Residents attending a town hall meeting in Des Plaines told an Illinois lawmaker how they’d like to raise money to lessen the state’s financial woes – higher taxes on millionaires, businesses paying their fair share and a progressive income tax.
They said they did not want more casinos and draconian cuts to services.
Last week’s two-hour meeting attended by about 50 people at Prairie Lakes Community Center theater was hosted by Sen. Dan Kotowski, D-Park Ridge, and focused on the state’s unfunded pension liability and Gov. Bruce Rauner’s proposals to deal with the budget deficit. Rep. Marty Moylan, D-Des Plaines, was supposed to co-host, but had a scheduling conflict.
In late 2013, the state passed a controversial pension reform law designed to reduce Illinois’ $105 billion unfunded public employee pension liability by extending the retirement age for current state workers, restricting automatic and compounded yearly cost-of-living increases for retirees, and limiting the salary figure used to calculate pension benefits.
But Kotowski said the state’s Supreme Court will “probably determine (the law) is unconstitutional.”
Pension costs comprise between 20 and 22 percent of the state budget, he said, and this year, the state will see an increase of $500 to $600 million in pension-related costs.
Kotowski said he voted for the pension reform law “because (pensions) comprise so much of our state budget and we can’t necessarily afford it.” But if the law is found unconstitutional, it will be back to the drawing board for the legislature, he said.
“I know people broke a promise many times and that’s wrong,” he said in answer to a comment that the state had failed to meet its pension obligations for many years.”With that being said, steps have been taken to remedy the situation, to try and invest and right the wrong.”
Several people expressed frustration and worry about efforts to address the state’s looming budget deficit.
Kotowski said the governor’s proposed budget tackles a multi-billion dollar budget deficit with cuts to Medicaid, mental health and disability services, in addition to slashes in the amount of tax revenue allotted each year to Illinois municipalities, among other cuts.
“If those cuts go through on the front end, we’ll be paying for it on the back end,” Kotowksi said. Cuts to Medicaid, for instance, could result in more visits to emergency rooms, which ultimately cost taxpayers more than preventative care services, he said.
Additionally, if funding for local governments is cut, Kotowski said the result would likely be cuts to emergency services or increases in local property taxes.
Nearly all those in the audience expressed support for revenue-raising measures as a means to offset the deficit.
When asked by Kotowski if they’d support a measure to amend the state constitution to tax millionaires at a higher percentage, nearly everyone present raised a hand.
The same hands shot up again when he asked the audience if they’d support closing a loop hole which allows two-thirds of Illinois corporations to avoid paying income tax to the state.
More Top Picks Best Diamond Watches For Men
A majority of those present also favored instituting a progressive income tax when asked by Kotowski.
But few, if any, favored increasing the number of casinos allowed state-wide as a means to generate more tax revenue.
One member of the audience asked Kotowski what revenue-generating measures he would support.
“First of all, I represent you,” he said. “And I think it’s important that part of what I’m doing here is to get feedback from you. When I go back to Springfield, I want to know what you support.”