The General Assembly approved a $49.2 billion budget for the fiscal year beginning July 1 that created $350 million in new tax breaks for most Illinoisans’ pockets.

The spending blueprint for fiscal year 2001, which is $5.8 billion larger than this year’s budget, was agreed to in the last hours of the shortest legislative session of the past century. Under the agreement, the state will use the initial payments from Illinois’ estimated $9.1 billion in national tobacco settlement funds to provide a one-time property tax rebate for homeowners, boost the state’s Circuit Breaker program that helps seniors pay for prescription drugs and create a state version of the Federal Earned Income Tax Credit for poor Illinoisans.

The use of the tobacco money was controversial. Several larger tobacco companies are paying the states as part of an agreement to reimburse them for smoking-related health costs. But Elgin Republican Sen. Steven Rauschenberger, chairman of the Senate Appropriations Committee, argues recent court rulings indicate future income from tobacco money is not guaranteed.

Nevertheless, state Budget Director Stephen Schnorf says that in the near term the state could receive as much as $688 million from that agreement. And, under next year’s budget plan, the state will use $280 million from the fund to pay for the property tax rebates, which will equal 5 percent of a homeowner’s property tax bill. The maximum rebate will be $300, while the average check will total about $125, according to Schnorf. Whatever the size of the checks, they’re expected to arrive in mailboxes before the November election.

The Circuit Breaker program will receive an additional $35 million. The income limit to qualify for aid will be raised from $16,000 for a two-person household to $28,480. The program will also be expanded to cover drugs for treating cancer, Alzheimer’s disease, Parkinson’s disease, glaucoma, lung disease and smoking-related illnesses. An additional 178,000 seniors may be eligible.

The new state Earned Income Tax Credit will resemble the federal program that sends rebate checks to qualified low-income working families. The new program will give families a state tax credit equal to 5 percent of the credit allowed on federal returns. The state’s budget calls for $35 million for each of the next three years for that program. Another $225 million of the settlement money will be used to start a Rainy Day Fund.

Lawmakers also set aside a pot of next year’s dollars for themselves. Some $380 million for “member initiatives” will be divvied among the four party caucuses in the two legislative chambers.

The budget devotes 52 percent of new funds to education, including an increase of $327 million for primary and secondary schools and $130 million for higher education. School spending will total $8.3 billion.

House Speaker Michael Madigan was unsuccessful in his attempt to designate dollars to cover state mandates at private schools. The Archdiocese of Chicago and representatives of other dioceses argued the state should reimburse private schools for keeping student records as required by the state. Madigan wanted $80 million to send $38 per pupil to all the state’s schools, including $12 million for private schools. But teacher unions vowed to take the plan to court as a violation of the constitutionally required separation of church and state. That threat, and the unions’ considerable influence at the ballot box, caused a small revolt among rank-and-file legislators. Madigan withdrew the plan, and the $12 million will be shifted to textbook and school bus programs, that both public and private schools can tap.
Burney Simpson

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KIDS’ LAWYERS
Juveniles under the age of 13 suspected of committing murder or sexual assault would have to have attorneys present before police could question them, under legislation that went to the governor. “This gives children the protection that is afforded to all adults,” says sponsor Chicago Democratic Rep. Monique Davis.

GENERIC DRUGS
Illinoisans may soon have faster access to generic drugs approved by the U.S. Food and Drug Administration. The legislature has agreed to a plan allowing most generic drugs to speed through the state’s Technical Advisory Council, which regulates the interchange of generics in this state. The proposal, sponsored by Coal City Democratic Rep. Mary Kay O’Brien, would require the council to determine which generics need further study. Noncontroversial generics would be immediately available to consumers. Currently, the council reviews all generic drugs for substitution purposes, even those already approved by the FDA.

Gov. George Ryan, a retired pharmacist, vetoed legislation last year that would have abolished the council. O’Brien says this latest version represents a compromise among drug companies, the Department of Public Health and Ryan.

SCHOOL BREAKFASTS
State legislators approved a plan to use $1 million from the State Board of Education’s budget to boost breakfast programs for students. The program is designed to provide start-up grants and increase reimbursements for the programs. Districts are required to track the number of students participating.

The proposal’s sponsor, Chicago Democratic Rep. Sonia Silva, says Illinois ranks 43rd among states in providing school breakfasts. “Studies have proven that hungry children have less physical, intellectual and emotional development,” she says. Opponents fear the legislation will create another state mandate.

LABELING MTBE
Pumps containing a gas additive that pollutes groundwater may soon be wearing labels. Mt. Zion Democratic Rep. Julie Curry’s proposal to let consumers know whether the gas they are buying contains MTBE passed both chambers without opposition. MTBE, a chemical fuel additive, is an alternative to corn-based ethanol. In March, the U.S. Environmental Protection Agency announced MTBE is likely to pollute groundwater supplies. Under Curry’s plan, motorists would see a label on the gas pump if the fuel includes more than 2 percent MTBE.

FISCAL OFFICERS
A proposed constitutional amendment to merge the offices of state treasurer and comptroller failed in a House committee. The sponsor, Rep. Steve Davis, a Bethalto Democrat, estimates a merger could save Illinois taxpayers $6 million annually by cutting down on the duplication of duties between the offices. Opponents argued for the extra check and balance provided by two state financial officers.
Heather Nickel

Guns
The governor and lawmakers negotiated an agreement enabling them to reinstate the Safe Neighborhoods Act.

The compromise gives a break to usually law-abiding citizens who transport firearms without first unloading and locking them away. A first offense will be a misdemeanor for such individuals, including hunters.

The charge will remain a felony for violators who illegally transport guns that are loaded or can be quickly loaded if they also are found to meet any of nine conditions. Those conditions would be met by individuals who don’t have a valid Firearm Owner’s Identification card, or are members of a street gang or have had an order of protection filed against them within the last two years.

The compromise was approved in April after months of debate, and Gov. George Ryan signed it as soon as it got to his desk.

The Illinois Supreme Court ruled the 1994 law unconstitutional last year because it lumped together several unrelated topics.

Lawmakers separately reapproved seven other provisions of the law, including criminal penalties for gunrunning and civil penalties for fraud in the Women, Infants and Children program. A provision allowing for the privatization of juvenile correctional facilities was defeated. It’s unlikely to come up again, says Sen. Kirk Dillard, a Hinsdale Republican. “It was a jobs issue for the unions,” Dillard says. “It’s kind of inconsequential as far as keeping neighborhoods safe.”
Burney Simpson

Abortion
Anti-abortion groups claimed two victories this session. Lawmakers approved a measure to limit further public funding of abortions and rejected a plan that would have required hospitals to offer women medication to prevent pregnancy in the first hours after a rape.

A measure by Naperville Republican Rep. Mary Lou Cowlishaw would prevent Medicaid funding of abortions for women whose health is threatened by pregnancy. The state would continue to pay for the procedure for women whose lives are at stake and in cases of rape and incest. That measure went to the governor.

Cowlishaw argued public money shouldn't be used to pay for abortions. Opponents argued the restriction would discriminate against poor women.
Heather Nickel

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A REX NAMED SUE
Field Museum set to unveil a nearly complete set of dinosaur bones
She has 60 teeth, some of them 12 inches long. She is 13 feet tall at the hips and has a skull more than five feet long with a brain cavity just big enough to hold a quart of milk. And when she roamed the upper Plains states 67 million years ago, this Tyrannosaurus rex weighed about 14,000 pounds and stretched 42 feet from nose to tail.

Though scientists named the skeleton Sue after the fossil hunter who found “her” in the Black Hills of South Dakota 10 years ago, they don’t know the animal’s sex. Nevertheless, this could-be boy named Sue has been carefully dressed up for its coming out party at The Field Museum in Chicago on May 17.

Sue is the most complete, largest and best preserved T. rex fossil yet discovered. Missing only a foot, one arm and a few ribs and vertebrae, Sue has most of the 250 bones that make up a T. rex skeleton. The Field Museum, with the help of McDonald’s Corp. and Walt Disney World Resort, bought Sue at auction for $8.36 million. For the past two years, 10 specialists have cleaned and repaired her bones, readying her for her big day when everyone is invited to appreciate this queen — or king — of the past.

Sue will serve as more than just an exhibit, though. Each bone of the skeleton is cradled in a special metal bracket that is hinged and locked so that individual bones can be detached and removed for research. Serving both scientists and the public, the museum has surrounded Sue with several exhibits. There are touchable casts of bones that show some of the wounds found on Sue’s skeleton. Animated computer technology images of the skull take visitors on a virtual tour inside Sue’s head. The story of Sue’s discovery to her arrival at the Field Museum and the mounting of her skeleton is told in video clips. The unveiling of these prehistoric bones promises to be a cyber event, with a live Internet feed scheduled to go online at 6 a.m. on May 17 at www.fieldmuseum.org/sue/.
Beverley Scobell

WEBSOURCE
Tax cuts: Illinois trails the pack
Though the legislature in the days leading up to its adjournment focused on providing Illinoisans with tax relief, the state is behind its neighbors in giving money back to taxpayers. According to the National Conference of State Legislatures, in last year’s heady days of billion-dollar surpluses, 34 states cut taxes, including all of our neighbors. For a look at what other states have done, go to www.ncsl.org/programs/fiscal/sta99sum.htm.

To follow the end-of-session tax relief measures, as well as other news from state legislatures around the country, go to www.stateline.org. At this site, you can click onto the taxes and budget section and compare budgets and tax relief measures in other states.

Many states are including tobacco settlement money in their budgets. The latest news, as well as background information, on the tobacco settlement can be found in the National Association of State Budget Officers’ site at www.nasbo.org/ topical/tobacco.htm. Other recent tax stories and useful background on taxes of all kinds are available at www.taxfoundation.org. If you’re really into taxes, scour the many links listed at www.taxsites.com. These are divided into categories, including “Policy & Reform” and “State & Local Tax.”
Beverley Scobell

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REPORTS:
The Illinois State Toll Highway Authority
The woes of the state’s toll highway system are much like a toll plaza come rush hour: confounding, crowded and unlikely to see movement any time soon.

Or so it would seem after reading a 115-page report offering alternatives for restructuring the often-beleaguered system. This report by authority staff concludes that virtually no changes can be made in the system until the quasi-independent highway authority restructures its $854 million bond debt. The outstanding bonds aren’t scheduled to be paid off until 2017.

The agency currently relies on toll fees for the bulk of its revenue, projected at $354 million for 2000. The report explores ways to reduce or eliminate those driver-unfriendly tolls. But there are roadblocks to those ideas, too. The current agreement on the agency’s bonds forbids free passage on the tollways, except under limited circumstances, such as construction at a low-revenue site, says Gov. George Ryan’s spokesman Dennis Culloton. To pay off the existing bonds and make a new agreement would require reconstituting the toll authority itself, Culloton notes.

Though no action on the report was expected during this spring’s legislative session, shortly after the report’s release Culloton said Ryan’s focus was to determine whether the legislature would approve restructuring the debt. “Right now, we’re very limited in what we can do,’’ he says.

Among the report’s scenarios:
• Eliminate tolls at an estimated cost of $320 million. That would take a minimum of three years. Road maintenance would create additional costs.
• Transfer sections on the “fringe of the system’’ to the Illinois Department of Transportation, which would cost between $9.4 million and $32.7 million. Those fringe areas include I-94 north of the Edens Expressway and I-88 west of Route 56. The loss of those sections would cost the system no more than 10.6 percent of annual revenues, the report estimates.
• Collect flat-rate tolls only as drivers enter or exit the tollway. This option benefits out-of-state drivers because costs for short trips would go up, while those for longer trips would be reduced. Relocation and toll removal expenses are estimated at $619 million. Removing ramp toll collection plazas would cost $93 million in structural changes. Toll collection revenue would be lost, as well — to the tune of $12.4 million a year — under a $17.4 million plan to remove tolls at freeway/tollway connections. A related option would increase cash toll rates to make up for the loss of the ramp collection booths.
• Convert the main toll plazas into express lanes for the electronic I-PASS collection system. With I-PASS, an electronic eye reads a dashboard transponder to debit a motorist’s prepaid account. The report also suggests changing pricing to charge more for tollway users who do not use the I-PASS system — either 50 cents or 75 cents — compared to the 40 cents now charged.
• Do nothing and bank on naturally occurring increased use of the I-PASS system.

Illinois Policy Survey
Collectively, Illinois residents’ chief concern is education, according to the the 2000 Report on the Illinois Policy Survey conducted by the Center for Governmental Studies at Northern Illinois University.

For the 2000 edition of the survey, interviewers with Northern’s Public Opinion Laboratory spoke by phone with 1,179 Illinoisans over the age of 18. The survey was conducted in October and November of last year.

Unemployment was the biggest concern of Illinoisans when the survey began in 1984. But this year’s survey shows that education is the No. 1 concern among respondents, as it has been for the last half of the 1990s.

Statewide, 24 percent of the respondents named education as their chief concern, with 14 percent saying crime was their top concern. Eleven percent of respondents cited taxes as their chief concern, and 5 percent pointed to unemployment as the biggest worry.

In terms of education-related issues, funding was seen as the top problem facing schools. “Nearly three-fourths of respondents said state spending for public schools should be increased,’’ according to the report.

Meanwhile, 52 percent of the respondents said they would support allowing parents to choose which public school their children will attend, while 50 percent said they would extend that choice to private schools.

Also, 55 percent of the respondents said they would support an increase in state income taxes and a corresponding reduction in local property taxes to pay for education. And 59 percent said they would favor boosting state aid to needy school districts.

The general mood of Illinoisans remains optimistic, according to the survey. Responding to the question,

Illinois Issues May 2000 |14

A plurality of residents surveyed gave Gov. George Ryan a favorable rating.

Governor’s Commission on the Status of Women
After reviewing the report issued by the commission on women established by his predecessor Jim Edgar, Gov. George Ryan agreed to make permanent the panel that seeks to improve the economic status of women.

Among new recommendations, the group urges equitable employment of women for the governor’s Illinois First public works program by setting hiring goals for women and minorities. The commission supports a requirement that work site conditions be made more favorable for minorities and women. The report also calls for the creation of hiring incentives and monitoring for compliance.
Maureen Foertsch McKinney

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This spring, much of the United States, including central Illinois, is in the midst of a worsening drought, according to the National Oceanic and Atmospheric Administration. The areas affected by the drought of 2000 parallel those parched by the drought of 1988, the most costly weather disaster in history at an estimated $40 billion in losses.

Today, Illinois is more prepared for an extended drought, thanks to the Illinois Drought Task Force. Formed in 1982, the task force has members from several state agencies, including the Department of Natural Resources, the Environmental Protection Agency, the Department of Agriculture and the Emergency Management Agency. Convening only when needed, the task force is now meeting regularly to go over contin-gency plans. “We learned a lot during the drought of 1988,” says Vonnahme, co-chairman of the task force. Since that time, the State Water Survey has issued a monthly report on soil moisture, precipitation averages, amount of surface and ground water, stream flow and depth of wells. The task force monitors conditions and helps communities develop and, if necessary, implement contingency plans for finding new water supplies.

During the last drought, Vonnahme says, about 30 communities were on a watch list because their water supplies were dangerously low. This year, seven communities are on the watch list: Bloomington, Springfield, New Berlin, Palmyra, Modesto, Sorento and Paris. The task force has encouraged communities to band together to develop a dependable water supply.

Historically, Vonnahme says, the months of April and May are the telling time. In more than 100 years of rainfall records, eight years have been similar to this year’s pattern: drought conditions beginning in the summer months of the previous year and continuing through the winter and into spring. “In half of those instances, rainfall brought the state out of drought,” he says. “In the other half, drought continued for another six to 12 months.”
Beverley Scobell

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