Wheaton backs maintaining state's income tax level
In solidarity with other municipalities, the Wheaton City Council adopted a resolution Monday supporting the current distribution level of state income taxes to local governments.
City Manager Don Rose said the DuPage Mayors and Managers Conference and other, similar government organizations have recommended municipalities take a formal stance on Gov. Bruce Rauner's proposal to reduce the Local Government Distributive Fund by 50 percent.
The fund was created in 1969 so municipalities didn't have to impose individual local income taxes. Instead, the state would be the sole collector of the income tax and remit a portion of the money gathered through the tax to local governments.
City officials say the proposed changes mean the city would lose about $2.6 million, which amounts to 7 percent of the city's general fund revenues.
In 2014, the local portion of the state income tax that went to Wheaton was $5.2 million, accounting for 14 percent of the city's operating budget.
Rose said the proposed decrease would lead to either some "significant reduction of staffing in the city, on top of those pretty severe cuts we made back when the recession began, or a real curtailing of our capital projects effort."
The resolution noted that revenue from the Local Government Distributive Fund is also necessary to fund essential services provided by the city, such as police and fire protection, road repairs and maintenance, and snowplowing.
It stated that the fund "should not be reduced or in any way significantly altered by the state of Illinois in a manner that negatively affects residents and businesses in Wheaton."
The resolution was unanimously approved by the council, which now includes Councilwoman Suzanne Fitch, who was sworn in along with incumbent Councilman John Prendiville and Mayor Michael Gresk at the beginning of the meeting.
"I obviously don't want Wheaton to lose $2.6 million, and I believe in local control of taxpayer money, but I would just note that in my opinion, Gov. Rauner's turnaround agenda has structural reforms in it, many of which would help municipalities in the long run," Fitch said.
Councilman Phil Suess said in addition to the resolution, he would like to see letters sent to state Reps. Jeanne Ives and Peter Breen, and state Sens. Chris Nybo and Michael Connelly.
"I think in conjunction with that we should request an in-person meeting with each of them, so there's no misunderstanding as to where we're coming from," he added. "I'm very fearful we're getting thrown under the bus, and I think it's appropriate that we make our feelings known very directly and we document them in writing."