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
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Slide1
Chicago Paint & Coatings Association
February
9
, 2016Slide2Slide3
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 ChiefSlide7Slide8Slide9Slide10
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 servicesSlide20Slide21