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Chicago suburb denied access to $1.4M in tax revenues

HARVEY, Ill. (AP) - Officials in a Chicago suburb won't have access anytime soon to more than $1.4 million in tax revenues the state is withholding over pension funding failures.

The Illinois Supreme Court ruled Thursday to vacate an earlier appellate court's ruling that was in favor of the city of Harvey, the Daily Southtown reported . The case will be sent back to a circuit court for a hearing.

Both sides will provide testimony, present witnesses and argue their cases at the preliminary injunction hearing, said Mike Moirano, an attorney for the Harvey Police Pension Fund.

"It usually takes a bit of time," he said. "It's not quick."

The state comptroller's office has seized more than $1.4 million in Harvey tax revenues since February at the request of the pension fund. The law requires the office to seize tax revenues before going to a municipality a claimant has accused of failing to make the required pension fund payments.

The office will continue intercepting those funds and holding them unless directed by the court to do otherwise, said Abdon Pallasch, a spokesman for the comptroller's office.

The Harvey Police Pension Fund won a multi-million dollar case against the city in 2015. The organization alleges the city is still more than $7 million delinquent in its pension payments.

Local officials and state legislators are concerned the law could have punitive effects on financially struggling communities.

The city had to cut 40 police and fire department positions earlier this month. Officials blamed the withheld funding for the layoffs.

A Harvey spokesman did not immediately return a request for comment.

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Information from: Southtown Star, http://southtownstar.chicagotribune.com/

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