Executive Report

THE Council of Great Lakes Governors adopted a resolution in November, proposed by Gov. James R. Thompson, which is aimed at preventing diversion of Great Lakes water. "I am convinced that serious attempts will be made to study and authorize construction, with federal approval, of facilities to divert significant quantities of Great Lakes water to water-short areas in the western United States," Thompson said. The governor compared the diversion of water to the exporting of jobs from the state.

The resolution calls for the Great Lakes states to support federal legislation that will regulate any interstate diversion of Great Lakes water. The legislation, S 2026, sponsored by Illinois Sens. Charles H. Percy and Alan J. Dixon, and HR 4366, sponsored by Rep. William Lipinski (D-5, Chicago), will require the approval of the Great Lakes states and the International Joint Commission (IJC) before allowing any interstate diversion of Great Lakes water. The bills also declare that the Great Lakes states' preference of water use "will not be considered an impermissible burden on interstate commerce" and that the IJC, in accordance with the Boundary Waters Treaty of 1909, must approve any federal feasibility studies of transferring Great Lakes water. The Great Lakes water diversions resolution, signed by the governors of Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin, addresses the findings of the IJC's Great Lakes Diversions and Consumptive Uses Study Board. The board projects that the use of Great Lakes water will increase from a rate of 4,900 cubic feet per second (cfs) in 1975 to approximately

16,000 to 37,000 cfs by the year 2035, lowering lake levels in the unregulated lakes of Michigan, Huron and Erie anywhere from 0.4 feet to 1.13 feet. Such a lowering of lake levels and reduction of flows in connecting channels could result in serious losses in water supply, navigation, fishery and recreational values causing critical economic, social and environmental problems.

The resolution also calls for each Great Lakes state to adopt legislation prohibiting any diversion of the waters within its boundaries for use outside the state without the consent of the other Great Lakes states and the IJC.

In addition, the resolution calls for setting up a task force with members from each U.S. state and Canadian province bordering the Great Lakes. It is to evaluate the present Great Lakes water compact and make recommendations for strengthening it or other institutional mechanisms to assist the governors council and the IJC in resisting or regulating the diversion of Great Lakes water.

Agency appeals court ruling on real estate 'discount' sales

THE Department of Registration and Education (DRE) is appealing to the Supreme Court a circuit court decision which could change the way real estate is sold in Illinois. The right of Coldwell Banker-Thorsen Company, a wholly owned subsidiary of Sears, Roebuck and Company, to promote real estate sales by using "discount" programs was upheld in a November 21 ruling by the Cook County Circuit Court. The court ruled that Section 15(e)(20) of the state's Real Estate Brokers and Salesmen License Act is invalid because it goes beyond the police powers of the state in prohibiting the use of inducements to secure the purchase, rent or lease of property.

At issue in the suit filed by Coldwell Banker were two discount programs the company wished to initiate. One would allow Sears employees to receive a 10 percent discount on real estate transactions brokered through a Coldwell Banker office; the other would allow the general public to receive discounts on selected merchandise at Sears when they purchase homes through Coldwell Banker.

DRE had issued a legal opinion in May stating that the discount programs appeared to be in violation of Section 15(e)(20). In August the department agreed not to take action against Coldwell Banker if it implemented the discounts until a court ruling on the subject was made. In the ruling, Circuit Court Judge Arthur Dunne agreed that the discounts are prohibited by the statute but said the statute itself is invalid.

Illinois opens office in Osaka, signs trade agreement with Liaoning in China

ILLINOIS opened its fourth international office in November in Osaka, Japan, in a ceremony attended by Department of Commerce and Community Affairs (DCCA) director Michael T. Woelffer and a 45-member Illinois delegation. DCCA also operates offices in Brussels, Sao Paulo and Hong Kong. State Sen. Stanley Weaver (R-52, Urbana) of the delegation said, "Many Japanese companies recognize the mutual advantage of investing manufacturing facilities in Illinois, and our presence in Osaka will encourage Japanese firms to look at the state as a good place to locate, providing jobs for Illinois workers."

During the 14-day tour of Japan and the Far East, Woelffer also signed a trade cooperation agreement between the state of Illinois and the province of Liaoning in the People's Republic of China. The agreement, which names Woelffer the liaison officer from Illinois, essentially specifies that

both parties will notify each other when a potential for increased exports exists, will provide details on bid specifications and equipment requirements and will study further trade cooperation.

Governor unfreezes 30 capital projects

THIRTY projects totaling $13 million have been exempted from the state's capital freeze, Gov. James R. Thompson announced December 5. The governor gave the go-ahead "to protect the state's investment in its buildings, prevent disruptions of important services, spur economic development and protect the public's safety." He also indicated that priority will be given to maintenance of existing facilities in next year's capital budget.

All but $2 million of the funds released come from the Capital Development Fund; the remainder are from the General Revenue Fund.

One of the projects exempted is the conversion of the power plant at Eastern Illinois University from natural gas to coal, including emission control devices which will demonstrate the feasibility of burning Illinois coal. Other energy conservation projects exempted totaled more than $2 million and are expected to pay for them selves within one to three years.

Other projects exempted range from improvements on the Department of Agriculture's Building 13 to land acquisition by the Department of Conservation at Cahokia Mounds.

Rockford voters approve some tax hikes, reject others

HOW is Rockford adjusting to its greatly reduced taxing authority after it rescinded home rule last April? Voters gave at least a short-term answer to that question when they voted November 8 to raise property tax levies for fire and police protection but not for schools and garbage collection.

Without home rule, Rockford's property tax levy would have dropped this year to the state-mandated minimum. Faced with a $6.4 million reduction in 1984 property tax revenues and the prospect of eliminating 151 city jobs, voters approved raising levies the fire and police funds to the maximum level allowed by the state. This will give Rockford $4.6 million in additional revenues and will save 78 jobs. Voters turned down an increase for the city corporate fund which would have provided $2.6 million for garbage collections. To raise that money, residents will now pay a $60 annual fee for garbage pickup. With the tax hikes and the garbage fee, city services will remain, but 51 positions will be eliminated from the work force.

The referenda improved the city's financial position for 1984, but problems loom. City employees, who accepted a pay freeze in 1983, say they will seek raises this year. At that point the city will be taxing at the maximum rate allowed by state law to support the fire and police funds. As a non-home-rule city, the only way Rockford could levy higher taxes in 1985 would be to have the General Assembly raise the ceilings and to hold another tax referendum. The city will also lack about $800,000 in state income tax revenue in 1985 which it received this year as a windfall payment because of the income tax increase approved by the General Assembly.