PI Original Angela Caputo Tuesday September 22nd, 2009, 11:33am

Meeks Tax Plan To Reemerge In January

For two decades, lawmakers have acknowledged that Illinois' education funding system is broken. Unfortunately, few have been willing to get behind proposals to simultaneously reform our regressive tax system and adequately fund schools.  Early next year, a plan to do just ...

For two decades, lawmakers have acknowledged that Illinois' education funding system is broken. Unfortunately, few have been willing to get behind proposals to simultaneously reform our regressive tax system and adequately fund schools.  Early next year, a plan to do just that -- Sen. James Meeks' (D-Chicago) HB 174 -- may reemerge as "the main vehicle" for getting the state's finances out of the ditch, State Rep. Linda Chapa LaVia (D-Aurora) tells us.

As the state begins the next fiscal year over $10 billion in the hole, expect to see a revised version of Meeks' plan -- which raises the income tax rate, provides low-income tax credits and property tax relief, and applies the sales tax to certain services -- to reemerge as a serious solution to the state's budget woes. Education experts, lawmakers, and tax-reform advocates are currently working together to draft the latest version of the measure. According to Chapa LaVia, a "blueprint" is expected to be introduced in the General Assembly in January.

The Meeks bill made some headlines in the final days of the regular legislative session this past spring, when it passed the Senate, only to die a quiet death in the House. Since then, it's become increasingly clear that Illinois' meager income tax base -- we have one of the lowest in the nation -- isn't just affecting schools anymore. The flat 3 percent rate simply doesn't generate enough money to pay off pension debt, keep prisons open, health care programs solvent, or human services intact. Meanwhile, the legislature has failed to join surrounding states in imposing taxes on a variety of services and thereby taken a pass on billions more in potential revenue. 

Chapa LaVia tells us: "When you ask people 'Would you accept a tax increase for education or to fill a state deficit?' the answer is overwhelmingly education." Indeed, one of the likely reasons Gov. Pat Quinn's tax proposal failed to garner much support last session is because its only goal was to get the state's financial house in order.  Convincing skittish state legislators to back a tax increase is tough in the first place; it gets even harder if "Hey, we paid our bills!" is the only explanation lawmakers can give their angry constituents.  HB 174, by contrast, would allow them to tell their districts that they not only cleaned up the state's financial mess, but also took a major step towards improving the public education system.  As Meeks himself said back in June, "If we're going to pass an income tax hike, if we're going to take the heat from voters, let's pass something we can be proud of and defend."  

"It's been difficult to push this bill uphill for so many years," says Chapa LaVia, who chairs the House education appropriations committee. "We understand what we need to do. Now is the time to get the leaders on board."

Come January, we'll be watching this one closely.

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