A referendum imposing a 1% countywide sales tax, providing potentially $122 million annually to benefit Lake County’s public schools, is gaining support with some and drawing criticism from others.
Placed on the Nov. 3 general election ballot in August by Regional Superintendent of Schools Michael Karner after he received resolutions from school districts representing 60% of the county’s public-school students, it is creating controversy.
Voters will decide whether to add 1% to the sales tax on most items sold in the county when they cast their ballots in the Nov. 3 general election to provide money to the public schools for capital improvements, school resource officers, and mental health professionals.
Along with the sales tax referendum, there are eight local referendums in Vernon Township, Lake Zurich, Round Lake, Highland Park, Wauconda, Antioch Township, Newport Township and Fox Lake.
Items that are exempt from statewide sales tax, like food, are not included in the 1% sales tax for education should the referendum pass. Elizabeth Hennessy, a bond advisor with Raymond James, said in April she anticipates approximately $122 million per year will be generated for schools.
Karner, whose function is ministerial following state law, said the money will be allocated on a pro rata basis based on the number of students in each school district. There are approximately 117,000 students attending public schools in Lake County.
When Waukegan Community Unit School District 60 approved its resolution putting the question on the ballot, it also passed a measure enabling it to abate property tax revenue by the amount of sales tax received. As of Oct. 16, Karner said it was the only district making such a move.
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Rick Riddle, a member of the District 60 Board of Education, is encouraging voters to approve the resolution. He said many of the people purchasing merchandise in the county live elsewhere. In Waukegan, it will reduce property taxes by $13 million, which is the district’s projected share.
“We’re shifting the burden to visitors or out-of-town shoppers,” Riddle said. “Studies show more than half of the shoppers in Lake County are visitors passing through from Wisconsin. It protects homeowners from an increase in property taxes. It affects renters too because landlords pay property taxes.”
Dawn Abernathy, the chair of the Lake County Republican Central Committee, said in a news release that the party is opposed to the referendum. She said it comes at a time “when local families are already stretched thin by rising everyday costs and endless taxes.”
“It will place an unfair burden on small businesses, restaurants and low-income households,” she said. “Families in Lake County are working harder than ever to make ends meet. Adding another tax burden now is irresponsible.”
Tax money can go in a variety of directions, but Riddle said the funds from the sales tax question have a specific purpose and will directly benefit the students of Lake County. It will not apply to purchases of food or medicine. It is legal throughout Illinois.
“We all have an interest in this,” Riddle said. “Every child is getting something out of it. This is not new (because) 57 out of 102 counties in Illinois have it. It helps give them property tax relief, which it will do here.”
Abernathy said the referendum is unnecessary financially, lacks accountability, and will harm small businesses and local restaurants because it will motivate shoppers to go to stores and eateries outside the county.
“It extracts millions of dollars out of the local economy that families need for housing, groceries, and healthcare,” she said. “The referendum lacks clear, legally binding language ensuring the funds will be managed transparently without waste.”
In other referendums, voters in the Vernon Area Public Library District will decide whether to spend $39.5 million to improve the library, and Lake Zurich voters will determine if $20.3 million will be spent to build and equip a new fire station.
Proposed tax increases will be before voters in Newport and Antioch townships, as well as the Fox Lake Fire Protection District. Highland Park voters will determine whether the mayor and City Council members should have term limits.
In Round Lake and Wauconda, voters will decide if they will continue to elect the village clerk or allow the village president to make that appointment.