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DELIVERING EFFICIENT, EFFECTIVE, AND STREAMLINED GOVERNMENT TO ILLINOIS TAXPAYERS Final report submitted by: Task Force on Local Government Consolidation and Unfunded Mandates In consultation with: Office of the Lieutenant Governor, Evelyn Sanguinetti and Northern Illinois University, Center for Governmental Studies Approved by the Task Force on December 17, 2015 148 N. Third Street DeKalb, IL 60115 [email protected] December 15, 2015 Hon. Evelyn Sanguinetti Lieutenant Governor, State of Illinois 214 State Capitol Springfield, IL Dear Lt. Governor Sanguinetti: Illinois has long been recognized as having the largest number of governmental units and relatively high effective property tax rates. Much of the existing governmental structure was created under very different conditions that determined how public services are delivered. Concern about the large number of governmental units in Illinois, compared with other states, has triggered several attempts in the past to update or modernize the current delivery system. Closely related to the costs of delivering local public services are mandates imposed by state government, often without input from local officials or funding sources. While the State of Illinois has a State Mandates Act, frequently the costs imposed on local governments are not calculated or disclosed. In February, 2015, Governor Bruce Rauner, through Executive Order 15-15, created the Government Consolidation and Unfunded Mandates Task Force which you chair. The Center for Governmental Studies at Northern Illinois University is pleased to have worked with the Task Force in data-gathering activities to inform analyses and recommendations to the Governor. We hope that our analyses provide a basis for useful implementation activities as well. Many agencies and individuals contributed to the data collection and analyses. Professional associations representing local governments surveyed their members and their contributions were substantial. Personnel in several state agencies helped us understand the mandates and ways to address them. Finally, Brian Colgan and Brian Costin of your staff provided valuable guidance and direction during the course of the project. We appreciate all of these efforts. As usual, nothing in this report necessarily reflects the views of the Center for Governmental Studies nor those of the Board of Trustees of Northern Illinois University. Thank you for providing an opportunity for us to help with this important project. Norman Walzer, Ph.D. Senior Research Scholar and Project Director MEMBERS OF THE TASK FORCE Lt. Governor Evelyn Sanguinetti (Chair) State Representative Mark Batinick State Representative Tom Demmer State Representative Jack D. Franks State Representative Emanuel Chris Welch State Senator Dan Duffy State Senator Linda Holmes State Senator Dale A. Righter State Senator Martin A. Sandoval Honorable Michael Bigger Honorable Brad Cole Honorable Dan Cronin Honorable Karen Darch Honorable Warren L. Dixon III Honorable John Espinoza Honorable Char Foss-Eggemann Honorable M. Hill Hammock Honorable Karen Hasara Honorable Mark Kern Honorable Rev. James T. Meeks* Honorable George Obernagel Honorable Dr. Darlene Ruscitti Honorable Steffanie Seegmiller Honorable Ryan Spain *Resigned Non-voting Task Force Members Honorable Jeffrey Aranowski Honorable Clayton Frick Honorable Paul Kersey Honorable Andrew Perkins Honorable Hans Zigmund III ACKNOWLEDGEMENTS The Task Force thanks the following individuals and their respective organizations for making invaluable contributions to this report: Bob Anderson, McHenry County Citizens for Township Consolidation Taylor Anderson, Illinois Association of County Board Members Jason Anselment, Illinois Association of Park Districts Mike Bass, University of Illinois Dave Bennett, Metropolitan Mayors Caucus Matt Berry, Illinois Community College Board Andy Blanke, Northern Illinois University Janiece Bollie, Northern Illinois University Sri Chockalingam, Northern Illinois University Brent Clark, Illinois Association of School Administrators Brad Cole, Illinois Municipal League Anne Craig, Illinois State Library Robert Doyle, Illinois Library Association Roger Eddy, Illinois Association of School Boards Jeff Fulgenzi, Sangamon County Jane Grover, City of Evanston Michelle Heninger, Illinois State Board of Education Mel Henriksen, Northern Illinois University Michael Jacoby, Illinois Assn of School Business Officials Jonathan Lackland, Illinois State University Aaron Lawlor, Lake County Chairman Alden Loury, Better Government Association Richard Lyons, Illinois Association of Drainage Districts Sheryl Markay, DuPage County William Mayer, DuPage Township Paul McCann, Eastern Illinois University Sue Micklevitz, Lockport Park District Michael Monaghan, Illinois Community College Trustees Association Charlie Montgomery, Monticello Township Peter Murphy, Illinois Association of Park Districts Kelly Murray, Illinois Association of County Board Members John Noak, Village of Romeoville Alan Phillips, Northern Illinois University IV Cory Plasch, Northern Illinois University Robert Plunk, Sangamon County Citizens Efficiency Commission Beth Purvis, Secretary of Education Jay Reardon, Mutual Aid Box Alarm System of Illinois Shannon Reed, Western Illinois University Brent Reynolds, Village of Glenview Jeff Schielke, Mayor of Batavia Chad Shaffer, DuPage County James S. Sinclair, Illinois Association of Fire Protection Districts Bryan Smith, Township Officials of Illinois Sara Smith, Illinois Association of Drainage Districts Shannon Sohl, Northern Illinois University Deanna Sullivan, Illinois Association of School Boards Jay Tetzloff, City of Bloomington Kelly Thompson, Association of Illinois Soil and Water Conservation Districts Charles Vaughn, Illinois Association of Fire Protection Districts Deb Vespa, Illinois State Board of Education Renee Vilatte, Illinois State Board of Education Norman Walzer, Northern Illinois University V TABLE OF CONTENTS Letter from Lt. Governor Evelyn Sanguinetti I Letter from Norman Walzer, Northern Illinois University II Members of the Task Force III Acknowledgements IV Executive Summary 1 Introduction 18 Local Government Consolidation: I. Count of Governments Number of Governments 19 Local Government Trends in Illinois and Other States 21 Distribution of Property Taxes 22 II. Obstacles to Consolidation and Collaboration Illinois State Law Makes Consolidation Difficult 25 Illinois Citizens Not Empowered to Consolidate 27 Cultural, Political and Technical Obstacles to Consolidation 28 III. Local Consolidation and Resource Sharing Examples Consolidation and Shared Service Delivery Momentum in Illinois 31 Local Government Consolidation Efforts 31 Collaborative Purchasing Arrangements 40 Out of State Consolidation and Shared Service Delivery Examples 55 Unfunded Mandates: I. Unfunded Mandates Survey 62 Municipalities and Municipal Survey Summary 66 Counties and County Survey Summary 69 Townships and Township Survey Summary 73 Fire Protection Districts and Fire Protection District Survey Summary 75 School Districts and School District Survey Summary 78 Community College Districts and Community College Survey Summary 81 Park Districts 84 II. Unfunded Mandate Comparisons 87 Workers’ Compensation 87 Pension Alternatives 88 Comparing Prevailing Wage 92 Procurement and Higher Education 93 Proposals Submitted to Lt. Governor Sanguinetti and the Task Force: I. Proposals Submitted to and Considered by the Task Force 97 II. Proposals Submitted to the Task Force, by Topic 119 Conclusion and Next Steps 140 Continued on next page VI TABLE OF CONTENTS (continued) Bibliography 144 Appendices: Appendix A – Executive Order 15-15 147 Appendix B – Legal Review of Consolidation and Unfunded Mandates 150 Appendix C – Detailed Comparison of Counts of Government 163 Appendix D – Proposals and Suggestions Submitted Online 171 Appendix E – Task Force Meeting Minutes 227 VII EXECUTIVE SUMMARY This final report is a product of collaboration between the Task Force on Local Government Consolidation and Unfunded Mandates, the Office of the Lieutenant Governor, and Northern Illinois University’s Center for Governmental Studies. On February 13, 2015, Governor Bruce Rauner issued Executive Order 15-15 creating a Task Force comprised of bipartisan members appointed by the Governor representing public and private organizations with an interest in strengthening the efficiency and accountability of government and education services throughout the State of Illinois. Chaired by Illinois Lieutenant Governor Evelyn Sanguinetti, the Task Force’s purpose and responsibilities as outlined in Executive Order 15-15 include: “The purpose of the Task Force shall be to study issues of local government and school district consolidation and redundancy, and to make recommendations that will ensure accountable and efficient government and education in the State of Illinois. The Task Force shall: • Conduct a comprehensive review of State laws relating to local government and school district consolidation; • Conduct a comprehensive review of State laws relating to unfunded mandates on local government bodies and school districts; • Identify opportunities to consolidate, streamline, or eliminate duplicative governmental bodies, school districts, and taxing authorities; • Identify opportunities to replace, revise, or repeal unfunded mandates placed on local governments and school districts; • Discuss solutions and impediments to consolidation of local governments and school districts; • Analyze the
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