McHenry County Blog

That’s what the United Republican Fund rack-up says about Crystal Lake’s Mike Tryon.

And his colleague from the east, Republican Mark Beaubien came in at 88%.

South of the McHenry-Kane County line, Tim Schmitz received a 87.5% rating.

You can see the legislation included in the scoring here.

Democratic Party State Representative Jack Franks got 75%.

In the State Senate, McHenry County’s Pam Althoff received a 66% favorable rating, while Kane County’s Chris Lauzen came in at 50%. Lauzen’s low score seems to be the result of having missed three of the six issues selected.

= = = = =
State Rep. Mark Beaubien (R-Barrington Hills) can be seen to the left of State Rep. Mike Tryon (R-Crystal Lake).

A friend of McHenry County Blog has noticed a new law that would allow a sales tax to help pay for new schools.

It would have to be approved by referendum, unlike the extra one-half of one percent sales tax the General Assembly just foisted on us to finance the Chicago Transit Authority, Metra and Pace.

Such a referendum could be put on the ballot by the county board or school boards representing at least 51% of the student enrollment within the county.

The ballot would read,

Shall McHenry County be authorized to impose a retailers’ occupation tax and a service occupation tax (commonly referred to as a “sales tax”) at the rate of [not more than ¼ of, ½ of, ¾ of or a maximum of 1%] to be used exclusively for school facility purposes?

The tax would not be on food or drugs, which are not currently taxed by state government, just local governments.

Once passed, it could not be lowered by a referendum initiated by citizens petition.

The McHenry County Board could lower the rate or discontinue it, unless school construction bonds were sold, it could not be lowered if repayment of the bonds would be endangered.

“School construction” is defined about as broadly as anyone could imagine.

The money would flow through regional superintendent of schools. I noticed one very strange provision. The regional supt. can sit on the money up to 30 days.

That reminds me of when all state aid to education used to take that route. School districts lost so much interest while the county superintendent of schools sat on the money that the legislature changed the law to require it to be sent directly to the schools.

The money would be distributed would be distributed on a pro rata basis, according to the percentage of county students in the school district.

I love tax incidence questions.

Who will be the winners and the losers?

My first take is that those areas that are built out will be the losers. They will tend to have paid for their schools.

The winners, if I am correct, will be the fast growth areas, the villages that lust for growth.

I see one intended consequence and one unintended consequence.

Once a flow of money starts and one school district sells bonds based on these sales tax receipts, the tax seems destined to stay forever.

The unintended consequence is that tax money will flow forever (so to speak) and the local school boards will find a way to spend, whether such expenditures are necessary or not.

That’s the problem with “free money.”

Perhaps the law should be changed to allow the money to be spent on operations, as well as building. After all, operations eat up most of the budget and the infusion of new cash could be used to cut the property tax, if all bonds were paid off.

Oh, yes.

This can’t be done in Cook County, even though Senate President Emil Jones jointly sponsored it with chief sponsor Mike Jacobs, both Democrats. House sponsors of Senate Bill 835 were Patrick Verschoore (D-Rock Island), Sandra Pihos (R-Glen Ellyn), Mike Fortner (R-West Chicago) and Roger Eddy (R-Hutsonville), who is also a school superintendent.

Locally, State Senator Pam Althoff and Chris Lauzen voted “No,” while State Senator Bill Peterson voted “Yes” on the final 31-24 vote.

The bill passed the Illinois House 74-41. State Representative Jack Franks and Mike Tryon voted against the bill. Mark Beaubien was listed as not voting. Tim Schmitz voted “Yes.”

As an aside, I see language that originated when I was in the Illinois House in the 1970’s. It requires sales tax to be collected on minerals like gravel and coal at the point of extraction. That was some coalition we put together to pass that bill.

A friend of McHenry County Blog has noticed a new law that would allow a sales tax to help pay for new schools.

It would have to be approved by referendum, unlike the extra one-half of one percent sales tax the General Assembly just foisted on us to finance the Chicago Transit Authority, Metra and Pace.

Such a referendum could be put on the ballot by the county board or school boards representing at least 51% of the student enrollment within the county.

The ballot would read,

Shall McHenry County be authorized to impose a retailers’ occupation tax and a service occupation tax (commonly referred to as a “sales tax”) at the rate of [not more than ¼ of, ½ of, ¾ of or a maximum of 1%] to be used exclusively for school facility purposes?

The tax would not be on food or drugs, which are not currently taxed by state government, just local governments.

Once passed, it could not be lowered by a referendum initiated by citizens petition.

The McHenry County Board could lower the rate or discontinue it, unless school construction bonds were sold, it could not be lowered if repayment of the bonds would be endangered.

“School construction” is defined about as broadly as anyone could imagine.

The money would flow through regional superintendent of schools. I noticed one very strange provision. The regional supt. can sit on the money up to 30 days.

That reminds me of when all state aid to education used to take that route. School districts lost so much interest while the county superintendent of schools sat on the money that the legislature changed the law to require it to be sent directly to the schools.

The money would be distributed would be distributed on a pro rata basis, according to the percentage of county students in the school district.

I love tax incidence questions.

Who will be the winners and the losers?

My first take is that those areas that are built out will be the losers. They will tend to have paid for their schools.

The winners, if I am correct, will be the fast growth areas, the villages that lust for growth.

I see one intended consequence and one unintended consequence.

Once a flow of money starts and one school district sells bonds based on these sales tax receipts, the tax seems destined to stay forever.

The unintended consequence is that tax money will flow forever (so to speak) and the local school boards will find a way to spend, whether such expenditures are necessary or not.

That’s the problem with “free money.”

Perhaps the law should be changed to allow the money to be spent on operations, as well as building. After all, operations eat up most of the budget and the infusion of new cash could be used to cut the property tax, if all bonds were paid off.

Oh, yes.

This can’t be done in Cook County, even though Senate President Emil Jones jointly sponsored it with chief sponsor Mike Jacobs, both Democrats. House sponsors of Senate Bill 835 were Patrick Verschoore (D-Rock Island), Sandra Pihos (R-Glen Ellyn), Mike Fortner (R-West Chicago) and Roger Eddy (R-Hutsonville), who is also a school superintendent.

Locally, State Senator Pam Althoff and Chris Lauzen voted “No,” while State Senator Bill Peterson voted “Yes” on the final 31-24 vote.

The bill passed the Illinois House 74-41. State Representative Jack Franks and Mike Tryon voted against the bill. Mark Beaubien was listed as not voting. Tim Schmitz voted “Yes.”

As an aside, I see language that originated when I was in the Illinois House in the 1970’s. It requires sales tax to be collected on minerals like gravel and coal at the point of extraction. That was some coalition we put together to pass that bill.

Back to money in this series of articles of what happened when legislators were being briefed on District 300 by administrators and board members John Ryan and Joe Stevens, the board’s president.

Superintendent Ken Arndt brought up the huge Sears Tax Increment Financing district.

“If it is renewed, it would cause us to go to a referendum a lot earlier,” Stevens said. “It would be disastrous.”

“Hoffman has no plans to extend that TIF,” State Rep. Ruth Munson (R-Elgin) reported.

“Are you getting some (information) from Sears that they want it renewed?” State Rep. Mike Tryon (R-Crystal Lake) asked.

“In the House, current rules are that every single tax district has to sign off on it,” Munson explained.

No one brought up how much state aid to education would drop once the Sears TIF property got onto the assessment rolls.

And, more on money.

Chief Financial Officer Cheryl Crates explained that the charter school transitional assistance was supposed to be funded at the 90% level, but that in the past it was only funded at 50% of 90%. Now, it’s going to be 30% of 90%.

Addressing the school aid formula conundrum, Tryon said,

”One of the problems I see is that school districts can’t agree on what the formula should be. The non-tax cap counties complain about the tax cap(ped counties having the) tax cap double whammy fix(ed).

“Your voters do what they’re supposed to do and go out and pass a referendum, but lose state aid,” Tryon continued.

St. Charles State Rep. Tim Schmitz, who is being challenged in the GOP primary by Carpentersville’s James Krenz, related a comment from a Downstate legislator:

“You all keep passing those referendums. That puts more money back into the state aid fund.”

Schmitz also explained that every time legislation passes giving this part of the state’s schools more money there is a push back.

I thought it was a particularly insightful comment.

The fast growth aid is a direct reaction, although I doubt its sponsors are aware of it, of a bill passed by State Representative Julie Curry from Decatur.(Isn’t that where Arndt was before he came to District 300?) Its effect was to shift state aid to education to empty seats in schools with declining enrollments at the expense of sending it to growing districts.

So, empty classrooms Downstate were getting money while full ones in Huntley, for example, were getting nothing in state aid.

I was one of the few to speak against that bill on the House floor. Of course, it could not have passed, if Chicago area legislators had voted their school’s self interest.

There then ensued a discussion about the chances for a capital projects bill.

“The good news about the failing economy is that the Democrats may use it (a capital bill) as a jobs (bill),” Munson observed.

When Crates asked,

Schmitz’ answer was,

He indicated that a capital bill will be passed that will at a minimum make sure the federal money is not lost. Since Schmitz is on Minority Leader Tom Cross’ leadership team, I would imagine that his analysis is correct.

“District 300 went through a very, very difficult time,” State Senator Pam Althoff (R-McHenry) said.
“You’ve done a remarkable job over the last five years.”

“Some people actually thought we were crazy,” Stevens said.

My last notes are about money.

Crates pointed out that the district was $27 million in debt in 2004.

“We’re now at plus $145,000.

“It’s not a whole lot,” she admitted.

= = = = =
On the top of the article are photographs of District 300 school board member John Ryan and School Board President Joe Stevens. Immediately below are State Representatives Ruth Munson and Mike Tryon. Tryon can also be seen gesturing with his hands up just below. State Rep. Tim Schmitz is gesturing with his hands out down a bit to the left. Another head shot of Munson is below Schmitz and a head shot of Schmitz is seen to her right. Stevens appears again in the bottom left photo, while Chief Financial Officer Chery Crates is seen pointing to a screen talking money. Another shot of the audience is seen next to the photo credits. All photos can be enlarged by clicking on them.

Back to money in this series of articles of what happened when legislators were being briefed on District 300 by administrators and board members John Ryan and Joe Stevens, the board’s president.

Superintendent Ken Arndt brought up the huge Sears Tax Increment Financing district.

“If it is renewed, it would cause us to go to a referendum a lot earlier,” Stevens said. “It would be disastrous.”

“Hoffman has no plans to extend that TIF,” State Rep. Ruth Munson (R-Elgin) reported.

“Are you getting some (information) from Sears that they want it renewed?” State Rep. Mike Tryon (R-Crystal Lake) asked.

“In the House, current rules are that every single tax district has to sign off on it,” Munson explained.

No one brought up how much state aid to education would drop once the Sears TIF property got onto the assessment rolls.

And, more on money.

Chief Financial Officer Cheryl Crates explained that the charter school transitional assistance was supposed to be funded at the 90% level, but that in the past it was only funded at 50% of 90%. Now, it’s going to be 30% of 90%.

Addressing the school aid formula conundrum, Tryon said,

”One of the problems I see is that school districts can’t agree on what the formula should be. The non-tax cap counties complain about the tax cap(ped counties having the) tax cap double whammy fix(ed).

“Your voters do what they’re supposed to do and go out and pass a referendum, but lose state aid,” Tryon continued.

St. Charles State Rep. Tim Schmitz, who is being challenged in the GOP primary by Carpentersville’s James Krenz, related a comment from a Downstate legislator:

“You all keep passing those referendums. That puts more money back into the state aid fund.”

Schmitz also explained that every time legislation passes giving this part of the state’s schools more money there is a push back.

I thought it was a particularly insightful comment.

The fast growth aid is a direct reaction, although I doubt its sponsors are aware of it, of a bill passed by State Representative Julie Curry from Decatur.(Isn’t that where Arndt was before he came to District 300?) Its effect was to shift state aid to education to empty seats in schools with declining enrollments at the expense of sending it to growing districts.

So, empty classrooms Downstate were getting money while full ones in Huntley, for example, were getting nothing in state aid.

I was one of the few to speak against that bill on the House floor. Of course, it could not have passed, if Chicago area legislators had voted their school’s self interest.

There then ensued a discussion about the chances for a capital projects bill.

“The good news about the failing economy is that the Democrats may use it (a capital bill) as a jobs (bill),” Munson observed.

When Crates asked,

Schmitz’ answer was,

He indicated that a capital bill will be passed that will at a minimum make sure the federal money is not lost. Since Schmitz is on Minority Leader Tom Cross’ leadership team, I would imagine that his analysis is correct.

“District 300 went through a very, very difficult time,” State Senator Pam Althoff (R-McHenry) said.
“You’ve done a remarkable job over the last five years.”

“Some people actually thought we were crazy,” Stevens said.

My last notes are about money.

Crates pointed out that the district was $27 million in debt in 2004.

“We’re now at plus $145,000.

“It’s not a whole lot,” she admitted.

= = = = =
On the top of the article are photographs of District 300 school board member John Ryan and School Board President Joe Stevens. Immediately below are State Representatives Ruth Munson and Mike Tryon. Tryon can also be seen gesturing with his hands up just below. State Rep. Tim Schmitz is gesturing with his hands out down a bit to the left. Another head shot of Munson is below Schmitz and a head shot of Schmitz is seen to her right. Stevens appears again in the bottom left photo, while Chief Financial Officer Chery Crates is seen pointing to a screen talking money. Another shot of the audience is seen next to the photo credits. All photos can be enlarged by clicking on them.

This is the third in a series of articles about Monday’s legislative breakfast given by Carpentersville District 300.

Attending were various district administrators, board members John Ryan, who chaired the meeting, and Board President Joe Stevens, plus members of the public.

There were a lot of empty chairs.

State Senator Pam Althoff (R-McHenry) and State Representatives Mike Tryon (R-Crystal Lake), Ruth Munson (R-Elgin) and Tim Schmitz (R-St. Charles) made up the legislative contingent.

Chief Financial Officer Cheryl Crates next took the floor. I can’t resist putting up a photo of here standing in front of the projector in which her face became the screen.

OK, I know I’m being naughty, and I’ve got a weird sense of humor.

But, there it was right in front of me—Crates’ face playing the role of screen. I couldn’t help myself when the word “Taxes” appeared on her cheek.

But, back to money.

Crates explained that in the last seven years the state’s share of the district’s operating budget has decrease from 29% to 16%. You can see the details on the screen, if you click to enlarge the picture.

She pointed out that as property value goes up, state aid goes down.

“We knew when the tax rate went up our state aid would go down,” Crates said.

She then attacked the state aid formula, pointing out something I had not realized:

District 300 is a mid-range district.

To me, that means radical change would leave District 300 pretty much unaffected.

“We feel it is incumbent to take on this problem and make it fairer,” she stated. “I understand the richer districts don’t want to help the poorer districts.”

At some point, appropriate here, State Rep. Mike Tryon (R-Crystal Lake) interjected that some of the Downstate school districts have local tax rates of $1.15 per hundred.

His point was that, even if they were considered “poor,” their local taxpayers were not making an adequate effort.

School Board President Joe Stevens pointed out that the so-called transition money couldn’t be used to hire teachers.
The reason is because it disappears.

State Rep. Ruth Munson (R-Elgin) pointed out she and State Senator Pam Althoff (R-McHenry) has worked on getting the fast growth money.

“We’re looking at ways to get current year funding for special education.”

This is the third in a series of articles about Monday’s legislative breakfast given by Carpentersville District 300.

Attending were various district administrators, board members John Ryan, who chaired the meeting, and Board President Joe Stevens, plus members of the public.

There were a lot of empty chairs.

State Senator Pam Althoff (R-McHenry) and State Representatives Mike Tryon (R-Crystal Lake), Ruth Munson (R-Elgin) and Tim Schmitz (R-St. Charles) made up the legislative contingent.

Chief Financial Officer Cheryl Crates next took the floor. I can’t resist putting up a photo of here standing in front of the projector in which her face became the screen.

OK, I know I’m being naughty, and I’ve got a weird sense of humor.

But, there it was right in front of me—Crates’ face playing the role of screen. I couldn’t help myself when the word “Taxes” appeared on her cheek.

But, back to money.

Crates explained that in the last seven years the state’s share of the district’s operating budget has decrease from 29% to 16%. You can see the details on the screen, if you click to enlarge the picture.

She pointed out that as property value goes up, state aid goes down.

“We knew when the tax rate went up our state aid would go down,” Crates said.

She then attacked the state aid formula, pointing out something I had not realized:

District 300 is a mid-range district.

To me, that means radical change would leave District 300 pretty much unaffected.

“We feel it is incumbent to take on this problem and make it fairer,” she stated. “I understand the richer districts don’t want to help the poorer districts.”

At some point, appropriate here, State Rep. Mike Tryon (R-Crystal Lake) interjected that some of the Downstate school districts have local tax rates of $1.15 per hundred.

His point was that, even if they were considered “poor,” their local taxpayers were not making an adequate effort.

School Board President Joe Stevens pointed out that the so-called transition money couldn’t be used to hire teachers.
The reason is because it disappears.

State Rep. Ruth Munson (R-Elgin) pointed out she and State Senator Pam Althoff (R-McHenry) has worked on getting the fast growth money.

“We’re looking at ways to get current year funding for special education.”

The following letter arrived from State Representative Mike Tryon.

I am happy to pass it on.

Dear Friend,

Last week the Democrat-controlled House and Senate voted to raise the taxes of McHenry County residents in order to bail out Chicago’s mass transit system, who’s years of mismanagement put them so deep in debt that they’re once again raising taxes just to maintain the status quo.

The Democrat’s legislation will impose a $500 million tax increase including a quarter point sales tax increase in suburban Cook County and a half point sales tax increase in the collar counties.

This raises the per capita sales tax in Chicago by $20 to $100 for a family of five.

In McHenry County, it raises the per capita sales tax by $62 to $310 for a family of five.

For McHenry County, this legislation increases our tax burden higher than Chicago’s, with only a small fraction of our residents using a mass transit system.

This tax increase will come with no expansion of services, no additional routes for McHenry County, no decrease in commuting time, and no road or infrastructure improvements in McHenry County.

This is a short-term fix for a mismanaged Chicago transportation system.

The only guarantee this tax increase will bring is another doomsday scenario as this legislation does nothing to address the capital needs of the mass transit system.

The CTA has already stated that without a capital bill to repair aging tracks, trains, wheels, buses and a host of other infrastructure needs, another doomsday is expected.

Additionally, this tax increase promises that seniors will be paying more for essential items like groceries and prescription drugs.

I opposed this sales tax increase along with a number of my House Republican colleagues.

Instead of raising taxes, the Illinois House Republicans believe the best way to increase state revenue is to create jobs and to invest in the economy.

I will continue to call for a capital bill to ensure that funding is provided for crucial road projects, bridge repairs, and school construction in McHenry County and throughout the state.

Sincerely,

Michael W. Tryon
Illinois State Representative
64th District

The following letter arrived from State Representative Mike Tryon.

I am happy to pass it on.

Dear Friend,

Last week the Democrat-controlled House and Senate voted to raise the taxes of McHenry County residents in order to bail out Chicago’s mass transit system, who’s years of mismanagement put them so deep in debt that they’re once again raising taxes just to maintain the status quo.

The Democrat’s legislation will impose a $500 million tax increase including a quarter point sales tax increase in suburban Cook County and a half point sales tax increase in the collar counties.

This raises the per capita sales tax in Chicago by $20 to $100 for a family of five.

In McHenry County, it raises the per capita sales tax by $62 to $310 for a family of five.

For McHenry County, this legislation increases our tax burden higher than Chicago’s, with only a small fraction of our residents using a mass transit system.

This tax increase will come with no expansion of services, no additional routes for McHenry County, no decrease in commuting time, and no road or infrastructure improvements in McHenry County.

This is a short-term fix for a mismanaged Chicago transportation system.

The only guarantee this tax increase will bring is another doomsday scenario as this legislation does nothing to address the capital needs of the mass transit system.

The CTA has already stated that without a capital bill to repair aging tracks, trains, wheels, buses and a host of other infrastructure needs, another doomsday is expected.

Additionally, this tax increase promises that seniors will be paying more for essential items like groceries and prescription drugs.

I opposed this sales tax increase along with a number of my House Republican colleagues.

Instead of raising taxes, the Illinois House Republicans believe the best way to increase state revenue is to create jobs and to invest in the economy.

I will continue to call for a capital bill to ensure that funding is provided for crucial road projects, bridge repairs, and school construction in McHenry County and throughout the state.

Sincerely,

Michael W. Tryon
Illinois State Representative
64th District

49th district Republican state representative challenger Jim Krenz has released a poll that shows incumbent Tim Schmitz pretty much unknown in his legislative district.

The district covers much of northern Kane County, including Sun City and a large part of Carpentersville School District 300 and stretched down to St. Charles along the western side of Kane County.

It found two-thirds of Schmitz’ constituents had no opinion of him or had never heard of him.

But neither is Krenz well known. His poll shows 75% have no opinion of him or haven’t heard of him.

So, the race could almost be considered a “blank slate” race.

I wonder if that is unusual for a suburban Chicago district.

Springfield politics does not have the importance to Chicago-area voters that it does to voters elsewhere in Illinois.

Most Downstate legislators are well-known, because they appear on TV. No such luck for most Chicago state representatives and senators.

In fact, when you see your local state legislator on Chicago TV, you know he has made the big time. That’s precisely what I thought when I first saw Crystal Lake’s two-term State Representative George Lindberg on Chicago television for the first time. Lindberg went on to be elected Illinois’ first State Comptroller.

Using that criterion, the only suburban legislator to make the “big time” today is Democrat State Rep. Jack Franks.

The poll, by the way, was taken by Carbondale’s Communication Express. Here are the questions and detailed results.

Positive opinions were found among 23% of those called for Schmitz and 15% for Krenz. Negatives were 10% and 9%, respectively, for the two.

Probably trying to find out what role former U.S. House Speaker Denny Hastert could play if he endorsed Schmitz, the poll found 60% had a favorable viewpoint of the former congressman. 20% had negative feelings and 20% no opinion or had not heard of him.

Six issues were probed in the automate telephone poll, two in more depth than the rest:

1. Discounted, in-state tuition rates for non-citizens [a law that Schmitz supported]. 84% opposed the idea; 10% favored it.
2. Term limits. 69% supported term limits. [Schmitz is in his fifth term.]

In the last of six questions, people were asked to rank the importance of four more issues. Here’s how it came out:

• 36% – Taxes
• 29% – Immigration
• 21% – Education reform
• 14% – Ethics in government

Jim Krenz press release follows:

SCHMITZ LOW
APPROVAL RATING

CARPENTERSVILLE, IL January 9, 2008 A recent poll shows 49th State House incumbent, Tim Schmitz with only a 24% positive rating, and with 67% of the voters having no opinion or saying they have never heard of him.

Jim Krenz, candidate in the Republican primary for the 49th State House, states, “These numbers accurately reflect what voters have been venting as I have been walking this district since August 2007.

“Tim Schmitz is a career politician who has obviously stopped representing the people of this district and concentrated instead on keeping his job. You would not expect these numbers from an elected official in office 9 years, and in leadership.”

In another part of the survey, taxes and immigration were the issues voters feel is most important to Kane County.

Jim Krenz responded, “When Schmitz voted for State ID cards and college tuition breaks for non-citizens, he voted against the wishes of his constituents. But if he never calls them, writes them, or visits them, it is easy to see how he had no idea what was important to them.”

= = = = =
Jim Krenz is on the top left. State Rep. Tim Schmitz is on the upper left. The black and white head shot is of former State Comptroller, now Federal Judge George Lindberg, when he was state representative. Thanks to Leona Nelson for the photo. The large picture was taken at the Northwest Herald’s 2006 8th congressional district debate between Melissa Bean and Dave McSweeney. It shows State Rep. Jack Franks pitching a story about his bill to license contractors to panelist Mike Flannery, WBBM-TV’s political reporter, who was on the panel asking questions.