Tax and spending limits
concentrate on the revenue side of the ledger. Totten's plan would limit revenue growth during a fiscal year to 8 per cent of the total personal income of the state. The ISCC would limit the growth of revenue to the inflation rate of the previous year. Revenue growth has not exceeded the inflation rate the last two years. "But if the revenue growth did exceed inflation, the ISCC plan calls for the reduction of individual and corporate income tax rates to bring total state revenues in line with the inflation limit.
Excess revenues
The Totten plan also spells out what the state must do with excess revenues. The first 2 per cent (or less) of revenue exceeding the 8 per cent limit would be deposited in a budget stabilization fund for emergency purposes. If even more state revenue were received, it would be set aside in an excess fund to be distributed (only) in three ways. Like the governor's proposals, these excess revenues would go toward retiring the state debt and funding the deficient state retirement systems. The third place excess revenues would go under Totten's plan would be tax relief or tax rebates.
The Totten plan also limits local property taxes. The increase in a property owner's total bill would be limited to no more than 3 percent of the prior year, but this limit could be extended by a local referendum. The ISCC property tax plan provides for limiting increases in assessed valuation to 2 per cent a year except when improvements are made to the property. Totten's plan would also require that the percentage of state money going to local government could not drop below the percentage it is receiving when the proposal is adopted.
Ryan's property tax freeze
Ryan proposes to freeze the property tax throughout the state. His plan is to prohibit increases in property tax revenue unless the increase is approved by local referendum. Other bills introduced by legislators call for the reduction of the assessment ratio of actual market value from the existing 33 1/3 per cent to as low as 10 per cent over a seven-year period. Other property tax changes proposed include an increase in general homestead exemptions from $1,500 to $5,000; improvements in the tax appeal process; and improvements in the administration of local assessments and tax collection.
Ryan and other legislators from both sides of the aisle also favor changes in the state income tax to provide tax relief. One would allow deductions for property taxes and rent costs. Instead of the standard deduction, exemptions would be tied to increases in the cost of living. Other bills would provide tax breaks for the elderly by eliminating the sales tax from food, prescription medicines and drugs and other items purchased by persons over 65.
Another tax package, designed to help the average citizen fight inflation, has been supported by the Illinois Public Action Council, a coalition of consumer organizations, labor unions, taxpayer groups and senior citizen organizations. The package is designed to broaden the homestead exemption to allow homeowners to qualify if assessments increase beyond a fixed rate; to provide homeowners, renters and small farmers an income tax credit and to require the state to pay more for local school costs in order to reduce the pressure on the property tax.
Given the redundant, contradictory and controversial nature of the tax packages described above, legislators will undoubtedly be hammeringand tinkering away at them for the length of the session. But public pressure will ensure some sort of reform. An analysis of the legislature's efforts in this direction will continue next month.
Handicapped services moved from DCFS to DVR
GOV. THOMPSON signed an executive order February 22 transferring programs for handicapped children and some adults from the Department of Children and Family Services (DCFS) to the Division of Vocational Rehabilitation (DVR). Affected by the order are four schools and a home-makers' program: the Illinois School for the Deaf and the Illinois School for the Visually Impaired, both in Jacksonville; and the Illinois Children's Hospital School, the Illinois Visually Handicapped Institute and Community Services for the Visually Impaired, all in Chicago.
The move is intended to give better continuity of services to handicapped persons with an emphasis on independent living, while at the same time allowing DCFS to concentrate on child abuse and other family problems. The reorganization would also enable DVR to qualify for all available federal matching funds and expand programs for the handicapped.
Under the 1970 Constitution, Thompson's executive order will become effective in 60 days if not disapproved by the General Assembly. Reps. Aaron Jaffe (D., Skokie) and Penny Pullen (R., Park Ridge) have introduced H.B. 455 which conforms to the order.
Disincentive for business incentive
Proposed rules and regulations of the Illinois Department of Revenue to phase out the sales tax on purchase of machinery and equipment used in manufacturing are under intense criticism from business leaders. The rules would implement what business supported as a new business incentive law (P.A. 80-1292), but the interim rules have been strongly criticized by the Illinois State Chamber of Commerce and the Illinois Manufacturers' Association as "anti-business" due to burdensome red tape. The main objections are to a requirement for separate exemption slips for each purchase of equipment and to the forms themselves. On February 21, the state chamber called for full public hearings and an extension of the comment period on proposed rules.
"All this lack of cooperation with the business community raises some grave
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concerns about the administration's expressed desire to use this economic development incentive to improve Illinois' competitiveness," said state chamber president Lester W. Brann, Jr. The law calls for a phase out of the machinery sales tax over six years, as an incentive to business.
Gas, electric rate increases
The Illinois Commerce Commission (I11CC) granted rate increases in December for three major utilities in Illinois Commonwealth Edison Company, Northern Illinois Gas and Peoples Gas Light and Coke Company. I11CC approved a general rate boost of $74.88 million or 3.1 percent for Commonwealth Edison operating revenues, $40.8 million or 3.69 per cent for Northern Illinois Gas, and $38.7 million or 4.8 per cent for Peoples Gas Light and Coke Company. Chicago residents and small businesses will pay proportionately more of the increase granted Peoples Gas than will large industrial customers. Commonwealth Edison will apply its higher rates to all customers uniformly, adding about 75 cents to a typical monthly residential electric bill. The I11CC also announced a formal investigation into Edison's $4.4 billion construction program. It has been criticized as being wastefully large.
Commonwealth Edison plans to seek another rate increase by the end of March from the I11CC, as do Illinois Power Company and North Shore Gas Company, a subsidiary of Peoples Gas Company. Illinois Power has filed for a 14 per cent increase in electric rates and 6.8 per cent in its gas rates. A spokesman for Illinois Power said the "major portion of the increase is needed to pay a part of the interest cost on the money which has been raised for our construction program, primarily for the Clinton Nuclear Power Plant."
Hazardous materials transport rules
Final regulations governing the transportation of hazardous materials on Illinois highways have been adopted by the Illinois Department of Transportation and were published February 2 in the Illinois Register. Reference copies have been distributed to many university and university law libraries and to all highway district offices throughout Illinois. The final regulations differ from those proposed prior to public hearing last year, most notably with regard to inspection of shipper or carrier premises, and pressure design requirements for fertilizer or chemical ammonia cargo tanks.
A limited number of copies of regulations are available for purchase at $5 apiece from: Secretary of State, Rules Division, 490 Centennial Building, Springfield, 111. 62756. Subsequently, copies can be obtained by writing: Chief, Hazardous Materials Section, Division of Traffic Safety Room 319, Illinois Department of Transportation, 2300 South Dirksen Parkway, Springfield, 111. 62764.
Rental finding service rules
Permanent new rules regulating the business of rental finding services have been adopted by the Illinois Department of Registration and Education. The rules require that real estate rental finding services must be offered to the public only by licensed real estate brokers and salesmen. To obtain a real estate broker's or salesman's license in Illinois, one must take a prescribed course of study and pass a state authorized test. The new rules were published in the Illinois Register January 17 and were adopted in response to "an increasing number of consumer complaints," according to the registration agency.
Public guardian changes
The administration of Gov. James R. Thompson is taking a number of steps to deal with alleged mismanagement in the office of Public Guardian of Cook County. Guardian Jane Terrell was fired by the governor on November 22, 1978, after media allegations of impropriety and mismanagement. Terrell's successor, Patrick T. Murphy, reported that "possibly hundreds of thousands" of dollars are unaccounted for in court papers detailing personal property of wards of the state under Terrell's supervision. Law enforcement officials are investigating possible legal violations, while the governor has approved hiring added employees in the office of guardian to go over files. He also has asked legislative members of the Mental Health Advisory Commission to assist his staff in recommending amendments to the law.
Ethics interpretations
The State Board of Ethics may now provide assistance to people in state service under the governor's jurisdiction in the form of written ethics interpretations. The interpretations will provide guidance in matters relating to official conduct, and are not legal opinions. Through periodic publication of summaries of ethics interpretations, the board hopes to increase awareness of questions pertaining to governmental ethics. Copies may be obtained from: Board of Ethics, 522 Stratton Office Building, Springfield, 111. 62706.
Auto theft remedy
Auto theft prevention conferences were held in Chicago February 1 and in Springfield February 2 for police, insurance executives, legislators and others interested. Sponsored by Secretary of State Alan J. Dixon, the workshops dealt with salvage control, insurance and auto industry responsibilities and investigative and enforcement problems, as well as Dixon's plan against "chop shops" that break down stolen vehicles for sale of parts.
Manpower agency audit
The Governor's Office of Manpower and Human Development (GOMHD) has begun an independent monitoring and auditing program to review federal employment and training programs. The new Field Audit and Monitoring Division was formed in response to new federal regulations governing all Comprehensive Employment and Training Act (CETA) programs and is independent of other units in GOMHD.
Auto insurance study
The Illinois Department of Insurance released a comparison study of pricing of car insurance in Illinois on February 1, revealing that rates have not increased faster than in most other states. Illinois has been without an insurance rating law since August 1971. The new study shows, however, that "the insurers surveyed, in general, appear not to have made excessive underwriting profits on automobile insurance during the past 20 years on a countrywide basis." However, the study is quite severely limited by exclusion of facts about insurance company investment income, the number of uninsured drivers in Illinois, the promptness of benefit payment, loss data and the rates charged by nonstandard insurers.
Mine rescue squads
The Illinois Department of Mines and Minerals has begun updating and reorganizing its mine ! rescue facilities to meet proposed federal safety regulations, which become effective in August
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1979. The department will reorganize and retrain rescue teams and supervisors, and upgrade equipment and practices.
Community college elections
Eighty-six seats on local community college bards of trustees will be chosen in district elections this April, according to David Viar, executive director of the Illinois Community College Trustees Association. Generally two seats on each board will be up for election on Saturday, April 14, although some districts will have three or four seats to be filled, and some elections will be held on Tuesday, April 3. State statutes allow local boards the option of choosing to elect members on the first Tuesday of April instead of the more common second Saturday, but few boards choose Tuesday (last year only Blackhawk College in Moline elected trustees on Tuesday).
Four snow days excused
School districts within a 35-county disaster area in Northern Illinois may receive state aid for four blizzard related low attendance days between January 16 and 25. Districts may qualify for the four extra days after they have used all other emergency days, according to Supt. of Education Joseph M. Cronin. Cronin granted the waiver under the "Act of God" provision of the School Code of Illinois, but cautioned that school officials may not use the days to shorten their Manned attendance year.
Joint transit garage
Authorities in Rock Island, 111., and Davenport, Iowa, and the Rock Island County Metropolitan Mass Transit District (RICMMTD) have agreed to apply for federal funding for a jointly owned transit garage facility to be located in Rock Island. Plans call for 80 per cent of funding for the maintenance and storage garage to come from the federal government, and 20 per cent to be provided by the city of Davenport, RICMMTD and the state departments of transportation in Iowa and Illinois.
Federal energy aid to poor
Illinois will receive $11.3 million in 1979 in federal funds from the Community Services Administration(CSA). Of this amount, $10.3 million is for disaster relief needed because of the excessively cold winter of 1979, and $1.03 million is under the CSA's Regular Crisis Intervention Program. CS A distributes funds through commu-nity action agencies to aid in payment for fuel or utility bills, or to provide food, clothing, blankets, temporary shelter or emergency home repair.
Federal energy "hot line"
The federal energy department's Economic Regulatory Administration (ERA) has estab-lished a toll-free number to entertain consumer complaints about gasoline and heating oil supplies unwarranted price increases. The number to call is 800/424-9246, from 9 a.m. to 6 p.m. (CST) Monday through Friday.
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