Suburban mayors band together to protest ‘stealth tax’
Suburban mayors will team up in Chicago Thursday to protest proposed cuts to the local share of state taxes — a move they say would drastically affect necessary services in their respective villages and cities.
As part of a plan to cut roughly $5 billion from the budget to combat the state’s deficit, Senate Republicans have proposed cutting the local share of state income, sales and fuel taxes by $300 million next fiscal year. Other proposals have called for $1 billion in cuts or complete elimination of the local share.
According to estimates based on the $300 million figures from the Northwest Municipal Conference, which represents 42 municipalities in the North and Northwest suburbs, villages across the suburbs would share in the pain — with an estimated $30 billion being cut from the suburbs alone. Arlington Heights and Schaumburg stand to lose $1.7 million apiece, Mount Prospect $1.2 million, Hanover Park $887,809, Des Plaines $1.3 million and Palatine $1.6 million.
The group of mayors are calling proposed cuts a “stealth tax.”
“We cut $3 million and laid off 30 employees in order not to raise revenues last year,” Mount Prospect Mayor Irvana Wilks said, noting the village is on a fiscal schedule that coincides with the calendar year.
“Our budget is set and those numbers from the local distributive fund are already plugged in to fund things that are already existing. We pay for things from it.”
In a letter to the editor that ran in the May 6 version of the Daily Herald, State Sen. Matt Murphy, a Palatine Republican leading much of his caucus’ push for the $5 billion in budget cuts, wrote that he agrees “that reducing spending at the state level should not come at the expense of local property taxpayers. Any plan to reduce spending needs to include protections to prevent local governments from simply shifting the tax burden.”
Murphy said he had spoken with municipal officials “who have assured me that they would not raise property taxes, even if this option... were chosen.”
But, if the money owed to municipalities is cut, Wilks said Mount Prospect would be forced to raise property taxes.
“I have to be honest with you. There is no other way to make it up. It comes at a very horrible time,” she said.
Like Mount Prospect, many suburban communities have already seen significant cuts in the last three years as a result of the recession.
Aurora, for example, has made more than $37 million in cuts the last two years, resulting in reducing the workforce by 170 positions, eliminating 25 percent of executive positions and implementing furlough days across the board. Naperville has cut a combined 100 vacant and filled positions in the last two years and still faces a $7.8 million deficit that could result in the elimination of 11 public safety positions.
As part of the state income tax increase approved in the January veto session, the Illinois General Assembly reduced the amount of money that is collected and returned to local communities. From 1969 until a few months ago, municipalities and counties received 10 percent of all state income taxes paid. Now they receive only 6 percent. This proposal would cut that amount even further.
The time and place for the news conference has yet to be announced, according to a spokesman for the Municipal League. Mayors are also urging suburban residents to call their local lawmakers to voice opposition to the proposed cuts.