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….


TrackBack URI

Sorry, comments for this post are now closed.


* National Review trashes Quinn
* Question of the day
* Rauner mocks new Quinn TV ad
* *** UPDATED x1 *** Rauner releases ag plan
* A third poll shows tighter race
* Topinka continues string of union endorsements
* Smallish potatoes
* Sabato: Rauner now deemed favorite
* Rahm has a point, but...
* Rauner goes to ground in face of corporate inversion questions
* SUBSCRIBERS ONLY - Late news
* 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

          
        * Moto X+1: here’s our wish list
        * Last chance: Huawei Ascend Mate2 4G LTE giveaway
        * Yet another Galaxy S5 variant expected: Snapdragon 805, but no quad HD display
        * Could it be that the iPhone 6 Apple logo won’t glow after all?
        * Samsung Galaxy Alpha rumors deliver new launch date, spec rundown
        * BBM beta for Windows Phone goes public
        * HTC’s new J Butterfly is the waterproof One (M8) you always wanted

        * Typo 2 iPhone Accessory Looks Nothing Like BlackBerry
        * BlackBerry Clamping Down On “Apps for” Apps
        * Developer Preview Users Will Automatically Get WP8.1 Update Next Week
        * Qi Wireless Charging Standard Updated, Sports Longer Range Now
        * Spaceflight to launch network for communicating with tiny satellites
        * Microsoft Unveils Halo-themed Wireless Mobile Mouse
        * Titanfall Frontier’s Edge DLC Now Live On PC And Xbox One

        * White Sox 7, Tigers 4: Returning home in one piece
        * Abreu's hit streak reaches 20 with first-inning single
        * Ventura loses replay challenge in ninth inning
        * White Sox take series while Detroit deals
        * Abreu's hit streak reaches 20 with first-inning single
        * White Sox deal ace in series opener against Twins
        * White Sox secure series win over Tigers


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

        Archives
        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


        * Gov.Quinn announces $17.9 million for construct.....
        * Arlington Hts. girls eager for Saturday signing.....
        * People On Facebook Are Dumping Ice Water Over T.....
        * Governor Quinn announces $6.4 million for const.....
        * Oak Lawn has key role in Clean Water Initiative.....


        * Demoted worker shoots CEO, kills self in Chicago
        * Jewish judge won't give up case of Arab activist
        * Rauner says he'll be 'champion' for farmers
        * Man accused of putting needles in packaged meat
        * 'American Idol' to have auditions at state fair
        * Driver's license site in Belvidere faces eviction
        * Teen who left shoeless from wilderness camp found
        * Remains in Illinois shed are a woman from Decatur
        * Trial set for man accused in toddler's death
        * Chicago mayor defends welcoming immigrant kids

        * Business, labor: Speed up Illinois’ fracking rules
        * Gov. Christie to campaign for Rauner in Chicago
        * State lawmaker's replacement named
        * Rauner says he'll be 'champion' for state's farmers
        * Quinn: Workers' compensation rate to fall in 2015
        * Quinn signs epinephrine law for Illinois schools
        * Governor candidates differ on overseas tax breaks
        * Quinn: State will 'prevail' in Shakman lawsuit
        * Illinois Medicaid restricts use of hepatitis drug
        * Quinn OKs ballot question on tax hike for incomes over $1M

        * Court zaps ComEd for 2011 storm outages
        * Mondelez C-suite shakeup: Marketing chief heads for exit
        * Biz groups rally behind Kirk measure to renew Ex-Im Bank
        * Whole Foods sets opening date for former Dominick's store
        * Whole Foods reveals next wave of Chicago store openings


        * 2 men, woman stabbed in Aurora home invasion
        * Man charged with stalking ex-wife — a police sergeant
        * Source: Father of slain teen fatally shot in Humboldt Park
        * Father of slain teen fatally shot in Humboldt Park
        * Judge, big supporter of Israel, balks at leaving Palestinian terrorism-related case
        * Proposal to rename plaza after ex-Mayor Jane Byrne advances
        * Old tank cars put Chicago at risk
        * Parkinson’s drug trial has researchers optimistic
        * DATA: Top contributors to governor’s race by type
        * Quinn calls poll giving Rauner double-digit lead 'phony-baloney'


        * Police: Gunman and victim in Loop shooting 'had been friends for years'
        * EEOC: Harold Washington College passed over job applicant because of age
        * Man shot dead 6 days after son killed on West Side
        * Charity provides funeral for baby who died of starvation
        * Metra train strikes bicyclist on UP Northwest Line
        * Teen gets 9 years in videotaped sex assault posted on Facebook
        * Sweeping reforms suggested to fix CPS truancy crisis
        * Joliet man accused of breaking baby's leg
        * Clerk reissued more than 12,000 city stickers
        * Clerk reissued more than 12,000 city stickers


        * Some Historic Sites To Curtail Hours Due To Lack Of Money
        * State Fair Manager "Moving Forward" After Ethics Violation
        * Community Prosecutions Credited With Drops In Crime
        * Community prosecutions credited with drop in crime
        * Police responding to shooting in the Loop
        * Demoted worker kills self, wounds CEO in Loop shooting
        * CPD leaves commander in post despite assault allegation, DNA match
        * Business, Labor Leaders Urge Quinn Administration To Finish Fracking Rules
        * Inspector General Discloses Political Hiring Investigation
        * Listen to State Week - July 25, 2014


        * State lawmaker's replacement named
        * Rauner says he'll be 'champion' for state's farmers
        * Our Opinion: Dangerous pedestrian crossing getting the attention it deserves
        * The GOP as the party of reform
        * John Cooney: Lawsuit abuse is a myth spun by big business
        * Quinn: Workers' compensation rate to fall in 2015
        * Quinn signs epinephrine law for Illinois schools
        * Travis Akin: Lawsuit reform could improve Illinois’ business climate
        * George Will: A middle course on foreign policy
        * Eugene Robinson: Absent on immigration reform


        * Jefferson's aide named replacement in Ill. House
        * Sports Talk 7-31-14
        * MLK task force selects site for plaza honoring civil rights leader
        * 'American Idol' to have auditions at state fair
        * Fair employee fired after questioning people's disabilities
        * Kevin Hambly shows us around
        * Firefighter puts out fire at neighbor's house
        * The I Pledge Project in Arthur
        * Rauner says he'll be 'champion' for Ill. farmers
        * Judge: Theft case 'a tragedy' for defendant's family


        * Briggs appreciates where he's at
        * U.S. warns against traveling to Ebola-hit countries
        * West Africa Ebola outbreak tops 700 deaths
        * 150 strangers, 1 uncle lay starved Barrington baby to rest
        * Durbin wants feds to check out Canadian National delays on EJ&E

        * Officials push for funds to finish West Ch...
        * DuPage leaders on W. Chicago thorium clean...
        * Rep. Roskam: IRS Budget Cuts Best Way to C...
        * ASK PETER: Building a 21st Century Workfor...
        * Taking care of the immigrant children cros...
        * Case files against Sandi and Jesse Jackson...
        * Dem Rep Schakowsky Suggests US Torturing I...
        * 3 politicians try living on minimum wage b...
        * Mystery Loan Lets Ex-Representative Jesse ...
        * Politicians Give Living on Minimum Wage a ...

        * 14 senators pitch new national monument in......
        * Groups Continue Beating Drums For Minimum ......
        * Groups Continue Beating Drums For Minimum ......
        * Groups Continue Beating Drums For Minimum ......
        * Groups Continue Beating Drums For Minimum ......

        * Sabato: Illinois Now Leans Republican, Qui......
        * Senator Durbin Joins Donnelly, Kirk and Gr......
        * Kirk pushes Obama for stiffer sanctions on......

        * Chicago McDonald's Workers Rally In Response To NLRB Ruling
        * Earned Sick Time Chicago Coalition Delivers Petition Signatures To Mayor's Office
        * Ten minute drawing. Tenure.
        * Comcast. T-shirts. Two million blog hits. Ten minute drawings. August.
        * New IEA poll shows Rauner ahead by four
        * Chicago City Council Roundup: Minimum Wage Bump, Phone Tax Hike & New Moratorium
        * Chicago Officials To Hold Public Hearing On Crime Stats
        * Chicago SRO Press Conference At City Hall
        * Poll: Quinn, Rauner In 'Nearly A Deadheat'
        * Obamas thank Muslims for "strengthening America's core of democracy"


        * Rauner Rolls Out Agriculture Coalition and Key Supporters From the Agricultural Community Across Illinois
        * Governor Quinn Signs Law to Expand Health and Wellness Services in Communities Across Illinois - New Steps Will Help Expand Access and Quality of Healthcare
        * Pat Quinn: Patronage Will Prevail
        * Governor Quinn and Company Officials Open Nippon Sharyo Expansion in Rochelle - Passenger Rail Car Manufacturing Plant Expansion Creating 90 New Jobs
        * Governor Quinn Signs Legislation to Expand Life-Saving Measures in Illinois Schools - Expands Epinephrine Law to Protect Illinois’ Students in Life-Threatening Emergencies




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