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Saturday, April 23, 2016
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Overpaid: Tax allocation errors identified IDOR discloses findings to Illinois Auditor General By Terri Simon Eric Engel
and
news@bcrnews.com
SPRINGFIELD – An overpayment of an estimated $168 million throughout the state of Illinois was recently uncovered and announced on Wednesday, April 20. According to a press release from the Illinois Department of Revenue (IDOR), “a recent tax system modernization initiative at the IDOR uncovered a misallocation to the Personal Property Replacement Tax (PPRT) Fund. The error has
resulted in overpayment of an estimated $168 million to the taxing districts that receive PPRT disbursements.” The overpayment was identified during the implementation of the IDOR’s new general ledger system, which was designed to enhance accuracy and efficiency at the department. The PPRT was implemented in 1970, when the state’s new constitution did away with the personal property tax local governments levied against corporations, partnerships and other business entities. For the past 46
years, the state has collected the replacement tax and allocated it to local governments — counties, municipalities, schools, townships, park districts, fire protection districts and more. The error occurred in 2014 when changes were made in the state’s paperwork, and IDOR began paying out too much money to the aforementioned entities. Statewide, approximately 6,500 districts are affected by the overpayment of funds. While the overpayment for most of the 5,291 Illinois taxing districts wasn’t substantial and amounted to
less than $10,000 per district, there were 10 districts across the state where the overpayment was more than $1 million. “We are certainly sensitive to the impact recouping these funds will have on some of our taxing districts,” said Connie Beard, IDOR director. “We will be working with the impacted taxing districts to establish a plan to recapture the funds over an extended period of time. The Auditor General’s regularly scheduled Financial and Compliance Audit of the Department began today (April 20), and we have
fully disclosed the calculation error to the auditors for appropriate review.” The total overpayment for Bureau County in its entirety is $310,212.97 (see accompanying chart). At a time when school districts across the state are grasping for any dollars they can save, the news isn’t good. Topping the list of the money that needs to be reimbursed to the state is the Bureau Valley School District, which was overpaid more than $55,000. “We’re still trying to learn what happened and whether there’s going to be a review
of this by other state agencies,” Bureau Valley Superintendent Stephen Endress said, adding he won’t stand in the way of the proper allocation of state funds, yet he’s curious why this situation wasn’t noticed or corrected earlier. “The state has found ways to reduce what they pay out to local governments, and I wonder if there are appropriate controls in place,” he said, adding more research will be done to alleviate concerns in the district.
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Hall cuts nearly $300,000 from budget Board expected to make more cuts By Becky Kramer news@bcrnews.com
BCR photo/Lyle Ganther
Gary Swanson (left) talks to Scott Smith of the Princeton Lions Club after Thursday’s night annual meeting of the Princeton Chamber of Commerce. Swanson was named the parade marshal for this year’s Homestead Festival. See more photos on Page 2.
Quiram: Future has never been brighter Others honored at Chamber annual meeting By Lyle Ganther lganther@bcrnews.com
PRINCETON — Mayor Joel Quiram said Princeton’s future has never been brighter at Thursday night’s Princeton Chamber of Commerce annual meeting. “While 2015 was a busy and successful year, 2016, I know, will be even better,” Quiram said. “With tourism now aligned with the Chamber, the Chamber’s tourism board will be working with their first owned budget beginning May 1. It’s an exciting time, and I’m looking forward to all that will be accomplished in the coming years in building our tourism trade ... in building our brand.” Year XX No. XX One Section - XX Pages
© Bureau County Republican
He cited 16 businesses that opened their doors in 2015 and reported on future changes like Curves opening on the north end of town, a new restaurant opening across from Cabbage Rose, Neil and Shorty’s opening on the south end, a stand-alone Subway and new Casey’s by the interstate. He also reported on an incentive approved by the city council for a developer to renovate the old Walmart building. Quiram also reported Perry Memorial Hospital Family Health Clinic completed a $750,000 expansion and renovation in December; a new partnership for women’s health services between PMH and IVCH with a new clinic in the PMH Medical Office
Building; and PMH and Dr. Paul Bonucci joining together to transition Princeton Prompt Care into Perry Memorial Prompt Care. Quiram also said L.W. Schneider will expand to create 50 new jobs. “The city is facing unexpected challenges, many of you are as well, as is the Chamber, but without challenges, improvement is hard to come by. Without challenges, it’s difficult to move forward,” he added. In other business: • Gary “Frog” Swanson was named the parade marshal for this year’s Homestead Festival parade. He is a 1965 graduate of Princeton High
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SPRING VALLEY — At its meeting Wednesday, April 20, the Hall High School Board cut $287,100 from next year’s budget and is still looking to trim away another $100,000 at next month’s meeting. The largest reduction the board made was to replace the 4.5 teachers retiring at the end of this school year with 3 new teachers for a cost savings of $250,000. Cutting technology supplies, repairs and maintenance will save the district $10,000. Superintendent Mike Struna explained many teachers have printers in their classrooms. Now, teachers will print from their classroom computers to three centrally-located copy machines. The supply budget will be reduced for a savings of $5,300. This includes copy paper, office supplies, classroom supplies, textbooks and athletic supplies. Spring Valley Elementary and Hall will be sharing bus routes next school year for an estimated savings of at least $20,000. Administrative and board of education travel will be reduced by $2,000. Struna provided the board with information regarding the financial aspects of the athletic department. Football is the largest athletic revenue-maker for the school. There is a net gain of $14,907 due to gate receipts and the high num-
ber of participants who pay fees. Boys basketball also has a net gain of $1,583. All other sports cost the district money. Volleyball has a net loss of $4,179 and girls basketball $1,947, Bowling, golf, and cross country have a total combined loss of $18,357. Baseball, softball and track have a combined total loss of $29,825. None of these losses include transportation costs or supplies that are needed. Total coaching salaries cost the district more than $100,000. Overall, athletics are costing $98,866 plus the cost of transportation and supplies. Struna suggested increasing athletic participation fees by $50 which would raise the revenue by $18,000 to help defray these costs, however, the board tabled the recommendation. Struna provided information regarding the state budget stalemate. There are currently two funding plans being proposed. The Rauner plan fully funds general state aid (GSA) but does not change the state aid formula. His plan adds $120 millions to K-12 education funding. Hall would receive an additional $179,000 with this plan. Struna said Rauner is in favor of further fixing education funding, but the aforementioned plans would help in the interim. This bill is stuck in committee and hasn’t been able to get to the floor.
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