Oct 17, 2007 11:42 am US/Central
Stroger Demands Cook County Tax Hike
Sales, Gas And Parking Taxes Stand To Be Raised In 2008 Budget
CHICAGO (CBS) ―
The proposed 2008 Cook County budget could mean new taxes on gas and other things you use every day. Cook County Board President Todd Stroger says steep tax increases are needed to fill a gap in the budget.
As CBS 2's Mike Parker reports, after presenting his budget to county commissioners, many of them skeptical, Stroger was blunt.
"Let me tell you this," he said. "We'll be passing something or there'll be severe problems."
Stroger is proposing to do more of the same with more of your tax dollars. His proposed $3.2 billion budget for 2008 has been revealed and it contains some pain.
"I support this effort for the long-term fiscal health of this government," Stroger said. "My spending plan for next year relies in part on additional sales tax revenue, in order to maintain the vital county services on which our residents rely."
As CBS 2's Kristyn Hartman reports, Stroger says a tax hike is necessary to account for a shortfall that was estimated earlier this week at $239 million, but has been revised down.
Stroger is floating a tax hike proposal at a time when the city just said it wants to hike taxes too. But he said the revenue the county is collecting just is not keeping up with the cost of doing business.
To maintain services, Stroger said he supports the one source of funds that grows with inflation – the sales tax.
Stroger proposes to more than triple the county's share of the sales tax. It would make the combined local sales tax a whopping 11 percent – more than any other major U.S. city.
And he wants to double the county gasoline tax from six to 12 cents a gallon. The county parking tax would also double. A monthly parker paying $30 in taxes would pay $60.
Just weeks ago, commissioners shot down a 2 percentage point hike in the county sales tax, but some county commissioners are buying into the plan.
"What we need to do is do what he suggests in his budget message and get on with the government of Cook County," said Commissioner Jerry Butler.
Others know what their constituents will say.
"These figures are given to justify the unjustifiable, which is to pluck the pockets of every taxpayer in Cook County," said Commissioner Tony Peraica (R-16th).
"I couldn't sell any revenue enhancement to my constituents any better than I could sell snow cones on January 3 on Lake Shore Drive," said Commissioner Mike Quigley (D-10th).
Stroger named the reason he believes tax hikes are needed right at the top of his address, calling it the "big white elephant in the room" – the county's long-standing structural deficit. He said since the county holds the line in property taxes in its budgets, and its collection has been flat, there needs to be a revenue base to provide services and bridge the budget deficit.
County Board members can come up with their own revenue ideas. One that's kicking around is a hike in the utility tax that would have an exemption for seniors.
One of Stroger's most powerful allies agreed that a tax hike was unavoidable if the county's fiscal health is to be maintained.
"We're going to do the best we can to keep the services of Cook County going forward," said Commissioner William Beavers (D-4th). "Some kind of tax is necessary.
Beavers said he did not believe something such as a gas tax will fly, but he said they are examining utility taxes and perhaps other taxes to help balance the budget.
Stroger said people should look at the budget process as an opportunity to invest in the community. But a battle is expected.
A final budget must be passed by February.
The only good news for Cook County taxpayers Wednesday is the feared $400 million phone tax reported Tuesday was killed with no explanation. One commissioner told CBS 2 Stroger couldn't get the necessary OK from Springfield and torpedoed the idea.
CBS 2's Kristyn Hartman and Mike Parker contributed to this report.
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