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"This lawsuit asserts that the actions taken by the state of Illinois to balance its budget are unconstitutional," he said.
"Under the FY2004 Budget Implementation Bill, the administration intentionally escalated financial institution regulatory fees
far in excess of the amount necessary to cover budgetary expenses of regulatory oversight."
The lawsuit filed on behalf of Illinois' financial institutions also claims, said Plauda, that the transfer of excess
monies from the financial institutions' dedicated funds to the state's general revenue fund - in order to help balance the
state budget - violated the existing statutory framework that limits the specific purposes for which expenditures from the
dedicated funds may be made.
"Credit unions, thrifts and banks do not object to reasonable fees to cover the cost of their regulatory supervision," he
said. "However, they vigorously oppose the imposition of hidden taxes that unfairly burden Illinois consumers."
Plauda said the decision to file the lawsuit came after several months' worth of negotiations with the Illinois Department
of Financial and Professional Regulation did not produce any temporary relief or solution.
"We feel the suit is necessary in order to restore integrity to the process of regulatory oversight," he said, "and to
maintain the safety and soundness our respective industries in Illinois."
In 2004, more than $6 million in excess fees were generated and transferred into the state's general fund under the
category of financial institution regulatory costs.
Although Illinois trucking companies have also been significantly impacted by new fees and fee increases initiated by the
Blagojevich administration, industry officials say they are thankful for their collective success in achieving rollbacks on
roughly 40 percent of the total amount of fees initially imposed on them.
"In the spring session, we were able to reduce the (trucking-related) fees off the top by 40 percent effective July 1 of
this year, and by another 20 percent effective July 1 of next year," said Don Schaefer, executive vice president of the
Mid-West Truckers Association. "What we've done is to use the legislative process to repeal some of the fees. That still
leaves about 40 percent out there, though. The question now is whether state legislators will try to remove the remaining fee
increases."
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Schaefer said one of the painful blows the Blagojevich administration dealt the trucking industry was to create a new fee
known as a commercial distribution fee. The fee is calculated on the cost truckers pay annually to register their rigs.
"Whatever their registration fee was, as of July 1, 2003 the state tacked on an additional 36 percent," said Schaefer. "It
came to the point where the state of Illinois even back-billed truckers for that additional fee. We're still fighting this
one. It was highly controversial and still is."
The Mid-West Truckers Association - which represents more than 2,700 trucking companies in 15 states - will continue to eye
the entire situation closely, he said.
"We're also going to watch what happens with the Illinois Chamber's case and with the latest suit filed on behalf of the
financial institutions," said Schaefer. "Those are precedent-setting cases for the 300 fees in total that the governor has
imposed. If the courts say the fees already in question are arbitrary and throw them out, it's going to open the door to
future litigation."
Gregory W. Baise, president and chief executive officer of the Illinois Manufacturers' Association - a body representing
4,300 employers statewide - said his organization's posture with regard to state-imposed fee increases is similar to that of
the truckers.
"We are encouraging State Treasurer Judy Baar Topinka to look at all these fees," Baise said. "She has a constitutional
duty to make sure that she is carrying out the law. We think it's incumbent on her to examine, in light of the (Cook County)
judge's ruling, the constitutionality of how all of these fees are being collected…and for what purpose they are being used."
Baise predicted that Illinois' agriculture industry may well be the next sector to challenge the state agency collecting
the bulk of the governor's recent fee increases: the Illinois Environmental Protection Agency.
As of press time, Illinois Attorney General spokeswoman Melissa Merz said the state had not yet come to a decision on
whether it would appeal the Cook County judge's Nov. 30 judgment in favor of the state chamber of commerce.
On April 22, the state chamber filed its lawsuit challenging excessive workers' compensation-related fee increases. The
Nov. 30 judgment in favor of the chamber recouped approximately $5 million for Illinois employers, according to Douglas L.
Whitley, state chamber president.
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