Tax increase would help: Ill. legislators

By M. Michelle Byrne and Suzanne Tomse

Editor’s note: This is the last part of a three-part series on higher education funding. This part deals with Illinois politicians’ role in the funding process.

Taxpayers who are concerned about higher education funding need to convince Illinois legislators that they would support a tax increase which would provide the necessary dollars to continue support for public universities.

Gov. James Thompson said, “Our children, the 2.5 million students, deserve a quality education and increased state spending for education. There is a significant need for more spending at all levels of the education system, but there is no guarantee that additional revenue will be available for any increase.”

Rep. John Countryman, R-DeKalb, said other state-supported programs such as mental health or public aid demand funding from the state, which is why higher education does not always get the funds it asks for.

There is also a backlog of repayments that the state has accumulated. “The appropriation level this year falls short of the amount we need to make timely payments for tax refunds, circuit-breaker relief and Medicaid payments,” Thompson said.

“In fiscal year 1989, it would take most of the natural growth to eliminate this year’s backlog, and the backlog will grow in FY89 if this is not addressed. The legislature deliberately underfunded these line items in June of 1987, despite my specific warning and request not to do so,” Thompson said.

This year the state will get a little more revenue without a tax increase. Sen. Patrick Welch, D-Peru, said there has been a natural tax increase this year because the employment rate has risen to about 85 percent.

“The fact people are now employed helped with a natural tax increase, which will amount to about $400 million,” Welch said.

Countryman said another problem legislators have with higher education funding is that there are other demands in Illinois that require more money. “Legislators won’t come to some (budget) agreement unless you divide the whole pie.”

Countryman said neither Illinois House Speaker Michael Madigan nor House Minority Leader Lee Daniels feel there is a need for a tax increase. Countryman said a one-half percent increase in taxes would only result in about a $800 million increase in revenue.

During the period between 1961 and 1971, Illinois citizens voted to pass a statewide bond issue to raise funds for universities, said Ross Hodel, Illinois Board of Higher Education deputy director of public service.

However, the process for funding universities has changed, Hodel said. Now, instead of voting for a statewide bond issue, taxpayers must be in favor of a tax increase, Hodel said.

“Between 1961 and 1971 people chose to make investments in education. People had a choice and they chose the affirmative,” Richard Wagner, IBHE Executive Director, said.

However, Countryman said, “It’s an election year and it would be unusual to have a tax increase this year,” he said.

Board of Regents Chancellor Roderick Groves said without a tax increase the Regency universities will have to “engage in some belt-tightening.”

“Obviously there’s only a limited amount that can be done without severely affecting quality,” Groves said.

NIU President John LaTourette said, “We have a good case to pose to the legislature with the important resource being people.”