State causing Hoffman Estates budget cuts, levy hike

The state of Illinois is identified as a major influence on cuts in the village of Hoffman Estates' 2018 budget as well as the 4.9 percent increase in its property tax levy to offset the loss of funds to which the state has begun helping itself.

Village board members approved both documents Monday night in anticipation of the coming budget year.

Hoffman Estates officials have budgeted total revenues for 2018 at $128.2 million - a 1.2 percent reduction from last year - and total spending at $131.5 million, or 1.7 percent less than in 2017.

To help balance its own books, the state has made a 10 percent cut to the Local Government Distributive Funds which cost Hoffman Estates a combined $515,000 from its 2017 and 2018 budget years. If this change remains in place for the next state budget, the village will lose an additional $260,000 in 2018, officials said.

The state also recently imposed a 2-percent administrative fee on municipalities' home rule sales tax revenues - a cut of $70,000 from what Hoffman Estates expected to see in 2018.

In the face of these losses and flat or declining consumption taxes, the village still aims to maintain its roads and infrastructure while minimizing impacts to residents and businesses, officials said.

Through attrition, the village is trying to save money by not filling several positions, including $55,250 for an assistant director of code enforcement, $127,600 for two police officers and $198,300 for three firefighters.

As the recession already made many municipalities more efficient in their staff sizes, these new cuts have an even greater impact on services, Village Manager Jim Norris said.

Nevertheless, the property tax levy is going up due to non-negotiable public safety pension costs and to offset the state's impact on the village's ability to pay them.