Governer Rauner Property Tax Freeze

It’s a regular Western showdown, at the Capitol, as Republicans and Democrats square off about Governor Rauner’s Property Tax Freeze.

Illinois’ state lawmakers reached a standstill after spending a recent Tuesday afternoon debating the finer points of Governor Rauner’s intended property tax freeze.

Governor Rauner, whose property tax freeze was created with the suburbs in mind, called the deliberations a “waste of time”, with the Democrats unable to produce an offer acceptable to Rauner’s mission.

This standstill threatens to freeze the local government, with the state being unable to access the local budget, which will begin on July 1, until an acceptable offer is reached.

The Democrats approved a budget that was still $3 billion more than the state currently has. Rauner has stated that he would debate filling the budget deficit with tax hikes, if Democrats were willing to discuss his proposed property tax freeze.

Rauner believes that local taxes are the problem, as he told the Daily Herald recently. Rauner feels that controlling property tax, and empowering local voters to do the same is one of the most important issues for the state of Illinois.

Despite the fact that Rauner’s plan is intended for the suburbs, suburban lawmakers are still balking at the intended freeze, saying it would hamstring their budgets. South Streator’s Superintendent Of Schools Ryan McGuckin spoke out against the effect the property tax freeze would have on the township’s budget. He claims the property freeze will be ineffectual. He also criticizes that it doesn’t allow for inflation. The fear is that with the cost of building maintenance and the pressure to provide new textbooks, the property tax freeze would be just another restriction.

Elgin Area School District U-46 CEO Tony Sanders stated that a property tax freeze would be devastating to his district’s budget. The inability to predict next year’s budget is making it next to impossible to plan for the next school year.

If the property tax freeze were to be passed now, according to Sanders, it’s too late to tell teachers and superintendents they don’t have the money to pay them next year.

Grayslake Fire Chief John Christian and Executive Director of the Metropolitan Mayors Caucus David Bennett also spoke out at the Tuesday hearings, saying their sector of local government would also be adversely affected by the proposed tax freeze.

Not all Democrats are opposed to Governor Rauner’s property tax freeze. State Representative Jack Franks, a Marengo Democrat, tried to pass a property tax freeze in the State House. Franks’ proposition allowed for local lawmakers to break through the tax freeze, if they felt they weren’t getting enough money. Franks’ proposal was also rejected.

“Don’t hide from the monster. It’s not going to go away,” Franks said to Republicans, urging them to vote for it.

House Leader Jim Durkin feels that property tax freezes aren’t the problem. The real problem is the budget that was passed last month, according to Durkin.

Lawmakers will be returning to the debate shortly. On July 1, the state will run out of authority to access its budget until this issue is resolved. Rauner has proposed a few stopgap measures, including potentially closing two youth prisons, possibly including those in St. Charles and Warrenville.

Also in line with his state tax reform policy, Rauner has proposed several revisions to help businesses, but most of those have already been shot down by Democrats.

Despite all the in-fighting, Democratic House Speaker Michael Madigan said that tax reforms would have to be mutual to be effective. Democrats will not be able to pass the necessary changes themselves. The only way for it to work is if the Democrats, Republicans, and the Governor cooperate.

In politics and finances, there are no easy answers. It should be interesting to see what happens when the Lawmakers return to deliberation!

To learn more about Illinois property tax law, contact a Chicago property tax attorney today!