Senate Week In Review

March 21-25, 2011

Lacking support for his massive $8.75 billion borrowing proposal, Gov. Pat Quinn is now floating a new $2 billion “emergency” borrowing scheme, according to State Sen. Tim Bivins (R-Dixon).

Also during the week, five public hearings to solicit public input on the state’s redistricting process were announced. Notably absent from the schedule are hearings in any suburban collar county communities, as well as any community south of Springfield.

Gov. Quinn has floated a plan to borrow $2 billion in short-term loans he says are needed in part so Illinois can qualify for higher Medicaid reimbursement rates that are scheduled to drop to lower levels in July.

Bivins said with proper cash management there are less costly options available to secure the additional federal funding. Borrowing, with the associated interest costs, simply defers obligations and accumulates debt for future taxpayers. The Governor is also seeking to borrow far more than is needed to qualify for the $175 million in enhanced federal Medicaid match dollars.

With the second highest debt of any state, behind California, Illinois’ bonding obligations top $34 billion. Accumulating more debt with no clear plan to repay the funds is not a plan Bivins supports. If the state makes the cuts needed to eliminate its debt and gets spending in line with revenues, additional borrowing wouldn’t be needed. Recently a list of more than $6 billion in proposed cuts was released by the Senate Republican Caucus.

A Senate GOP analysis of state finances shows that without substantial reductions in state spending, even when taking into account the revenues from the recent 67 percent income tax increase, Illinois is on target to reach a whopping $22 billion deficit in five years.

Although the new borrowing scheme is less than Gov. Quinn’s initial $8.75 billion request – which would cost taxpayers more than $12 billion (including interest) – the new borrowing would still add to the state’s debt and contains no clear plan for repayment.

Also during the week, public notice was given of five legislative redistricting hearings that were held in Chicago on March 28, and will be held in Springfield, Kankakee, Peoria and Cicero throughout April. The public is invited to attend the hearings, provide testimony and submit their own legislative maps for review by committee members.

The Redistricting Committee Chairman said additional public hearings may be announced in the future, but critics questioned how hearings could be scheduled without consideration of Illinois’ fast growing suburban counties and the entire southern half of the state.

Bivins said it is good that the public will be allowed to participate in the redistricting process in some capacity, but noted that the redistricting process is still in the hands of lawmakers so it is unlikely legislative districts will be drawn fairly and impartially.

Mapmakers study voting patterns based on such variables as age, ethnicity, income, geography and education. Using sophisticated computer programs, they can draw maps that will virtually guarantee candidates of one political party will consistently be chosen over candidates from an opposing party.

In 2010, public interest groups pushed hard for reform of the state’s redistricting process, which would take the map drawing powers out of lawmakers’ hands and place it in the hands of an independent commission. Changes to the redistricting system would encourage diversity and promote competition. However, despite strong support from reform groups, editorial boards and the public, minimal changes were made to Illinois redistricting system.

Bivins said as long as partisan lawmakers draw the maps, the public will see bizarre districts lines and skewed election results.

The Facts About The 1% Sales Tax

The School Facility Occupation Tax has been placed on the April 5, 2011 ballot. Several district residents have asked me questions about the purpose of the proposed tax and how it would be applied. Therefore, I decided to write a letter to the editor in order to provide information about the facility tax so that district residents can make an informed decision.

In 2007 the state legislature passed Public Act 95-675 the School Facility Occupation Tax Act. This new act would allow voters in each county the option of adding an additional 1% to the local sales tax on qualifying purchases. The law gives school districts the chance to raise revenue through a sales tax put in place by the County Board upon voter approval. The proceeds from a 1% sales tax would be distributed to the Carroll County schools based on the number of students who attend the school and are residents of the county. The 1% sales tax would allow school districts to raise needed revenue and not have it connected to local property taxes. Funds generated from the 1% sales tax can be used for the acquisition, development, construction, reconstruction, rehabilitation, improvement, financing and installation of capital facilities projects. The funds can also be used to pay for outstanding bonds sold for facility construction which would assist in reducing local real estate taxes. Lower real estate taxes would result in a lower tax rate. Please note that funds generated by this tax can not be used for other purposes such as salaries, transportation, athletics, etc…

What is taxed?

Everything in the municipality and county sales tax base is included in the tax except for:

-Titled or registered tangible personal property (cars, trucks, ATVs, farm

equipment, aircraft, trailers, watercrafts, mobile homes)

-Qualifying food, drugs, medical supplies

-Farm purchases not subject to sales tax: fertilizer and seed

-“If it is not taxed currently, it will not be taxed!”

How much money could be generated?

By comparing sales tax generated in the county from 2007-2010, the tax could generate between $830,000 to over $1,000,000 in revenue for Carroll County schools. Based on current enrollment in the schools, it would be distributed to Chadwick-Milledgeville (20%), Eastland (27%) and West Carroll (53%). The school boards would make local decisions to use the funds for current capital projects, issue new bonds for capital needs, or retire existing debt issued for capital purposes (abate taxes).

How can the vote be enacted?

1. The County Board may pass a resolution.

2. School districts may pass a resolution. When school boards representing 51% of the resident, student enrollment in the county adopt the resolution, the County Board must certify the question to the County Clerk. If approved by the voters, the Count Board reserves the authority to apply the tax within the county.

How long would the sales tax be in place?

The sales tax would remain indefinitely unless the County Board acts to remove or reduce the tax. However, the County Board cannot reduce or remove the sales tax if any county school is relying on the taxes to pay debt service on bonds.

How much would it cost me?

The amount would depend on how much general merchandise you buy in Carroll County. Estimate the amount of money you spend in Carroll County establishments, excluding groceries, drugs, medical supplies, titled vehicles and multiply by 1%. If you spend $1000 annually, you would pay an additional $10. When one considers the property tax abatements that will take place many citizens could actually save money due to this tax.

How much could it save?

Chadwick-Milledgeville CUSD #399 is discussing the use of up to 67% of the district’s share to abate taxes on facility bonds. It would reduce real estate taxes estimated below:

$50,000 home = $30

$75,000 home = $45

$100,000 home = $60

Positive Impacts

• Additional revenue for local school districts to repair, upgrade or build facilities without relying on local property taxes.

• Enhances local control of resources.

• Funds stay within the taxing region.

• Visitors to the region will support local schools.

• Ability to pay bond debt without a referendum.

• Shifts the tax revenue to sales tax, a consumer tax, and away from property tax.

• Sole purpose is to support capital improvement of buildings: no salaries or benefits.

• Requires local, voter approval. A simple majority of votes cast are needed to pass the proposed tax

Note: Counties that have enacted this tax have seen an increase in local commerce activity. People buy locally in order to support the schools.

The purpose of this message is not to persuade voters to support the School Facility Occupation Tax but rather to inform them with facts. The issue is now in the hands of the registered voters of Carroll County. I urge residents of Carroll County to get out and vote no matter what their opinion is on this tax issue. If you have any questions regarding this matter please feel free to contact me at the district office .

Regards,

Tim J. Schurman

Assistant Superintendent

Chadwick-Milledgeville CUSD #399

Defending Government Pensions

I was truly disheartened after reading the”Stephenson County Tea Party Supports …” Editorial of 23 March 2011. While Mr. Diehl starts out with some valid, and righteous indignation over the secrecy of the spending behavior of local governments, he ends his opinion with a tirade against those whom collect pensions. It appeared to me that he feels pensioners do not deserve to collect pensions, nor are fit to participate in governmental legislation.

I understand that he, and the organization he is affiliated with has issues with the fact tax-payers are at times supplementing government pensions. I personally am not falling over myself with glee at the thought that my taxable income is being used to support someone else, but in reality that is the way taxation works. We put in…”they” receive. Eventually “we” receive as the next generation puts in…:”We” are ensuring the continuance of a moral obligation to those who have invested their lives and abilities in the furtherance of our national raison d’etre.

And lets not forget, government pensioners are not satellite lampreys sucking on the blood of society. They, in most part have given, and given, and given to ensure the government functions, at the cost of their own personal opportunity to reap the benefits and bonuses of the private marketplace. It was not their choice or fault that those who had control of the government pension funds invested unwisely. Nor was it their choice or fault that financial sector preyed upon pension fund investments as a means of lining their own pockets by promoting factitious financial products.

It’s truly upsetting that the private market employees have suffered exponentially with the downturn of the economy. But really, Mr. Diehl-are you saying because those pensions have suffered, so should everyone’s? Tax dollars do not cover 100% of government pensions. There is employee participation, every month, every year they work. Most pensions are self- funding and only because of the blackened investment scenario of 2008 was it necessary for tax dollars to supplement government pensions to ensure participators received what they were promised.

And yes, I agree that some of the flotsam rises to the top in government employ. But so too does it in the private sector. Do you wish to punish all municipal, state and federal employees for the excesses of the few? How about retired soldiers, are they also feeding off of your money, living the good life and unfit for any additional government participation?

I suggest that you and your organization stick to the local level of politics-that level that you have direct contact and input in. Step aside from the moralizing victimization that does nothing to benefit average Americans. Target your resources to that which is in sight and attainable, and most importantly betters all of us in general. Sound bites are polarizing, but if you don’t understand their repercussions, they are better left unsaid.

Lisa Bloom

Morrison, IL

Tea Party Propaganda

I have read enough narcissistic Tea Party propaganda in the newspapers. The Tea Party does not understand the concept of the “common good”; in fact, the Tea Party is up to no good.

To observe what our country will be like under the Tea Party banner one need only look to the governor in the state directly north of Illinois, see the Mussolini-like behavior of the governor of Michigan, or the self-serving programs of the Republican governor of Ohio.

The only good that is served is greed. The mega-rich are feeding the fuel for the Tea Party advocates. The real point is that the middle and lower class individuals following the Tea Party can’t see that only the mega-rich are served by the policies being advocated.

When the poor starve, the middle and lower class people can’t afford health care, and only the rich can send their kids to good schools - then and only then will the average Tea Partier wake up and smell the coffee. But by then it will be too late.

So party on all you blind Tea Party members. By the time you realize how you were baited into the trap, you will already have become the richest peoples’ bear rug - something to be walked upon and eventually thrown out with the high fliers’ trash. Happy landing.

Gregory T. Krysiak

Lanark, IL

(Editor’s Note: Mr. Krysiak is a retired teacher.)

Proposed School Facilities Tax

To start, I would like to thank the constituents of West Carroll District 314, to have allowed me to serve on their behalf for the last six years. My tenure is essentially over, as the election and canvas of votes occurs prior to the April board meeting.

I wanted to share my opinion on this proposed School Facilities tax. If in fact as mentioned, this 1% on purchases of goods would drive business away, I often wonder why then there isn’t a 30 to 50 mile dead zone along the State of Iowa’s Eastern border. Until recently the state income tax was 6% higher in Iowa than in Illinois. That is 6% on $10,000, or $30,000, or $60,000, you get my point. I tried to see this weekend on what this tax would cost me.

Breakfast at Poopy’s, $14.50, an additional 14 cents. If I had I had a bus load with me and my bill was $100.00, it would mean an additional 1 dollar.

There has been mention of this being a back door tax, the Law itself provides voter approval to initiate this tax. On the other hand, it has been reported in the papers, that the City of Savanna, is going to raise sewer and water rates to build a fund to pay for its new Treatment plant. This is not put before the voters, but I do feel it is a necessary evil to continue to pay for and improve the infrastructure, just as this 1% tax would do for the school district.

In closing, my reason for voting to put this proposal on the ballot was, a) the voters would have the final say, and b) I felt a lot of this money would be generated by out of town visitors, drawn here by the River or the State Park, and Poopy’s or the Iron Horse on the weekends.

Bill Sweeney

Savanna, IL

Local Emergency Services Saved 3 Lives

Recently, there was a near tragic incident in which three ice fishermen broke through the ice on Upper Miss Refuge. Although the water depth was only a few feet, the muck and cold quickly took its toll stranding the three men several hundred feet from shore.

Refuge staff called 911 and the Savanna Fire Department and Savanna Ambulance were on the scene within a matter of minutes, rescued and treated the three men. The immediate action by the Savanna Fire Department and Savanna Ambulance prevented a near tragic accident. The Thomson and Sabula Fire Departments also assisted with the rescue.

We, as a community, are fortunate to have such highly qualified teams of professionals that risk their lives daily for others.

Ed Britton,

Wildlife Refuge Manager

Upper Miss Refuge,

U.S. Fish & Wildlife Service

Thomson IL

Capitol Report

By Jim Sacia, State Representative, 89th District

For the second time in my nearly nine years as your State Representative, I missed a day of session on Thursday, March 10, 2011. My family and I flew to Phoenix, Arizona, and then traveled to Luke Air Force Base to witness our son, Major John Sacia, graduate as an F-16 fighter pilot.

John spent nine years in the Army as an Apache Attack Helicopter Pilot with three combat tours, attaining the rank of Captain and serving as a Company commander, before transferring to the Wisconsin Air National Guard to secure a chance to fly the F-16. I know I’m sounding parental, but it’s a chance for me to thank John and all of our young men and women, who leave the security of our families and communities, to serve our country and place themselves in harm’s way to defend our way of life. To all of you veterans and active duty service men and women – thank you for your service. For those of you considering enlisting, thank you as well.

Several significant pieces of legislation and Governor proposals were the subject of numerous emails, letters and phone calls this past week.

Most importantly, the idea to put sales tax back on farm equipment and products (Amendment 1 to Senate Bill 4) is off the table. House Bill 148, of which I am a co-sponsor, concealed carry legislation, passed out of the House Ag Committee on a 10 – 2 vote. I believe we have the votes to pass it in the house but not without much work. Illinois will not revert to the “old west” with no checks and balances. You will pass a background check, you will show a need, you will be trained, you will have restrictions on where you can carry, etc. Passing the house is not the issue. Getting it to move in the senate will be the challenge. President Cullerton is no fan and it may meet stiff resistance.

Many of you are very concerned about the proposal for school consolidation. This issue has many far reaching ramifications. Example – we have been trying to find a better way to fund education since 1986. It’s a hot potato that never finds legs. I believe consolidation will go down a similar road due to transportation issues, push back from communities, and mascot longevity. We all feel hometown pride.

I am adamantly opposed to eliminating our Regional Offices of Education. This is the hub of education at each of our schools. It shouldn’t even be considered.

Pensions – a very hot topic and it will continue to be one. I promise to do all I can to protect your pensions.

The Governor has advocated cutting our human services by $552 million. That is totally unacceptable especially coming on the heels of his giving our state labor unions a nearly $400 million raise.

April promises to be an interesting month in Springfield.