Question of the day
Monday, May 3, 2021 - Posted by Rich Miller
* Two House Democrats talk to the Daily Herald about the budget…
“In the governor’s introduced budget, he is not putting in the $350 million for K-12, but that’s not going very well with both Democrats and Republicans,” [Rep. Fred Crespo, D-Hoffman Estates] said. “(Republicans and Democrats) coalesced over that and agreed that’s not a good idea.”
While members of the House plan to push for the education funding, they also recognize the state will face a $1.4 billion revenue shortage and cuts need to be made somewhere. Where exactly those cuts happen will be a source of debate among Democrats, Republicans and Pritzker in the weeks before the legislature’s scheduled May 31 adjournment.
“We need to look at: ‘Where do we cut?’ and ‘Can we cut enough to close that hole?’” Crespo said.
Pritzker’s proposal also calls for a 10% cut to what towns get from the state’s Local Government Distributive Fund, a pool of income tax money. Crespo and Kifowit also oppose that proposal.
“I am strongly against it,” Crespo said. “Any cuts to the local distributive funds could very easily result in an increase in property taxes, and in my mind and my constituents’, our biggest problem and our biggest issue is property taxes.”
Keep in mind, the American Rescue Plan is sending $5 billion to Illinois’ K-12 schools, $2.3 billion to counties, $2.4 billion to larger cities and $681 million to smaller municipalities. The General Assembly could also impose a temporary property tax freeze on municipalities.
* The Question: Should the Local Government Distributive Fund be left alone in the state budget this year? Make sure to explain your answer.
- Precinct Captain - Monday, May 3, 21 @ 3:03 pm:
How many mayors and council members supported and stood up for the Fair Tax? Not many. Cut the thing to the bone.
- Anyone Remember - Monday, May 3, 21 @ 3:22 pm:
Cut it. [The lack of] Actions have consequences.
- Bearish - Monday, May 3, 21 @ 3:29 pm:
It is my understanding that the money for the state next is going to be allocated over the next two years. I imagine the money coming to local schools is the same, as well as the money for local governments.
Here is the crux of the issue, does the state use this same tactic against them next year? After all, the money is coming next year too. Then for schools that is $250MM this year, $500MM next year, and their baseline funding would be off $500MM every fiscal year out. Not sure that would be wise long term.
I don’t see the state having the money next year to make them whole, and school districts they will lose out on the compounded funding.
Going to the way back machine, local governments don’t have the ability to tax income because they were promised ten percent of revenues from income taxes. That ratio has been cut multiple times, however, they are expected to provide more and more services. I don’t think balancing the budget on property tax payers (and renters) is fair. Municipalities arguing that have already given enough of their pie to the state have a good case.
- Jibba - Monday, May 3, 21 @ 3:45 pm:
Cut. That’s what they wanted. Just not where they wanted.
===our biggest problem and our biggest issue is property taxes.===
I guess they forgot about that pesky pension debt.
- DuPage - Monday, May 3, 21 @ 3:48 pm:
Cut it. Time for municipalities to tighten their belt a little bit, just like everyone else.
- Waffle Fries - Monday, May 3, 21 @ 3:49 pm:
The state has until 2024 to spend the 7.4 billion in ARP funding. The $5 billion for schools is almost 50% of the state board FY21 request alone, which is $400 million above the current fiscal year.
Meanwhile, the state is going on four years being out of compliance with a federal court order to support people with developmental disabilities.
There is an actual plan to achieve compliance with costs for the next four years. Could we maybe meet some commitments here?
- PublicServant - Monday, May 3, 21 @ 3:52 pm:
Decrease it. Not passing the fair tax means your local taxes are going up, but Ken Griffin thanks you. Uihlien too.
- Wall Cloud - Monday, May 3, 21 @ 3:52 pm:
Leave it alone.
PC- being a good person has nothing to do with your party affiliation and everything to do with how you treat people (personally, not via support of some political cause). Maybe something to keep in mind as you wish harm on your political opponents.
- Annonin' - Monday, May 3, 21 @ 3:53 pm:
we would leave the cities alone, but it is tempting because the cities don’t generate much push back. Perhaps that could change
- Ducky LaMoore - Monday, May 3, 21 @ 3:56 pm:
Being from a small town, I am always against cutting it. Infrastructure is more expensive in rural areas.
- Collinsville Kevin - Monday, May 3, 21 @ 3:58 pm:
Cut it, these big spenders need a reality check.
- Really - Monday, May 3, 21 @ 4:07 pm:
Cut it. After the feda quit handling out money like free candy spending will have to get cut. Might as well start now.
- Oswego Willy - Monday, May 3, 21 @ 4:11 pm:
If you vote “cut it”… are you defunding the police too?
I’ll leave that there for now, to the question…
Vote “leave it alone”…
It’s one thing when I rant and rave to tax and hurt downstate as deep and painful as possible on policy…
… a global pandemic that requires needed monies at all levels, and the monies allocated for local government exists, it should be given in hopes to aid governing at all levels.
- Benjamin - Monday, May 3, 21 @ 4:35 pm:
Does the distributive fund go to townships as well? If so, can they zero it out for townships specifically? That’d be a good way to encourage consolidation.
- URL - Monday, May 3, 21 @ 5:11 pm:
Sure, we are getting $5 billion for K12 but that’s temporary money with an expiration date.
- Put the fun in unfunded - Monday, May 3, 21 @ 5:21 pm:
The percentage share of state income tax revenue was reduced from 10% to 6% following the enactment of the temporary income tax increase in 2011. In July 2017, the income tax was permanently increased, and the local government share was reduced to 5.45% of individual income tax collections and 6.16% of corporate income tax collections for State Fiscal Year (SFY) 2018. [source: IML] But if we’d just passed the graduated tax, I’m SURE this time would have been different.
- EssentialStateEmployeeFromChatham - Monday, May 3, 21 @ 6:33 pm:
Cut the LGDF entirely, maybe for good. Local governments should be funded entirely by local tax dollars. Keep state tax revenue within State Government.
- Blue Dog - Monday, May 3, 21 @ 8:05 pm:
Yes. Pain for bipartisan overspending needs to be shared by everyone.
- Oswego Willy - Monday, May 3, 21 @ 8:11 pm:
=== Pain for bipartisan overspending needs to be shared by everyone===
Downstate is a bunch of “takers”
They want their own state, Halbrook wants bill after bill for two states… nope… downstate must have these legislators see what it means to be without.
Your answer has nothing but trolling
- NorthsideNoMore - Monday, May 3, 21 @ 10:33 pm:
Leave the locals alone. The state continually holds this over their heads while passing unfunded mandates and not delivering committed funds to local government. The tax trade-off was made decades ago just because you weren’t around doesn’t mean it didn’t happen. The naive answers from some show they know little of how local gov works.
- Pro bono - Monday, May 3, 21 @ 11:01 pm:
Look, in this sorry state, local governments do need more revenue from the income tax, and the state does need more revenue as well–and so the solution could be to raise revenues through decoupling from federal cuts for large profitable businesses and increasing some corporate taxes this year. Many folks and businesses have done well despite the pandemic, and asking them to pay more makes some sense, to float these governmental ships off the shoals. The LGDF percentage should only be raised if additional state revenues can pay for it.