Legislative Action By Nora Newman Jurgens

CAN THE STATE of Illinois raise money while its citizens have fun? Sure, by taxing the sources of the fun.

One of the points of Gov. James R. Thompson's triumvirate of tax increases is just such a tax — the one on liquor. Last year he tried but failed to raise this, the biggest of the "sin" taxes.

Proposing to generate $50 million in additional revenue a year, S.B. 1296, sponsored by Senate Minority Leader James "Pate" Philip, would increase current taxes on all types of liquor by about 65 percent. The increase would raise the price of a six-pack of beer 2.5 cents, a bottle of table wine 3 cents, and a quart of hard liquor 32.5 cents. The liquor industry, however, claims the tax increase would force small liquor stores and taverns to close, encourage bootlegging, and "drive" consumers living near other states over the border to buy liquor.

The governor has been pushing fora liquor tax increase for the past two years. He was unsuccessful last year, and House Speaker Michael J. Madigan said May 20 that the bill would not pass this year.

Taking advantage of the wagering instinct, Illinois already makes money from bingo, horse racing and the state lottery. Two Democratic legislators want to extend gambling in the state by legalizing greyhound dog racing, claiming it would raise some $60 million in additional revenues a year ($50 million of which would be earmarked for job training programs). Dog racing is the sixth largest spectator sport in America, with 21 million people a year attending the 14 tracks existing in the country, according to E.J. "Zeke" Giorgi (D-68, Rockford) and Larry Bullock (D-23, Chicago), sponsors of H.B. 1583. Another bill by Giorgi, H.B. 1828, would set aside $10 million from dog racing for grants to municipalities for repairing roads, sewers, etc.

H.B. 1583 would create the Illinois Greyhound Racing Board, patterned after the current Horse Racing Board. Bullock and Giorgi say that while the six tracks used for horse racing would also be used for dog racing, additional tracks could be built. They predict between 5,000 and 6,000 jobs would be created.

The Giorgi-Bullock bill was supported in committee testimony by the Rev. Henry Nicholson, pastor of the Truelight Baptist Church in East St. Louis. Nicholson urged passage of the bill to help ease unemployment in his community. While not advocating gambling, Nicholson said citizens in East St. Louis were in "dire need" of the benefits to be accrued from a dog track.

Opponents said dog racing posed a threat to the state's horse racing business, so to a chorus of "woofs" and "bow-wows" the House defeated the Giorgi-Bullock bill, 43-64, on May 27.

Other "sin" tax bills this session would have legalized gambling in Chicago; allowed nonprofit organizations to conduct "Las Vegas Night" fund raisers; and legalize off-track betting. All these bills were placed on the legislature's interim study calendar — meaning they didn't have enough votes to get out of committee and onto the floor. While under study, they are technically "alive" for future consideration.

26/July 1983/Illinois Issues

All of the "wages of sin," including the liquor tax increase and dog racing, would generate about $521 million for the state in the next fiscal year. By comparison, the state spends $12,560 a year for each of its 13,127 adult prisoners. If used for corrections, the $521 million could maintain 41,481 adult prisoners.

July 1983 | Illinois Issues | 27