Saturday, June 10, 2006

Illinois "Higher Education" Cost Gets Higher - Again


The University of Illinois plans to raise tuition by 60 percent over five years to meet budgetary needs. Students also must pay a $250-per-semester fee to cover "routine maintenance".

Every state college in Illinois has raised tuition rates and fees. Illinois Board of Higher Education spokesman Don Sevener has said, "It looks like a significant increase, but spread over four years is really a pretty modest year-by-year increase."

Ahem.

We must wonder if Mr. Sevener has any kids attending college.

Thursday, June 08, 2006

Stop The Growing Quantity Of Taxing Districts!

Yes, we have had this discussion before, but the Herald-Review puts it so succinctly that we are forced to revisit the issue. Take a moment and read this last of a four-article series.

There are just too many taxing districts (authorities) in Illinois at large and Woodford County in specific. Illinois leads the nation.

The most recent count which we have (from the Illinois Department of Revenue) for "taxing authorities" in Woodford County is 140 unique bodies - for a County population of 37,000.

There surely must be some duplication of administrative costs in such a system. Couldn't we adopt a more efficient model without making it into an "us versus them", polarizing discussion?

Saturday, June 03, 2006

The state won't get tough on schools to save money

The Southern Illinoisan has an interesting opinion piece relating to school consolidation efforts:

The current debate over the governor's lottery plan entirely sidesteps this issue. Yes, the plan invests four $1 billion lump sums into things like increasing a school's basic funding foundation level, replacing old textbooks and creating additional in-school academic help for students, but all it really does is feed a network that is almost too large to be satisfied. Because of all the discussion of the lottery lease, one might have missed the fact Blagojevich did propose a piece of legislation earlier this year that could be a gateway for true school funding reform.

Senate Bill 2795, sponsored by State Sen. George Shadid and State Rep. Michael Smith, streamlines the school consolidation process and gives local voters more choice as to how they will reorganize their districts. Of course, state officials only hope people take advantage of the provisions, because consolidation remains strictly optional at this point. But should it remain optional?

Consider this: Union County, with a population around 17,000, has seven separate school districts. Within those districts there are seven elementary schools and four high schools. Three of those elementary schools are feeder districts into one high school. All of the elementary students combined probably don't exceed 1,500 individuals; the same goes for the high school students. One would think the relatively small number of students would only require one countywide unit district or two districts at the most, separated between elementary and secondary. Now, I'm ignoring any number of social and community identity reasons why the schools don't consolidate, but if one looks at this strictly financially (and the point here is education funding reform) it starts to make sense.

Locally property taxes pay for the students to have an education, but they also pay seven sets of administrators to do the work for the same number of students who would be present in the local school system, consolidated or not.

It should be noted I'm not picking on Union County, as there are other Southern Illinois counties with multiple school districts for a relatively small number of students. But Union serves as a good example of how operating a large number of school districts can be more draining on the taxpayers and ultimately less beneficial to the students in a certain district.

Some of the funding challenges start to solve themselves when schools consolidate. It's easy to see all of Union County's real estate taxes pouring into a single district (and a single set of administrators) would be cheaper than trying to fund the operations of seven districts. This would eliminate the problem of schools in smaller communities getting less money than schools in larger commercial and residential municipalities. A consolidated school district means fewer total dollars spent trying to maintain multiple buildings, increased school purchasing power for better deals on supplies, and increased local income from school breakfast and lunch sales. Consolidated schools would also mean fewer districts for regional superintendents to track and would give the opportunity for the regional offices of education to work on initiatives that would be sure to affect all students in a given area. On the academic side, consolidated school districts would have an easier time implementing a curriculum that gives students a cohesive learning experience in K-12 and could be easier on the students in transitioning from high school to college.

The governor often touts the amount of money he's thrown toward education as a staple of his administration, but SB 2795 could prove to be the most significant education proposal of Blagojevich's career once it is signed later this year. The only drawback to it is it really lacks teeth to make schools consider consolidation. Asking them politely won't gain the type of results state officials want to see.

Make no mistake; consolidation of school districts is no easy process. In fact, if Union County school districts all joined as one it would likely require consideration of constructing an entirely new school building or two big enough to hold all of the students. But Illinois has allowed schools to have a mild winter for too long. Now . . . there are too many districts striving to flourish.

As always, the emphases are our own.

The piece was written by Mr. Caleb Hale who they call the "higher education reporter" for The Southern Illinoisan. His column appears periodically. He can be reached at (618) 351-5090 or at caleb.hale@thesouthern.com.

Thursday, June 01, 2006

Letters From: Springfield

Democrats' budget wasn't democratic

Though the new state budget was entirely crafted and passed by Democrats, there was nothing “democratic” about it. There are 177 members of the Illinois General Assembly, each representing more than 100,000 local residents, yet almost all were completely shut out of this year's budget process. The new $58 billion spending plan was negotiated in secret by three Democrat leaders.

As a result, the new state budget includes $800 million in pork projects for Democrat members to secure their votes, while nursing homes, pharmacists and others who care for the sick and disabled must wait months for state reimbursement for their services.

Over the past three years our state bond debt has nearly tripled to $20.3 billion, and our backlog of unpaid Medicaid bills owed to those who care for the sick and disabled has grown to nearly $2 billion. Yet, the new Democrat budget does nothing to address these critical problems. In fact, it adds to them, increasing state spending by another $1.4 billion that taxpayers simply can't afford.

To fund their continued spending, Democrats have once again raided the pensions of suburban and downstate teachers, and other public employees. The 5-year, $3.5 billion pension raid will ultimately cost our families $38.5 billion to repay. That”s $3,500 for every man, woman and child in Illinois.

Because Illinois now has the worst funded pension systems in the nation, Fitch Ratings, a top New York bond rating agency, has given Illinois a “negative” financial outlook and has indicated they will likely lower our bond rating, costing us more in interest for money we borrow. According to Fitch, Illinois will either have to increase revenues (raise taxes) or dramatically cut spending in the near future just to fund pensions.

The second year of each two-year session of the General Assembly is supposed to be strongly focused on our state budget, yet this spring, the second year of the 94th General Assembly, Democrats rushed through the budget process at record speed. If ever there was a time when we needed to focus our full attention on our state's fiscal problems and our budget, it is now. Hearings on various areas of the budget are normally held over the course of several months in Springfield and Chicago. This year, Democrats condensed the hearing process down to two short weeks.

A perfect example was the Human Services Appropriations hearings that account for almost 50 percent of our total state budget, yet Democrats raced through a hearing limiting citizens' and advocates' testimony to 3 minutes. That same day, they allowed only one hour to review the entire $16 billion budget for the Department of Healthcare and Family Services. These are the agencies that fund many services for children and families, the disabled, mental health services, Medicaid and children's health programs.

Throughout the spring session, House Republicans were ready to work with the Democrats on a responsible budget that would rein in spending, restore pension funding, and pay down our escalating debt. We, and the millions of families that we represent, were shut out of the process.

The foundation “democratic” government is that everyone has a voice. It's unfortunate that in this year's state budget the only voices that were heard belong to Gov. Blagojevich, House Speaker Michael Madigan and Senate President Emil Jones.



Tom Cross
House Republican leader, Plainfield Illinois

( emphases is our own, not the writer's )



Talk Ain't Cheap! Can You Hear Us Now?

Here in Illinois, the average monthly cell phone tax is above the national average, close to 19 percent every month. One recent survey and study says Illinois ranks No. 10 in the nation in cell phone taxes. Nebraska is No. 1 at almost 25 percent. So, the average monthly cell phone tax per month in Illinois is at least 10 percent above the average sales tax! Who ever said, "talk is cheap"? Of course, in addition to taxes, you are also charged about $1 to maintain cell phone 911 service.

According to Illinois and Chicago departments of revenue, it is estimated that in 2005 Illinois collected $330 million in cell phone taxes. The City of Chicago collected $68 million.

Local governments tax cell phone bills just like they have always taxed home (land-line) phones, however,there is a difference - wireless isn't a "regulated utility."


"Wind Farm" Construction Put On Hold


The Chicago Tribune as well as the Bloomington Pantagraph yesterday reported that Federal officials have issued stop-work orders on "wind farms" all over the country. Developers said that at least 15 wind farm proposals in the Midwest have been shut down by the Federal Aviation Administration since the start of the year, including the project near Saybrook, Illinois.

The Saybrook site is one of several proposed for Central Illinois, including those near Benson, Delavan, Hudson, and northern Livingston County. Wind farms in LaSalle and Bureau counties already are operational.

This supposedly has something to do with military radar interference on the part of the turbines and Homeland Security as well as the FAA seem involved.

Stay tuned.

Wednesday, May 31, 2006

Wind Generated Power Goes To Chicago


The Associated Press today reports on the Navitas/Woodford County "informational meeting" scheduled for the 13th of June in Benson, Illinois:

BENSON (AP) -- Woodford County residents will get a chance next month to hear more about a proposed wind farm that would involve 80 gigantic turbines.

The wind farm would be located near Benson -- about 30 miles east of Peoria -- and produce about 160 megawatts of power. That electrical energy would most likely go to the Chicago area.

The Woodford County Board's finance and economic development committee is hosting an informational meeting on June 13 in Benson.

Benson Mayor Arthur Brooks said there are plenty of the village's 400 residents who are wary of the project -- some think the turbines ruin the landscape.

The project is a proposal of Minneapolis-based Navitas Energy.

Construction could begin next year, if the necessary permits are obtained.

The above emphasis is our own. Note that the power generated is to go to - guess? That's right, Chicago.

The photo is from Navitas' "farm" in southwest Minnesota. The towers there are about half as big as the ones proposed for Benson.

For photos of the site in Mendota (Paw Paw), Illinois see this excellent site. Again, the pictured towers are about half the size of those going in at Benson, due to local topographic differences.

Tuesday, May 30, 2006

"Wind Farm" Generator Schematic


(click on the image to enlarge)

Woodford County "Wind Farms"

We mentioned a few months ago our ambivalence about these "wind farms" sprouting up all over the place. The Woodford County Board's finance and economic development committee is hosting an "informational meeting" (sales pitch) in Benson on June 13th.

We're not sure folks really understand what we're talking about here. These towers are supposed to be around 400 feet in height. Watterson Towers on the ISU campus in Normal is only 300 feet and can be seen for miles and miles. This "wind farm" is going to be the equivalent of EIGHTY Watterson Towers!

The developers talk about "landscaping" to minimize the visual impact. Can you imagine trying to landscape so you couldn't see Watterson Towers from a mile away? Fortunately, Watterson isn't spinning around.

Our intention is to get up there to the proposed site, take a few pictures, and then digitally superimpose the style of towers suggested at scale. We will publish those altered pictures here to give an indication of size relative to the landscape up there.

Thursday, May 25, 2006

U.S. Economy Races Ahead In First Quarter

Just because you won't see anything about it in the "main stream" media, we want to let you know that the US economy roared ahead in the first quarter 2006 with 5.3% annual growth!

This was the fastest rate in 2 1/2 years, and exports strengthened, rising at an annualized 17%. Personal spending remained strong and inflation in check.

So take that, Osama.

Wednesday, May 24, 2006

Sell Some Assets For More Teachers?


After longs talks with Senator Meeks' people to keep him out of the Governor's race, on Tuesday, Blago announced his "solution" to public school funding in Illinois: "selling or leasing" the Illinois State Lottery!

This is wacky even by Springfield standards. How about "selling or leasing" the lottery and paying some back bills or paying back some of the borrowed money? Once these guys sell off all of the assets, borrow all the money they can, run down the bond ratings, and raid ("sweep") all the special funds, what will be left for those of us that try to stay in Illinois; let alone our children and grandchildren?

Even "Big Educations" seems a little confused by this proposal and be requiring major hand holding to get onboard.

The proposal would do absolutely nothing for Illinois property tax payers. Nothing to solve any long term funding problems. Nothing for the under funded pension plans. Nothing for the unpaid bills.

This is a nothing proposal make for political expediency. It barely deserves discussion. Why don't we sell of the State schools while we're at it? I'm sure the Capitol Building would fetch a pretty good price. The Governor's Mansion isn't being used; let's put that on the block.

Friday, May 19, 2006

Just Can't Take "No" For An Answer At Fieldcrest


There are so many logical holes trying to be plugged with fuzzy math in Mr. Vincent's argument for a Fieldcrest School District referendum in November, that we cannot even muster the energy to debunk. A visual image of the proverbial Dutch boy trying to stuff fingers in the dikes comes to mind.

Suffice it to say that when you have the same or fewer kids, you don't hire more staff and spend more money. The prudent approach would be to cut expenses. That's what we all do in our own budgets. Fuel cost is up? You drive less - you don't run into your boss and ask for a raise; year after year.

The case for more tax follows the "Big Education" playbook. Threats of service cuts and increased fees. There is no downside to keep asking year after year for a tax rate hike. Eventually, school administrations feel, they will get it approved. The tactic always seems to include some type of claim that, "it's really SAVING you money . . . You can't afford NOT to approve this".

We believe there should be a three strikes your out policy with tax referenda. Let's say, if the voters turn you down 3 times in five years, then you can't bring another request for 3 years. What is the cost associated with these repeated attempts?

In any event, we wish the best for voters. We also want the best for the kids. We're just unsure the hike is best.

Thursday, May 18, 2006

Recent News Links


Just for those that don't keep up with the "current news" link for Woodford County over at www.woodfordtaxfacts.com, here are the "award winning" submissions from local sources (April-May to date):


Vote to upgrade state's attorney's office fails
Plan would have boosted pay, added staff
Posted On: 18-May-2006
Law library named in honor of deputy clerk
still going strong at aged 76
Posted On: 18-May-2006
Expert to speak on freight trends at TransPORT spring luncheon
Consultant To Speak
Posted On: 17-May-2006
Woodford administrator gets early $4,000 pay raise
Jackson is "shocked"
Posted On: 17-May-2006
ICC to see drop in state funds
College had expected to see hike in cash
Posted On: 14-May-2006
Fieldcrest Board's CAC To Change Approach
Panel won't be involved in collecting student fees
Posted On: 8-May-2006
Roanoke-Benson mulls math changes curriculum
Board To Meet To Authorize Math Changes
Posted On: 8-May-2006
Senate passes tax cap reform
Lawmakers say bill helps taxpayers, school districts
Posted On: 5-May-2006
Woodford to aid Tazewell tax mailings
Consultant 'to guide the ship and give direction'
Posted On: 4-May-2006
Proposal may lift sales tax on fuel
But some officials say bill won't help consumers
Posted On: 27-Apr-2006
Woodford considers safety-tax cut
Losing fuel tax may help businesses seeking relief
Posted On: 26-Apr-2006
Dangerous dogs a growing concern
Woodford County considers ordinance for developing areas
Posted On: 24-Apr-2006
State House Cracking Down On Eminent Domain
measure goes back to Senate
Posted On: 21-Apr-2006
Tazwell property owners weren't taxed in 2003 or 2004
assesments still being logged
Posted On: 21-Apr-2006
Woodford County To Observe Government Week
Open Houses Planned
Posted On: 20-Apr-2006
Woodford board hires IT specialist
Eurkea High employee will be part of intergovernmental agreement
Posted On: 19-Apr-2006
Bond House Gives IL Negative Rating Over Pensions
$39 BILLION funding shortfall
Posted On: 14-Apr-2006
Whose Money Is It?
Fox/Opinion Dynamics Poll On Taxes
Posted On: 12-Apr-2006
Metamora man denies zoning offense
State's Attorney Investigating
Posted On: 12-Apr-2006
New index could drop farmland values
30-year-old assessment method being replaced
Posted On: 11-Apr-2006
Surprise! We Sold Your House
Foreclosure practices changing?
Posted On: 11-Apr-2006
"65%" Solution To School Funding Gains Momentum
States attempt to force money into the classroom
Posted On: 11-Apr-2006
Blagojevich's Legacy
Illinois Ranks 46th in Job Growth
Posted On: 10-Apr-2006
Raceway development agreement passes 1st step
Minonk and developers yet to sign
Posted On: 10-Apr-2006
Higher Sales Tax Revenue Expected in Eureka
$3.1 million in expenses
Posted On: 10-Apr-2006
Opinion From JournalStandard.com
Protecting our property rights
Posted On: 6-Apr-2006
Zogby Poll: Dems Hold Their Edge; But Topinka Still in Range
Blagojevitch leads despite difficulty
Posted On: 6-Apr-2006

Wednesday, May 17, 2006

Woodford County Real Estate Tax Extensions






























Here is the companion for our recently posted 2004 extensions in Woodford County.

The variance in overall extensions from 2004 to 2005 appears to us to come in at + 4.6% year to year.

Here is a little backup data going back to 1994:

Total Property Tax Extensions for Woodford County for the last 12 years-
1994 $23.811888 millions
1995 $25.977666 millions
1996 $27.843948 millions
1997 $30.550720 millions
1998 $32.743957 millions
1999 $33.954361 millions
2000 $35.641961 millions
2001 $38.121309 millions
2002 $39.864363 millions
2003 $42.728191 millions
2004 $45.046906 millions
2005 $47.111284 millions

Right off the bat you can easily tell that from '94 to this year the billings went up 98%, or an average of 8.9% per annum.


Tuesday, May 16, 2006

Public Libraries or Internet Portals?


Here's another local article speaking to our Public Libraries' identity crises.

We get a little concerned with publicly funded entities thinking they have somehow received a mandate to be the information gatekeepers - most especially when they are part of the ALA.

The American Library Association are the ones that want your kids to be able to go to the library and log-on to any site that they wish - forget the morality or safety concerns. They also do not want anyone, ever, to have any oversight over what occurs with their portals. This is not to imply that your own local library is unsafe for your kids - quite the contrary. However, the ALA is the activist wing and political action entity which your library supports, and thus, so do your tax and donation dollars.

The ALS (Alliance Library System) is the more localized wing. Take a look at just a couple of items:

http://www.alliancelibrarysystem.com/article.cfm?id=989

http://www.alliancelibrarysystem.com/article.cfm?id=982

These are your tax dollars at work.

Now, our libraries seem to want to establish their own proprietary "Google". They seem to feel that will keep public libraries viable.

With the number of private initiatives like Google, Microsoft, Yahoo, not to mention NetFlix, the coming "TV on demand" thing, do we really need a library to compete in these areas by offering net access, DVDs, CDs, and video games?

Real World Property Taxes - Redux

We promised to keep updating real Woodford County residents' tax bills as they come in.

Here's an update:











(Click on the chart to enlarge for visibility)
Use your "back" button to return.

Monday, May 15, 2006

Eureka Public Library District - New Building Referendum?


We had the unusual opportunity to catch the Eureka Public Library District Board meeting on Monday night last

It was incredibly interesting. Much of the meeting was centered around thoughts of some sort of expansion, demolition, and/or relocation of the library.

We heard no budgetary numbers attached to these various options. Apparently, the original facility was essentially a gift from a Eureka resident and is "trusteed" by a church. There is also a State of Illinois historic preservation situation involved with a potential move.

Additionally, the board unanimously approved a 5% pay increase for library staff, and it was mentioned that much of the budgetary pressure was coming from I.M.R.F. contributions, which, it was stated, "we have no control over - it's State mandated".

Computer and software updates were also mentioned as needing monetary attention.

Morphing the library to more of a "community center" was discussed.

We may be way off on this - but it is our opinion that Public Libraries are desperately scrambling for relevance and a customer base.

Let's face it - folks aren't reading like they used to and if the libraries are to become "internet access points" why do they even need a complex at all? Are we to fund these things as book and computer warehouses?

Eureka, and many other libraries are in danger of losing their "warm and fuzzy" support from the tax paying folks that regard them with nostalgia as historic, iconic, and cultural reference points - places which they would endow from their estates when they die.

We would humbly submit that the libraries take a little break, take a few deep breaths, and consider what their missions should be in terms of their communities' wishes and history, rather than trying to create demand for something that perhaps isn't wanted or needed.

The public library system should not be a social service agency, nor a jobs program. If it is to be "public" it should serve genuine public needs. If it is to be private and privately endowed, it can make it's own mission, but it must create that without funding from property taxes, federal and state grants, or other public funds.

Take a look at this article from the Christian Science Monitor:

http://www.csmonitor.com/2002/0725/p02s02-ussc.html

Letters From: the "Silent Majority"


This is from a letter which Newt Gingrich received after his last Sunday appearance on "Meet The Press" with Tim Russert on NBC.

"You are in a rare position for a public servant: you have found a way to make telling the truth a convincing political strategy. I think it really works on foreign and domestic policy, and I think it works when you talk about your own personal history in the face of hostile questions. When you do America the simple courtesy of speaking honestly, plainly and sympathetically, you tap huge reserves of goodwill and in the process make Americans feel better about themselves."


Speaker Gingrich has a lot of baggage to haul, but boy, we sure like his positive, inclusive and none-the-less fiscally conservative views and his appreciation of history.

Mr. Gingrich thinks America is ready for someone willing to speak the truth and "the folks" are crying out for leaders that have fiscal conservatism in their blood. We do too. It doesn't matter what label you use - progressive, Democrat, Libertarian, Republican, Conservative, Liberal, Independent - the voters seem ready for the real deal.

Stay tuned.

Sunday, May 14, 2006

Let The Tax Referenda Marketing Begin


The Peoria Journal Star had an article today featuring I.C.C. President John Erwin lamenting the unfairness of the projected State of Illinois funding of Illinois Central College.

While we agree with him that the giant sucking sound from up north is getting intolerable to we "downstate farmers", we also hear in Mr. Erwin's outrage the seeds of a tax referendum which will enable the pouring of more concrete over at ICC.

These seeds are sprouting vigorously in Woodford County. We hear murmurs from Fieldcrest School District, El Paso/Gridley, ICC, and others - not necessarily school taxing authorities.

Some may have merit, but the burden of proof lies with the taxing authority - not the tax payers. Let's nip this in the bud now. It is NOT a revenue problem, it is a spending problem. We refuse to be taxed out of our homes, regardless of where the State of Illinois' funding levels for local taxing bodies fall.

Saturday, May 13, 2006

"Regressive" Taxation Hypocrisy


Every Spring when the IRS comes calling, and local Real Estate Tax bills arrive, talk turns to how "unfair" taxation is in this country - "tax cuts for the richest 1%", etc.

The tax-spenders want more money and on the surface decry anything resembling everyone paying the same rate of tax on anything. They feel that those that have more should pay a greater percentage to the communal pot (for the social "experts" to spend). This is the concept of "progressive" taxation.

We are constantly amazed at the silence of these folks on the most regressive taxes of all - property, cigarettes, alcohol, and most insidious, state lotteries.

It is extremely difficult to get a hold of State "target demographic" marketing data. They don't want to talk about it. However, WoodfordTaxFacts.com has obtained some of this information and it is stunning.

Essentially, what we need to understand is that those most prone to smoking, drinking, and gambling with "lotteries" are at the lowest rungs of the socio-economic ladder. These taxes are a disproportionate burden on the undereducated, elderly, and immigrant populations. They always have been and they always will be.

The Real Estate tax as we've discussed many times is a tax on savings, not income, and burdens those on fixed incomes the most (read - low income/retired/elderly).

Where is the "progressives' " outrage? As an aside, how can you have "sin taxes" on certain behavior/consumption and then "profit" from same in the form of taxation? The status quo indicates it can be politically justified by putting those monies into "education, training, treatment, and heathcare" programs. However in Illinois, after the promises faded, the monies end up in the "General Fund" anyway. Remember when the Illinois Lottery was instituted? The sales pitch was that gambling (the numbers racket) was going on anyway, and why not just have the state horn in on the illegal enterprises and take a piece of that pie. Who could complain? That was supposed to be a property tax relief deal for education funding. It was going to go into the proverbial "lock-box".

The huge hike in tobacco taxes and the lawsuit settlements (tax) on "Big Tobacco"? That was to go into Medicare. The State is still not paying doctors and hospitals for 18 months.

Beer, wine, and liquor license fee increases and excise taxes? Well, those were always intended to ease the transition from prohibition and were to go into prevention and care of abusers; never happened.

So next time your friends complain about how the poor and middle class pay too much tax relative to "the rich", remind them that an easy way to put real money into low income pockets would be to eliminate the aforementioned taxes, get rid of the lottery, and gently remind them that less than half of all Americans pay any federal income tax.

Next up - we'll discuss the federal "Earned Income Tax Credit" monies gushing out to Mexico via illegals living here, but legally able to file and claim dependents back home. Anything we can do to help out Mexico . . .