The 1991 session of the eighty-seventh General Assembly will long be remembered in the history of Illinois. The session was consumed by four major overriding issues: the redistricting of legislative and judicial territory, the income tax surcharge, the concept of property taxation and limitation thereof and finally the state fiscal 1992 budget.

The year began with Governor Edgar giving the State of the State Address. The tremendous fiscal problems became evident in the Governor's Budget Address in March. The General Assembly then began work on legislation in April. However, at the far end of the tunnel was the early morning hours of July 19, the final adjournment. At times it honestly looked that the end was going to be much farther down the road.

Well how did the major issues turn out for municipalities? The legislative maps finally passed and were vetoed by the Governor. The next step in the process is already in place, the bi-partisan commission is attempting to draw a legislative map. The judicial map was signed and that's finished.

The income tax surcharge was on the front burner all year. The League has been working with our members for two years encouraging active support of the extension and retaining the same percentage of distribution. That work paid dividends when the subject changed from "municipalities didn't ask for the money they don't need it" to what percentage of distribution will municipalities receive. Up until the final end the League supported the same distribution and encouraged our membership to do the same. The eventual outcome and the distribution could have been better. BUT IT SURE COULD HAVE BEEN WORSE YOUR HONOR. Municipalities will receive, in 1992, 50% of the local government share and the state will get 50%; in 1993, municipalities will receive 75% and the state 25%. The League's Legislative Bulletin 91-17 contains the League's analysis and projections for the surcharge. Remember, on July 1,1993, the local government portion of the income tax surcharge expires. The education portion of the surcharge is permanent. Well . . . get ready to begin the lobbying effort to return the local governments share to 100% and make it permanent.

Next, the concept of limitation of property taxation by local governments was an extremely difficult and long battle. A battle that is not over with by any means. In the end, the five collar counties of Lake, McHenry, Kane, DuPage and Will are faced with the difficult task of delivering services under a property tax cap of 5% or the Consumer Price Index, whichever is less, unless otherwise approved by a referendum. This cap does not apply to home rule municipalities. In the County of Cook all units of local government will levy taxes on a prior year known as Equalized Assessed Valuation in 1992. How these dramatic changes will work is yet to be understood — Legislative Bulletin 91-17 goes into detail on these provisions. The League strenuously opposed property tax limitations all session and remains opposed. The future will determine what efforts may be directed at the rest of the state.

The State's 1992 fiscal year budget was tremendously out of balance. The Illinois Constitution requires a balanced budget. The Governor's budget address was only the beginning. The fiscal deficit numbers grew all session and the revenue number went downward. The State was and has a large fiscal problem. Given the tremendous cuts in programs and layoffs, it will be some time before it gets better. Knowledgeable budget negotiators predict next year to be even tougher.

Well, it was a legislative session that will be remembered for a long time. The League appreciates the hard work our members put forth this year. Without your efforts and support the League's voice in Springfield would not be as stong. Thank you. •

August 1991 / Illinois Municipal Review / Page 5