Letters

Perpetuating a myth

EDITOR: In his over-all excellent article in the October issue, Robert Howard continues to perpetuate a myth when he states that Gov. Thompson, when he took office in January, 1977, "found the state at the edge of financial ruin." The facts:

1. The balance in the general revenue fund on January 1, 1977 was about $100,000,000.

2. Just recently, I read that Gov. Thompson stated that the current balance was about $98,000,000. Why doesn't Mr. Howard state that Gov. Thompson has brought the State to the edge of financial ruin?

3. Neither $100,000,000 nor $98,000,000 is the edge of ruin.

Actually, Thompson, no more than I, has brought the state to the edge of ruin.

Thoughtful observers know that Gov. Thompson faces this year the same problem I faced in 1974-1975: a crippling recession which dealt a heavy blow to State income tax and sales tax revenues. The Chicago Tribune, notably, and probably also Mr. Howard chose to blame the low general fund balances in 1976 on my stewardship but, not surprisingly perhaps, no blame is assessed to Gov. Thompson for the same situation this year.

Mr. Howard can't have it both ways. The facts are that neither Gov. Thompson nor I could stop a recession.

                    Gov. Dan Walker
                    Oak Brook

Coal Severance Tax

EDITOR: I am writing to update some of the information on the issue of an Illinois coal severance tax in James Krohe Jr.'s very interesting article, "Energy taxes/taxes on energy." Earlier this year, Illinois South Project, the United Mine Workers of America (UMWA) District 12, and a coalition of county boards from coal producing counties around the state wrote a coal severance tax bill (sponsored by Sen. Gene Johns) which we feel strikes a reasonable balance among the interests and needs of coal producing counties, consumers and energy companies. It is significantly different from the bill described by Mr. Krohe.

Our proposal would create a 2 percent severance tax (about 50-60 cents a ton) on the value of all coal mined in Illinois. One-third of the revenues would be retained by the state. The remaining two-thirds would be returned to the producing county, half for capital and economic development projects and half as general revenue. The producing county would have the option of setting aside up to 50 percent of its share as a fund to help cushion the final bust when its coal is gone and the mines close.

This modest 2 percent tax would generate approximately $48 million in fiscal year 1984. The Illinois Energy Resources Commission estimates it would add only 19 cents a year to the average Commonwealth Edison residential consumer's utility bill. Those in the Central Illinois Public Service area would see only a $2.29 a year increase. As for the existing level of taxes, a 1979 study done for the West Virginia legislature on the total tax burden imposed on coal companies by the top 10 coal producing states showed Illinois ranked sixth. Revisions in the Illinois workman's compensation program have since decreased the total tax bill.

Finally, in relation to the competition with Western coal for the Midwest market, in 1980 the cost of shipping Montana coal to Illinois was 50-60 percent of the total cost. These transportation costs have been increasing rapidly in recent years. Therefore, the 2 percent increase in the cost of Illinois coal would be offset by increasing transportation costs.

Perhaps the bottom line in the whole argument is that the general economy and a high sulfur content are the two greatest hurdles in marketing Illinois coal. Illinois South, the UMWA and other severance tax proponents are actively working on solutions to the "sulfur problem." Further delays in adopting a coal severance tax is not a solution. In the meantime, Illinois is losing much needed revenue, and some coal producing counties will run out of coal within the lifetime of today's coal miners. Illinois needs both positive initiatives for removing sulfur and a coal severance tax! We need them now!

                    Steve Pittman
                    Staff Member
                    The Illinois South Project, Inc.

Power to the president

EDITOR: Robert Mackay's column about my line item veto amendment ("Dixon: Power to the president," October) is accurate and well-balanced. I am pleased he chose to write on the subject.

The legislative schedule leading up to the October recess of Congress was crowded, and hearings on the amendment were not held.

We still have the assurance of Senator Thurmond that the Judiciary Committee will hear the issue, and I guarantee the legislation will be re-introduced in the next Congress.

                    Alan J. Dixon

Saving Illinois farmland

EDITOR: Words cannot adequately express the satisfaction and encouragement I received from the recent publication of Jim Krohe Jr.'s writings on Illinois farmland, Breadbasket or Dust Bowl?

This publication is a valuable contribution to the state and a testimonial to the importance of Illinois Issues magazine.

                    Douglas L. Whitley, President
                    Taxpayers' Federation of Illinois

December 1982 | Illinois Issues | 29