In issues directly affecting public libraries, House Bill 3793, which would have harmed tax-capped public bodies, was resoundingly defeated in the Illinois House of Representatives by a vote of 34 to 73.  ILA opposed this bill because it would have resulted in a net reduction in property tax revenues for any tax capped area experiencing a reduction in overall assessed valuation.  Under current law, the Property Tax Extension Limitation statute (Tax Caps) limits levies to no more than the lesser of 5% or the Consumer Price Index above the previous year.  Under House Bill 3793, if the assessed valuation in an area declines from one year to the next, the levy may not increase even though costs to the public body increase with inflation.  This legislation was opposed by a large coalition of local public bodies and school districts and was viewed by legislators as punitive and inconsistent with the original intent of the tax cap law.

House Bill 588 advanced out of the House of Representatives and is set to be voted on by the full Senate when they return on November 29.  ILA supported this legislation that will allow libraries receiving grants through the Illinois Secretary of State's office to remain eligible even though they may no longer meet the local tax levy requirement.  The waiver of this requirement will be limited to the next four fiscal years.  Without this legislation, some libraries would lose state funds for which they would otherwise be eligible as a result of local funding restrictions beyond their control.

It was however disappointing that the Illinois General Assembly narrowly passed Senate Bill 2147 that will divert some local funds from the personal property replacement tax to pay the state's regional school superintendents. ILA opposed this legislation.  Governor Quinn vetoed the entire appropriation in the fiscal 2012 budget for the salaries of these officials, and they have been working without compensation since July.  The personal property replacement tax fund generates approximately $1.5 billion a year, and that amount is allocated among units of local government.  Senate Bill 2147 would take $12 million from this fund.  The proponents of the bill noted that this fund is expected to grow in the current fiscal year. The $12 million diversion will result in local governments receiving .008% less than they would otherwise have received, but likely still more than they received the year before.  This legislation initially failed in the Illinois House of Representatives, but was revised to:  (1) allow the diversion for only a single year; (2) reduce the amount diverted; and (3) create a task force to study the duties of regional superintendents with an eye to whether there should be mergers or even elimination of these offices.  With those changes the legislation was passed and sent to Governor Quinn who is expected to sign this legislation.

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