Unintended consequences?
Wednesday, Oct 19, 2016 - Posted by Rich Miller
* Illinois Public Radio takes a look at something we discussed here the other day about the transportation “lockbox” proposal’s potential impact on state parks…
The argument goes that money collected from the state tax on motor fuel — 19 cents a gallon — should only be used for things like roads and bridges and highway law enforcement. The lockbox would also apply to tolls, license plate registration and so forth. […]
The answer begins four years ago, when the Department of Natural Resources was in bad shape after years of funding cuts.
Legislators decided to put a $2 fee on every license plate renewal. Back in the 2015 budget year — which is the last time Illinois had a normal budget — DNR got $19 million from the license plate fee, about 12 percent of the agency’s state funding.
This is where the lockbox might cause problems. The proposal talks about highways, bridges, airports and trains — but it doesn’t mention state parks or recreation areas. Is the land under DNR’s control really part of Illinois’ transportation infrastructure?
Amendment backers say “probably.” Todd Maisch is with the Illinois Chamber of Commerce. He says he thinks questions about DNR funding have been “overblown,” and that DNR’s license plate money could be siloed into transportation purposes.
MAISCH: “They go to maintain the roads, the trails, the traffic safety, the Conservation Police that are out there on the roads as well. We’re not going to say that it’s not an issue to discuss, but we think the scope of the problem is really very limited.”
* But there’s another issue that may be overlooked here. Illinois has a ton of specialty license plates. For instance, here’s the description of the Autism Awareness plate…
By purchasing the Autism Awareness License Plates, you will contribute to the Autism Awareness Fund administered by the Illinois Department of Human Services for the distribution of grants for research, education, and awareness of autism and autism spectrum disorders.
* Chicago Bears plate…
By purchasing a set of Chicago Bears License Plates, you will contribute to the Professional Sports Teams Education Fund with the funds to be deposited every six months into the Common School Fund.
* Collegiate plates…
By purchasing these plates, you will be helping support scholarships for Illinois college students while displaying your pride for your favorite school or alma mater.
* Education…
Proceeds from the sale of these plates go the Illinois Future Teacher Corps Scholarship Fund.
Etc.
- Last Bull Moose - Wednesday, Oct 19, 16 @ 10:01 am:
Can’t anybody play this game.
How hard is it to think this through?
- JoanP" - Wednesday, Oct 19, 16 @ 10:01 am:
Frankly, if this eliminates or reduces the proliferation of specialty plates, that’s a good thing.
- Ron - Wednesday, Oct 19, 16 @ 10:02 am:
This amendment is such a terrible idea, I’m sure Illinois voters will pass it.
I voted against it.
- phocion - Wednesday, Oct 19, 16 @ 10:04 am:
If legislative intent is of any importance, it was made clear during the debates on the amendment that the charity plate revenues would go to the charities. If legislative intent means nothing, it would be highly unlikely that anyone would sue over this issue. Finally, the additional costs tacked on the plates are NOT for transportation purposes (as the amendment requires), but for charitable purposes. Nice try at ginning up a non-issue, though.
- 47th Ward - Wednesday, Oct 19, 16 @ 10:04 am:
Trailer Constitutional Amendment?
- Ron - Wednesday, Oct 19, 16 @ 10:07 am:
If you want your taxes to increase vote yes on this amendment.
- illinois manufacturer - Wednesday, Oct 19, 16 @ 10:07 am:
He thought pensions could be cut too.
- Ron Burgundy - Wednesday, Oct 19, 16 @ 10:08 am:
In a perfect world it’s a good idea, but so are similar measures for education, social services, etc. We all know this is getting pushed by the parties that intend to collect that money as self-preservation. It will also pass overwhelmingly because it sounds good and there’s plenty of ads for it but no organized opposition.
- Anon221 - Wednesday, Oct 19, 16 @ 10:12 am:
Based on the language in the proposal, I don’t think Maisch’s “silo” idea would be an easy “do”.
(d) None of the revenues described in subsection (a) of this Section shall, by transfer, offset, or otherwise, be diverted to any purpose other than those described in subsections (b) and (c) of this Section.
(e) If the General Assembly appropriates funds for a mode of transportation not described in this Section, the General Assembly must provide for a dedicated source of funding.
https://ballotpedia.org/Illinois_Transportation_Taxes_and_Fees_Lockbox_Amendment_(2016)
So, legal sweeping of funds from the specialty plates would most likely continue.
- Sir Reel - Wednesday, Oct 19, 16 @ 10:16 am:
The $ for DNR were in lieu of a park entrance fee.
As I recall, under Ryan, a % of the vehicle registration fee went to retire bonds. If that’s the case and those bonds are still being repaid, another question.
It looks like it’s going to pass, so all these questions need answers.
- RNUG - Wednesday, Oct 19, 16 @ 10:17 am:
This, and similar measures like it locking up revenue sources, will gradually force the Governor, the General Assembly, and, most importantly, the taxpayers to recognize the State takes in too little revenue for the desired services … and will eventually cause the citizens to accept the fact a tax increase is a necessity.
- Ron - Wednesday, Oct 19, 16 @ 10:31 am:
We’re already 5th highest in state and local tax burden. This will likely help push us to #1.
- Oneman - Wednesday, Oct 19, 16 @ 10:37 am:
Didn’t Blago take the pet friendly money…
http://htsblog.blogspot.com/2005/09/some-more-on-mark-suppelsa-piece-on.html?m=0
- muon - Wednesday, Oct 19, 16 @ 10:42 am:
Sir Reel is correct. The DNR registration add on was created after there was too much pushback to charge entrance fees at state parks to fund the services used at those parks. Politically it is easier to raise fees for those already paying than to create fees to offset costs for something that is free.
- Wow - Wednesday, Oct 19, 16 @ 10:45 am:
I already voted NO.. bad idea.
- hockey fan - Wednesday, Oct 19, 16 @ 11:04 am:
Such a bad idea. It could also be interpreted (thanks to the vague language) to read that Citys cannot use car sales taxes for anything except roads and bridges too.
Agree with other comments, it is such a really bad idea that it will surely pass.
- hockey fan - Wednesday, Oct 19, 16 @ 11:06 am:
What he said:
- Ron - Wednesday, Oct 19, 16 @ 10:07 am:
If you want your taxes to increase vote yes on this amendment.
- Just Observing - Wednesday, Oct 19, 16 @ 11:10 am:
=== Frankly, if this eliminates or reduces the proliferation of specialty plates, that’s a good thing. ===
I thought that too.
- Union Man - Wednesday, Oct 19, 16 @ 11:16 am:
Sure, that’s where the money will go, just like the check-off charitable donations that were stolen by the ILGA and they told us to our face they ain’t gonna repay it all.
Fool me once…
- Saxman - Wednesday, Oct 19, 16 @ 11:17 am:
In 1997, delegates to the Illinois Conservation Congress voted overwhelmingly to earmark state park license plate fees for the care and maintenance of our parks. There was broad support for it then and now. Unfortunately, subsequent Governors have raided these special fees for other purposes.
- Whatever - Wednesday, Oct 19, 16 @ 11:33 am:
phocion == Finally, the additional costs tacked on the plates are NOT for transportation purposes (as the amendment requires), but for charitable purposes.==
Subsection (a) says “No moneys, including bond proceeds, derived from taxes,fees, excises, or license taxes relating to registration,title, or operation or use of vehicles . . . shall be expended for purposes other than as provided in subsections (b) and (c).”
I don’t see anything there that carves out the vehicle registration fees charged for purposes other than transportation.
- Huh? - Wednesday, Oct 19, 16 @ 11:43 am:
“Is the land under DNR’s control really part of Illinois’ transportation infrastructure?”
The answer to this question is “It depends.”
If the property such as hiking trails providing a recreational purpose, then the answer is no and IDNR loses the money.
If the property, such as the access roads and parking lots, provide a transportation purpose, the the answer is yes and IDNR get the cash.
If IDNR can make a case that the hiking trails provide a pedestrian access route, then there is an argument for a transportation purpose.
IDOT deals with this question all the time. It comes down to transportation (multi-modal) uses vs. recreational uses.
- Demoralized - Wednesday, Oct 19, 16 @ 12:00 pm:
Um, Ron, I think you may want to read the amendment. It doesn’t increase taxes. It segregates what is already being collected. Take your talking points somewhere else because they are getting old.
- Demoralized - Wednesday, Oct 19, 16 @ 12:01 pm:
I’m not sure why my comments get hung up so often but I’ll try again.
Um, Ron, I think you may want to read the amendment. It doesn’t increase taxes. It segregates what is already being collected.
- Demoralized - Wednesday, Oct 19, 16 @ 12:01 pm:
Ugh. My bad. My browser doesn’t always post them for some reason.
- VanillaMan - Wednesday, Oct 19, 16 @ 12:37 pm:
This is what happens when citizens lose faith in their own government.
- anon - Wednesday, Oct 19, 16 @ 12:49 pm:
Sounds like a sloppy drafting job on this amendment. We’re probably going to have to live with the unintended consequences.
- Ron - Wednesday, Oct 19, 16 @ 1:19 pm:
The result of this will be increased taxes. Think for a moment demoralized.
- Demoralized - Wednesday, Oct 19, 16 @ 1:24 pm:
==The result of this will be increased taxes.==
Increased taxes are coming no matter what.
Although not for the same reasons as you I oppose this amendment. You never box yourself into a corner like this.
- Silo Ben - Wednesday, Oct 19, 16 @ 3:22 pm:
So if anything can be “siloed in” this amendment is worthless.