Illinois legislator continues push for property tax relief as state sees
higher revenues
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[March 13, 2024]
By Catrina Petersen | The Center Square
(The Center Square) – Illinois Republican state legislators continue to
push for policy changes to address what they see as a poor business
climate.
The credit rating assigned to Illinois by Fitch Ratings, A- in November
2023, is far below the ratings given to most of the 50 states. As of
early 2024, most states have AA or AAA credit ratings, and can borrow
money at much lower expense to taxpayers than can Illinois.
In a news conference Tuesday at the state capitol in Springfield, state
Rep. Dan Ugaste, R-Geneva, said Democrats are promoting a narrative that
"all is well." He wants a property tax relief plan.
"The idea is to start giving property tax relief, so as we gave each
school district a dollar, they would have to reduce their levy by a
dollar,” said Ugaste. “This would generate more businesses and people
coming to areas instead of leaving because property taxes would then be
lower. As business grows and people start coming back to an area, the
tax base is then spread out and we start getting more revenue in state
coffers and local property taxes as more people start paying in."
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The spokesperson for Illinois House Speaker Emanuel "Chris" Welch,
D-Hillside, responded in a statement to The Center Square.
"It's unfortunate Rep. Ugaste hasn't voted for any of the budgets that
Democrats passed to earn Illinois nine credit upgrades in under two
years. but with press conferences like these, my hope is renewed that we
can count on his support this year," Welch spokesperson Jaclyn Driscoll
said.
Ugaste said he’s glad Illinois has had the credit increases.
“I am glad those budgets brought those about but if you look at why
Illinois’ economy is doing so much better and our revenue has increased
so much, it is in large part due to inflation,” Ugaste said. “Our costs
stayed what they were but inflation ticked everything up. So while we
benefited from it, our people aren’t benefiting because their wages
haven't kept up.”
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The Illinois State Capitol - Greg Bishop / The Center Square
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Illinoisans pay the second highest property taxes in the nation.
Illinois is tied for the worst credit rating in the nation.
Alongside Ugaste Tuesday, state Rep. C.D. Davidsmeyer, R-Murrayville,
said that despite revenues being up and surpassing fiscal year 2025
budget estimates, Illinois is in poor financial condition in comparison
to neighboring states.
In a Commission on Government Forecasting and Accountability meeting on
the state’s revenue estimates, COGFA Director Clayton Klenke said
several data points show the economy is slowing, which can be expected
as a result of the Federal Reserve tightening as an attempt to rein in
inflation.
"While some of the economic indicators have slowed, revenues have
continued to meet expectations compared to the enacted budget,” said
Klenke. “Thanks to some one-time revenue receipts, they are forecast to
surpass the enacted budget estimates.”
Davidsmeyer said the state actually has court orders demanding the state
invest in services for people who cannot take care of themselves and
that there’s little to show for when it comes to the increased revenue.
"While there is continued growth in revenue, in taxes paid to the state
of Illinois, it’s a decrease compared to where other economies are in
surrounding states,” said Davidsmeyer. “Illinois has gone from about
$18.5 billion in revenue from income tax to about $33 billion. We are
looking at almost doubling our income tax revenue over the last decade.”
Ugaste said Republican priorities, like public safety, are not included
when crafting the budget. If Republicans were included, Ugaste said the
state would be in a better situation on all kinds of levels.
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