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Facing Poverty

Facing Poverty. A Closer Look at the November 4, 2008 Referendum. Presented by the City of Champaign Township. Conditions Experts say define Poverty. Education Employment Housing Health Nutrition Basic Necessities. Defining Poverty. Income Poverty: 2007 Federal Poverty Guidelines

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Facing Poverty

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  1. Facing Poverty A Closer Look at the November 4, 2008 Referendum Presented by the City of Champaign Township

  2. Conditions Experts say define Poverty Education Employment Housing Health Nutrition Basic Necessities

  3. Defining Poverty • Income Poverty: 2007 Federal Poverty Guidelines • Extreme or Deep Poverty:living below 50% FPL • Low-Income or Near Poor:living below 200% FPL – struggle to meet basic needs due to rising costs Township Clients receive $150 per month $1,800 a year

  4. Poverty Rate in Illinois since 2006 • Illinois’ current poverty rate is 11.9% • An additional 16.2% are at risk of falling into poverty. Source Heartland Alliance 2008 Poverty Report

  5. Nearly 1.5 million Illinoisans live in poverty, which is greater than the population of the nation’s 5th largest city, Philadelphia Source Heartland Alliance 2008 Poverty Report

  6. Source Heartland Alliance 2008 Poverty Report

  7. Poverty in Champaign County • Champaign County had a 17.7% poverty rate in 2005, up from 13.4% the previous year • 15.5% of Champaign County children live in poverty • More than 1 in 3 of Champaign County children are eligible for Free or Reduced-Price School Lunches, indicating low family incomes Source Heartland Alliance 2008 Poverty Report

  8. Poverty in Champaign County • 10.0% of Champaign County residents live in extreme poverty • This means 20,000 individuals experience the hardship brought on by very low annual incomes Source Heartland Alliance 2008 Poverty Report

  9. Nearly 686,000 Illinoisans struggle in extreme poverty Source Heartland Alliance 2008 Poverty Report

  10. EDUCATION Funding disparities result in unequal educational opportunities for Illinois children Source Heartland Alliance 2008 Poverty Report

  11. Low wages hinder families from being self-sufficient EMPLOYMENT 46.2% of poor working age Illinoisans worked in the last year. A worker in a small urban area in Illinois must make over $16.00 per hour to make ends meet and be self-sufficient. Source Heartland Alliance 2008 Poverty Report

  12. HOUSING • The FAIR Market Rent Price (FMRP) in 2008 for a 2 BR house in the City of Champaign is $662. • The estimated average hourly wage for renters in the City of Champaign is $9.02. $9.02 X 40hr/wk=$360 • Approximately 45% of their income goes towards housing. Source Heartland Alliance 2008 Poverty Report

  13. Access to health insurance and providers constitutes a challenge for those struggling in poverty HEALTH Source Heartland Alliance 2008 Poverty Report

  14. BASIC NEEDS When families don’t have enough money to pay for all their basic necessities, they are forced to make spending tradeoffs Source Heartland Alliance 2008 Poverty Report

  15. OBLIGATION TO SERVE THE POOR

  16. Township Has A Legal Mandate To Serve The Extreme Poor • Townships are mandated by Illinois State Statutes to provide General Assistance to the poor. Under the Illinois Public Aid Code, any individual who satisfies the eligibility requirements, such as financial need and residency, is entitled to receive aid through the Township General Assistance fund.  • 305ILCS 5/6-1 and 305 ILCS5/6-1.1

  17. Background – City of Champaign Township • City of Champaign Township is one of 20 Coterminous Townships in Illinois • Statutory Responsibilities: • Appraising Property Values • Administering General Assistance

  18. St. Clair County Belleville East St. Louis East St. Louis Coterminous Townships in Illinois Zion Berwyn Cicero Evanston Oak Park River Forest Kankakee Galesburg Macomb City of Peoria Warsaw Bloomington Danville City of Champaign Capital Quincy Decatur Cunningham Springfield Coterminous State Receiving Madison County Alton Godfrey Granite City Not Coterminous Neighboring 0-50 miles Coterminous and Neighboring June 6, 2006 IL Township Map State Receiving and Neighboring

  19. General Assistance • Often considered the public assistance “of the last resort.” • Administered throughout Illinois by Township Supervisors (except Chicago). • Illinois State Law requires townships to provide General Assistance.

  20. Township Revenues Why a Referendum ?

  21. Township Revenues • Property Taxes comprise 90% of all Township revenues • Current rate: 0.0350 • Approximately $17 for a typical single-family home • Township receives less than one-half of one-percent of the entire property taxes levied in Champaign

  22. YEAR The Declining Tax Rate 1997 – 2008 RATE

  23. Tax Rates by Taxing Body

  24. Revenue Source Rate Comparisons with Cunningham Township in Urbana City of Champ - Urbana

  25. Tax Rate Comparison

  26. GA Case Load Service Need Comparisons with Cunningham Township in Urbana City of Champ - Urbana

  27. Revenue Options • The only revenue option : Increase the revenue of the Township to perform it’s mandated services. • How is it done? • Increase tax rate by Referendum

  28. The 6 Budgetary Constraints that Create a Deficit • Tax Caps • Property Tax Levy • Declining Tax Rate • Legal limits on fund balances • TIF Districts • Increased Service Needs

  29. The Outcome of Budget Constraints • Tax Caps - (PTELL) Slows Revenue • Tax Caps - Keeps Levy artificially Low and cannot Be Significantly raised even if needed • Tax Caps – Continually Lowers Tax Rate • Tax Caps - Diminishes Fund Balance Reserves • Tax Caps – prevent the ability to provide increase service adequately when an increase in service needs • TIF Districts take needed tax resources off the top RESULT: Unable to adequately meet Legal Mandate A REFERENDUM SOLVES THESE CONSTRAINTS

  30. The Township Code and the Property Tax Code authorize an increase in the maximum tax rate by referendum. Specifically, if the Township Board desires to increase the maximum tax rate. Hold a Tax Referendum

  31. Township Board places Tax Question on November Ballot On the November 4, 2008 Ballot, the citizens of the City of Champaign Township will have for consideration a Property Tax Extension question to decide.

  32. The Ballot Question Pursuant to the provisions of Section 18-205 of the Property Tax Extension Limitation Law to present on the ballot to the voters of the Township at the November 4, 2008, General Election the following question: “Shall the limiting rate under the Property Tax Extension Limitation Law for City of Champaign Township be increased by an additional amount equal to .02% above the limiting rate for levy year 2007 and be equal to .0550% of the equalized assessed value of the taxable property therein for levy year 2008?” “YES NO”

  33. Conclusion • Township has a clearly defined obligation to provide assistance to the poor • Obligation does not depend on the availability of General Assistance funds • Revenue increase is how to meet this obligation • City of Champaign Township tax rate would remain lower than comparable communities even with the requested increase • For a complete copy of the Referendum Resolution go to www.cctownship.com

  34. The November 4, 2008 Tax Referendum will allow the City of Champaign Township a one time release from the current tax cap requirement - an adjustment of the township current township tax rate of 0.0350 rate of TWO CENTS to a sustainable level of 0.0550. Giving the township the ability to operate the townships mandated services and serve the poorest of our citizens. November 4, 2008 Tax Referendum

  35. CITY OF CHAMPAIGN TOWNSHIPTax ReferendumNovember 4, 2008

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