Good Government Justin Carlson Illinois leads the nation in local government bloat, with over 6,000 taxing bodies. The Citizen’s Empowerment Act, sponsored by Illinois House Rep. Jonathan Carroll, would make it easier for Illinois taxpayers to dissolve unnecessary layers of government. House Bill 5276 would let local voters petition for a ballot referendum to dissolve a unit of government, giving citizens direct control over how many layers of government they want. Illinois is home to more than 6,000 units of local government, excluding school districts, which is nearly 1,000 more than Indiana, Iowa and Kentucky combined. It is more than any other state. Illinois’ excessive number of local governments is a major contributor to its second-highest in the nation property taxes. Removing unnecessary and redundant layers of government could offer residents much needed property tax relief as well as streamline services. While public employee pension reform would offer the greatest relief to property taxpayers, the elimination of unnecessary layers of government is also essential to lightening the burden. How would the Citizens Empowerment Act help Illinois streamline government and lower property taxes? The Citizens Empowerment Act, HB 5276, would empower Illinois taxpayers by giving them an important tool to lower the cost of their government and rein in property taxes by: • Allowing taxpayers to petition for a referendum to dissolve or combine duplicative or unnecessary units of local government, rather than relying on the Illinois General Assembly for permission. • Providing for the transfer of all real and personal property and any other assets, together with all personnel, contractual obligations and liabilities of the dissolving unit of local government to the receiving unit of local government. • Increasing transparency for local taxpayers as duplicative and often overlapping layers of local government are eliminated by voter mandate. The act would require a citizen-initiated petition to obtain signatures from registered voters equivalent to 5% of those voting in the preceding general election before a referendum to dissolve a unit of local government could appear on the ballot. The referendum would need to be approved in each of the dissolving and receiving communities – either by three-fifths of those voting on the measure or by a majority of voters in the election. The bill reflects recommendations proposed in 2016 by the bipartisan Local Government Consolidation and Unfunded Mandates Task Force to streamline government. In 2016, the Belleville City Council voted to dissolve coterminous Belleville Township, which it projected would save $260,000 yearly for taxpayers. The township’s basic function had been to hand financial aid to about 40 residents who qualified under very narrow parameters. Of the $550,000 in tax revenue it collected, at least $375,000 went to pay for salaries and other administrative expenses. Illinois law currently requires an act of the General Assembly to dissolve a township, which was required in Belleville’s case along with a multi-year push before a favorable vote from the township board and city council finally eliminated the township. There are currently 40 pages of explanations regarding statutory rules for annexing, consolidating, or dissolving government units in Illinois. The Citizens Empowerment Act seeks to simplify and expand the power of citizens to petition to consolidate any local government entity, not just townships. It would also lower the signature threshold necessary to initiate a referendum from 10% of the electors from the previous election to 5%. Expanding consolidation opportunities will empower local Illinoisans, save taxpayer money and enhance government efficiency. Local government consolidation can spur taxpayer savings The Citizens Empowerment Act would open up the cost-saving opportunities already enjoyed by DuPage and McHenry counties to all taxpayers throughout the state. Illinois’ 6,032 local governments rely largely on property taxes to fund their operations. The proliferation of overlapping and duplicative government units has contributed to Illinois homeowners’ crushing property tax burden. Statewide, residential property taxes have grown 43% faster than home values in the past two decades. Making Illinois local governments more efficient through consolidation is an essential step toward providing much-needed property tax relief for overburdened homeowners. Page 17
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