Island Lake foresees budget shortfall

Like leaders in many suburban communities, Island Lake officials are predicting a budget shortfall for the next fiscal year.

But the estimated $367,000 deficit officials expect isn't as bad as the multimillion-dollar holes that have trapped other area towns.

Even so, village board members and staffers are reviewing options to close the gap. They include layoffs, pay freezes and the elimination of the local mosquito-spraying program.

Although a popular program, spraying has been only sporadic and probably isn't very effective, Trustee Connie Mascillino said.

No significant service cuts - such as a reduction in snow removal, a cost-cutting move that's being weighed in other suburbs - are being considered in Island Lake, Mascillino said.

Village leaders predict the town will collect about $2.5 million in taxes, fees and other revenues in the next fiscal year, which begins May 1. They also say Island Lake will spend about $2.9 million on salaries, services and other budget items during the same period.

They're blaming much of the shortfall on the cash-strapped state's nonpayment of income-tax revenue.

"The state owes us almost $300,000 that they haven't paid," Trustee Don Verciglio said.

Declines in sales taxes and permit applications also have been factors, village officials explained.

Operating frugally has helped keep the projected deficit small, Mascillino said.

Verciglio isn't very worried about the anticipated deficit. A budget gap predicted for the current fiscal year eventually closed, he said.

Other Lake County towns have been predicting larger shortfalls for 2010 and 2011. Many of them are larger than Island Lake, however, and have larger budgets.

For example, Mundelein officials recently unveiled a proposed $41.5 million budget with a $4.7 million deficit. Layoffs and service cuts are planned to close the gap.

Antioch, Lincolnshire, Wauconda, Fox Lake and other towns also have laid off municipal employees in recent years because of financial problems.

Island Lake trustees expect to approve a budget at their May 15 meeting. Mascillino thinks the board will discuss the proposed budget once more before that vote, but a meeting has not been scheduled.

The village board is next set to meet at 7:30 p.m. Thursday at village hall, 3720 Greenleaf Ave.