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Chicago Paint & Coatings Association Chicago Paint & Coatings Association

Chicago Paint & Coatings Association - PowerPoint Presentation

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Chicago Paint & Coatings Association - PPT Presentation

February 9 2016 Paint Specific Issues in Illinois Lead Flint MI Todays Chicago Tribune Lead Pipe Story The state program which had been recommended by a task force of physicians and public health advocates showed that proactive efforts can get results ID: 730693

tax million amp billion million tax billion amp illinois income state credit revenue pensions exemptions budget exemption paint energy cici taxes lead

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Presentation Transcript

Slide1

Chicago Paint & Coatings Association

February

9

, 2016Slide2
Slide3

Paint Specific Issues in Illinois

Lead – Flint, MI; Today’s Chicago Tribune Lead Pipe Story

The state program, which had been recommended by a task force of physicians and public health advocates, showed that proactive efforts can get results.

The task

force also suggested ways to keep the program going, such as a

small fee

added to the cost of new paint

cans.

None of the funding ideas has caught on with state

lawmakers, however

"If somebody champions it, we certainly will try to expand the program," said

Kert

McAfee, the state health department's chief of lead poisoning prevention.Slide4

Paint Specific Issues (cont.)

PaintCare

® - trying to advance in Illinois. Having issues with some retailers.

Fees for Lead Abatement, HHW Collection, Window Replacement

Spray Paint Ban in Chicago

Chicago Area Waterways

New Ozone Standard – 70

ppb

Clean Power Plan – Electricity Rates

IPC Legislative Reception & Day – May 10 & 11Slide5

Electricity & Natural Gas Program

CICI/IPC have partnered with NRG Advisory Services

-

a leading energy consultation firm, focused on procurement and energy management solutions for electricity and natural gas.

- After hearing numerous concerns

from CICI/IPC

members about the difficulty of navigating the complexities of purchasing energy (and often ending up with one-sided contracts), CICI sought to find a firm to give the CICI members a strong advocate to help balance the scales when seeking energy contracts.

- If you are interested in learning more about how NRG Advisory Services can help you steer through the intricacies of purchasing electricity and natural gas, please talk to Mark Biel of CICI to start saving on money on the cost of energy. Slide6

Budget Mess: #1 Priority

“No. 1 issue facing Illinois is our inability to adequately compete with other states for jobs and economic development. That drives everything else, economically and fiscally.”

Tim Nuding, Governor Rauner’s Budget ChiefSlide7
Slide8
Slide9
Slide10

Impact - Credit Rating

Lowest Credit Rating of all 50 states

Increased Borrowing Costs

Moody’s – credit rating could reach “junk” bond status if pension and budget liabilities continue to grow

Per capita debt – twice the national averageSlide11

No Budget

No budget – 90% being paid by court orders, consent decrees and continuing appropriations

@$5 billion in the red

Current unpaid bills are $6.8 billion – may reach $8.5 billion by June

State must pay 12% interest on late bills

Temporary Income Tax reduced in January 2015 – @ loss of $6 billion in revenue annuallySlide12

Loss of People, Revenue

One person left Illinois every 5 minutes in 2014.

Lost 81,000 taxpayers in 2013; $4.1 billion in taxable income

Since 1995

– Illinois has lost 366,616 tax-paying households (806,054 people)

Loss of $26.3 billion in taxable revenue

2014 – Illinois is #2 in the nation where more

people were

leaving than arriving. #1 in 2011, #2 in 2012

Illinois has dropped from #6 in per capita income in 1998 to #15 in 2013

Illinois

’ unemployment rate is

5.9%,

higher than the national unemployment rate of

4.9%. (Jan. 2016) Slide13

Property Taxes

6,963 units of local government – most in the nation – all levy taxes in a vacuum.

2

nd

highest property taxes in nation; 7

th

in 2005

64 percent pays for local schools; 62 percent a decade ago

Adjusting for inflation, government expenditures per capita increased nearly 24 percent in 20 yearsSlide14

Income Taxes, Pensions

$7 billion + income tax increase in 2011 – Started to expire on January 1, 2015

$113 billion + shortfall in state-funded pensions (teachers, state, university, etc.)

41.9% funded ratio for pensionsSlide15

Largest Costs

Structural Imbalance

Pensions - Over $7.6 billion and Climbing

Medicaid - $8.4 billion

Education - $9.22 billion

Total - Pensions, Med. & Educ. = $25.22 billion

Total Expenditures - @$38 billion

Total Revenue – GRF - @$32 billionSlide16

Largest State Tax Exemptions

$2.29

billion Retirement & Social Sec. (I)

$1.73 billion Food, Drug, Medical (S)

$1.14

B

illion Standard Deduction (I)

$

552

million Property Tax Credit (I)

$347 million Exemption from Trade-Ins (S)

$277 million Tax-Exempt Organizations (S)

$255 million Farm Chemical Exemption (S)

$231 million Earned Income Tax Credit (I)Slide17

Largest Business Tax Exemptions

$255 million Farm Chemical Exemption (S)

$168 million

Manufacturing Machinery Exmpt.

(S)

$167 million Non Motor Vehicle Use (MF)

$144 million Biodiesel Discount & Exemption (S)

$136 million Gasohol Discount (S)

$131 million Retailers’ Discount (S)

86% of all Exemptions are contained on these two pages

- 67% of all Exemptions went to individualsSlide18

Other Tax Incentives Targeted

Return to 3 factor income tax apportionment for non-service companies

                     $70 million

Repeal Research & Development (R & D) Tax Credit                                                    $30.6 million

Eliminate the Manufacturers’ Purchase Credit (MPC)

 

                                                   $34.5 million

Decouple from federal accelerated depreciation (one-time revenue increase)              $100 million

Include Puerto Rico and outer continental shelf in definition of U.S.

 

                              $30 million

Require income tax withholding on gaming winnings over $1000 from non-residents    $4 million

Decouple from 2004 federal tax legislation (qualified production activities deduction) $53 million

Repeal deduction for foreign and domestic dividends received by corporations             $90 million

End deduction for company owned life insurance                                                           $9 million

Tax canned software                                                                                                        $65 million

Extend the insurance tax to industrial insurance                                                              $15 million

Repeal exemption for fuel transported to out of state destinations (Stealth Gas Tax)    $45-90 million

Limit retailers sales tax discount                                                                                      $125 millionSlide19

Solutions

Restructure and cut cost of government

Make Illinois more attractive for business and investment & Job Growth (Workers’ Compensation Reform, Property Tax Reform, Tort Reform, Tax Policy)

Increase taxes & fees

Eliminate Exemptions

Expand sales tax base to cover servicesSlide20
Slide21