Legislative Action
By DIANE ROSS

LIKE THE NATION, Illinois' issues for 1980 center on an economy which flirts with recession. To Illinois lawmakers, jealous of the seductive charms of the Sun Belt states, that means one thing: revamping the business "climate" in industrial, yet frigid, Illinois. At issue this year is workmen's compensation. The agreed bill process produced a compromise last year on unemployment insurance, and labor and management will try again this year to use the agreed bill process for workmen's comp.

Like the nation, Illinois is wrestling with energy. And with nuclear energy and last spring's accident at Three-Mile Island in Pennsylvania, one issue is nuclear safety. Illinois has seven plants operating, eight under construction and two more on order. One dilemma of the nuclear power industry is its radioactive wastes. Morris is the nation's only nuclear waste disposal site accepting spent fuel. And burdened with waste shipments from other states, the Illinois site is nearing capacity.

Like the nation, Illinois is still inflamed with emotional issues such as ratification of the proposed Equal Rights Amendment and the legalization of abortion. After seven years, righteous indignation continues to fuel both sides. It's unlikely the ERA proponents can change enough minds in the Illinois legislative rules committees to change the vote requirement to a simple majority, which they need to win. Since last year's abortion bill has already become stuck in the courts and appears to be unconstitutional, it's unlikely clearly constitutional changes will be made.

To lawmakers, however, emotional issues pall when compared to energy or the economy. And 1980 is an election year — a very special election year. Presumably, the voters will decide which party controls reapportionment in 1981 when we may see the dawn of a new political day.

Of course, taxpayers stand to gain in an election year. But only as much as is absolutely necessary for one party to beat the other. Taxpayers will get a little of everything — tax relief, tax reform, government spending controls — as long as the state cuts its losses.

The issues remain the same; only the bill numbers change. The issues, as the 81st Illinois General Assembly reconvenes for its second year are those unresolved during its first year. Technically, 1980 is an "off" year given to appropriations. But the issues this year include those that only appeared to be resolved in December: the income tax surtax replacement for the corporate personal property tax, the new funding formula for the road program, the reduction of the sales tax on food and nonprescription drugs. Compromises on each left plenty of room for the special interests to wiggle to better advantage.

Labor/state personnel

On workmen's compensation, the agreed bill talks have already bogged down. However, some observers see that as an attempt by the Illinois State Chamber of Commerce (ISCC) and the Illinois Manufacturers' Association (IMA) to play politics in an election year. Labor and management may well forego workmen's compensation and fight over something else. Chances are slim that real reform would have emerged this year anyway, considering the less-than-pleasing compromise on unemployment insurance last year. Whatever the outcome, the AFL-CIO continues to demand bigger benefits despite the effect on Illinois' business "climate."

Pensions are still a hot topic. With the passage last year of no-penalty early retirement for elementary and secondary teachers, no doubt university, civil service and legislative employees will demand equal benefits. And those not yet entitled to the 3 percent per year increase in post-retirement benefits will keep trying. At the heart of the issue: the state's obligation to future pensioners is piling up.

Other labor/state personnel issues this year may involve raising the state minimum wage to keep pace with the federal, and AFSCME's (American Federation of State, County and Municipal Employees) increasingly powerful push to legalize collective bargaining for all state personnel, especially teachers.

Revenue

Despite the special sessions last year, the tax issues are not resolved.

The Democrats, unhappy with the income tax surtax compromise, will fight the drop in rates effective in 1981. However, the Illinois Supreme Court recently upheld the constitutionality of the surtax as revenue replacing rather than revenue generating. So the ISCC will try a new tack: capping collections which are running well ahead of predictions.

Still, the old corporate personal property tax may result in a significant spending control: abatement. Because of the uncertainty of the constitutionality of the surtax replacement, schools and other taxing districts dependent on the revenue raised their levies to cover possible losses. That means a windfall now. Taxes will stay up because there's no law which allows districts other than municipalities to lower levies. But for certain, legislation will be proposed.

Many Democrats, unhappy with the penny sales tax compromise, will fight to drop at least another penny before the November elections. But more sales tax relief might present a future revenue dilemma for the state. Unlike the income tax surtax, the reduced sales tax won't take effect until fiscal 1981. So it will be a year until the real loss to the state is known.

Suburban Republicans, unhappy with the increase in upstate sales tax to subsidize the Regional Transportation Authority, will fight to rewrite the formula. But success there will depend on the coalition that suburban Republicans can put together.

Because of their strategy in using sales tax relief against Gov. James R. Thompson, the Democrats relegated all other tax relief tax reform, and state spending control to the back burner. An election year, however, may put the heat on increasing the

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homestead exemption, expanding the circuit breaker and even indexing the income tax.

Last fall saw the surprising success of House attempts to tie state revenue to personal income. That may increase the chances such controls will be written into the Constitution. However, the so-called Totten Amendment faces a tough test in the Senate, where it is up against Thompson's choice, the Bloom Amendment.

Energy/Environment

Some of last year's nuclear safety bills were hastily introduced within hours of the deadline last spring. Others reintroduced from session to session, have had sponsors change two or three times. But in the wake of Pennsylvania's problem, all were sent to a subcommittee for further study. The subcommittee is expected to recommend a multi-bill package including a moratorium on new plants as well as reciprocal disposal of other states' waste, both considered compromises. The package may include elimination, or at least consolidation, of the overlapping state agencies which regulate nuclear power in Illinois.

The biggest environmental issue will be mandatory motor vehicle emissions tests required by July 1 in the six-county Chicago area and the two-county St. Louis area. Pollution levels in these two areas violate the federal clean air act. Drivers will not be able to get license plates unless or until vehicles meet minimum pollution standards. Other environmental issues may include tax checkoffs for comprehensive wildlife preservation and coastal zone management.

Education

The situation in Chicago will steal the show for the first part of the session, since the city schools' credit rating has dropped so low that the state will probably have to bail them out. That could have a drastic effect on downstate schools. At year-end, school officials were not sure how much money Chicago schools needed. Apparently they'll try two things: asking for additional state aid and/or permission to raise tax rates without a referendum. But Thompson knows he can't agree to any plan that would jeopardize the state's AAA credit rating.

Transportation reimbursement has become another hot topic. The current formula rewards an efficiency impossible to practice in sparsely populated southern Illinois. The new formula written by the Office of the State Board of Education (OSBE) did not do well last year. As a result, the Illinois Association of School Boards, the governor's Bureau of the Budget and the legislature's School Problems Commission are now writing new formulas of their own. Otherwise, elementary and secondary education will feature the traditional main event: hiking the school aid formula to offset a declining enrollment and fanagling full funding under the formula.

As a result of a lawsuit to allow some students in Normal to avoid physical education classes on religious grounds, the OSBE has come up with a new bill to sanction substitute courses for such "conscientious objectors."

Late last year, the Illinois Board of Higher Education announced its decision to let the four university governing boards handle their own tuition increases, with the recommendation that tuition be tied to the cost of living.

Financial institutions, insurance, public utilities

Branch banking will be back. But this year most legislation will probably involve tinkering with last year's law legalizing electronic funds transfer systems. It's too early to tell what effect this form of branch banking will have. While banks were not totally happy with it, they did work together for the first time. And savings and loans may want to expand into electronic funds transfer.

Rate regulation is still the insurance issue. The regs have lapsed for property and casualty coverage, remaining in effect only

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Legislative Action

for workmen's comp. New regs will center on rating factors. And, chiropractors, for one group, will seek coverage for their patients.

An Illinois Commerce Commission (IlCC) study now underway on the effect of the varying fuel adjustment clauses could lead to new standards for electric utilities and gas suppliers.

Some observers predict more to come on banning utility shut-offs during the winter. The law passed last year ties cutoffs to freezing temperatures, but that may be an impractical approach.

Local government

Illinois' dubious distinction as the state with the most taxing districts — 6,500 — continues to draw debate. Legislation to abolish many — from airport authorities to mosquito abatement districts — attracted 300 at hearings across the state last fall. Loosening requirements for taxing districts to publish notices in general circulation newspapers is drawing the ire of the Illinois Press Association because of the adverse effect on advertising revenue.

Social services

Some observers see regulation of rates for state-purchased care as the real issue this year. Hospital rates are regulated, although the real effect won't be known for another year. Day care and nursing home care are without rate regulation, and state-purchased care in both areas is approaching $3 billion a year, or about 25 percent of state spending. A number of state agencies are involved in regulating reimbursement under welfare, but observers expect legislation this year to propose a new code department for regulating rates for all state-purchased care.

Human resources will emerge as appropriations issues this year as the fiscal impact of reforms passed last year becomes known: nursing home reform, increased child abuse reporting and expanded in-home services to avoid institutionalization of the elderly. In addition, Cook County Hospital will remain an issue. The state bailed out the bankrupt hospital last fall, but transferred jurisdiction to the Cook County Board whose new funding formula is expected to call for more state aid. And the cost of housing prison inmates will remain an issue as the Department of Corrections reports a 2,000-bed shortage in housing its 13,000 inmates.

Other issues include catastrophic health insurance, teenage pregnancy, infant mortality, long-range planning for foster children, local responsibility for the developmentally disabled (unburdening overcrowded state facilities), blood supplies, generic drugs, statewide emergency medical services and restaurant inspection. In addition, overhauling the public aid code for the first time in more than a decade could become an issue if a commission recommending changes completes its report this spring.

Civil, criminal justice

This year may see reform of landlord-tenant laws. The realtor-written bill stalemated in committee last year, with only the Legislative Support Center claiming tenants would be shortchanged. However, the Illinois Bar Association now backs the renters. Perennial issues expected are: medical malpractice, product liability, probate reform (supervised versus independent administration of estates). A new issue may be: premises liability differentiating among business guests, social guests, soliciters and trespassers.

In a replay of last year, criminal judicial issues will center on alternative sentencing for those guilty by reason of insanity, legalization of marijuana, spousal rape, statewide funding for public defenders and stricter standards for continuances that confine the courts to a snail's pace.

Other topics

Agriculture issues may include tax credits to encourage preservation of family farms, state subsidies for cloud seeding and other forms of weather modification, and state takeover of meat inspection in Chicago.

The effect of the so-called "blind" primary law passed last year, which allows Illinois Republicans to take the nation's only uncommitted delegation to Detroit this summer, may become an issue depending on the outcome of the March 18 primary.

Motor vehicle issues may include extending implied consent laws to marijuana.

State government organization will focus on realigning human service programs, rather than the social service agencies themselves. Other issues will center on recommendations by the governor's cost control task force. Whether it's this session or not, the 1980's will undoubtedly bring legislative recommendations from the Illinois Futures Task Force Study Commission and it's private sector counterpart, the ISCC's Illinois 2000 Foundation.

26/February 1980/Illinois Issues