The Rockford area could take a big hit in expected shared state revenue under Gov. Bruce Rauner’s proposed budget, unveiled last week.

“This is our last, best chance to get our house in order,” Rauner said during last week’s budget address to the Illinois General Assembly. “We must be willing to take actions we’d rather avoid and make decisions that may seem unpopular in the short run but serve the best interests of the people of Illinois in the long run.”

Among the proposals outlined in the budget is a 50 percent cut in allocation to the Local Distributive Fund, which Kane County Finance Department Executive Director Joe Onzick describes as the local government share of state income tax.

According to published reports, Rockford could lose up to $9 million in shared revenue, Winnebago County could have $2.5 million less and Loves Park could take a $1.2 million hit. The income-tax revenue is based on population. Statewide the proposed budget would reduce each municipality’s share from $99 per resident to $49.50 per resident.

Revenue losses could be similar for other larger communities near Chicago.

The Illinois Municipal League estimates Aurora could to lose almost $9.8 million. Naperville’s lost revenue was second at a little more than $7.02 million, and Elgin was third at more than $3.35 million.
The reduction is part of a series of $1.5 billion in budget cuts the recently inaugurated Republican governor has proposed to cut a deficit in next year’s state financial blueprint without raising taxes.

–Winnebago Chronicle news sources