Gurnee, Grayslake mayors at odds of state tax plan for education

Two Lake County mayors in neighboring villages are on opposite sides of a proposal to raise the state's income tax as part of a plan to direct more cash toward education.

Gurnee Mayor Kristina Kovarik has publicly backed a state Senate plan to hike personal and corporate income taxes while reducing education-related property taxes. The state would increase its minimum per-pupil funding as part of the proposal, commonly known as a tax swap.

However, Grayslake Mayor Timothy Perry took the opposite stance this week.

Grayslake village board members voted 5-0 in favor of a resolution against the Senate proposal. The village's position will be communicated to lawmakers in Springfield.

"If there is no guarantee there is permanent property tax relief involved, it's just a gross tax money grab," Perry said.

Under the Senate proposal, the personal income tax would go from 3 percent to 5 percent. The early stage plan would hike the corporate income tax from 4.8 percent to 8 percent.

Education-related property taxes would be sliced by 20 percent. The minimum state funding level for schools would rise to $6,004 per student in the beginning, along with $1 billion placed in a fund annually for capital projects.

Kovarik recently announced her preference for the income tax hike over other ways to raise money for construction-related expenses at local school districts. One proposal she's against is adding 1 percentage point to the county sales tax to help schools.

Grayslake officials contend Lake and other collar counties would be shorted by the Senate proposal. They argue that for every additional $10 generated by Lake County taxpayers, just $6 would be returned to benefit local schools.

Village Trustee Rhett Taylor said the so-called tax swap would hurt Grayslake's efforts to attract more commercial development.

Perry said Grayslake and other Lake County towns are in competition for businesses with cities in Wisconsin, which has a lower corporate income tax rate than Illinois.

"We'd tell a corporation we'll almost double their tax rate if they move here," Perry said.