Observations and comments about state government by State Representative Robert W. Pritchard.
Rep. Pritchard's Perspective on Illinois Politics
Property tax calculations are confusing to just about everyone. Many are angry when taxes go up even though property values are falling. This week the Illinois House approved legislation (SB 2073) that would prohibit taxing bodies from increasing their tax levies in any year when the county’s equalized assessed value of property declines from the previous year.
On the surface, this legislation may appear to be fair and justified. However, it puts all of our units of local government in a big squeeze by limiting revenue to pay the costs they can’t control. As a result, services will be cut even more than they have been in recent years.
Local units of government must comply with unfunded state mandates, workers compensation premiums, and municipal pension contributions which weren’t addressed in the bill that now returns to the Senate for action.
Those counties which have passed Property Tax Extension Limitation Laws (PTELL) limit the growth in taxes to the cost of living or 5 percent, whichever is less. This bill would stop any revenue growth in a year when assessments fall below the prior year. The bill may unwittingly also increase the cost to state government for funding education since local resources are considered in determining the state foundation payments.
Bill to End Scholarships Passes Out of Committee
A bill to end the General Assembly Scholarship Program (HB3810) passed out of committee last week. The program has come under fire in recent years as some legislators awarded the scholarships to friends and students who didn’t even live in their district as required.
In addition, the program is an unfunded mandate on universities since there is no money appropriated for the scholarships. Last year universities had to pay about $13 million for the program from their other sources of income; perhaps student fees.
I have joined with about 70 legislators in not awarding the scholarships this year. Instead I have renewed my efforts to make college more affordable for all students and reduce the time needed to get a degree.
Unclaimed Property Returned to Owners
The State Treasurer’s program to unite owners with unclaimed property hit a record high last year. Treasurer Dan Rutherford said the “Cash Dash Program” returned over $100 million to owners but there is still $1.5 billion in cash and contents from bank safety deposit boxes unclaimed.
Rutherford said an aggressive marketing campaign increased the number of assets returned, web searches and claims paid. “It’s common for people to lose track of their assets when they move or when loved ones pass away,” he said. Businesses and banks are required to turn over unclaimed accounts to the Treasurer’s office.
Citizens can check out the unclaimed property list by going to the website (www.treasurer.il.gov) and following the Cash Dash link.
District Office 815-748-3494 or E-Mail to bob@pritchardstaterep.com
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