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Home My Public Portal AboutResolution 1337RESOLUTION 1337 RESOLUTION CONCERNING STATE INCOME TAX AND PHOTOPROCESSING TAX SHARES WITH MUNICIPALITIES WHEREAS the Village of Plainfield has a population of 13,038; and WHEREAS Illinois municipalities receive 1/10 of the Illinois income tax proceeds and all of the revenue from the state photoprocessing tax; and WHEREAS Illinois municipalities depend on this revenue to provide first response in police, fire and public works directly affecting the citizens; and WHEREAS Illinois municipalities have already received a reduction in revenues due to the national economic downturn both in the shared income tax and sales tax proceeds; and WHEREAS municipal casts have increased this year due to homeland defense costs and providing other vital services; WHEREAS municipalities are currently suffering late payments through the State's Local Government Distributive Fund causing shortfalls throughout the state in meeting municipal bills; WHEREAS all state shared revenue is essential to municipal services. NOW, THEREFORE, BE IT RESOLVED THAT THE VILLAGE OF PLAINFIELD DOES kIERE~~ G0 ON RECORD 1N STRONG OPPOSITION TO REDUCING STA'~,~-~ARED REVENUES, ESPECIALLY THE STATE INCOME TAX AND P~'"O~SXNG TAX, TO ILLINOIS MUNICIPALITIES. v~' .~ opted rr~ ~ . w: ~ u ~ - L' Date ~ ~ 'char c ~' V - Village President . ' ~ y~ , .. h r Vllag~;c~~~;eld, Illinois. r ~ t'~~ ~.~ s ,, ~apy ~--- "~Str~bute Illinois Municipal League a~ -- L E G I S L A T I V E v~ ;~ ``w~ v~ :~ ~ ~~~ P.O. Box 5180 • Springfield, Illinois 62705 • Phone:(217) 525-1220 • Fax:(217) 525-743 www.iml.org INTRODUCTION As our state leaders attempt to balance the budget, the details of potentially devastating cutbacks are corning to light. The outlook is not good for municipalities. Under a plan released this week, municipalities could lose over $105 million in state shared revenue. The Illinois Municipal League has laid out athree-step action plan far municipal officials to combat this raid on municipal revenues. It is critical that you read the article listed below in this Bulletin and prepare far a fight. One victory that occurred this week was that the fire fighter pension bill (House Bill 4527) remained in Senate Rules and will likely not be called this Spring session. Also, read in this Bulletin the latest regarding the fire fighter promotion bill (House Bill 16$9). It's good news!! The scheduled adjournment date of May 17 is quickly approaching. The House returns to Springfield on Tuesday, April 30 and the Senate returns on Monday, May 6. LEGISLATIVE BULLETIN .2002-12 Friday,-Aprii126; 20.02' In This Issue: Introduction Municipalities To Take Financial Hit Under New Budget Plan Firefighter. Promotion Act Assigned To Senate Subcommittee Decoupling Wi11 Reduce State And' Local `Revenue Loss Bills Of Interest Status Report Illinois General Assembl Web site: www.legisstate.il.us MUNICIPALITIES TO TAKE FINANCIAL HIT UNDER NEW BUDGET PLAN Municipal revenues will be reduced by $105 million under a proposed "balanced state budget" plan unveiled by the Senate Republicans. This directly reduces the amount of state income tax municipalities receive from 1/10'" to 1/1 It". The plan also eliminates the entire municipal share of the "photo processing" tax. Legislative Bulletin 2002-12 ~ April 26, 2002 ~ Page 2 The change in 'the income tax $6.7.5 per person. Additionally, mi elimination of their share of the "f crushing annual loss of $8.85 per pc 5,000 would lose over $44,000; a pc 50,000 would lose over $440,000! It is criticul that nu~r2icipal q~cials ~rmula increases the annual loss Co municipa ides in real dollars by icipalides would suffer a $2.10 annual los per person through Ito processing" tax. Bottom Line: munici alines would face a on in state shared revenue. A municipality with a population of ulation of 25,000 would lose over $220,00 ; and a population of action now!! 1. Two sample resolutions arc a closed in this Bulletin. Alter one of these indicate the impact this rove ue reduction proposal will have on your coy council adopt ;this resolution nd immediately by email or fax forward cc Assembly Menhbers in Spring eld and their district offices. 2. Assess what tough decision your municipality would make in reduc: community if these budget ite s are approved. 3. Communicate with your local have on your municipality. 7 unacceptable. Municipalities should not are already making hard choices the economic decline. Municipa municipalities are going to keep 1 must be contacted and strongly municipal revenues. mple resolutions to nunity. Have your es to your General ng services to your ews media regarding the detrimental impact t is revenue loss would is shift of a state budget problem to a munici a1 budget problem is e victimized by the state's budget problems. Local governments e ause municipalities (just like the state) hav lost revenue due to i s cannot afford to balance the state budg t on their backs. If ~ being victimized, all State Senators and tate Representatives ~ ged to oppose any budget package that ould decrease your FIREFIGHTER PROMOTION ACT ASSIGNED TO SENATE SUS-CO On Wednesday, April 24, Hou a Bill 1689 (Senator Walter Dudycz, R-Ch the Sex~a~.e Ex~cutiv~- su1~-coi.ttee Fire Safety._ The.decsion to send...th~.legisl~ was the result of intense negotiations etween municipal management and firelight the sub-committee to hold further hea ings over the Summer to determine if an agrf among the affected parties with reg rd to the firefighter promotion system. ] considered further during the remain er of the Spring Session; however, it is like union will continue to push this issue in the future. The IML would like to thank efforts in communicating municipal o position regarding HB 1689 to legislators. DECOUPLING WILL REDUCE S'11ATE AND LOCAL REVENUE LOSS The Illinois Municipal League supports proposals to "decouple" the federal from the state corporate tax structure. he result of decoupling would be to prevent from being reduced by recent chap es made to the Federal Tax Code. Deco additional deductions and credits give to corporations by federal law will not auto to the adjusted gross income taxed by he State of Illinois. Municipalities could ret~ additional income tax and $28 milGo in corporate personal property replacement occurs. ago) was assigned to ou to sub-committee.._ s. It is the intent of ment can be reached 3 1689 will not be that the fire fighter zr members for their -porate tax structure to and local revenue ing means that the tically pass through up to $23 million in venue if decoupling Legislative Bulletin 2002-12 Apri12G, 2002 Page 3 BILLS OF INTEREST Telecommunication Tax/Jurisdiction House Bill 6012 (Senator Laura Kent Donahue, R-Quincy) creates a jurisdictional boundary review system that allows citizens who believe they are wrongfully being charged a municipal telecommunication tax because they reside outside the municipal taxing jurisdiction to request a review to determine whether they reside within the municipality. The Senate adopted an amendment that would require municipalities to submit a comprehensive list of all addresses within their corporate boundaries to the telecommunication carriers upon the carriers' requesC. Also, the telecommunication carrier would be held harmless from error if they failed to collect the municipal telecommunication tax from an address not included on the list. The Illinois Municipal League raised concerns regarding the burdensome mandate this _ ... _.. ____._. legislation mould place. ot1_munic~alities..._Senator Donahue .indicated that she and_the_~roponents of the bill would be willing to work with the League to reach a compromise. The League will keep you informed of further developments, however; we oppose House Bill 6012 in its current farm. The Senate Revenue Committee approved the bill on Wednesday, Apri124. IML OPPOSED. Local Option Indemnification For Attorneys' Fees House Bill 4354 (Senator Dennis Jacobs, D-East Moline) would amend the Local Governmental and Governmental Employees Tort Immunity Act by permitting a local public entity to indemnify an employee or former employee for attorneys' fees incurred while defending a claim or action instituted against the employee based on an injury allegedly arising out of an act or omission occurring within the scope of employment. While the IML is neutral on the attorney fee indemnification authority, we are apposed to a Senate amendment that increases the mandatory indemnification cap from $500,000 to $1,000,000 for compensatory damages required to be paid by the employing municipality in the event of a judgment against a police officer. HB 4354 passed out of the Senate Judiciary Committee. The full Senate will next consider HB 4354. IML OPPOSED. TIF Clean-Up/Extension Bill Goes To Governor House Bill 4053 (Representative David Leitch, R-Peoria/Senator Christine Radogno, R- LaGrange) is the 2002 TIF clean-up legislation. The bill. continues to clean-up provisions added to the TIF law in 1999 that resulted in problems and confusion for communities establishing new TIFs or amending existing TIFs. Specifically, the bill establishes consistent standards for triggering provisions applicable to housing TIFs and clarifies notification procedures for residents living within 750 feet of the boundary of a new TIF. The bill also extends the life of several older TIFs to empower them to complete existing projects and take advantage of new opportunities within the T1F's existing boundaries. HB 4053 has passed both chambers and will next be considered by the Governor. IML SUPPORTS. Regulation of After Hours Clubs House Bill 4188 (Representative Bill Mitchell, R-Decatur/Senator Duane Noland, R-Slue Mound) would allow counties and municipalities to regulate and license establishments that allow patrons to bring their own alcohol and consume the beverage on the establishment's premises. This bill is an attempt to regulate adult entertainment establishments that do not serve alcohol but allow their customers to bring their own alcohol into the establishment. This bill was approved by both chambers and is headed for the Governor's desk. IML SUPPORTS. Legislative Bulletin 2002-12 ~ Apri126, 2002 ~ Page A-1 STATUS REPORT The following is a list of all active ills the Illinois Municipal League is tracking and the r status. As you may know, the status of bills pertains to their ad ancement in the legislature: First Reading refers to th introduction stage, Second Reading refers to the amendment st ge; and Third Reading refers to the passage stage. So e bills may have a "b", "h" or "s" next to the bill number. This refe s to amendments that were added to the bill: "b" = a endments from both chambers, "h"= amendment from House; "s '= amendment for Senate. For additional iuformation, please do not hesitate to call the League's Legislative Staff. This rep rt was printed on April 26, 2002 at 8:30 A.M. This status report contains 1S hills hat are currently in the Rules Committee of the Hous or Senate. Bills in the Rules Committee, at this time, are essentiall dead. Future reports will no longer list these bills. HQLTSE BILLS 16$9h REITZ 3632 SCULLY 3682h BASSI 3695h GROTTY 3734 OSMOND 4023b SLONE 4053h LEITCH 4091 RIGHTER 4172h TURNER,ART 4187h BURKE 41$8h MITCHELL,BILL 4255b WOJCIK 4326 MOFFITT 4354b WINKEL 4397 WAIT 4411h MEYER 4446h POE 4527h REITZ 4988 MATHIAS 5709 BEAUBIEN 5727h WINTERS 5728 WINTERS 57$Oh MATHIAS 6012b CURRY,J'ULIE FIRE EPT FAIR TESTING 02-04-25 S C FIREW RKS~-BILLBOARDS BANNED 02-04-04 S R OPEN EETINGS-SECURITY 02-04-04 S R EMERG NCY EVACUAT--DISABILITIES 02-Q4-04 S R PAYME T-ELECTRONIC TRANSFERS 02-04-18 H P LOCAL PLANNING-TECH 02-04-25 S C. MUNIC PAL CODE-TIF DISTRICTS 02-04-24 H P GOVT ORT IMMUN=PATIENT CARE 02-04-09 S R EARNS INCOME CREDIT-NO REPEAL 02--04-16 S R ST TR AS-COLLEGE SAVINGS 02•-04-18 S C. LOCGO -LIQUOR REGULATION 02-04--25 H P. ELECT OLOGY PRACTICE ACT 02-04--25 S C TREAS RER-ROAD GRADER LOANS 02-04-09 S C. TORT MMUNITY-ATTY FEES 02-04-25 S C. MUNI D-NUMBER OF ALDERMEN 02-04--23 S C OPEN SET-FOI-TERRORISM 02-04-25 S C. DISAS ER WORKER-GOV LEAVE 02-04-10 S R PENSI NS-TECH 02-04--04 S R MUNI D-DEMOLITION 02-04-24 S C. TELEC M-EMERGENCY CONNECTIONS 02-04-18 H P. AGRIC LTURAL LAND PRESERVATION 02-04-09 S R LOCAL LEGACY ACT 02-04-03 S R SCH C -REVIEW BUILDING PLANS 02-D4-10 S R MUNIC PAL TELECOM TAX-SITUS 02-04-25 S C. SENATE HILLS 1537s WALSH,T EMERGE 1543s PETERSON TAX E7? 1565s RAUSCI-IENBIaRGER ENERGY 1606 DILLARLi SR CI'I 1622b DELEO FIRE 5 1635s SYVERSON MUNI C 1704 KLEMM GRIM F 1756s CULLERTON' OPEN N 1760s RAUSCHENBERGER RETLRw 1763s KARPIEL VEH CL 1803b WATSON ENVRNN 1882s SYVERSON PUB CC 1909s KARPIEL LIQUOR 1951s JACOBS PRIV S 1958 MYERS MUNI C 1963 SIEBEN ENERGY 2037 BOWLES SALES-- 2072s DILLARD ENVIRC 2132s WALSH,L VEH CL 2159 KLEMM VEH CL 2161s LINK VEH CL 2232b KLEMM FIREWC 2294s KLEMM REAL P 2319 LAUZEN MUNI C CY EVACUAT-DISABILITIES 02-04-24 S P MPT-AGGREGATE 02-04-18 H P EFFICIENCY LOAN FUND Q2-04-18 H P ZEN TAX DEFERRAL-INCOME 02-04-24 S P RINKLER CONTRACTOR LIC 02-04-18 H C ~-NUMBER OF ALDERMEN 02-04-22 H C O-ARREST-JURISDICTION 02-04-16 H P STING-WEB POSTING 02-04-23 H P OCC TX EXMPTN-ENT ZONE 02-•04-18 H P COVER OR TARPAULIN 02-04-18 H R TL PROTECTION-BROWNFLDS 02-04-25 S S STRUCTION BOND-TYPE 02-04-04 H R PUBLIC OFFICIAL-LICENSE 02-04-04 H R CURTTY-EXEMPTIONS 02-04-04 H R -ADVISORY REFERENDA 02-03-06 S C SAVINGS CONTRACT 02-03-07 S C. SE TAXES-MUNICIPAL 02-04-23 H P MENTAL-WATER SUPPLIES 02-04-23 H P TRUCKS TO LANDFILL 02-04-24 H H AUTOMATED RED LIGHT 02-04-18 H R ABANDONED VEHICLES 02-04-23 S P. KS-FIREARM-BIRD CONTROL 02-D4--18 H P OPERTY-TECH 02-04-25 H C -HOME RULE USE TAX 02-04-03 H R MMITTEE SEXC F RULES, SRUL F RULES SRUL F RULES SRUL SS BOTH HSES L ORDER 2ND SS BOTH HSES F RULES SRUL F RULES SRUL L ORDER 2ND SS BOTH HSES L ORDER 2ND L ORDER 1ST L ORDER 3RD L ORDER 2ND L ORDER 2ND F RULES SRUL F RULES SRUL L ORDER 3RD SS BOTH HSES F RULES SRUL F RULES SRUL F RULES SRUL L ORDER 2ND ,S BOTH HSES CAL2 SHR DBT CAL2 SHR DBT S BOTH HSES OR2 SHR DBT OR2 SHR DBT CAL3 SHR DBT CAL3 SHR DBT CAL2 SHR DBT ES COM-1HRUL DESK CONCR RULES HRUL RULES HRUL RULES HRUL ORDER 3RD ORDER 3RD CAL3 SHR DBT CAL3 SHR DBT 2ND-STD DBT ES COM-1HRUL $ BOTH HSES CAL2 SHR DBT MITTEE HEXC RULES HRUL Sam le Resolution #2 RESOLUTION CONCERNING STATE INCOME TAX AND PI~OTOPROCESSING TAX SHARED WITH MUNICIPALITIES WHEREAS the Local Share of the Illinois Income Tax is one tenth or 0.3% of the 3% individual income tax and 0.48% of the 4.$°Io regular corporate income tax; and, WHEREAS a change to one_eleventh will reduce each and every Illinois municipality's revenue by approximately $b.75 per person, per year; and WHEREAS the $$4 million per year received by the State of Illinois. from this raid on the historic local share of state income tax will not significantly solve or ameliorate a state budgetary hole of at least one billion, two hundred million ($1,200,000;000) which is over fourteen times the eighty-four million ($84,000,000) local government takeaway; and ..._. __ _. WHEREAS municipalities, since the adoption of sales tax reform in 1986 have received money from the state sales tax raised from photoprocessing; and WHEREAS that photoprocessing revenue is distributed to municipalities at the rate of _ approximately $2.10 per person; per year or about $26 million per year; and WHEREAS municipalities have suffered just as severe a loss of incometax revenue from the faltering economy and the recently enacted Federal Economic Stimulus Package; and WHEREAS municipalities have already been required to make budgetary cuts to accommodate lowered revenues from income tax, sales tax, motor fuel tax and utility tax; and WHEREAS proposals before the Illinois General Assembly have suggested that the local one- tenth share of the state income tax be reduced to aone-eleventh share and that the photoprocessing tax sharing with municipalities be abolished; and WHEREAS those changes would reduce local revenues by a total of $8.85 per person, per year for a total loss of $110 million per year statewide ar $ to the City/Village of :and WIiEREAS Illinois munici al officials feel the General Assembl , b talon .this action, would _____~. ......_.~ -- m be reneging on a longstanding, mutually beneficial partnership with Illinois municipalities. NOW THEREFORE BE IT RESOLVED that the CityNillage of assembled at its regular meeting of 2002 urges the Illinois General Assembly and Governor George Ryan to oppose efforts to reduce the local government share of the Illinois Income Tax to less than the current one-tenth of net receipts and to abolish the sharing of State Photoprocessing Tax with municipalities. Adopted: (Date) President City/Village #1 REST PHOTO] 1TION CONCERNING STATE INCOME~AX AND OCESSI G TAX SHARED WITH MUNI IPALITIES WHEREAS the ity/Village of has a population o ;and WHEREAS Illin is municipaliti s receive 1/10 of the Illinois incnrne tax pro eels and all of the revenue f m the state p toprocessing tax; and WHEREAS,IIIin i$ munici aliti s de nd on this revenue tolarovide first res onse in police, fire and publi works directl affecting the citizens; and WHEREAS Illin is municipaliti shave already received a reduction in reven es due to the national a onomic downt rn both in the shared income tax and sales t x proceeds; and WHEREAS muni ipal costs hav increased this year due to homeland defens costs and providing ther vital serv ces; WHEREAS muni ipalities are ci Governm nt Distributive municipal bills; WHEREAS all st to shared reve~ NOW THEREFO BE IT RES OPPOSIT ON TO REDL STATE COME TAX ~ MUNICIP CITIES. Adopted (Date) City/Village y suffering late payments through the causing shortfalls throughout the state is essential to municipal services. VED THAT THE CITY/VILLAGE OF ,,,.,_,. DOES HEREBY GO ON RECORl= vG STATE SHARED REVENUES, ES 7 PHOTOPROCESSING TAX, TO ILL IL President Mate's Local n meeting J STRONG .CIALLY THE. OIS ~i~'~. ........,1. ,,,,,iii,'. •1••1..•1 1 1""'lli~l~uy~l~ ~ 111 Vii.i.A('E C1H PLAINFIELD Apri130, 2002 To: Mayor Rock and the Board of Trustees From: Chris Minick, Finance Director Subject: Loss of Municipal Revenues Susan Janik VILLAGE CLERK Recently, the Illinois Municipal League sent out information that under a proposed state budget plan, the State is proposing to change the distribution of tax revenues that municipalities receive from the state. The plan would reduce the Village of Plainfield's revenues by approximately $115,000. Under the plan, the State would reduce the amount of income tax distributed to municipalities from 1/10th to 1/11`" of collections. The plan also eliminates the entire amount of the municipal share of the photo processing tax. The plan was devised to address the State's budget shortfall for the coming fiscal year. It is important to note that total taxes paid by residents do not change under the plan. The only change is the distribution of those taxes, with the State taking a much larger percentage than in the past. Attached is a resolution opposing the plan as written. Because of the large negative impact to the Village, Staff is recommending approval of the resolution. Staff is also requesting that the Board direct that the Resolutions be forwarded to Representatives Cross and Hassert, and Senator Petka to make them award of the significant fiscal impact this plan would have on the Village. Recommended Action: 1. A motion to approve Resolution Number regarding pending Legislation 2. A motion to direct staff to forward copies of the resolution to Representatives Cross and Hassert and Senator Petka. Richard A. Rock PRF,sIDENT TRiJSTEES Stephen J. Calabrese Jahn H. Cherry Michael Collins Kathy O'Connell Ron Swalwell Stephen Thomson 530 W. Lockport Stteet Suite 20G Plainfield, IL 60544 Phone (815) 436-7093 Fax (815) 436-1950 Web www.plainfield-il.org