October 27, 2014
In This Issue:
Report Confirms Budget Games
Elgin Community College breaks ground
Veterans Advisory Council suggests legislation
Committee looks at Lincoln Museum management issues
Lots of concerns over new school funding formula
Friend of Agriculture
State establishes Ebola information hotline
Declining fuel sales tax revenue equals less funding for Illinois roads
Parks and forest preserves make news
Report Confirms Budget Games
Last May many legislators joined me in opposing the current state budget because it spent more than the anticipated revenue. A recent report from the Institute for Illinois’ Fiscal Sustainability at the Civic Federation agrees and concludes that the state budget “represents a return to unsustainable fiscal practices including borrowing for operations and underfunding known costs.”
At issue is an uncontrolled appetite for spending by current leaders and legislators that no amount of revenue will satisfy. The budget games of delaying payments, underestimating expenses and borrowing just camouflage the problems.
The “temporary” income tax was never meant to solve the state’s fiscal problems but rather to just continue the bad practices. The Civic Federation’s report concludes that when the tax hike rolls back from 5 percent to 3.75 percent on January 1, state revenues will drop by about $1.9 billion. Therefore the current budget is filled with “budget tricks” that give the appearance of a balanced budget but just delay the pain of overspending. The full report is available at www.civicfed.org.
Even more budget uncertainty comes from the much-anticipated court ruling on the pension reform law passed in 2013. A ruling on the legal challenges to that bill, Senate Bill 1, is expected later this fall. The price of promised pension benefits is now coming due and there isn’t enough revenue to pay that bill and continue spending as usual on other programs.
Any responsible fiscal leader would say it’s time to limit the spending, set priorities and look for more efficient ways to operate—like any business or family would do. For the future of our children and grandchildren I sincerely hope that voters will send a strong message during this election to stop the overspending and focus on economic growth which will increase tax revenue naturally.
Elgin Community College breaks ground
I was honored to join Burlington Mayor Bob Walsh and Fire Chief Craig Whyte a couple of weeks ago at the groundbreaking for Elgin Community College’s new fire training center in their community. This facility has been a long time in the making since voters approved a referendum six years ago and the college purchased the land last year.
This state-of-the-art facility will include training programs for first responders, including police and fire, classrooms and a burn tower. Up to 80 percent of firefighters receive their training and credentials through community college programs. Having this facility locally will be more convenient for area firefighters to achieve their training without traveling a great distance. It will be a big help to the budgets of local fire departments which currently have to send firefighters as far away as Springfield to attend training courses.
As first responders continue to face new and different challenges every day, they will need the best training we can offer them. The construction of this facility is a big step in the right direction. The facility is expected to open in the spring of 2016.
Veterans Advisory Council suggests legislation
With Veterans Day fast approaching, it’s important to begin preparing to honor those brave men and women who served in the military and risked their lives for our freedom. However, I take our debt for their service seriously every day and am constantly on the lookout for situations where I can help veterans and their families. I have formed a Veterans Advisory Council that met earlier this month to offer input on legislation and observations about the needs of veterans in our area.
Our meeting covered a lot of new laws as this year was a particularly busy session for veterans’ legislation. One new law expands the Illinois Military Family Relief Fund to include all future deployments, not just those related to 9/11. The Fund provides help to the families of Illinois National Guard members during their deployments. Another bill waives fees for Purple Heart license plates.
One of my bills which became law changes the process for military families temporarily assigned out-of-state to apply sooner for Illinois family Medicaid benefits. The law provides for less interruption in the delivery of care for a family member when the service member leaves the military. Then there was a resolution urging schools to conduct an assembly during the week of Veterans Day to help students understand the importance of that day, as well as a resolution urging Illinois counties to establish Veterans Treatment Courts.
The Advisory Council also suggested several ideas for improved veteran services and for possible legislation this next year. Veterans like to deal with real people when they need VA services not a computer answering system. While they like the college tuition waiver for veterans, they believe the state should actually fund the program not shift the cost to each community college or university. Finally the council members thought the state veterans administration should involve the existing County Veteran Commissions more in helping veterans connect with state and federal programs for veterans.
Committee looks at Lincoln Museum management issues
Illinois has one of the best Presidential museums in the country: the Abraham Lincoln Presidential Library and Museum in Springfield. While it is about to celebrate its 10th anniversary and the 150th anniversary of the death of President Lincoln, the museum is making headlines for a confusing tangle of overlapping management responsibilities, sagging donations and declining number of visitors.
The House quickly passed legislation in May to separate the Lincoln Library and Museum from the State Historic Preservation Agency that currently oversees all the state’s historic sites. The bill is being held in the Senate.
The House State Government Administration Committee, on which I serve, heard testimony this month from the three groups charged with managing and funding the library and museum. There was a lot of finger pointing about the cause of the controversy. The committee decided to wait for the report of a special task force looking into the matter before taking action to resolve a poorly crafted management structure.
Lots of concerns over new school funding formula
Illinois has been trying to find a fair and adequate way to fund elementary and secondary education for nearly 200 years. The current formula which is largely funded by local property taxes is clearly inequitable and seems to be inadequate as well.
A Senate task force held hearings for months last year and then some members drafted SB16 this spring to change the way education dollars are distributed. The committee did not try to address the question of adequate funding.
While the bill awaits action in the House, it has created lots of concern among school districts that lose significant education dollars so other districts can receive more state funding. I have been meeting with superintendents and other education leaders from the area to talk about the implications of the bill and needed changes to address the adequacy as well as the equity issues.
I also joined with several other legislators earlier this month to discuss SB16 and its implication for schools in Kane County.
Our state needs an educated workforce and students need the skills to get a good job when they graduate. However SB 16 defunds programs that do just that and reduces state support for districts that aren’t wealthy or aren’t spending much more than the state average per pupil.
I have joined a bipartisan group of representatives in co-sponsoring HR 1276, which calls on the General Assembly to reject this misguided reform, and instead work for a better solution to improve our public schools and the education they provide our children.
In other news relating to school funding, the Taxpayers’ Federation of Illinois has compiled a report; available at www.iltaxwatch.org; which explains how Illinois’ school funding system compares to the rest of the nation.
The study found that Illinois ranks right in the middle of the nation in terms of overall funding, ranking 22nd highest, and that the average amount of money provided to schools was $12,614, slightly above the national average. Interestingly, the study also found that Illinois schools rely on local funding more than schools in any other state – an average of 65 percent in Illinois, versus 43 percent for the rest of the nation. If state funding for some schools is reduced by SB 16, local funding in the form of higher property taxes will be needed.
Friend of Agriculture
I was honored to receive the Legislator Friend of Agriculture Award from the Illinois Farm Bureau earlier this month. Ryan Klassy (left) and Greg Millburg, representing the Kane and DeKalb County Farm Bureaus respectively, presented the award which is given to state and federal legislators based upon their voting records. I was also recognized by the Boone-Winnebago Farm Bureau members.
Agriculture remains our most important industry in Illinois and is a significant part of each community in my legislative district. Farmers are not only concerned about legislation and regulation affecting their businesses, but also issues that affect Illinois as a good place to work and live for every citizen. They, as I, are deeply concerned about the businesses and citizens leaving our state because of Illinois’ fiscal and job policies.
State establishes Ebola information hotline
We have all seen the headlines about the Ebola outbreak in West Africa and now in our country. The news of the disease’s spread inside the United States is troubling and causing fear about traveling and contact with people from other nations.
Though there have been no cases of Ebola in Illinois, our Department of Public Health is taking action to prepare the state and its medical providers should the disease come. One part of that effort is the establishment of a 24-hour Ebola information hotline at 1-800-889-3931 and website at www.ebola.illinois.gov.
By calling or checking on-line, Illinois residents can get their questions answered about the disease, its spread, who is at risk, when to see a doctor and what local hospitals and health departments are doing to protect us from Ebola.
Declining fuel sales tax revenue equals less funding for Illinois roads
As cars have become more fuel efficient and Americans have found ways to conserve gasoline, revenue from the Motor Fuel Tax has declined in Illinois and across the nation. More than half of the funding for road projects in Illinois comes from federal sources, and about a quarter is produced by motor vehicle registration fees. The Motor Fuel Tax makes up about 10 percent of the total state budget for road projects.
When revenue from the Motor Fuel Tax is collected, some of it goes to the Department of Revenue for administrative expenses, some goes to the State Boating Act fund, and some goes to pay motor fuel tax refunds to other states under reciprocal agreements. But the vast majority of the revenue is split between state and local units of government.
The state’s share splits 63 percent for the road fund and 37 percent for construction. At the local level 49 percent is distributed among municipalities based on their population, another 17 percent goes to Cook County, while 18 percent is split among all the other counties of the state depending on motor vehicle license fees collected in each county. The remaining 15 percent goes to townships and road districts in proportion to their road mileage.
Illinois is in the midst of developing a long-term, sustainable transportation plan and I expect road construction to be a major issue in the next general assembly. It is not clear at this point how federal policies will fund highways but it is clear that Motor Fuel Tax revenue is only going to add to the challenges we face at the state level.
Parks and Forest Preserves Make News
Last week I attended “The Best of the Best” Awards Program sponsored by the Illinois Association of Park Districts. The National Bank & Trust Company, Sycamore, was recognized as the best mid-size business friend of Illinois parks. Nominated by the Sycamore Park District, NB&T has partnered with the park district on funding programs, the 90th anniversary celebration, and consulting, and providing volunteers.
The Forest Preserve District of Kane County and the Rockford Park District were each recognized for intergovernmental agreements that maximize the use of tax dollars and benefits to residents. They each worked collaboratively with other organizations and units of government in their areas.
Finally, over the weekend the Sycamore Park District held a dedication ceremony for the new Dr. John Ovitz Park. Ella Follman won the honor of naming the new park and chose the name of one of Sycamore’s most community minded citizens. John Ovitz, now deceased, and his father provided medical care to the community for over a century. In addition Dr. John Ovitz gave generously of his time and finances to many organizations and improving the quality of life in Sycamore. Shown are John’s wife Jane Ovitz and Ella Follman.
I urge you to vote and take friends with you to the polls by November 4. After the election the General Assembly will reconvene on November 19 for the annual fall Veto Session. The House is scheduled to meet for three days that week and for three days in the first week of December. Give my office a call if you have comments about bills the governor vetoed or other potential legislation that might be considered.
Bob Pritchard
http://www.pritchardstaterep.
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