Update from Orland Pk. Mayor Pekau

This update focuses on upcoming ballot items – term limits, the progressive tax and the Congressional race between extremist Marie Newman and Mike Fricilone.  However, before talking about these, I will update you on our concert series and my resolution to the village board to lower our property tax levy in the upcoming budget year.
 
While the Village is a very small percent of your property tax burden (less than 6.7%), 20 years ago it was only 4.9%.  Through COVID-19 we have put many programs in place to help small businesses, developers and consumers (residents and visitors alike).  Now it is time to help our residents even more.  I will be putting a resolution forward on the next board meeting to lower our property tax levy (which hasn’t been done since I moved back here in 1998).  I not only encourage our Village Board to approve the resolution, but I encourage the other taxing bodies (particularly the school districts and fire district) to follow suit. 
 
Recently, the Cook County Department of Public Health instituted a quarantine for those travelling to Cook County from other states.   This is the same Cook County Department of Public Health that does not provide so much as address information for known COVID infections making it impossible to keep sick people quarantined and endangering our first responders.   It is also the same Cook County Department of Public Health that was unable to assist in providing first responders or County medical professionals with PPE and gave us little to no guidance during the entire pandemic.  They also mandate that the village enforce this.  Aside from the unconstitutionality of quarantining the healthy, it would take a police department over double the size of ours just to monitor all of the ingress points into Orland Park and leave no other time for any other police work.  They are absolutely out of their minds!
 
However, in light of this development, our national acts have decided not to risk coming to the Chicagoland area this year.  For this reason, we will reschedule the September 12^th concert to next year and cancel the August 22^nd concert.   
 
I brought an idea to staff, and they helped develop an alternative plan that will be presented to the board for consideration at the next board meeting.  Instead of ticketed concerts, with national acts, the plan would be to host free concerts, with local acts (these acts are in the process of being determined) and will include both an in the park and a drive-in option.  This will give more people the opportunity to enjoy these concerts and choose how they will do it.  This will be discussed and voted upon at the next board meeting on August 3^rd.  We want to give our residents something enjoyable while doing everything we can to make it as safe as possible.
 
On the ballot this November is a local referendum for term limits that I support.  As you recall, I ran on instituting term limits and cast the deciding vote to put it on the ballot for this November.  It will limit all elected positions in the Village of Orland Park (Trustee, Clerk and Mayor) to 3 terms.  I am a strong proponent of term limits and for the first time ever, village residents will be allowed to vote on this.  I promised to put term limits on the ballot, to lower the mayor’s salary back to $40,000 for the next term and to eliminate pensions for elected officials.   All three have been accomplished.  Now, the residents simply need to vote for term limits if that is what they want. 
 
The governor has placed a progressive tax on the ballot which amends the Illinois Constitution if voted for by the people of Illinois.  I strongly oppose this referendum for several reasons.  He calls it a fair tax, but my friends, there is nothing fair about it.   We need to look no further than two main issues why not to support the progressive tax.  First, the state of Illinois has a spending problem not a revenue problem.  Second, the State of Illinois legislature cannot be trusted to keep their word.  The state has been breaking its promises to local government entities for years and taking money from local resident’s pockets. 
 
THE STATE HAS A SPENDING PROBLEM

• Last time we had a true balanced budget was 2001
• Income tax increase in 2011 and revenues went from $16.1M in 2011 to $23.5M in 2014 yet budget deficits and spending increases continued year after year.  In 2014 ran a $3.9B deficit
• Long term debt and unfunded liabilities has ballooned to $254B from $56.7B in 2008
• Last year, Governor Pritzker and the State legislature doubled the gas tax this year (with cost of living increases), increased car registration fees by 50% and increased a boat load of other taxes
• The 2021 budget has a $6.5 Billion deficit

Government Pensions are sucking the life out of our budget

• When do we get to do a constitutional amendment on pensions?  That’s where the real costs are. 
• In 1970 the pension liabilities and health benefits to retirees were $2.5B now they are over $200B
• Unfunded liabilities are over 6 times revenue
• The state borrows money year after year to pay pension obligations
• In Orland Park almost 50% of our property taxes go to PENSIONS!  In 2019, we paid in approximately 40% of salary into our police pensions.  This is not sustainable.

THE STATE CAN’T BE TRUSTED

• The tax increase in 2011 was supposed to be temporary

TAX RATES (bases on 2011 tax increase)

• In 2015 proponents of a progressive tax fought against taxes returning to agreed upon levels and were in effect trying to break their promise
• By 2017 they broke their promise and overrode a governor’s veto increasing rates to 4.95% (personal) and 7% (corporate)
• LGDF (Local Government Distributive Fund) – the percent of income tax collected that is shared with municipalities that was agreed to when the income tax was first passed.
  • When income tax agreed to originally – 10%
  • In 2011 it was reduced to 6%
  • In 2017 it was reduced to 5.45%
  • INow the legislature and governor say they are restoring full funding at 6% (THAT IS NOT FULLY FUNDED and does not look like 10%)
  • Orland Park received $5.5M in LDGF last year.  It would have been over $9.5M under the old formula.  Over $4M taken from us! – that can do a lot of road and a lot of parks.  How do other towns that don’t have the economy of Orland Park handle it?

• The state has also been diverting the Illinois Personal Property Replacement Tax away from local municipalities for over a decade.  This was put in place to be distributed to municipalities to help with pension costs.  In 2021 the state is projected to take another $311 million from municipalities.  This is another $1.5 Million that Orland Park should receive, but doesn’t
• The Constitution of Illinois says that “The State has the primary responsibility for financing the system of public education.”   In this area, the State funds about 10% of education, 8% in district 230.  The lottery was supposed to fund education, gaming was supposed to fund education. Where is that money going? PENSIONS!  Where does it end?
  • Property taxes are out of control because small, non-home rule towns, fire districts, schools and libraries have but one option when the State of Illinois doesn’t fulfill its promises
• How about this slogan from the 60’s “Toll Free by 73”.  We still have tolls.
• In 1989 there was a temporary tax hike from 2.5 to 3%.  How did that work out?
• Federal COVID relief to the State of Illinois was approximately $3.5B.  According to federal guidelines 45% of that money was earmarked to be given directly to government entities with less than 500,000 residents.  That is $1.57 Billion.  However the budget that the legislature just passed directs $250 million to municipalities and locks out those municipalities in 5 counties.  Chicago received funds directly.  If the $1.57B was distributed equally per capita across the rest of the state that would result in approximately $9M to Orland Park.   Instead the legislature is pocketing the money for the state.   – WHEN DOES IT END?

 
Last, but certainly not least, Congressional District 3 has a very important race between extremist Marie Newman (D) and Mike Fricilone (R).  As many of you may remember, 2 years ago, I endorsed Dan Lipinski (D) in the general election as he ran against an extremist who had run unopposed for the Republican nomination. 
 
This year, Marie Newman (D) is the extremist.  She is endorsed my Alexandria Ocasio-Cortez, Bernie Sanders and Elizabeth Warren who all believe in socialism.  She supports socializing medicine, defunding the police and supports those who are tearing down our historical statues like those of Christopher Columbus and George Washington.  Don’t let her avoidance of those issues fool you.  Her campaign has also been organizing people to disrupt our board meetings with endless attacks and commentary.
 
On the other hand, I have known Mike Fricilone for 17 years.  He was a customer of mine for years. I know him to be a good, decent man with a lot of common sense.  We need more representatives like him in Congress.
 
The election is coming up quickly.  Do not forgot to vote and to vote YES on term limits, vote NO on the progressive tax and vote for Mike Fricilone over extremist Marie Newman.
 
Thank you and have a great week.  Hope to see you at Taste of Orland.

Also a reminder to please join me at my fundraiser on August 31st.  You can get tickets here http://www.keithpekau.com/Golf/?fbclid=IwAR0DPZY1CpkC8-qCjSN8u9ARxpg4DEvq7-XK2omscsXT2-5iL8I9Lx3OB5w