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* Daily Herald editorial…
Most suburbs took it on the chin in this pandemic year, with income millions of dollars lower than usual from taxes on goods, food and beverages, hotel rooms, gasoline and more.
But you wouldn’t expect local leaders to turn around and ask their residents and business owners — who also are hurting — to cough up more.
By the same token, the state of Illinois shouldn’t try to cure its revenue shortfall by hitting up cities and villages.
Yet, that’s what Gov. J.B. Pritzker’s proposed budget would do.
The state has its eye on the Local Government Distributive Fund, which is local governments’ share of income taxes collected by the state. The governor’s budget proposal included another 10 percent reduction in what towns get. […]
While Illinois’ flat income tax is in the state constitution, the amount of the local share unfortunately is not. […]
Lawmakers, when they ultimately vote on a state budget next month, should take further cuts to this local revenue source off the table.
Municipalities are usually very good at getting news coverage and editorial support for their Springfield agendas. Not mentioned, however, is that Illinois’ local governments and schools are receiving $5 billion via the new federal relief law. Also not mentioned is another way to pay for this proposed cut.
However, there is little doubt that cuts to local governments could lead to local tax hikes. And the governor has said more than once that property taxes are a major impediment to economic development here.
…Adding… As a commenter reminded us, the Daily Herald opposed the graduated income tax proposal last year.
* Related…
* Study: American Rescue Plan allocates $2 billion to counties that don’t exist or don’t have fiscal problems
posted by Rich Miller
Thursday, Apr 22, 21 @ 8:30 am
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The other shoe has dropped from JB’s failure 10% cuts for everyone
Comment by Rabid Thursday, Apr 22, 21 @ 8:39 am
Obviously we need to hit up that American Rescue Plan for more money.
Comment by Cheryl44 Thursday, Apr 22, 21 @ 8:42 am
Democrats have been callous and deaf to GOP cries for spending cuts. It’s time for that to end. State spending should be cut in districts who cry out for it. With reduced state spending, those districts can then look to cut local taxes and government, and reach the GOP promised land of self sufficiency.
Comment by Grandson of Man Thursday, Apr 22, 21 @ 8:59 am
Fair tax didn’t pass…be careful what you don’t vote for.
Comment by PublicServant Thursday, Apr 22, 21 @ 9:01 am
Everybody is cool with spending cuts unless it’s their part of the state pie.
Comment by I'mma stop you there.... Thursday, Apr 22, 21 @ 9:03 am
Well as the ILGOP is quick to remind us, we have to live within our means. This is what it looks like.
Comment by Pundent Thursday, Apr 22, 21 @ 9:04 am
I’m old enough to remember when the Senate Republicans pushed a “Reality Check” budget plan that called for $300 million in cuts to local government revenue sharing (LGDF, etc).
Comment by Third Reading Thursday, Apr 22, 21 @ 9:05 am
The Daily Herald might also find this prior editorial an interesting read:
https://www.dailyherald.com/discuss/20201015/endorsement-a-difficult-no-on-graduated-tax-referendum
Comment by Pundent Thursday, Apr 22, 21 @ 9:06 am
It is sort of like playing Russian Roulette. Rather than participating equally in addressing a budget shortfall, the mayors would prefer to not participate, and see where the essential cuts happen. Of course, then some (most?) will complain that they are being made to sacrifice without input. Circular reasoning?
Comment by H-W Thursday, Apr 22, 21 @ 9:15 am
I agree with the editorial’s point about locals needing to know what they’re going to get so they can plan ahead, but if you’re going to shoot down a revenue idea, it’s your responsibility to account for it, either with new revenue or spending cuts. If you don’t, your “suggestion” is just a whine and should be ignored by everyone.
Comment by Perrid Thursday, Apr 22, 21 @ 9:18 am
Here’s an idea: Consolidate local government units, like unnecessary township governments and maybe even school districts in order to save money by removing unnecessary overhead.
We don’t actually need a king to be able to pull that one off.
Comment by Candy Dogood Thursday, Apr 22, 21 @ 9:18 am
“Democrats have been callous and deaf to GOP cries for spending cuts”
Really? I’ve sat through more than a few COGFA hearings on closures while GOP members verbally attacked Dem Gov’s staff over closures. The GOP wants cuts, until the cuts impact them.
Nice try.
Comment by Give Me A Break Thursday, Apr 22, 21 @ 9:18 am
Now all we need is for the Daily Herald or the Mayors to start calling out lawmakers who do not stand with them… Call it a news tip
Comment by Annonin' Thursday, Apr 22, 21 @ 9:20 am
Golly, maybe the DH should have thought of that before encouraging a “no” vote on the Fair Tax.
Comment by Guy Probably Thursday, Apr 22, 21 @ 9:21 am
So, the promised cuts that would be made if the Fair Tax didn’t pass are coming to pass?
But, but, J.B. didn’t do a good job persuading people the Fair Tax amendment was needed.
Irrelevant now, isn’t it.
Comment by Flyin' Elvis'-Utah Chapter Thursday, Apr 22, 21 @ 9:22 am
=local governments and schools are receiving $5 billion via the new federal relief law.=
This.
There is tremendous flexibility in how we can use the stimulus funds so long as there is some relationship to the pandemic. The funds can be used to supplement and supplant spending so these cities mostly need to look at that as their fiscal lifeline. INstead they are not counting those funds other than for. new things when it can and should go to cover loses.
Comment by JS Mill Thursday, Apr 22, 21 @ 9:25 am
Thanks Ken Griffin…for nothing.
Comment by PublicServant Thursday, Apr 22, 21 @ 9:26 am
Did these folks who voted against the fair tax really think that Ken Griffin was on their side? Local Government consolidation is something that has been discussed but never acted upon for a long time. Maybe it’s time.
Comment by The Dude Abides Thursday, Apr 22, 21 @ 9:53 am
===local governments and schools are receiving $5 billion via the new federal relief law.===
Keep in mind that the ARP money is basically intended to replace lost revenues and cover expenses due to COVID. For towns that rely heavily on sales, food and beverage and/or other taxes that were decimated by the shutdowns, this merely gets them back to ground zero. Now that they are getting back on their feet, the state wants to kick their legs out from under them again.
Comment by Dance Band on the Titanic Thursday, Apr 22, 21 @ 10:27 am
Thanks Ken Griffin…for nothing.
Overwhelming voters said no. I doubt griffin had that much influence. If given a choice nobody pays more than they have to.
Comment by Masker Thursday, Apr 22, 21 @ 10:29 am
The next graduated tax referendum needs to be paired with a tax increase that is an increase to 6% for everyone if the referendum fails, and flat or decrease for 97% of taxpayers if it is approved. The last attempt only had status quo as the apparent alternative, which obviously was not enough. People need more of their own money at stake to vote for their self interest.
Comment by thechampaignlife Thursday, Apr 22, 21 @ 10:38 am
==Democrats have been callous and deaf to GOP cries for spending cuts.==
Umm, I remember Rauner’s agency heads were quiet.
https://capitolfax.com/2017/03/10/democrats-lash-out-at-rauner-for-demanding-cuts-and-not-specifying-them/
Comment by Jocko Thursday, Apr 22, 21 @ 10:57 am
The Daily Herald accurately reflects the impossible and inconsistent views of Illinois voters.
How about a graduated income tax? No, we don’t want that. Don’t tax you, don’t tax me, don’t even tax the man behind the tree.
How about budget cuts? No, we don’t want those.
What should we do? Cut waste, fraud and abuse.
Know where we could find a few billion on waste, fraud and abuse? Madigan, or uhh, he’s gone, I know all that tax money that goes to She-caw-go.
Did you know Chicago is by far a net revenue producer for the state? No, it isn’t.
And so, the cycle of debt, the failure to generate revenue and/or cut spending continues. As near as I can tell, it’s the will of the people.
Comment by AC Thursday, Apr 22, 21 @ 11:36 am
I guess it’s time for all these mayors to make cuts to all the waste and abuse in their towns to make up for the difference.
I keep hearing them complain about all that supposed waste and fraud. What are they waiting for.
All the rhetoric is running out of runway. We’ve arrived at the point where reality gets involved now - whether they like it or not.
Comment by TheInvisibleMan Thursday, Apr 22, 21 @ 12:19 pm
=The Daily Herald accurately reflects the impossible and inconsistent views of Illinois voters.=
My guess is they believe our problems can be solved with magic beans. You know, pension reform.
Comment by Pundent Thursday, Apr 22, 21 @ 1:55 pm
Regarding the study cited in the Center Square article concerning allocation to non-existent counties…the law states that, in those cases, the money goes to the state to redistribute to the existing localities.
Comment by Joe McCoy Thursday, Apr 22, 21 @ 3:47 pm
“The Daily Herald accurately reflects the impossible and inconsistent views of Illinois voters.”
True, but IMHO merely reflecting reader ignorance shouldn’t be the role of a newspaper.
– MrJM
Comment by @misterjayem Thursday, Apr 22, 21 @ 5:13 pm
To the post,
What’s always interesting to watch in these types of seemingly confusing look at “revenues” and “munis”… is this idea that all politics is local including the anger at the Fair Tax… but the running of a muni needs the aid/support (see: cash) that this state provides to … fund… say, the police.
Local folks can’t get so caught up on the political flavor or mood of taxation and then forget what those revenues mean.
It’s a silly, fool-hearty rethink.
Comment by Oswego Willy Thursday, Apr 22, 21 @ 8:24 pm