Illinois gives local governments ability to ‘bypass’ referendum requirements

(The Center Square) – At least four initiatives coming out of the Illinois General Assembly in the last two years waive the referendum requirements that local authorities traditionally have had to follow to spend tax dollars.

Gov. J.B. Pritzker recently signed into law Senate Bill 464 , which allows the North Chicago School District the ability to make school renovations without going to referendum.

Generally, school districts need direct voter approval to build or purchase a building for classroom or instructional purposes. State Sen. Dan McConchie, R-Hawthorn Woods, voted for the measure.

"It is not lightly that we bypass the referendum process but given the federal government’s generosity, their timeline, the fact that there is a very concrete plan in regards to the funding and the commitment that has been made publicly by the district and the sponsor that this will not result in a tax increase,” said McConchie on the Senate floor. “This is a great opportunity for the kids in this district.”

State Sen. Sally Turner, R-Beason, who voted for the measure, said in this case there is no “taxation without representation,” because the districts already allocated money to implement these projects.

For example, North Chicago School District is receiving a federal grant that covers 80% of their school safety project where the district plans to get new locks on classroom doors.

"That one looked to be that there is no additional funds that could be raised by taxes. Those are funds that they already had and there was a federal caveat to it, that the federal government was going to provide them grants for the rest of it. In that specific case that was permission to allow them to spend that money that they already had [from the federal government,]” said Turner.

SB 464 includes a list of criteria that school districts have to meet in order to get the referendum requirement waived.

Like SB 464, Senate Bill 2323 was introduced by state Sen. Dave Koehler, D-Peoria, last year and signed into law. That bill removed the referendum requirement for Bloomington District 87 to purchase a new building from State Farm.

Turner voted against Senate Bill 684 , also introduced by Koehler last year. The law expands the boundaries of an airport authority. Prior to Koehler’s legislative changes, the Illinois Airport Authorities Act laid out a referendum process for expanding an airport authority’s tax base.

"There’s always a concern when the government is trying to pull the wool over our eyes and ask for additional money without telling us,” said Turner.

Much like SB 684, the recent initiative to eliminate the state’s grocery tax that Gov. J.B. Pritzker signed stipulates that if local municipalities want to bring it back, they can and they don’t have to ask voters via a referendum to do it.

"The grocery tax was like: ‘Hey I’m going to give you some money back, taxpayers, and you don't have to pay any tax on your groceries!’ But we all know that’s not what happens because when our municipalities lose the money then they have to turn around [at the local level] and increase it so they have the money to pay for your police and fire,” said Turner.

Several Illinois mayors have come out against the grocery tax initiative because there will be loss in revenue for municipalities to use on services like police and fire. Mayors, under the grocery tax initiative, can still implement their own grocery tax, but they’re not required to go to referendum.