Municipalities would lose funds under Quinn plan

Mar 11, 2010 — Jacksonville Journal-Courier

Cody Bozarth

Mar. 11, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Municipalities such as Jacksonville and Beardstown stand to lose hundreds of thousands in funding under the governor's proposed budget plan, although some city officials don't think the idea has any momentum.

Gov. Pat Quinn said Wednesday during his State of the Budget speech that he wants to see the amount the state pays to municipal governments from state income taxes lowered. The state now pays 10 percent; Quinn's proposal would trim that amount to 7 percent as one of the ways to handle a $13 billion state deficit.

A 3 percent loss would take about $450,000 out of Jacksonville each year.

In Beardstown, a city already several months behind in state payments, Mayor Bob Walters said he has been to Springfield to lobby against such a cut and hoped others would do the same.

"There are too many people who sit around in coffee shops and complain and that doesn't do any good," Walters said. "They need to call their legislators and say 'enough is enough.'"

Walters said Beardstown stands to lose about $133,000 a year. He said as the city is going through the budget process and might have to plan on the cut being in place.

But both Walters and Jacksonville Mayor Andy Ezard said they don't anticipate the measure having enough traction to make it into the final budget.

Ezard said he talked to a few acquaintances in the Capitol and heard that it may be stalled. He said he may end up going to Springfield to talk to legislators face to face.

If it were to go through, though, it would be "another dart thrown at us," Ezard said. State payments going through the Local Government Distributive Fund have decreased by about 15 percent and Jacksonville depends on those resources.

"The state hurts us enough with mandates on pensions," he said. "We're going to have to combat that and go over and talk to them."

State Rep. Jim Watson, R-Jacksonville, said he would encourage people to let lawmakers know what they think about the proposal.

"Those executives at the local level have to state their concerns now so that the General Assembly doesn't make a mistake in their eyes," Watson said.

As for the idea of reducing income tax payments, Watson didn't want to be overly critical of this idea because it is still just a proposal, but suggested the state would be passing its burden down the line.

"I think this is just the governor's way of saying 'here's the kinds of things we can do,'" Watson said. "To give him credit, at least he put it out there where people can see it and that hasn't happened before."

He was generally critical of Quinn's budget proposal, saying the best way to reduce the deficit is to incite job-creation by making Illinois more business-friendly.

"We need to improve our business climate to encourage job creation, expand our tax base and address our exploding workmen's comp rates that are preventing needed job growth."

City Clerk Skip Bradshaw said Jacksonville is still owed a month in state payments but does not have a budget deficit. He also said the city has about five months of reserves in savings to fall back on.

"If we have to go into the reserves then we will," Bradshaw said. "Of course, if we lose that 3 percent, we'll definitely have to."

Newstex ID: KRTB-0284-42817518