COVID Relief Funds

 The city is looking for applications from local organziations interested in reeiving funds from the $7.8 million the city is earmerked to receive in COVID-19 relief funds.

All projects for which an organzaiton seeks funding must, per the guidelines of the various acts, fall withn one of the following four categories.

According to the US Department of Treasury, funding may be used to meet local needs within these four eligible use categories:

• Replace lost public sector revenue
• Support the COVID-19 public health and economic response
• Provide premium pay for eligible workers performing essential work
• Invest in water, sewer, and broadband infrastructure

Letter to BOT

In case you would like to read it, here is the transcript of the letter sent on April 5 by the Carbondale Chamber of Commerce to the SIUC Board of Trustees regarding the proposed shift of $5 million in funding from SIUC to SIUE:

Dear Members of the Southern Illinois University Board of Trustees,
It has come to our attention that a resolution that would shift financial resources from the Carbondale to the Edwardsville campus will be considered at the April 12, 2018 board meeting. Under Resolution GG-1, $5.1 million would be reallocated to Edwardsville in FY19 and a reallocation would continue annually for four years

. Our concern is two-fold. First and foremost, the initial reduction of $5.1 million dollars is just a few months away. In addition to the immediate cut, the shift to enrollment-based funding sets a precedent for continued reallocation in the future.

While we understand SIU’s overriding priority is to provide a quality institution of learning, we cannot overlook the fact that SIUC serves as an economic engine for southern Illinois. “For every $1 appropriated by the state to SIUC, it generates roughly $7.72 of economic activity annually in Illinois.” * The translation is that the initial $5.1 million reduction would have a negative economic impact more than $39 million. Our business community cannot afford any further decline of SIUC.

 Second, the funding model is decades old. Why take this action now? Just as the businesses we represent have had to make tough economic decisions, so has SIUC. SIUC is doing what is takes to grow enrollment, and therefore, revenue. Attendance at the most recent open house on the Carbondale campus was quite high. The administration and all departments have taken steps to reduce costs and eliminate duplication. SIUC has reduced its budget by more than $31 million since 2014, including the reduction of 500 employees.

SIUC is on course for enrollment growth in fall of 2019 and on target to end this fiscal year with a balanced budget. Remaining faculty and staff are committed to providing a quality education and the revitalization of SIUC.

We respectfully request that you give SIUC, and the region it impacts, time. Time, so that we might reap the results and rewards of the work currently in process. We assure you that this administration and business community are committed to seeing SIUC restored to its former glory.

2018 Board of Directors, Carbondale Chamber of Commerce

Funding Cuts

It looks as if they city council will cut funding to various civic organizations by 5% or about 18,000 in total. I can see the point of view of the council members who said that the decline in student attendance at SIUC has affected city sales tax revenue and that the city needed to cut its own budgets and it needs to spread the cuts around so that no one takes a huge hit. I tend to agree with Councilman Jeff Dougherty who opined that the $18,000 was so comparatively small that the city should be able to come up with the money in order to keep supporting these organizations in their work at last year's funding. although no one likes to see their own funding cut, I would be if city staff looked ahrd, they could find $18,00 to trim from something in order to fully fund these organizations.

School Funding

This week's State Week in Review is an interesting listen on the whys and wherefores of the recently vetoed school funding bill. One reason for the Legislature to hold off sending the bill to the Governor for his already announced veto was that, if negotiations had panned out between the two sides, the bill would have only needed an amendment to incorporate any negotiated changes, then the Governor could sign the amended bill. As it stands now, with the veto, there can be no changes to the bill.  If the House overrides his veto, the school funding bill goes into effect as written.

The discussion also points out that, although Gov. Rauner only mentions the funding for Chicago teacher pensions as his reason for vetoing the bill, his amendatory veto also made a lot of changes in the way payments to school systems are calculated. Currently, according to my understanding of the discussion, since they don't generate any funds for schools, TIF districts and property tax caps are not considered when calculating how "rich" a school district is for purposes of calculating state funding. Under Gov. Rauner's changes, the value of TIF districts and total property valuation in excess of caps would be considered when determining funding, meaning that even poor districts would now have access to much more valuation, at least on paper.

Splash Park Funding Suspended

Governor Rauner suspended funding for all park district construction projects today. Since both the Splash Park in Carbondale and The Hub project in Marion had that funding figured into their budgets, both suspended work today until they get some idea regarding what is going on. It appears that, much like the state appointments of last month, Gov. Rauner stopped funding everything and will then go though the list of grants and decide on a case by case basis as to what funds will get restored for what projects.

Rather raises hob with the Splash Park, since the project organizers had planned on a May opening, just in time for summer.

State Budget and State Constituion

Rather interesting that a strict reading of the Illinois Constitution indicates that it does not require a balanced budget. Rather, what the appropriate section says is that:

The General Assembly by law shall make
appropriations for all expenditures of public funds by the
State. Appropriations for a fiscal year shall not exceed
funds estimated by the General Assembly to be available
during that year.

Ergo, the constitution only requires that the legislature keep spending within funding estimated available for the year. It does not require appropriations to be adjusted for actual funding or to address outstanding bills left over from prior years when actual revenues fell short of estimates.

Year Round Farmers Market

There is a lot of interest in a location for a year round farmer's market in Carbondale, beyond the one that operates at the high school. The photo below (taken by D. Gorton) shows about half the room at the June 3 meeting held to explore the possibility:

The problem is, of course, funding. The city will raise its sales tax by 1/2% on July 1 to help cover pensions, among other expenses. If the city must raise taxes in order to pay current bills, it certainly does not have the money to fund the construction of a year round market building. The city, however, could provide land for the construction of such a structure. There are several plots of land in downtown that currently sit empty that the city could make available for a market building. However, it will probably be up to a private group to raise the funds for its construction

City Council Meeting

City council is meeting tonight. Cannot make it to the meeting and I don't see it broadcast on channel 16.  Here is the agenda, though.

One thing that rather bothers me is the city's active solicitations of per-applications from community organizations for city funding.  Given that the city just had to raise taxes to fund city pensions and has plans to retain the portion of the sales tax that is due to expire in a couple of years to further help fund those pensions, it would seems that actively seeking out more organizations to potentially fund is just setting those organizations up for future disappointment.

Funding Requests

It's time for the annual requests for funding from the city by local civic organizations.  Funding will not be approved at this Tuesday's meeting, but organizations may make pitches to the council and the council members will discuss the various solicitations.  The only change the city staff recommended was to cut the Boys and Girls Club's request for $32,000 back to the 2012 grant of $30,000.

There are two unsolicited requests, one from the Varsity Center for the Arts for $30,000 to assist with the cost of repairs from sewer backup damage to the property and to replace drains in both theaters and install a protective seal on the front lobby doors to protect the building from future water damage.  The building does have drainage problems during heavy storms, due to its position at the bottom of a low hill, leading to flooding during periods of heavy rain.

Attucks Community Services is requesting $153,883 to help fund its program of youth and community programs.  This amounts to almost as much as the combined requests of all the organizations solicited by the city:  $188,150.

Money for Pool

Mayor Fritzler sent out the following press release expanding on his proposal to give $100,000 in city funding to fund the proposed CPD Aquatics Center:

Carbondale Mayor Joel Fritzler Proposes $100,000 contribution to Aquatic Center

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During last night’s meeting of the Carbondale City Council, Mayor Joel Fritzler proposed that the City of Carbondale contribute a total of $100,000 towards the matching grant the Carbondale Park District received for their Outdoor Aquatic Center project.  Mayor Fritzler said that he was inspired by the success of the Park District’s recent fundraiser and the encouraging show of support by the community for the aquatic center.

The City Council had previously reallocated $10,000 to the project from funds for promoting tourism.  The additional $90,000 would also come from these funds dedicated to promote and market the City of Carbondale.  Mayor Fritzler would like for the new board of the Carbondale Convention and Tourism Bureau to decide whether the funds are contributed over the next two or three years.  The Mayor said, “We have saved some money over the last few months while discussing the future of tourism in Carbondale so, we could make a $50,000 contribution this year and $25,000 during the next two years.”

“This is a win-win project for Carbondale and the Southern Illinois region.  Residents have been wanting and asking for an outdoor pool for generations so, I know that they will step up to the plate (or diving board) and write a check.” For more information about the project, call the Carbondale Park District at 529-4147.

Given that the status of the Convention and Tourism Bureau is currently in flux, with a new board meeting to reconstitute the organization  and that the city council pulled funding from District 95's summer reading program last year, saying the money could be spent better on more immediate needs, like the new fire station (still not started), it is hard to justify directing city funds towards this project.  As the mayor himself said last year:

(Mayor Fritzler) said with the current economy issues, the council cannot afford to fund every program. He said there’s a long list of community projects that need to be completed such as new streets and that should be the priority.

City Council Meeting

City Council meets tomorrow night.  Nothing too exciting on the agenda.  There's a vote authorizing fair days for this summer's series of Sunset Concerts.  Look for Councilwoman Corene McDaniel to cast the lone "no" vote, as she typically does, since she opposed alcohol at events held on city property.  Also look for her to request that one of the concerts be alcohol free, at which the Carbondale Park District representatives will nod politely and say they will look into it.

Contracts with various civic organizations will also be approved during the meeting.  Likely no  controversy with any of those, save for items 5.4.7, the contract with the Carbondale Convention and Tourism Bureau for $276,500.  It's likely that several council members will offer proposals or recommendations for clauses they wish to see include in the in the contract with the CCTB, including a guarantee of a proportional number of city representatives on the CCTB board and an explanation from the CCTB board for their expansion of the size of the board at the March meeting.  Though it was obvious why the board voted to expand, it would certainly be interesting to see the board members appear before council and offer a justification for the expansion.  Expect to see pointed questions from the council and interesting turns of phrasing from the CCTB board if any of them appear before the council.

City Council and CCTB

Looks like another light agenda for the City Council tonight.  One interesting thing is the contract providing funding from the city to various civic organizations.  Yo may notice that the Convention and Tourism Bureau is not on the list of organizations funded.  According to Councilwoman Jane Adams, the contract has been removed from the other contracts and will be negotiated separately. It appears the council at least wishes to negotiate language into the contract giving the city representation on the CCTB board commensurate with the amount of funding it provides to the CCTB, currently about 80%.  City funding will prove even more important to the CCTB now that the organization has severed ties (and funding) with Jackson County as the Carbondale Times reported in its April 11 issue. 

According to the article, the CCTB board sent a letter to the Jackson County Board in early February, asking if Jackson County wished to continue its relationship with the CCTB and giving a March 15 deadline for a response. The county did not respond and the CCTB decided to forgo the $12000 annually it received from the county, choosing instead to focus on Carbondale, which is problematic to say the least, given the current relations between the board and city council.

City Council Meeting

The City Council meets tomorrow night at 7 p.m.  Not a lot on the agenda, but I expect quite a few community organizations to show up to defend their various requests for funding.  The Convention and Tourism Bureau, which is funded by a hotel tax, some of which Mayor Fritzler has proposed directing into the city's general fund, has requested $317,500, more than all the other organizations combined

The other organizations requesting funding, including unsolicited requests of $40,000 from the Varsity Center for the Arts and $35,680 for Attucks Community Services, totaling, by my count, a bit less than $290,000.  I see a couple of interesting requests:  $9,900 for the I Can Read program, funding for which was removed then reinstated when former Mayor Brad Cole funded a summer reading program in conjunction with the Carbondale Elementary School, $1000 for the Spirit of Attucks annual school reunion, and $14,045 for Saluki Express, which was launched and is primarily funded by student fees but does provide transport throughout Carbondale.

I expect to hear the most discussion over the unsolicited requests from Varsity Center for the Arts and Attucks Community Services, as they account for roughly 25% of the requested non-Convention and Tourism Bureau funding.  I would expect Councilwoman McDaniels to argue strongly for restoring funding for Attucks Community Services as she has typically supported funding services the organization provides.