Guest Column                                                       

Tax caps undermining open space preservation By LAWRENCE B. CHRISTMAS

Across the nation, the public demand for improved facilities and services continues to clash with the public demand for reduced taxes. Gov. Jim Edgar's recent call for an expansion of the Property Tax Extension Limitation Act of 1991 to the entire state will certainly trigger more such clashes. Yet the consequences of the 1991 law on non-home-rule governments in DuPage, Kane, Lake, McHenry and Will counties are just starting to be understood.

One of these impacts has been to seriously undermine prospects for further open space preservation in that portion of the state most affected by suburban sprawl. The popularity of open space was brought sharply into focus recently when the Northeastern Illinois Planning Commission (NIPC), in partnership with the nonprofit Openlands Project, released a regional greenway plan calling for a 1,000-mile linked system of parks, waterways, trails and other linear land forms. The plan covers the five collar counties affected by the tax cap plus Cook County.

Not since the Burnham Plan of 1909 had planning of any kind been so warmly received.

From the Chicago Sun Times: "Greenways are exactly what they sound like — stretches of stream corridors, flood plains, wetlands, abandoned railroad rights-of-way, shared utility and transportation rights-of-way, and other public and private open lands throughout the six-county area including the city. The plan would preserve these stretches for hiking and hiking paths, trails and recreation. Preserving them would improve water quality in streams, reduce the risk of flooding, protect wildlife and simply make the place look better."

From the Chicago Tribune. "[NIPC and the Openlands Project] are partners in an ingenious plan to create a network of connected greenways, crisscrossing northeastern Illinois and lapping into Wisconsin, and they are pushing now to get into place as a gift for future generations to come. It is a key component of NIPC's recently adopted plan for land resource management for the 21st Century, and it is a shrewd strategy."

Prospects for implementing the plan looked excellent with both federal and state grant programs recently established for the precise purpose of trail development.

The conflict between open space preservation and tax cap legislation has not been made apparent to the general public. The announced purpose of the 1991 act was merely to limit increases in tax extensions, not to force major reductions in spending.

Virtually all units of government, including the state of Illinois, finance long-term and sometimes short-term needs through the issuance of bonds. Under the 1991 law, general obligation bonds may be issued by affected local units of government only with voter approval. According to the Civic Federation of Chicago, 37.7 percent of the combined 1988 property tax extensions of 139 suburban "recreation special districts" was for bond payments. Thus 37.3 percent of normal revenue was in sudden and perpetual jeopardy, specifically those funds required for capital improvements.

Land acquisition and development is a fundamental function of park and forest preserve districts. When strategically important open space is suddenly on the market at an attractive price, or is suddenly threatened with development, a bond referendum requirement can delay and thereby kill effective action. Land outside of town may seem unimportant to today's voters, but it may offer a last chance to meet the open space needs of a future population. The cost of land acquisition should, accordingly, be spread over a number of years through the issuance of bonds, to be repaid in part by those future taxpayers who will enjoy the benefits.

So what is wrong with requiring taxpayer approval? Local officials argue that "investments for the future" are a tough sell in today's political climate. Of the 11 bond referendums held in DuPage County since early 1991, only four were approved. Recreation bond issues can sometimes be sold to the voter through costly promotional campaigns or by listing improvements, whether needed or not, for every neighborhood. Such strategies are hardly the way to reduce taxes.

Faced with voter opposition to bond referendums, local officials now fear they will be unable to raise the matching funds required for state and federal open space grants or even to afford the capital expenditures mandated by the Americans with Disabilities Act (ADA).

During the 1992 legislative session, the Illinois Association of Park Districts (IAPD) sought to amend tax cap legislation to permit issuance of nonreferendum general obligation bonds providing that the local tax levy remained under the limits cap. The amendment failed in the Illinois House.

Senate President James "Pate" Philip (R-23, Wood Dale) introduced Senate Bill 1, calling for the extension of tax caps to all units of government throughout the state. No provision was made for the IAPD amendment. Whether one's concern is greenways, the maintenance of capital facilities or simply letting local elected officials govern, tax cap legislation in Illinois warrants a much closer look. *

Lawrence B. Christmas is the former executive director, and now senior adviser, to the Northeastern Illinois Planning Commission. He has summarized here a "white paper" available from the commission by calling (312) 454-0400.

8/April 1993/Illinois Issues