State Funding Cuts Backlash Nets Two More Communities

Gregory Harutunian

The villages of Lakewood and Lake In The Hills joined a growing number of Mc Henry county and statewide municipalities and villages that are opposing funding cuts sought by Illinois Republican Gov. Bruce Rauner. Both village boards formally passed resolutions expressing their disapproval, during their respective general meetings.

The resolutions and votes were entered following a joint sojourn to Springfield by members of the Mc Henry County Council of Local Governments and the Illinois Municipal League to seek answers from state legislators and the Governor about the aforementioned cuts and possible alternative options.

At issue is the proposed 50 percent reduction in the revenue sharing allotment, derived from the state income tax collections, and returned to local governing bodies. The suggested shortfall has created a situation where line item disbursements in municipal budgets for basic public services could be slashed.

The written action by the Village of Lakewood entitled, “Resolution Urging The Governor And General Assembly To Protect Full Funding Of Local Government Distribution Funding,” came at its Mar. 10 meeting. The unanimous 6-0 vote for approval reflected the village’s anticipated $190,000 loss to its general revenue fund operating budget.

“If the cuts survive, this is the amount that will need to be met, and this could mean cuts to services for our residents,” said Kathyrn Peterson, Lakewood’s village administrator. “We all weathered the recession several years ago, and now these implied cuts from the state level will impact municipalities presently working to complete their annual budgets.

“I think it was just happenstance that most municipalities have an earlier fiscal cycle than the state of Illinois (July 1-June 30) and not intentional,” she said.

Peterson, an officer with the Mc Henry County Council of Local Governments, also indicated that Springfield meetings resulted in little headway. She was unable to visit the statehouse with the group, although learned of the results through other village administrators and presidents.

“The membership didn’t get to see the Governor, but they did speak to his appointed representatives, and also met with our elected leadership on both the sides of the aisle,” she said. “Our presentation included the options of asking what abilities they can give us to address our obligations, if the cuts stay in place.

“For example, the matter of prevailing wage…we have an $8 million road project, and there is backdrop work that is very cumbersome with setting up monitoring, payment, and tracking. If the legislature provided $2 million toward it, and we took the $190,000 cut, that is a trade I would take any time.”

The Village Board of Lake In The Hills unanimously passed a similar resolution at its Mar. 12 session. Identical concerns over a reduced share of the collected income taxes negatively impacting their budget and operations were raised, as the village calculated a $1.4 million loss in funding.

“That represents 10 per cent of our budget for general fund expenditures, and that is a big hit for Lake In The Hills,” said Village Administrator Gerald Sagona. “We do have adequate fund balances for the short-term future, but if beyond that, you’d have to look at spending priorities and then make adjustments.”

Sagona was part of the local contingent that visited Springfield earlier this month. Discussions with state legislators were productive, he felt, although the talks yielded no definite conclusions. “We all got the same message, they painted a dire picture of state finances,” he said. “They indicated it is a first salvo, and everyone is trying to feel their way.

“No one can say what the impact to the state will be. At this point, it’s a new administration, that’s the message we received.”

In McHenry County, Algonquin and Woodstock officials have already passed resolutions requesting the Governor to maintain the local government distribution fund amounts, while IML sources indicate the same legislation is being enacted in different regions of the state.