The state of the State                                                             

Statewide property tax caps top Gov. Edgar's agenda By JENNIFER HALPERIN

Gov. Jim Edgar returned from his January foray into the world of California-style health and fitness to a decidedly more stressful atmosphere: the beginning days of the 88th General Assembly, during which he delivered his State of the State message.

Reactions from Democrats and Republicans were expectedly partisan. New Senate President James "Pate" Philip (R-23, Wood Dale) summed up Republicans' accolades for the governor when he described the speech as "right on the money." "It was the best speech I've ever heard him give," Philip said. "It was absolutely enough for reelection."

Democrats sounded particularly orchestrated in their criticism of the speech as "light on substance," acknowledging only a few "nickel and dime items" as holding any interest for them. Chicago Mayor Richard M. Daley was a little more generous, saying, "Basically the governor's making recommendations and ideas, and I'm glad to listen to them."

He did gently chide Edgar for not focusing more on the need for an economic boom in the metropolitan Chicago area. "Economic development is key. With Sears cutting back now, that's going to affect DuPage County, Will County, and all those layoffs are primarily going to be white-collar."

Even with the absence of fiscal details, the governor's State of the State address on January 27 gave him a chance to outline — if somewhat belatedly — an idea of his vision of government and at the same time gear up for a reelection bid. "I didn't give a State of the State last year," Edgar said after his 45-minute message in the Illinois House before an audience of lawmakers and constitutional officers. "We had to do two budget messages, basically, so we didn't really get an opportunity. But I think I outlined many of the accomplishments of the past two years that came about because we did have some vision."

During his speech, Edgar sounded a general tone of trying to get more for the state's money. He reiterated his opposition to tax increases, saying, "We must not stifle growth through unwanted intrusion into the private sector or through higher taxes."

One of the overriding themes of both Edgar's message and the first few days of the legislative session was a call for statewide property tax caps. "I am not going to call you into special session to enact tax caps as I did two years ago [for the collar counties surrounding Chicago]," Edgar told lawmakers. "But I strongly urge you to act before March 30 so that homeowners throughout Illinois will see savings on their property tax bills this summer."

He reiterated his opposition to tax increases, saying, "We must not stifle growth through unwanted intrusion into the private sector or through higher taxes'

The legislation would limit the increase in property tax extensions to 5 percent or the rate of inflation as shown by the National Consumer Price Index, whichever is less. The limit would apply to all taxing districts, including home rule units, and would allow voters to approve property tax extensions above that level by referendum. "People want this," Edgar asserted. "Talk to anybody from suburban Cook, the city of Chicago. They've seen property taxes skyrocket there as well. Downstate I think it might vary from area to area. There's nothing under the tax cap that says you can't raise property taxes; it just says you have to get voter

10/March 1993/Illinois Issues

approval. Local governments do get more money; they just don't get the huge amounts they've been able to get without going back to the voters."

Philip agreed. "I'm convinced that tax caps are a political solution to a problem in Illinois. Daley has come on board. The assessor for Cook County has come on board. My guess is that they're going to pass."

Unsurprisingly, the Democrats had some complaints on the matter. House Speaker Michael J. Madigan (D-22, Chicago) called the proposal "tax relief for the rich." "Property tax caps operate across the board," he said. "What it means is that someone who owns a large home in DuPage County — a wealthy person — gets relief on real estate taxes, and they get more than a person who owns a small home. The truth is, if someone has enough money to pay $500,000 for a home in DuPage County, then they're going to have enough money to pay their real estate taxes, and they will have been sophisticated enough to determine in advance what the real estate taxes will be on that house before they bought it.

Edgar strongly suggested that he intends to ask that the controversial Medicaid tax on hospitals and nursing homes, which expires July 1, be extended

"I think it's rather interesting that the governor and DuPage leaders would claim tax caps are working," Madigan added. "I would ask, 'Why have they introduced three bills that provide that the entire state will pay for the tax caps? There are three bills introduced that say that if a school district lost money because of a cap, then there will be an adjustment in the school aid formula to make up the loss.

"So they'll proclaim how wonderful it was that they did this . . . but then through the back door they've got legislation that would provide that all of us will pay for it because they still want good school districts."

Edgar also called for specific legislation in a number of areas. How many of his proposals actually make it through the General Assembly will depend in large part on how successfully he's able to bargain with Philip and Madigan, the other two points in the state government power troika. Included among Edgar's major proposals were:

• Creation of an Illinois Teacher Corps, which would allow people with expertise in science, math, foreign language and history to teach high school classes without completing traditional education course work. Instead, they would be trained through intense seminar work in teaching methods, educational theory and practice. In exchange for individuals' teaching commitments, the state would provide tuition assitance toward master's degrees at Illinois universities.

• Establishing a so-called "learning zone" for some Chicago schools, in which clusters of schools and classrooms could operate under nontraditional rules and spending guidelines as long as they prove to help kids learn. This program is part of a reform effort by the national Education Commission of the States, of which Edgar serves as chairman-elect.

• Beginning an apprenticeship program aimed at students who aren't inclined to seek four-year degrees, with a goal of readying them for careers in high-paying technical jobs. During the ninth and tenth grades, students would spend most of their time in school and then would spend progressively more time on the job until the senior year, when they could spend as much as 80 percent of their time at the work place.

• Eliminating the Board of Governors and Board of Regents, as Lt. Gov. Bob Kustra has urged, leaving the individual universities to operate under their own governing boards.

• Appointing instead of electing members of the University of Illinois Board of Trustees, which provoked Madigan to comment: "An appointed U of I board just makes the current cozy relationship between the governor and [University of Illinois President] Stan Ikenberry cozier. They don't have to answer to anybody then."

• Enacting tort reform to cap non-economic "pain and suffering" damage awards in medical malpractice court cases. Missouri adopted similar legislation limiting such awards to $350,000. The cap would not affect actual damages, which cover medical expenses and loss of income.

• Changing the Structural Work Act, adopted in 1907, which holds employers responsible for worker injuries occurring on scaffolds, ladders and other similar structures even if an employee was negligent (such as "jumping" a ladder from one place to another). Edgar would like to see trial courts instruct juries that defendants shall not be found liable in actions based on negligence or product liability if the plaintiff is more than 50 percent at fault.

• Raising fees for landfill disposal of hazardous waste and incineration of hazardous waste to pay for cleaning up the state's 105 hazardous waste sites. A similar proposal failed to pass the General Assembly last year.

• Instituting the death penalty for drug kingpins. Under his proposal, gang leaders or organized crime figures would be eligible for the death penalty if people operating under their direction killed someone as part of a drug deal or if someone died using a controlled substance distributed through their network. Madigan said he didn't oppose the measure, but that he wouldn't want to see it spur an increase in costs for individual counties.

• Setting up mandatory minimum penalties of $1,000 fines or 100 hours community service for first-time drug offenders. Edgar said he wants such convictions kept on citizens' records for at least 10 years so repeat offenders could be identified. He also proposed an automatic six-month suspension of driving privileges for anyone convicted of a drug offense.

Edgar strongly suggested that he intends to ask that the controversial Medicaid tax on hospitals and nursing homes, which expires July 1, be extended. "If we do not continue that program or find a realistic alternative, we will see health care for the poor suffer dramatically."

He also announced two crime prevention programs approved for federal funding by Congress and the National

March 1993 /Illinois Issues/11

The state of the State                                                             

Guard Bureau of the U.S. Department of Defense. "Lincoln's Challenge" is a five-month residential program at Chanute Air Force Base in Rantoul. It will put high school dropouts on track toward receiving a General Equivalency Diploma while at the same time teaching them about a host of issues, from financial planning to career development to sexual responsibility. Participants would be expected to take part in community service, and may receive a $2,200 stipend upon completing the program. Sixteen- to 18-year-olds can begin applying for entry this spring.

The other program is "First Choice," which will incorporate fitness training and life skill development for 9- to 18-year-olds. Activities and training will be based at National Guard armories in Chicago's Humboldt Park, Washington Park and near its Robert Taylor Homes and in armories in Peoria, East St. Louis and Springfield.

Other notable points in the governor's message included his vow to veto any unfunded mandates passed through the General Assembly — as he did last year — and to press forward this spring with his Healthy Moms, Healthy Kids program, designed to improve access to primary and preventive care for 900,000 children and 58,000 pregnant women served by Medicaid in Illinois. The program's aim is to attract more physicians throughout the state to participate in Medicaid by offering higher fees and faster payment. Case managers will be assigned to help families keep doctor appointments, follow up with prescribed treatment and return for medical checkups and immunizations when needed. In Chicago, it will operate as a managed care program, and clients will select a single health-care provider for all medical needs. Participating physicians will be paid a monthly fee to coordinate each client's health care.

Edgar also intends to issue an executive order creating the Commission on Regulatory Review to address regulatory barriers to business expansion. The commission will act as an advisory body to state agencies for rule-making, and it will work closely with the Illinois Economic Development Board.

This idea didn't sit well with the Democrats. Madigan offered an especially stinging critique, comparing the idea to the national "council on competitiveness" that was headed by former Vice President Dan Quayle and recently abolished by the Clinton administration. "Why someone would want to fashion what they do on something done by Dan Quayle — who's now out of a job — is beyond me," he said.

But even with the Democratic rapping Edgar took on the speech, he must have felt good about moving away from the doomsayer role he held in previous years. Editorial writers — not generally counted among the governor's biggest fans — were quick to note that this year's State of the State contained some vision for Illinois. If he's able to now follow through on some of the innovative things he's outlined, he'll be positioning himself well for the 1994 election. His budget message was scheduled for March 3. *

12/March 1993/Illinois Issues