Kendall Board opposes plan to shift tax fund to teacher retirement
By Steve Lord email@example.com May 15, 2012 5:44PM
Updated: June 29, 2012 8:40AM
YORKVILLE — The Kendall County Board voted unanimously Tuesday morning to oppose state legislation designed to shift tax money to the teacher’s retirement fund.
Board members said they do not support House Bill 3637, which proposes shifting the personal property replacement tax from counties and municipalities to that retirement fund. The bill is scheduled for a vote in Springfield Wednesday. For Kendall, it would mean a loss of $315,000, but it could affect counties and municipalities throughout the state to the tune of about $1.8 billion.
“It sets a dangerous precedent,” said Board Chairman John Purcell. “First of all, it’s not reform of the pension system, just a shifting of the burden to local government. It also sets a precedent the state can rob the counties.”
Finance Committee Chairman Anne Vickery said the bill would have a “huge impact” on the county budget.
The personal property tax was eliminated years ago, and the replacement tax was designed by the legislature to replace the money for local government. It did not entirely replace the tax, but it has been a significant part of state funds transferred to local governments for years.
“It’s real money to the county,” said County Administrator Jeff Wilkins.