A message from Elgin state senator Mike Noland:

On October 29th, beginning at 7 p.m., I will be hosting a town hall meeting on education funding reform and property tax relief. All voters in the 22nd District are invited to attend. Please feel free to forward this message to everyone living in Illinois’ 22nd Legislative District you believe to be a registered voter. The event will be held at the Centre of Elgin. I am using this occasion as an opportunity to hear from voters and elected officials who represent those who live in my district on the subject of SB 2288. A bill designed, among other things, to provide property tax relief in the state of Illinois. Please see ILGA Link.

Ralph Martire of the Center for Tax & Budget Accountability will be a featured guest at this event. I urge you to visit the CTBA’s website, http://www.ctbaonline.org/. Specifically, please see CTBA Presentation on the IL Economy and How it Relates to Education Funding. These two sites will provide valuable insight on the issue of education funding reform and property tax relief in the State of Illinois. As well, Elgin Mayor Ed Schock has agreed to attend and to provide his observations as a local city mayor and former U-46 school principal. Candidates for office within the 22nd District are also welcome to attend and as time permits share their views on this issue. Please let me know if you would like to be considered as a panelist for this event.

The Illinois Senate bill in question sponsored by Mike Noland, Rev. James Meeks and others is SB2288 (also see HB0750):

Amends the State Finance Act, the Illinois Income Tax Act, and the Property Tax Code. Increases the income tax rates for individuals, trusts, and estates from 3% to 5% of the taxpayer’s net income and increases the rate of income tax for corporations from 4.8% to 8% of the taxpayer’s net income. Creates an income tax credit for families with incomes below certain levels. Creates the School District Property Tax Relief Fund, and requires the General Assembly appropriate certain amounts into the Fund. Provides that grants must be made from the Fund to school districts. Requires that property taxes be abated in school districts by the amount of the grants from the Fund. Creates the Higher Education Operating Assistance Fund, and requires the General Assembly to appropriate certain amounts into the Fund. Requires certain distributions from that Fund. Creates the Invest in Illinois Fund for the purpose of funding the cost of issuance, interest, fees, principal payments, and other debt service on Invest in Illinois Bonds and requires appropriations into the Fund. Creates the Capital Strategy Board to make recommendations concerning the issuance of bonds. Contains several continuing appropriation requirements. Amends the School Code. Creates the Early Childhood Fund to support the Illinois Early Learning Standards and their use in early childhood programs and other programs. Makes changes concerning special education reimbursement for personnel. With respect to the State aid formula, makes changes concerning the foundation level of support, creation of the School Improvement Partnership Pool Fund, and supplemental general State aid. Provides that the General Assembly shall appropriate from the General Revenue Fund to the Common School Fund an Education Appropriation Minimum.

Cary District 26 passed a resolution opposing SB2288:

WHEREAS, HB750 and SB2288 propose raising the personal income tax rate from 3% to 5%, a 67% increase, and propose raising the corporate income tax rate from 4.8% to 8%; and

WHEREAS, the proposed property tax relief
(if enacted) provides only a 20% reduction on the education portion of the property tax payer’s bill, and there are no restrictions preventing an increase in local property tax rates or redirection of the property tax abatement fund; and

WHEREAS, with a slowing economy and increasing prices, an increase in taxes will adversely affect the District 26 community, families and businesses and adversely affect the tax base that supports education in District 26; and

WHEREAS, of the $8 billion estimated to be raised by SB2288 and HB750, only 7.5% will go to education, 36% will go to property tax relief, and the remaining 56.5% will go to fund state debt, road construction, state employee pensions and unpaid Medicaid bills, which do not benefit education; and

WHEREAS, the proposed increases in state funding for education under HB750 and SB2288 will only provide a small increase in the state funding that District 26 actually receives; and

WHEREAS, shifting substantial portions of District 26 revenues from a steady property tax base under local control, to a less reliable income tax base under State control, undermines the idea of local control of education; and

WHEREAS, we believe that under HB750 and SB2288 the District 26 attendance area will send more tax revenue to the state than it will receive from the state, providing less tax base to support education in District 26;

The Grayslake village board also passed a resolution opposing SB2288.

National Taxpayers United of Illinois says:

“More than $1 billion of these tax increases would be funneled to the lavish pensions and health care benefits of retired government employees, many of whom receive multi-million dollar pensions during their lifetime.” said Tobin. “There is no need to keep feeding this money-eating pension monster. Rather, state pensions should be capped at $50,000, and all new government employees hired should be required to fund their own retirements with 401 (k) pension plans.”

Notice that the bill raises income taxes 67% while providing tax credits to low income filers. This is the end of the flat income tax rate in Illinois. SB2288, as Cary and Grayslake noted is being marketed as “property tax relief” and “education reform,” but only 7.5% will go to education, and as for property tax relief, what does it matter if you’re paying your tax in the form of property tax or income tax? You may get a lower property tax bill, but you’re going to be paying 67% more in income tax.

The most surprising thing at the League of Women Voters forum last week at the Gail Borden Library was the fact that every single candidate running for state representative (Ruth Munson, Tim Schmitz, Keith Farnham, Rachel Shattuck) has signed onto this bill. Every single candidate, Democrat and Republican, said we have to “take the burden off of local property taxes.” None of them noted that that burden will now be placed on much higher income taxes.

The most distasteful thing about SB2288 is the fact that it usurps local control of education. If taxpayers keep pushing stuff up like this, eventually everything will be run from Washington DC.

Correction:
Ruth Munson has emailed me saying that she does not support SB2288/HB750. I apologize to Ms. Munson and Mr. Schmitz for assuming they supported SB2288 based on their answers to the question on education funding reform. The question that was asked to them did not specifically mention SB2288 or HB750, but based on their responses, each saying either directly or in effect that we have to move away from funding education through property taxes, I made the assumption that they supported funding education through income taxes. Since SB2288 does this and is the bill now being debated, I assumed they supported this bill.

Backyard Conservative mentioned the possibility of ACORN-related voter fraud in Illinois a couple of weeks ago, and yesterday the Illinois Review noted how the woman assigned by the Democratic Congressional Campaign Committee to videotape Jim Oberweis at all events was on Fox News wearing an ACORN t-shirt.

Is ACORN in Kane County? I have so little confidence in Jack Cunningham, that I would not be surprised if Bill Foster wins with votes from dead goldfish, felons, and illegal aliens.

Andy Haaf at the Illinois Review wonders if Bill Foster has become an earmark junkie:

According to Bill Foster’s congressional website he has requested a whopping $55,810,631 in federal funding since being elected in March. Wow! That seems hard to believe for someone who campaigned on:

“It is common for our representatives in Congress to come home to and proudly announce their pork projects: a million-dollar road improvement here, a fire engine there, and so on. But what you never see in those press releases is that every single year our district is taxed to pay over $500 Million in interest on the debt.”

On the $6M earmark Foster secured for NIU:

So Congressman, did you identify $6 million in savings to offset your expenditure? Or are you telling the taxpayers yet again another $6 million is strapped to their backs to pay for? How much interest expense did you just add to the $500 million you claim to detest in your campaign messaging?

Give me a break. Yet again Congressman you prove you are neither a Businessman, a Scientist or a Democrat. You are a Politician.

Further reading:
Bill Foster’s Pork Barrel Spending
Bill Foster Abusing the Frank?

The Wellington development in downtown Elgin. Photo by James Jordan.

Foreclosures have hit downtown Elgin. It appears that the whole Wellington townhouse development is now bank owned. I found listings for 124 Kimball, 144 Kimball, and 148 Kimball, but my guess is that they are all on the market since they don’t look occupied (I could be wrong). In any case, the asking price for these has dropped to $258,000-$269,000, which is a steep discount to the original asking prices of almost $450,000.

Further reading:
Downtown housing update
YMCA site: houses or park?
What to do with the YMCA site?
All eggs in the condo basket