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PETER M. MURPHY
IAPD General Counsel

STATEHOUSE INSIDER
ISSUES & INSIGHTS FROM THE LEGAL/LEGISLATIVE SCENE

The Illinois General Assembly completed action on the state budget for fiscal year 2007 during the first week of May, one month after its scheduled adjournment date. Though initially threatened, the Open Space Land Acquisition and Development (OSLAD) program was not only saved, but the appropriation for fiscal year 2007 will increase by $12 million from last year's level of $20 million to $31.8 million. The higher appropriation level reflects more accurately the amount of money that is brought into the OSLAD fund by the Real Estate Transfer Tax.

This is a tremendous victory, and our gratitude goes to all members of the Illinois General Assembly who were proactive in their support of protecting the OSLAD funds. In particular, we would like to thank Representatives Julie Hamos, Karen May, Elaine Nekritz and Kathleen Ryg and House Speaker Michael Madigan's staff for crafting the proposal that led to this result.

In addition, the Governor's Office of Management and Budget has committed to a significant upgrade in the way the program is administered by the Illinois Department of Natural Resources. The Natural Areas Acquisition Fund (NAAF) was appropriated at $6 million with an additional $2 million to be used for a natural areas inventory.

In addition, the OSLAD fund has been used to support a $12 million appropriation to Conservation 2000. This is a one-year only transfer. The General Assembly also passed Senate Bill 14, which directed the release of administrative fund transfers from fiscal year 2005 and fiscal year 2006 (including $6.1 million from OSLAD and $2.6 million from NAAF) being held by State Treasurer Judy Baar Topinka. These administrative fund transfers totaling more than $250 million will be used as leverage on federal matching dollars to pay Medicaid providers throughout the state.

This is money that was originally supposed to have been used for 'administrative charge backs' that would reimburse the state for the cost of administering the funds. To date, Treasurer Judy Baar Topinka has blocked these charges because of a pending legal challenge. Senate Bill 14 drops the pretense that these charges are for administrative costs and will simply use this dedicated open space money to pay the costs of other programs such as hospitals, long-term care facilities and pharmacies.

Other administrative action took place to diminish the amount of money that goes to trails and other bike-related projects through the Transportation Enhancement dollars administered by the Illinois Department of Transportation. In each of the last two fiscal years, the Federal Highway Administration has ordered the states to rescind a fraction of its previously authorized federal transportation dollars. While the federal Safe, Accountable, Efficient Transportation Equity Act (SAFETEA-LU) specifies spending authorized dollars by category,

the states have the freedom to return funds as they see fit. In fiscal year 2005, the rescissions totaled 4.85%. However, 17%, or $4.4 million, was taken from enhancements. In fiscal year 2006, the rescission was 7.1%, but once again enhancements bore the brunt with 45.5%, or $11.6 million, being taken from enhancements

Also at the federal level, the Bush administration recommended the elimination of the statewide funding grants through the Land and Water Conservation Fund (LWCF) program. Last year, the amount was a paltry $30 million, but at least the program was kept intact. My point in sharing this is that funding for parks, recreation and conservation is under attack, and it is time for those of us who have an interest in these issues - those of us who see the tremendous good that parks, recreation facilities and green spaces do for communities — to stand up and speak out. Please contact your U.S. congressmen and senators on these issues.


Bill Watch

As this issue of the magazine went to press, a number of bills had passed both houses and were on their way to the governor's desk or were defeated for this session. Among them were the following measure

Newspaper Ad Rates for Legal Notices

House Bill 2734 amends the Legal Advertising Rate Act to read that the minimum rate (at present, "minimum reasonable rate") shall be 20 cents per column line for each insertion of a document by an official body or board in a newspaper. The measure, which has passed both houses, provides that the maximum rate for each insertion of a document by a public body or board in a newspaper shall not exceed the newspaper's annually published rate for comparable local advertising space. This initiative should protect public bodies from price gouging.

Conveyance of Land

Also on governor's desk is House Bill 4127, which authorizes the Oregon Park District to convey specified land to Rock River Center, a not-for-profit corporation, for use in projects to fulfill Rock River Center's corporate purposes, subject to conditions regarding the use of the land.

Compensation of Forest Preserve Districts

Both houses passed House Bill 4286, which amends the Downstate Forest Preserve District Act to delete a provision that requires that the compensation for the president of the board of commissioners in certain counties be an amount equal to 85% of the annual salary of the county board chairman. The bill also provides that the compensation of the president and the forest preserve commissioners be established by the board of commissioners of the

May/June 2006 page 10


forest preserve district. (Currently, the compensation of forest preserve commissioners is the same as that of the county board members in the county with which the forest preserve is co-extensive).

Sex Offenders

House Bill 4298 creates a task force to examine: (1) the systems of communication between states regarding the interstate movement of registered sex offenders; (2) the laws of Illinois and its border states that restrict and affect where convicted or registered sex offenders may reside; (3) the extent to which law enforcement resources are affected by residency restrictions. The task force is to report its findings and recommendations to the governor, the attorney general, and the general assembly no later than January 1, 2007.

Homestead Exemption Increases for Senior Citizens

Both houses have passed House Bill 4789, which would increase the maximum reduction for the Senior Citizens Homestead Exemption from $3,000 to $3,500 for taxable years 2006 and thereafter. At the same time, the bill increases the maximum income limitation in the Senior Citizens Assessment Freeze Homestead Exemption from $45,000 to $50,000 for taxable years 2006 and thereafter and also amends the Senior Citizens Real Estate Tax Deferral Act to increase the maximum income limitation under the act from $40,000 to $45,000 for taxable years 2006 and thereafter.

A $500 increase from $3,000 to $3,500 would reduce the tax base by $349 million statewide. At the statewide average property tax rate of 7.46%, those taxpayers would save $26.7 million. Many counties, particularly those subject to the Property Tax Extension Law Limit (PTELL), would be able to raise tax rates to offset any losses. However, in many counties, the increased exemption would reduce the rate of growth in property taxes. The increase from $45,000 to $50,000 would increase the number of eligible by an estimated 15,000 taxpayers. At current levels, the assessment freeze reduces taxes by approximately $600 per qualifying taxpayer.

Mercury Removal from Decommissioned Vehicles

On the governor's desk is House Bill 5578, which requires that the process for removing mercury switches from end-of-life vehicles be managed in accordance with the Environmental Protection Act and regulations.

Using OSLAAD and NAAF Money to Pay Medical Bills

Senate Bill 14redirects the administrative charge backs including OSLAD/NAAF to include the following. The first $250 million of transfers would be redirected as follows: (1) One-third to the Drug Rebate Fund instead of to the General Revenue Fund; (2) one-third to the Hospital Provider Fund instead of to the General Revenue Fund; and (3) one-third to the Long-term Care Provider Fund instead of to the General Revenue Fund.

Since fiscal year 2004, the Blagojevich administration has attempted to transfer out a total of $8,562,354 from the OSLAD fund through charge backs. Of this amount, $6,149,951 has been blocked from transfer by the treasurer's office. Another $1,510,000 has been transferred out of the OSLAD Fund through statutory transfers. The breakdown is as follows. For fiscal year 2004, there were $1,109,200 in charge backs and $1,510,000 in statutory transfers. For fiscal year 2005, there were to have been $4,298,434 in charge backs, but $2,995,231 of this amount has been blocked by the treasurer's office. For fiscal year 2006, there were to have been $3,154,720 in charge backs. But all have been blocked by the treasurer's office.

Speed Limits in Parks

Senate Bill 509 amends the Illinois Vehicle Code to establish reduced speed limits for park zones where children are present. Violating the limits would be a petty offense with a minimum fine of $250 for a first offense and $500 for subsequent offenses. Violators would be charged an additional $50 to be paid to the park district for safety purposes. "Park zone" means the recreation facilities and areas on any land owned or operated by a park district that is used for recreational purposes, or for access to those recreational areas, including but not limited to: parks; playgrounds; swimming pools; hiking trails; bicycle paths; picnic areas; roads and streets; and parking lots.

Open Meetings Act - Electronic Participation

Senate Bill 585 amends the Open Meetings Act to redefine a "meeting" to include gatherings, whether in person or by telephone call, audio- or videoconference, electronic means (such as e-mail, chat and instant messaging), or other means of contemporaneous interactive communication, of a majority of a quorum of the members of a public body held for the purpose of discussing public business. The current definition is "a gathering of a majority of a quorum of the members of a public body held for the purpose of discussing public business."

The bill requires that a quorum must be physically present at an open meeting, but permits participation and voting by other members by audio- and videoconference. The bill permits a public body to authorize attendance at meetings by audio- or videoconference, except for closed meetings of public bodies with statewide jurisdiction. And the bill authorizes those public bodies to adopt rules for such attendance.

Working Cash Fund

Senate Bill 2871,which allows the Chicago Park District commissioners to abolish the agency's working cash fund, has passed both houses. The measure provides that any remaining balance in the fund be transferred to the Chicago Park District's general corporate fund at the end of the then current fiscal year.

Homestead Tax Exemption

Senate Bill 2350, which would have extended for an additional 3 years the alternate general homestead exemption instituted in 2003 and would have capped the increase in assessment value of owner-occupied residential property at 7%, failed in the Illinois House.

Follow the Action on the Web

For more on last-minute action by the General Assembly and to find out whether the governor signs or vetos bills, check the lAPD's Web site at ivww.ilparks.org

At the IAPD site, click the "Public Policy" option in the column on the right of the page. On the Public Policy page you will have the option of choosing "Priority Bills," which is lAPD's listing of bills that have the potential of having a direct impact on your agency, or you may choose "Complete Bill Review," which will take you to a page giving you step-by-step instructions on how to view all bills IAPD is tracking. On this list you will find a one-line synopsis of each bill and its last action. You can modify this report by clicking on "Report Options" at the top left-hand column and expanding the description of each bill. You can read the full text of anv bill and review all action taken on a bill.

www.ILparks.org May/June 2006 11


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