[Peace-discuss] News-Gazette Saturday November 1

[Jan & Durl Kruse]

Plight of poor cited in campaign for tax hike
By Mike Monson

Saturday November 1, 2008

CHAMPAIGN – It's an uphill battle, but two local activists believe that  
if enough voters understand how little financial help City of Champaign  
Township provides the extremely poor, they'll support a proposed  
property tax increase on the Nov. 4 ballot.

Randall Cotton and Martel Miller, both Champaign residents who are  
active on social justice issues, are leading a grass-roots effort to  
persuade city voters to increase the township's property tax rate from  
the current 3.5 cents per $100 of assessed valuation to 5.5 cents.

For the owner of a $150,000 home whose assessment stayed the same, the  
rate increase would mean paying an additional $9 in property taxes  
annually. The township would collect an additional $296,000.

Cotton and Miller say they felt compelled to speak out for the poor  
after it became apparent no organized campaign in support of the tax  
increase was taking place.

"We have to be our brother's keeper," Miller said. "You may be on top  
today, but you may get hit by a car tomorrow and be paralyzed. You have  
to have a safety net for the poor."

In February 2007, City of Champaign Township Supervisor Linda Abernathy  
was forced to drop about 80 able-bodied general assistance recipients  
off the township's rolls due to dwindling cash reserves, which are  
expected to be $136,000 by next June 30. The general assistance  
recipients had been receiving $212 per month, and basic medical care.

Abernathy kept 50 people on the township's rolls who are awaiting word  
on whether they qualify for federal disability assistance, but slashed  
the monthly cash grant to $100. She raised that grant to $150 per month  
in July 2007.

General assistance is a financial aid program run by Illinois townships  
that provides basic financial assistance to residents who are extremely  
poor, earning less than $3,000 annually, and who don't qualify for  
state or federal aid.

Abernathy said City of Champaign Township's problem is its low tax  
rate. The township's tax levy was locked at a low level in November  
1996 when county voters approved property tax caps. At the time, the  
township was using financial reserves to help fund its budget.

Other area townships provide significantly more assistance to the poor.  
City of Peoria Township provides a $325 monthly cash grant to about 85  
to 90 clients and has a property tax rate of 13 cents. Capital  
Township, which covers Springfield, provides $300 per month in  
transitional assistance and also provides rent, utility, eyeglass and  
pharmaceutical assistance to the poor and has a 10-cent tax rate.  
Cunningham Township, which covers Urbana, has a 19-cent tax rate and  
pays $243 per month to about 60 clients. City of Bloomington Township  
provides a $265 monthly grant to about 175 people, plus a bus pass, and  
has a 22-cent tax rate.

If voters approve the tax increase, Abernathy said she would recommend  
increasing general assistance funding by $70,000 and raising the  
monthly cash grant to $243 for her office's 50 or so disabled clients.  
She would also increase funding for medical care and create an  
emergency assistance fund of $50,000 for poor residents in financial  
crisis. Within a few years, the township could be in a financial  
position again to begin providing general assistance to the able-bodied  
poor, Abernathy said.

The question

Shall the limiting rate under the Property Tax Extension Limitation Law  
for City of Champaign Township be increased by an additional amount  
equal to .02% above the limiting rate for the levy year 2007 and be  
equal to .0550% of the equalized assessed value of the taxable property  
therein for levy year 2008?

(1) The approximate amount of taxes extendable at the most recently  
extended limiting rate is $482,723 and the approximate amount of taxes  
extendable if the proposition is approved is $779,597.

(2) For the 2007 levy year, the approximate amount of the additional  
tax extendable against property containing a single-family residence  
and having a fair market value at the time of the referendum of  
$100,000 is estimated to be $6.67.

(3) If the proposition is approved, the aggregate extension for 2008  
will be determined by the limiting rate set forth in the proposition,  
rather than the otherwise applicable limiting rate calculated under the  
provisions of the Property Tax Extension Limitation Law (commonly known  
as the Property Tax Cap Law).

A "yes" vote means:

Property taxes for the township would increase by 2 cents per $100 of  
assessed valuation, to an overall rate of 5.5 cents, providing $296,000  
in additional funding. The township would use the money to increase  
general assistance; increase basic medical care funding; create an  
emergency assistance fund; make repairs to the township supervisor's  
office building, including a new roof. The remainder would be used to  
help balance next year's budget, according to Township Supervisor Linda  
Abernathy.

A "no" vote means:

Abernathy said the budget for fiscal 2009, which starts July 1, would  
be $169,000 in the red, more than the township has in cash reserves.  
She predicted the solution would be to reduce the general assistance  
cash grant to $100 per month, forget about providing service to  
able-bodied residents who are extremely poor and to give up any  
consideration of new programs. Abernathy, who is not seeking  
re-election this spring, said she expects the township would have to  
lay off at least two employees as well.
  Find this article at:
   
http://www.news-gazette.com/news/2008/11/01/ 
plight_of_poor_cited_in_campaign_for_tax_hike 
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