Fiscal views from the candidates


FISCAL RESTRAINT, coupled with economic optimism, was the common view shared by 58 of the 120 Upstate House candidates who responded to an Illinois Issues questionnaire seeking suggestions to alleviate the state's fiscal problems. Like the Downstate House candidates, their ideas suggest different means for tackling the problem.

Taking all of the candidate suggestions, six general categories were formed. But a candidate was not limited to one suggestion and may have responded with several ideas in more than one category. While responses from the candidates can be generally grouped, their individual answers ranged from specific proposals to general rhetoric regarding their economic ideas. Not every candidate is quoted directly in the summary, but the numbers) accompanying candidate biographies on the following pages indicates that a candidate answered the question and into which category his or her response would fit.

The major categories of suggestions to alleviate the state's fiscal situation are:

1. Holding the line on spending, or reducing current expenditures.

2. Reordering of priorities for spending and making it easier to know where the money is going.

3. Reorganizing the legislative and/or executive departments and programs.

4. Altering tax structures, rates and collection procedures.

5. Improving the business climate of the state.

6. Some of the respondents also noted that unpredictable economic variables made an assessment impossible at this time, and they are indicated with a number 6.

1. The formation of a task force composed of business, industry, labor and university representatives to study and recommend areas to cut overspending was suggested by Joseph F. Rossberger (D., Northfield). He believes poor budgeting, overspending and waste are the causes of Illinois' fiscal problems, and crash programs are needed to avoid a tax increase. Aaron Jaffe (D., Skokie), believes special funds should be studied to find out what monies exist in them and whether transfers could be made to the general fund without damaging the purposes of the special funds.

Abolishment of earmarked funds was suggested as a way to better use revenues available. In suggesting this option, William A. Marovitz (D., Chicago) explained that more than $1 billion would be freed for distribution into high priority areas. Robert E. Mann (D., Chicago) also felt that the monies should be transferred to the General Revenue Fund, while Ellis B. Levin (D., Chicago) wants every existing program to compete for this support on the basis of necessity and efficiency.

In order to save money and strengthen the existing legislative committee structure, Donald L. Totten (R., Hoffman Estates advocates eliminating all commissions, and Frank Giglio (D., Calumet City) proposes reducing the number. Passage of a tax- payers' Rights Constitutional amendment to

10/ July 1976/ Illinois Issues


limit state spending and the amount of taxes that can be taken from personal income was endorsed by John Edward Porter (R., Evanston), Penny Pullen (R., Park Ridge), Roger C. Stanley (R., Streamwood) and Totten. In addition, Stanley seeks the enactment of a Financial Impact Bill which would require that each measure passed out of committee be analyzed by legislators in terms of both short and long-term costs.

Other suggestions for saving money include the adoption of a zero base budget with a base period of five years for all programs to be reviewed and automatically eliminated if not reestablished (Roger A. Keats-R., Wilmette); closer supervision of state employees to prevent manpower waste (William W. Thorsness-R., Flossmoor); elimination of high level agency administrative positions (John M.Matejek-D., Chicago); reduction in the number of state employees (Bernard E. Epton-R., Chicago); refusal to adopt new benefits in the state Pension system until proper funding problems have been resolved (James P. McCourt-R., Evanston); elimination of double- dipping (John F. Galvin-R., Oak Park); reduction in the number of nonprofessionals from upper and middle management jobs (Richard F. Kelly, Jr.-D., Hazel Crest); elimination of patronage (Herbert V. Huskey - R., Oak Lawn), and elimination of special trust funds (Michael A. Abramson -R., Chicago).

2. Reevaluation of program and policy priorities was another major area discussed by the candidates. Calling for realistic funding of constitutionally mandated and other existing programs, several definite plans were proposed. John J. Beatty (D., Chicago), for example, would like to have money appropriated to "absolutely essential" matters and the remaining funds then divided among agencies. This policy, he believes, could force many agencies to trim their requests in proportion to the available funds. Abramson, however, wants to have a single appropriation bill. According to his plan, enabling legislation would be passed separately, but any appropriation would be acquired by amending the omnibus bill "to make it easier for the legislature to determine how much it had spent at any particular time." Reducing and consolidating the number of existing agencies was also a major suggestion for cutting spending. Such action, according to Giglio, should begin within the Department of Transportation so some of its functions could return to the private sector to create jobs. In education, Levin would like state allocations to support educating children and not the bureaucrats of education. He thinks some school districts have too many "downtown bureaucrats." Erna I. Gans (R., Skokie) wants a review of state agencies and services by an independent agency whose operation would be funded from a percentage of money it saved the state. She feels that an independent agency should also be responsible for a constant flow of information about the state's fiscal condition, "helping the citizen to accept the reality of the financial situation and removing state finances out of the realm of political controversy." Smaller budgets for the Department of Public Aid, State Board of Elections and the Department of Corrections were suggested by Keats and a reduction in road programs was indicated by Edmund F. Kucharski (R., Chicago).

3. The Department of Public Aid (DPA) was the main focus of suggestions made for reorganizing state government. Calling for a general overhaul of department operations, Richard A. Mugalian (D., Palatine) favors consideration of full federal administration

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and funding of the program in exchange for present federal revenue sharing monies. Totten wants to shift the DPA's administerial duties to downstate counties, Cook County townships and the city of Chicago. Other reorganizational suggestions to increase efficiency and thereby reduce spending included reducing the House membership (Dennis B. Robertson-R., Flossmoor, and Giglio), agency consolidation (Hellmut W. Stolle-R., Chicago and Tom McNamara-R., Chicago); restructuring of governmental units (Samuel A. DeCaro-D., Berwyn); elimination of unnecessary programs (Walter S. Kozubowski-D., Chicago); reorganization of the Departments of Public Aid, Children and Family Services, and General Services (Keats) and provisions for local government units to use federal revenue sharing monies for services now performed by the state (L. Michael Getty-D., Dolton).

4. The legislature should prepare for a possible revenue crisis, according to Terry A. Steczo (D., Tinley Park). He proposes a commission composed of the state's top fiscal experts to study and recommend alternate revenue sources to the General Assembly by January 1977. Some other specific ideas include a graduated rather than a flat rate income tax (Jaffe); fewer restrictions on local government powers to tax (Anne Willer-D., Hinsdale); restructuring of revenues (Woods Bowman-D., Chicago); development of better enforcement policies for the state income tax (Alan J. Greiman-D., Skokie); and establishment of new revenue sources (Michael S. Holewinski-D., Chicago). In addition, Mugalian believes there is a substantial loss in collection of real estate and property taxes, especially in Chicago, and believes improvement is needed in local property tax and assessment practices.

Mann indicated that he would support an increase in the income and corporate franchise taxes if problems were not solved by transferring earmarked monies to the General Revenue Fund and agency budget reviews. Consideration of some increase in state income tax rates joined with an increase in individual exemptions was suggested by Mugalian. Any increases, he explained, would have to be a "rational restatement of the state taxing policy — one that makes sense — can be quickly implemented and soundly administered,"

5. To improve the state business climate, Robert C. Pechous (D., Berwyn) believes a coalition of business, labor and government leaders should be established to improve the business climate in Illinois and thus expand jobs. Pechous advocates tax incentives favorable to businesses so industries, particularly from the Eastern states would relocate in Illinois, thus generating increases in property taxes and income taxes for the state. He also would like the coal fields in Southern Illinois to be exploited on the basis of modern gasification technology. The attraction of new commercial and industrial developers was also considered to be "the most difficult but lasting" method for increasing state revenues by Robertson, since the creation of additional jobs would expand income and sales tax receipts. Other suggestions included a rollback of business taxes and corresponding benefits to a reasonable level (Pullen), maintenance of the current "8 to 5 individual-corporate income tax ratio" (Jaffe), a study to determine the reasons why businesses are leaving the state (Emil J. Boucek-K., Western Springs), and legislation to provide meaningful tax incentives (Stolle) for businesses to remain. ž

12 / July 1976 / Illinois Issues


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