, 231 wounded
* 3 people shot in vehicle in Calumet City
* Democrats aren't the only tourists flocking to Philadelphia. So are heroin addicts
* David Ross developed bond with mentor Robin Ventura during Dodgers days
* What if Cubs had rented Hall of Famer Mike Piazza in '98? We'll never know
* John Fox's reputation biggest selling point of Bears' season again
* 10 seriously injured in Bishop Ford rollover


* Joel Erickson: Sen. Kirk must stand up for veterans' rights
* Charles Krauthammer: Notes from Cleveland: The two-part rebellion
* Rauner OKs regulating police use of cell-site simulators
* Illinois Supreme Court to consider remap ballot measure
* Rauner vetoes construction-wage, homecare-worker pay increases
* Rauner apologizes, Chicago teachers protest over 2011 email questioning their competency
* Providers: Stop gap budget won't have 'meaningful' impact
* Rauner apologizes for calling Chicago teachers illiterate
* Illinois ordered to rethink medical marijuana for migraines
* Rauner once called Chicago teachers 'virtually illiterate'


* Crime Stoppers of McLean County 7/23/16
* Bentley Motors on fire on city's south side
* Community urged to populate site, download app
* Renovated foreclosed homes now for lease
* King resigns, new member appointed to District 165 Board of Education
* Koos: Town-gown relations good, improving
* Most Illinois farmers optimistic as summer progresses
* 'Inflammatory' column only makes things worse
* Bob Swisher: An impressive display of honesty
* Sandra Mason: Bindweeds got you in a bind?


* Ill. Hwy. 83 blocked by down electrical wires in Elk Grove Village
* 'Double Dare' revived at rowdy Comic-Con event
* Floods kill at least 154 across China, leave scores missing
* European grocery store giants complete $29 billion tie up
* Journalist who died in Ukraine car bombing buried in Belarus

* 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

* Senators Durbin, Kirk Announce Reopening O......

* Letter: Kirk's integrity - Northwest Herald...

* Plagiarism.
* KKK Wizard David Duke runs on the Trump Party ticket for Louisiana senator.
* Cartoon Of The Day
* Jonathan Halabi at the AFT. Day 2.
* Saw the new "Purge" movie recently
* “The Driver’s Side” – News From The Motorist’s Perspective
* “Incompetent” and “Illiterate?” Could we say governor is “Clueless?”
* Trump Formally Accepts GOP Presidential Nomination
* Clinton Picks Kaine As Running Mate
* Top CEOs Made Less In 2015, But They Still Earned 276 Times More Than Average Worker


* Discount Admission Tickets Available For Purchase At Area Retailers - Fair to extend purchasing hours at Emmerson Building
* Governor Announces Appointments
* New Halsted Street Bridge Finished at Byrne Interchange, Multimodal Travel, Neighborhood Connectivity Enhanced - Last of Eisenhower bridges to be completed, project moves into next phase
* No Pokemon Go access on Veteran Home’s grounds
* Governor Takes Bill Action




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller