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Zoo/Museums Win Tax Exemption

Challenge

When the Illinois General Assembly imposed a new Cook County property tax cap in the spring of 1995, the impact was devastating for one of the world's largest zoos and nine prominent Chicago museums. All 10 institutions held previously authorized, but not yet sold, capital improvement bonds earmarked for critical projects. The new tax cap prevented the bonds from being sold and created serious financial trouble for each institution.

Although in different taxing districts, the Brookfield Zoo, which receives some funding from county property taxes, joined forces with the city-supported Museums in the Park, a coalition of Chicago's nine largest museums, to try to pass state legislation exempting them from the tax cap.

Without an exemption, the zoo would lose $11 million in bonds revenues, and the museums would lose $94 million. Also, many public-private partnerships would be at risk, since each institution had projects underway being funded by bond revenues and matching private dollars. Public Communications Inc. staff helped develop a public affairs plan to assist the zoo and museums in seeking the tax exemption.

Action

To effectively communicate with state legislators and the governor, it was essential to know and understand lawmakers' attitudes about the zoo and museums' capital programs and their willingness to support a perceived property tax exemption. Timing was particularly sensitive since action would be needed before a contentious general election in which Democrats would attempt to regain control of the House.

All located in the city of Chicago, the museums sit in Democratic districts. Brookfield Zoo is outside the city limits and is located in a Republican district. Based on the political climate, it was determined that any legislation would have its best chance for success if introduced by a Republican representative and senator, since the party controlled both the House and Senate. Both Republican Jack Kubik and Senator Tom Walsh agreed to introduce legislation one two conditions: 1) if the governor would agree to sign a bill, 2) if House Democrats would provide 50 percent of the required votes for a bill; and 3) Democrats would not try to make it an election issue.

After several preliminary meetings and surveys, a poll of Democratic representatives showed a potential 31 "yes" votes, enough that, if matched by Republicans, would pass a bill helping the zoo and museums. This was critical because neither party wanted to be vulnerable to charges that it supported a property tax increase.

A key strategy was to build political consensus among the Republican governor and legislative leaders to view legislation as a corrective measure, not a tax increase. Research showed that the zoo bonds would cost taxpayers only 32 cents per home valued at $100,000, and the museums' bonds would cost Chicago taxpayers less than $5, the price of one admission ticket to any of the nine museums.

The public affairs plan targeted key elected officials as well as media, community business leaders, institution board members and the public. A key was to get four entities: the governor, House Republicans, House Democrats and the Senate President to support a bill. Due to the political climate, none wanted to be the first to commit support.

Strategies were to: (1) educate key elected officials about the necessity for passing a bill to aid these outstanding public institutions, (2) position the initiative as a "corrective measure", (3) engage public and private support from various key constituent groups who could contact key elected officials, and (4) enlist the support of media without raising the level of dialogue to a broader debate about tax caps since it would be impossible to win such a debate.

Communications tactics resembled a chess game in which opinions and actions of the governor and legislators were anticipated, and responses crafted to addressed their public and political concerns. One-on-one meetings were preferred to group meetings, and all communications were built around key message points explaining the importance of the legislation and the public benefit with minimal cost.

Highlights of the program included:

• Message point preparation and training for the 10 executive directors and key board members and trustees.
• Clearly written background materials explaining the need for the legislation and what would be at risk without a corrective measure by the General Assembly.
• Editorial board meetings with four daily Chicago newspapers and the leading Chicago business magazine. All four dailies endorsed the bill; however the weekly business magazine called for a public referendum to decide the issue.
• Proactive contact by zoo and museum board members, zoo and museum vendors, and community leaders with targeted state representatives, senators and the governor's office.
• Strategic meetings with Republican and Democratic leaders working out a comprise so that the bill would not be a political issue in the upcoming election.
• Meetings with institution directors and the governor's staff to negotiate the governor's occasional wavering commitment to the bill.

With only six days in the veto session, time expired before H.B. 1787, which provided for the necessary tax exemption, could move out of committee. At the end of the veto session, though, both the governor and Senate president agreed to support the bill, but only if it could pass the politically charged House first. The public affairs campaign then intensified through the holidays with an objective to get the bill called for a vote during the one-week January session. Action included meeting with key state leaders in their home districts, inviting them to the institutions to meet directors and trustees, and mobilizing members of the institutions' boards of trustees to call and write their representatives.

Results

When the General Assembly reconvened in January, an informal roll call determined there were sufficient bi-partisan votes to pass the bill. When called for a vote on January 24, 1996, the bill passed in the House with 61 "yes" votes (60 were required). It then moved to the Senate where it passed with 48 "yes" votes (30 were required).

Communications efforts then refocused on the governor to sign the bill. A coordinated letter- writing campaign and personal contacts were made by institution board members and trustees, business leaders, and zoo and museum directors.

At the same time, the governor was lobbied by members of the National Taxpayers United of Illinois who opposed the bill. The group issued a news release on Jan. 26 calling on the governor to veto the bill.

After more than seven weeks of follow-up meetings and communications, Illinois Governor Jim Edgar signed the legislation on March 14. It became effective June 1. Since then, the zoo and museums have sold the capital improvement bonds and continue construction of projects that will improve the educational and recreational experiences for 10 million annual visitors.

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