 Municipalities in Illinois are trying to cover their expenses while
struggling with late state payments and a lingering recession.
Mayor Don Welvaert of Moline said the lack of money from the state
is concerning.
"We're running approximately four months behind on revenues that
should be shared from the state of Illinois to the municipalities,"
Welvaert said. "And that's creating a significant hole in our
operating expenses and our general fund."
Scott Christiansen, Winnebago County Board chairman, said his
county will likely eliminate cost-of-living adjustments for three
positions for the next four years as another cost-cutting measure.
Christiansen said he and other top administrators have taken one
furlough day each month since October 2008.
"It's basically a case of you kind of need to lead from the top.
For employees who are taking a hit on their take-home, as are our
citizens, with our high unemployment, then we should do the same,"
he said.
The city of Rockford lies at the seat of the northern Illinois
county and currently has the highest unemployment rate in Illinois
at more than 17 percent, while the state averages 11.5 percent.
In his budget proposal presented in March, Gov. Pat Quinn
included a provision that would change local governments' share of
the state income tax from 10 percent to 7 percent. Communities were
quick to criticize the initiative, insisting local governments don't
have as much wiggle room in their budget as the state.
While the proposal hasn't been talked about for some time and
most lawmakers believe it's been put on the back burner, many local
governments are still worried.
Christiansen hopes local government funding is not cut by the
state.
"That would've been ... lmost decimation of local governments. In
our case, that was $1.6 million alone (that Winnebago County stood
to lose); in Rockford City (it) was $3 million. That was taking 30
percent of our income tax, the portion that counties and cities
get," he said,
Mayor Robert Butler of Marion said he and other city officials
are trying to avoid making any big decisions until they find out how
the state budget pans out.
"It is difficult to plan when you do not know what to expect from
the state on a variety of fronts," Butler said. "We don't know where
they're going to be on municipalities' share of the state income tax
-- the governor is waiting to reduce it."
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Welvaert said that although the situation with the state's unpaid
bills to Moline is a problem, it's only one of many.
"Probably the one other thing that most affects the
municipalities throughout this state," Welvaert said, "is the
unfunded mandates that are passed down from the state legislature to
the municipalities."
The issue of unfunded mandates -- laws or requirements that come
with no state funding to implement them -- is a common complaint
among practically every unit of local governing or school board.
However, one bright spot for local governments is the uptick in
sales taxes revenue. Since customers pay sales tax directly to
merchants and businesses, the money does not have to go through
state bureaucracy in order to be collected.
Welvaert believes the increasing sales tax revenue will keep
Moline in a good position.
"Right now, our sales tax revenues that we just received for
February are up a little bit," Welvaert said. "So there is some good
news that's out there; it's not all bad. We're starting to see a
little bit of a turnaround of the economy."
Illinois lawmakers are expected to return to the Capitol before
the end of the month to finalize the state budget for the upcoming
fiscal year, set to begin July 1.
[Illinois
Statehouse News; By JENNIFER WESSNER]
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