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The results of the regular session of the 77th General Assembly which convened on January 6, 1971 and adjourned until September on June 30, 1971 were disappointing to park districts as well as all other special taxing districts in Illinois. In failing to deal realistically with the financial problems confronting park districts and other special taxing districts due to the loss of tax revenue as a result of the homestead and household furnishings exemptions and the elimination of personal property as a source of taxation, park districts and other special taxing districts face the necessity of severe reductions in their annual operating budgets. The failure of the General Assembly to recognize and deal with the problem has tied park districts to a 1969 economy, despite continuing inflation and rising costs of administration and labor. This situation at a time when park, recreation, ecological and environmental matters have been given the highest priority in Government is one which must be brought by every member of the Illinois Association of Park Districts to the attention of his Representatives and Senators. It has been generally recognized by the National Recreation and Park Association and park and recreation administrators throughout the United States that the system of administration of local park and recreation facilities and programs within the State of Illinois through its park districts is the most efficient system of local administration in the field in this country. At a time when the local park districts in this state have acquired more park lands and developed more park facilities than at any other time since the first park district was organized in 1868, park districts are now faced with a serious problem of maintenance and the continued conduct of local recreational programs. During the recent session of the General Assembly several bills were introduced on behalf of the Illinois Association of Park Districts which would have permitted a minimal tax increase to meet the rising costs of Government. In adopting a policy generally followed in both the House and the Senate of denying any tax relief to special taxing districts without a direct referendum, the General Assembly has rejected a sound consideration of the existing problem. This serious problem must be brought forcefully to the attention of the Governor and the Department of Local Government Affairs so that some effective legislative relief can be granted at the fall session of the General Assembly. It should be noted, too, that the experience of the 77th General Assembly is the first experience with annual sessions of our legislative body. This permitted a wholesale postponement of consideration of important legislation which ordinarily would have received full consideration and action prior to adjournment in June. Numerous bills were permitted to be carried over to the Fall session without serious consideration of the necessity for early action. The following is a box score of legislation introduced and acted upon affecting the Park District Code and park districts: S.B. 68 (McBroom.) Amends Section 2-11 of The Park District Code with respect, to filing nominating petitions for candidates for park commissioner. Reduces the period in which to file nominating petitions to correspond with the period for the filing for State Senatorial offices. (As provided in Article 8 of "The Election Code" rather than Article 10 of "The Election Code") H.B. 1365 (R. K. Hoffman, et al.) Amends Chapter 105, Paragraph 325b Ill. Rev. Stats. 1969 to amend an act relating to conveyances to and leases from the Federal Government to provide that if a park district conveys real estate to the Federal Government the grantee must convenant to hold and maintain said property for park or recreational purposes or to provide the park district with other real property of substantially the same size and suitability for park purposes without additional costs to the park district. H.B. 1366 (R. K. Hoffman, et al.) Amends Sections 10-1, 10-7a, 10-7b, 10-7c and 10-7d; repeals Sections 10-2, 10-5 and 10-6 of The Park District Code to provide that real property owned by a park district may be sold or leased to any grantee or lessee who covenants to hold and maintain the property for park or recreational purposes or makes provision for the park district to obtain other real property of substantially the same size and suitability for park purposes without additional costs to such district. Real estate not subject to. such covenant or condition may be sold upon approval of the voters of the district at referendum. Repeals sections of the Code in conflict with such restriction. Illinois Parks and Recreation 4 July/August, 1971 June 30........Passed Senate H.B. 1367 (R. K. Hoffman, et al.) Repeals Section 114, Chapter 105 Ill. Rev. Stats. 1969 which authorizes a park district to convey real property to cities, villages and railroad companies for harbor, terminal and railroad purposes and uses. H.B. 1607 (Tuerk, et al.) Amends Section 2-17 of The Park District Code. Reduces number of signatures required on nominating petitions for trustees of Pleasure Driveway and Park Districts. Makes requirements same as those applicable to general park districts. (2% of number who voted at the last preceding election for commissioners in district, but in no case be less than 25 of such voters—see Section 2-11) H.B. 1890 (R. K. Hoffman, et al.) Amends Section 5-1 of The Park District Code. Increases the maximum rate at which taxes may be levied by park districts for general corporate purposes from .10% to .12% without referendum. Makes other nonsubstantive changes. H.B. 1891 (R. K. Hoffman, et al.) Amends Section 5-2 of The Park District Code. Increases the maximum rate at which taxes may be levied by park districts for recreational purposes from .09% to .12%. (Provides for direct referendum.) H.B. 2638 (R. A. Walsh, et al.) Creates new Paragraph 5-7 of The Park District Code. Permits park district after favorable referendum to levy annual tax up to .05% for establishment, maintenance and operation of a conservatory and for ecological and horticultural programming. S.B. 1066 (Dougherty, et al.) Amends Chicago Park District Act (Chapter 105, Section 333.l9 Ill. Rev. Stats. 1965). Raises rate of permissible tax levy to .47% for year 1972 and subsequent years. S.B. 1067 (Dougherty, et al.) Amends Chicago Park District Act (Chapter 105, Section 333.25) to provide for a working cash fund. Empowers the Chicago Robert A. Stuart is Legislative Counsel for the Illinois Association of Park Districts. Continued on Page 28 Illinois Parks and Recreation 5 July/August, 1971
LEGISLATION... Continued from Page 5 Park District to issue $25,000,000 additional Working Cash Fund bonds to bear interest at a rate not to exceed 7%. S.B. 1068 (Dougherty, et al.) An act to authorize Chicago Park District to issue full faith and credit corporate notes in lieu of tax anticipation warrants.
SUPREME COURT HOLD
The Supreme Court of Illinois in Consolidated Cases Nos. 44199, 44308 and 44432, Lake Shore Auto Parts Co., et al. vs. Bernard J. Korzen, County Treasurer and ex-officio County Collector of Cook County, Eugene L. Maynard, et al., vs. Edward J. Barrett, County Clerk of Cook County, et al, and Clemens K. Shapiro, et al. vs. Edward J. Barrett, County Clerk of Cook County, et al., has held that the new Article IX-A added to the Illinois Constitution of 1870 as a result of the referendum held on Senate Joint Resolution No. 30 at the November, 1970 election is unconstitutional and violates the provisions of the Fourteenth Amendment to the Constitution of the United States. In reversing the Circuit Court of Cook County in this case the Supreme Court has held that park districts and other taxing districts will not lose the personal property tax revenues (except for the reduction in valuation as a result of the household and homestead exemption) on 1971 tax bills so that monies received in 1972 will include personal property tax imposed upon both corporations and individuals. Thus, the full loss of revenues from the personal property tax which is provided for under the Illinois Constitution adopted in 1970 will not be felt in its fullest extent until 1973. It must be borne in mind that the Supreme Court decision in the Lake Shore Auto Parts case does in no way affect the elimination of personal property as a source of tax revenues under the provisions of the 1970 Constitution. In the opinion of the Court filed on July 9, 1971 in the Lake Shore Auto Parts Company case the Court said: "The new Article (Article IX-A) classifies personal property for the purpose of imposing a property tax by valuation, upon a basis that does not depend upon any of the characteristics of the property that is taxed, or upon the use to which it is put, but solely upon the ownership of the property. If the property is owned by A, it is taxable, if it is owned by B, it cannot be taxed. Of course the equal protection clause of the fourteenth amendment does not prohibit classification, and absolute precision is not required of the states in drawing the lines between classes. Nevertheless, a state may not, under the guise of classification, arbitrarily discriminate against one and in favor of another similarly situated ... As a result of the opinion, therefore, it appears that the personal property of individuals subject to the household and homestead exemption provisions only will be included in assessed valuations for 1971 and which tax monies will be received in 1972. GRANTS UNDER S.B. 1476 In July, 1971 each park district has received a letter from the Governor indicating that under the provisions of S.B. 1476 (passed by the 76th General Assembly) the districts will be eligible for state grants to make up lost revenues as a result of the personal property tax exemptions and abolition. This is the same information which was made available to all districts almost a year ago. Because of the various decisions relating to property assessments and valuations and the treatment of taxes upon personal property, the Department of Local Government Affairs has not yet been able to advise of the disposition and distribution of the $8,000,000 fund created by the General Assembly for the purpose of making grants to taxing districts which have lost tax revenues. A similar appropriation has been made for the year 1971 which will be applicable in 1972. It is hoped that the Department of Local Government Affairs will, within the next few weeks, be able to furnish notification to each park district which is eligible to receive such grants of the amount which may be available to it. Illinois Parks and Recreation 28 July/August, 1971 |
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