LaTourette calls for state tax hike
February 12, 1988
NIU President John LaTourette called for a change in the state’s tax structure including an increase in the Illinois income tax rate during a press conference Thursday.
“From my own personal point of view, I think we need to look at a 1 percentage point increase in the state income tax, from 2.5 to 3.5 percent,” LaTourette said.
Legislators said such an increase, which comes out to a 40 percent difference in the tax rate, probably would not pass.
Rep. John Countryman, R-DeKalb, said, “He (LaTourette) is getting rather bold.” Countryman said an increase of .5 to .75, which amounts to a 20 to 30 percent difference, is more “realistic.”
Countryman said he would not support a 1 percentage point increase unless there was a reduction in local property tax along with it.
Sen. Patrick Welch, D-Peru, said he supported a revenue increase but not necessarily a tax increase. Revenue increases might come from taking action on an auditor general’s report that revealed $3 billion in outstanding debts to the state.
Additional revenue also might be obtained from action on a report revealing $231 million in duplication and waste in state services. Taxes other than the income tax and closing loopholes also might be used, he said.
Welch said a tax increase would have to be coupled with reduced local property tax to get votes from the legislature.
LaTourette said he also believed property rates should be reduced with an increase in the state’s income tax. “Property tax is way too high,” he said.
Welch said he has not found “overwhelming support” for a tax increase throughout his constituency.
LaTourette said it is important for legislators to determine whether there is support for an increase, but “it’s not a case of going out and taking a poll.
“I think we elect our leaders to make decisions and lead us. It is the role of the leaders to make a decision to do something that might even be unpopular.”
Both Countryman and Welch said it would be difficult to pass a tax increase in an election year.
If state funding for higher education is not increased, NIU might face higher tuition and a more restricted enrollment, LaTourette said. Last year, NIU’s 31 percent tuition increase went to offset state budget cuts, he said.
NIU students are paying 38 percent of the cost of their education, LaTourette said. The percentage will increase to more than 40 percent without additional state revenues, he said.
NIU’s tuition still is lower than the national average, LaTourette said. NIU’s tuition for on-campus students is $4,103 while the national average is $5,789, he said.
In addition to raising tuition, NIU’s target enrollment of new freshmen, which is 3,300, might be lowered to 3,100 if higher education funding is not increased, LaTourette said. “I do not like to see Northern becoming an elitist institution.”
LaTourette said, “Students have paid and parents have paid. We’re (NIU) either going to have a decline in quality or enrollment or an increase in tuition (if state revenue does not increase).”
LaTourette also warned NIU might lose faculty if funds for a salary increase are not obtained. He said NIU’s faculty salaries range in the 45th percentile with similar schools. “We should be around the top 25 percent (in pay).”
Although no faculty formally have resigned as a result of state funding, LaTourette said, “There is one (resignation) coming from (the) finance (department) and a couple in arts and sciences.”
However, he said NIU’s faculty is “very dedicated. They (faculty) need a signal from the state (that their work is valued),” he said.
LaTourette said Illinois ranks 9th in per capita income but has the 7th lowest per capita tax burden in the nation.
“Illinois is not a high-tax state and is becoming less of a high-tax state,” he said.