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Chicago Tribune
6 days ago
- Business
- Chicago Tribune
Facing impending shortfall, Kane County Board postpones expense recommendation, passes other budget measures
Budget talks continued at the Kane County Board meeting on Tuesday, with several measures meant to help close the county's impending multimillion-dollar shortfall passed, and an item setting recommended budget amounts to departments and offices tabled for another day. Among the items passed by the board on Tuesday were a reallocation of the county's Regional Transportation Authority sales tax funds from transportation to public safety, and an approval of using the increase in the Consumer Price Index as the level for a possible property tax levy hike to be voted on at a later date. The county board held off on voting, however, on a measure that would recommend reduced budget numbers to county departments and elected offices, as county officials discussed an alternate proposal and expressed concern about potential legal issues. Kane County has been facing a budget shortfall, which it has been dealing with since 2023 by dipping into its cash reserves. Last year the county used roughly $27 million in reserve funds to pay for expenses in its general fund, according to past reporting. One possible solution to the county's budget woes was a referendum question that would have increased the county's sales tax by 0.75% to pay for public safety expenses, a measure projected to generate more than $50 million in revenue each year. But it was overwhelmingly shot down by voters in the April 1 election. Since the failure of the referendum question in April, the Kane County Board has been discussing how it will close a budget gap for the next fiscal year that County Board Chair Corinne Pierog has previously estimated as being in the range of $25 million to $29 million. The county is on pace to dip below its required 90-day reserves in 2027 if revenue and spending remain level, according to past reporting. Numerous revenue-generating and cost-cutting suggestions have been put forward by Kane County Board members, and several were discussed and voted on Tuesday. One matter the board is considering is a possible hike in the property tax levy for the upcoming year. The proposed percentage of 2.9% for the potential tax levy hike is based on the increase in the Consumer Price Index, or CPI, and would generate around $2 million in additional revenue for the county. The maximum percentage the levy can be increased is either the CPI or 5%, whichever is lower. Last year was the first year since 2013 that the county board increased the general fund property tax levy except to account for new construction, according to past reporting. The measure discussed on Tuesday was not an approval of the CPI increase for the tax levy itself, Pierog noted, but rather an approval to use that percentage as the proposed increase as the county prepares its budget. Final approval of the levy will likely be brought forward for a vote in late October or November, she said. Nevertheless, the county board's discussion centered around whether it wanted to see a CPI increase in the tax levy for the upcoming year to help close the budget gap. Board member Mohammad Iqbal said on Tuesday that he opposed a property tax increase, suggesting instead the use of special reserve funds to help balance the budget for the year. Board member Deborah Allan said it's necessary to approve a tax levy hike based on the CPI to provide fair wages to employees and address the rising costs of contracts and services. 'These prices go up,'Allan said at Tuesday's meeting. 'The CPI is a modest tool given to governments to try and keep up with the expenses we cannot avoid.' Board member Rick Williams said the county board should get the approval of voters before approving a tax increase, and board member David Young nodded to the recent failure of the sales tax referendum question as proof that residents don't want to see their taxes go up. The year-to-year increases from rising costs for the county would amount to more than $2 million, board member Bill Lenert said. Voting against the CPI measure, he noted another possible revenue source. 'I think what it does is it kills any opportunity to revisit the sales tax referendum, which would … if the public voted for it, be the solution that we need long-term,' Lenert said. Board member Michelle Gumz referred to recent energy cost increases, and said there will be similar increases at the county level in the future as well. Not anticipating them is 'not being responsible,' she said, but acknowledged that an additional $2 million alone is not enough to solve the budget problem in the long run. Tuesday's item setting 2.9% as the proposed levy increase for the county to use in its budgeting process was ultimately approved on Tuesday with Iqbal, Lenert, Williams, Young and board members Myrna Molina, Bill Roth, Jarett Sanchez and Clifford Surges voting against it. On Tuesday, the county board also passed a measure it deferred voting on last month that would reallocate some of its RTA sales tax funds from transportation to public safety costs in the county. The RTA sales tax helps fund public transportation in Cook and the collar counties. The RTA collects a 0.75% tax in Kane and the other collar counties, one-third of which is distributed back to each county for it to spend on transportation and public safety, according to past reporting. For example, in fiscal year 2024, Kane County received just over $26 million in RTA sales tax funding. Almost $20 million of that went toward transportation and the rest to public safety and judicial safety funds, the county's Finance Director Kathleen Hopkinson has said. The measure passed Tuesday will increase the amount of that sales tax revenue to the general fund by 25%, and decrease its allocations to the transportation sales tax fund by 25%. That means half of the county's RTA sales tax revenue will go toward public safety and judicial costs, while the other half will still go toward transportation costs and capital projects. This reallocation of the RTA sales tax money is only for one year, meaning any future reallocations would be decided on at a later date. The county board is also considering cost-cutting measures as it works to close its budget gap. One possibility that gained traction with the board was a recommendation to all of the county's departments and offices to reduce their proposed budgets to what was spent in 2024. This isn't the first time the county board has asked county offices and departments to reduce their proposed budgets — last year, for example, the board asked them to cut $5 million collectively. This year, board members are asking them to cut roughly $16 million in total. The suggestion came out of a working group created to address the county's budget shortfall that was made up of board members Lenert and Vern Tepe, Hopkinson, Executive Director of Information Technologies and Buildings Management Roger Fahnestock and Executive Director of Human Resources Jamie Lobrillo. That group is no longer intact, Kane County Assistant State's Attorney John Frank said at a Kane County Board Executive Committee meeting last week, citing that the group having advocated for certain policies makes it more of an advisory committee, rather than an informal 'working group.' Using 2024 as a guide would result in a total general fund budget of about $124 million, as compared to $138.9 million in 2025, according to past reporting. The majority of the proposed cuts — a little under $14 million — would be coming from the elected offices under that proposal, putting their collective budget at around $85 million for the year. At Tuesday's county board meeting, board member Leslie Juby suggested an alternative way to ask the departments and offices to cut their budgets: an across-the-board reduction from the 2025 adopted budgets of just under 8%, and the removal of $6 million from a county capital fund to fill the rest of the budget gap. She explained this would allow the departments and offices to reduce their budgets by a set percent in whatever way they choose. Pierog noted that the previously suggested cost-cutting proposal was already under discussion. 'Logistically, we'd have to start from scratch once again,' Pierog said. This conversation is happening as the county departments and offices are beginning to present their budgets to their respective committees. Several departments and elected offices, including the Kane County Sheriff's and Kane County State's Attorney's offices, are expected to present their proposed budgets for next year at the Kane County Board Judicial and Public Safety Committee meeting on Thursday, for example. At Tuesday's meeting, Frank recommended that the board not make a decision on the measure to allow for the elected officials to first present the budgets they want. 'If you are already, as a county board, predetermining what their budget limit is going to be without even hearing them, it runs the risk of a challenge,' Frank said. This is another issue that has come up before in the county. Last year, State's Attorney Jamie Mosser argued that it's against state law for the county board to restrict elected officials' control over their budget proposals, even though the board still makes the final decision on what's budgeted to each office and department. Following some discussion, Juby's proposed amendment was removed, and the county board voted to send the matter back to the Finance Committee to ultimately vote on it at a later date — to consider another suggestion for the board, and to avoid any potential timing issues with the presentations of the elected offices' budgets.
Chicago Tribune
17-07-2025
- Business
- Chicago Tribune
Maurice Scholten: The RTA has more money to work with than it realizes. State lawmakers need to know this.
Public transportation is a critical government service contributing billions of dollars to Illinois' economy and a better quality of life for all Midwestern residents. Efficiently moving people throughout our region has made Illinois a vibrant place. Allowing that to deteriorate in the wake of post-COVID-19 ridership changes would be a catastrophic misstep. How northern Illinois public transportation systems should receive the funding that would reportedly avert fiscal cliff-driven service cuts in 2026 is still under discussion, but an oft-overlooked aspect is a tax law change state lawmakers approved last year. A vast coalition of public transportation advocates, including the Regional Transportation Authority, has referenced since 2022 projections showing an original budget deficit of $730 million that is now calculated to be $771 million as emergency federal funding recedes and operating costs reportedly rise. The coalition hopes state lawmakers return to Springfield and approve a package of new revenues and governance reforms to head off service cuts at the CTA, Metra and Pace. By continuing to cite the $771 million figure, it is apparent the well-meaning coalition is not considering an Illinois sales tax law change that took effect Jan. 1. The new law says retailers in Illinois shipping goods to a customer from outside the state must collect the sales taxes in effect at the delivery address. This means more sales are now subject to the RTA's 0.75% sales tax in the collar counties and the 1% sales tax in Cook County. Here is an example of how the difference benefits Illinois local governments, including the RTA: Imagine someone ordered a shirt in December from an online retailer and had it delivered to their home in Evanston. The retailer has stores in Illinois, but it ships the shirt from an out-of-state warehouse to the customer's address and collects 6.25% in sales tax — the statewide rate on general merchandise. If the same order were placed today, it would be subject to a total sales tax rate in effect at the customer's home in Evanston, which is 10.25%. The local governments imposing a portion of sales tax at the delivery address — the city of Evanston (1.25%), Cook County (1.75%) and the RTA (1%) — would receive the additional tax. Inspired in large part by the U.S. Supreme Court ruling in South Dakota v. Wayfair Inc., this law change is expected to generate hundreds of millions of dollars for Illinois local governments, including public transit systems. An analysis of Illinois Department of Revenue data suggests the RTA alone received an additional $94 million from sales taxes and the corresponding 30% match provided by the state of Illinois from retail transactions in the first four months of 2025 than it did in the same time frame in 2024. This represents 14.1% over-the-year growth at a time when the RTA expected sales tax receipts to grow by 3%. Subjecting deliveries from out of state to local sales taxes was introduced in the Illinois Senate in February 2024, and so the RTA could not have built these new revenues into its operating budgets and deficit projections. It would have also had difficulty foreseeing how this law would affect its tax collections when it announced in December a forthcoming $771 million deficit, as evidenced by its more modest sales tax growth forecast. But the RTA has now been aware of the bill since it became law in August 2024, and there are four months worth of tax data reflecting the law change. Cook County even cited this law change for its higher-than-anticipated sales tax collections. Nevertheless, the public transportation coalition continues using the out-of-date $771 million fiscal cliff projections only months before 40% service reductions become real. Using those four months of data, it is reasonable to expect the RTA will finish 2025 with at least $150 million in additional sales tax and matching state revenues that have not been included in the fiscal cliff projections. If economic and buying trends hold steady, then this change should generate more than $225 million in additional revenue in 2026. The RTA should be applying these non-forecasted revenues toward its fiscal cliff budget deficit, thereby leaving lawmakers and public transportation advocates with a smaller hole to fill. The rippling consequences of public transportation service cuts in northern Illinois are too great to simply ignore fiscal realities that have transpired over the past 18 months. Absent other unreported budget gaps that offset the revenues the bill is delivering, continuing to rely on clearly outdated information does not build good intergovernmental faith nor public trust in this vital, regional economic engine. State lawmakers need to know precisely what the system needs to sustain itself, especially if they are expected to justify new taxes and fees to their constituents concerned about other financial pressures. My organization therefore urges the RTA to present new budget projections before lawmakers return to Springfield to take up public transportation reform.
CBS News
18-06-2025
- Health
- CBS News
Chicago aldermen calling for CTA to enforce smoking ban
Chicago aldermen are calling on the CTA to enforce the smoking ban, a problem widely reported on Chicago's mass transit system. According to a recent survey from the Regional Transportation Authority, four out of five riders who use CTA, Metra, or Pace say they've experienced cigarette and weed smoking or drinking on Chicago buses and trains, on platforms, and in stations. You can be ticketed with a fine for smoking on CTA, Metra, and Pace. The CTA said 6,300 people were hit with smoking citations in 2023. That same year, a CBS News Chicago analysis found more than 90% of smoking tickets are never paid. Some Chicago aldermen are holding a 9 a.m. press conference to call out the CTA and ask for stronger enforcement of its smoking rules. The city council members point out that smoking cigarettes or weed doesn't just smell bad, it's a health risk for people with asthma and school kids who take the bus or train.
Chicago Tribune
18-06-2025
- Business
- Chicago Tribune
Gurnee trustees approved raising the village's home rule sales tax by 0.5 percent
Gurnee will no longer have a grocery tax, starting Jan. 1, but the Village voted to increase its home rule sales tax by 0.5% at its June 16 Village Board meeting. The increased sales tax was unanimously approved by Gurnee's Village Board. 'This is an idea that is exceptional,' said Trustee Kevin Woodside. 'The fact that the State of Illinois has eliminated the 1% grocery tax has put most home rule communities in a position to reinstate that tax, but we are positioned, very smartly, I think, to shift half a percent of our sales tax to supplant that, and develop a surplus.' After passing House Bill 3144, Illinois is eliminating its 1% grocery tax, but is allowing municipalities to make up that funding by either implementing their own grocery tax or increasing other taxes. Most groceries are currently taxed at 1.75%, with 1% being returned to municipalities and 0.75% going to the Regional Transportation Authority. The new law covers a majority of food items that can be purchased in a grocery store, but does not include alcohol, candy, soft drinks and foods consisting of, or infused with, adult-use cannabis. Those items will continue to be taxed when purchased throughout Illinois. The state's repeal of the grocery tax goes into effect on Jan. 1, 2026, and municipalities throughout Illinois had until October 1 to approve a tax that would replace it, if they wanted the tax to be in effect when the state tax is repealed. 'The grocery tax, for us, is between $2 (million) and $2.5 million,' said Patrick Muetz, Gurnee's Village Administrator, about how much revenue the tax brings into the Village each year. While Gurnee could have implemented its own grocery tax within the Village, it instead opted for an increase in Gurnee's home rule sales tax. Muetz said that the Village will receive its final grocery tax payment in March 2026 and will start receiving revenue from its increased sales tax in April. 'There would be no gap in funding,' Muetz said. Gurnee's Finance Director Brian Gosnell gave a presentation at the Village's May 19 board meeting, recommending that Gurnee opt for the 0.5% increase in sales tax, rather than implementing another tax on groceries, as it would alleviate the tax burden on residents. Muetz said that the primary shoppers at Gurnee's grocery stores are Gurnee residents, more than 'any other retailer.' He also added that 55% of the Village's residents who shop at Gurnee's grocery stores are over the age of 52. 'The only option that we have, from our local taxing authority, to generate a large enough base to replace that revenue would be the home rule sales tax,' Muetz said. 'It fills that gap left by the grocery tax, as well as generates funding needed for capital infrastructure, mainly water and sewer main replacement.' According to Gosnell, the Village was looking for options that would recoup the revenue lost from the repeal of the grocery tax, and would also cover a $3 million upgrade to Gurnee's water infrastructure, which means that Gurnee was looking to bring in approximately $5.5 million in additional revenue each year, after the repeal of the grocery tax. 'We need to invest more than what we're investing today,' Muetz said about Gurnee's water and sewer main system. 'We've fallen behind on that, and this shifts that burden to visitors of our community.' According to Muetz, Gurnee residents who do all of their shopping within the village will now be saving approximately $85 per year by the Village switching to increasing its home rule sales tax, rather than implementing a new grocery tax. 'The burden will be shifted to our visitors in a way that won't be felt,' Woodside said. 'It uniquely puts us in a position to give a break to our own residents on food.'
Chicago Tribune
04-06-2025
- Business
- Chicago Tribune
Column: Record budget continues Democrats' tax-and-spend spree
If Illinois smokers needed a reason to quit the evils of tobacco, the legislature's hike in the state's tax on cigarettes has been handed to them. Or it gives them a chance to visit Kentucky and Indiana to stock up on their smoking supplies. The tax increase on anything with tobacco — cigarettes, cigars, vaping devices, snuff, chewing tobacco — is part of the rushed budget the Democratic-controlled legislature adopted last week. The jump in the tobacco tax from 36% to 45% for cigarettes, and 15% for vaping products, takes effect July 1, when the state's fiscal year begins. Taxing the shrinking number of state smokers — revenue officials expect to raise $50 million — is one easy way to fund the largest budget in Illinois history. Current state tax on a pack of smokes is $1.98, and the current cost averages $7.56 per pack, according to the 'Sales Tax Handbook.' Another taxing target is gambling now that most of the Land of Lincoln is replete with gaming devices and casinos. To that end, the budget bill creates a tax of 25 cents per wager for a sports betting licensee's first 20,000 wagers accepted, and 50 cents per wager above that. That is expected to generate $36 million in the new fiscal year. There are other increased taxes, $1 billion worth, in the $55.2 billion spending plan, which totals 3,000 pages. Wonder how many Lake County lawmakers actually read this document that received little public review and was hastily adopted in the last 48 hours of the session? But lawmakers did read enough of the document to increase their salaries, sending their pay to nearly $100,000 a year for what is supposed to be a part-time job. State legislators who happen to be lawyers also got an added perk thanks to the Illinois Supreme Court: They can collect credits for continuing education classes just by attending legislative events. Yet, Illinois property owners again did not receive property tax relief, while lawmakers kicked the can down the road when it came to funding regional mass transit, while including $8.2 billion in new spending on infrastructure projects. Regional Transportation Authority officials claim they need a $770 million funding injection or cuts are coming at the CTA, Metra and Pace. Legislators also failed a push for more renewable energy sources, like solar and wind. In the power department, Illinoisans served by ComEd will see a nearly 11% increase on their utility bills come July 1. Democrats seem overjoyed with the allegedly balanced budget bill, which is nearly 4% more than the current year's. However, it appears to be stuffed with spending that the state can't afford. One estimate is that since Gov. JB Pritzker took office in 2019, Democrats have jacked up state spending by $15 billion. That totals about $1,170 more per resident every year. Something to remember next April 15. Three Lake County Democratic state senators — Julie Morrison of Lake Forest, Mary Edley Allen of Libertyville and Adriane Johnson of Buffalo Grove — voted for the budget bills. Their Democratic counterparts in the Illinois House — Rita Mayfield of Gurnee, Laura Faver Dias of Grayslake, Bob Morgan of Deerfield, Daniel Didech of Buffalo Grove and Nabella Syed of Palatine — also were all in on the whopping budget bill. Legislative Republicans voted against the measure. Their excuse for having to vote in favor of the budget, they maintain, is because of President Donald Trump and congressional Republicans. Pritzker, too, blamed the president, pointing to Trump's tariff policies. 'In a year where limited revenue and shifting federal support presented real challenges, we passed a budget that aligns with our core values and the needs of Illinois families,' Morrison commented in a statement after her vote. 'At a time when chaos from the federal administration is causing uncertainty and fear within our communities, Illinois presented a compassionate budget that reflects our priorities and values, including supporting the working middle class and those seeking quality education,' Edley Allen said in a statement, echoing other county lawmakers' stances. Didn't hear of any sightings of President Trump or his minions in Springfield last week, twisting arms to vote for the bloated state budget. Lawmakers can try to blame an obvious scapegoat. They are accountable only to themselves for their votes for a record Illinois budget.
