Poll: Voters reject Springfield 'Stealth Tax'
Illinois Voters Reject Springfield ‘Stealth Tax'
New Poll Shows Voters Oppose Diverting Local Funds from their Communities
Illinois voters overwhelmingly oppose efforts in Springfield to funnel hundreds of millions of dollars from local communities to help pay down the state's budget deficit, according a recent statewide poll.
More than 80 percent of Illinois voters surveyed said the state should return the funds as required under current state law, while just over 12 percent preferred the state keep the funds and just over 7 percent were uncertain, according to the automated poll conducted earlier this week.
“The poll clearly demonstrates that Illinois voters will not tolerate lawmakers taking money from their communities, especially on the heels of a 66 percent income tax increase passed just months ago,” said Northwest Municipal Conference President Kerry Cummings, who serves as Village President of Glenview. “Pilfering these funds amounts to a ‘Stealth Tax' on Illinois residents.”
To help close the state's budget gap, some Illinois legislators have proposed changing the law to use locally generated revenue legally owed to municipalities that goes towards the funding of local services.
The We Ask America poll surveyed 2,970 voting households throughout Illinois on Sunday, May 15. It has a margin of error of plus or minus 1.85 percent.
In addition, a staggering 88 percent of Illinois voters rejected paying higher property taxes or cutting local services to pay down the state deficit, according to the survey. Just over 6 percent favored those measures.
Cities, villages and counties have been making significant sacrifices and cutting back during these tough economic times; slashing programs, curbing constituent services, delaying projects and laying off workers, including police and firefighters.
Mayors from around Illinois are launching new efforts to stop the Springfield “Stealth Tax” and are calling on residents to voice their opposition and tell lawmakers to tighten their own belts without picking the pockets of local communities. Mayor Murphy has written letters to the editor regarding this issue, has met with legislators, sent letters, and will continue actively opposing any reductions in the Local Government Distributive Fund. The Village encourages residents to contact their local state senators and representatives, letting them know they oppose cuts in local funding.
Taking away this revenue, which pays for essential local programs, front-line services and critical personnel, will merely shift the state's burden onto municipal and county governments and will have a disastrous impact on local services for residents across the state.
The Northwest Municipal Conference in conjunction with municipal groups throughout the state, have been organizing to fight the proposed cuts to local communities. Meanwhile, local leaders across Illinois have been identifying how the cuts would impact their individual communities and are preparing for reductions if state lawmakers succeed in denying the money that legally belongs to their communities, not as a bailout for state government. One proposal is calling for Springfield to take some $300 million in local funding while another proposal could withhold more than $1 billion in local funding.
Illinois municipalities rely on the Local Government Distributive fund, which was instituted in 1969 in exchange for cities and towns not imposing their own income tax. It guarantees municipalities a share of state income tax receipts to help fund local services.
The legislature's stealth tax would serve as yet another in a series of blows to local communities. In addition to residents and businesses feeling the pain of the 66 percent income tax increase, cities and villages were excluded from collecting on any new revenue from this increase, all the while experiencing lower Local Government Distributive Fund receipts due to the sluggish economy. Meanwhile, the state is now four to five months behind in disbursing payments to local governments.