Local officials fear Andrzejewski tax plan

SPRINGFIELD - One GOP governor candidate's idea to keep more than a billion dollars in income tax revenue in the state's bank account rather than distribute it to municipalities could have devastating effects on local governments, area officials say.

Hinsdale businessman Adam Andrzejewski said if elected governor he would reduce or eliminate "revenue sharing to local municipalities," which could include the state withholding local government's portion of the state's income tax. The state currently shares one-tenth of income tax revenue with local governments, which totaled nearly $1.2 billion in fiscal year 2009.

"If you look at it and peel back the layers on it, that would be the single largest property tax increase in the state's history. You're going to push the state's problems on municipalities and local taxpayers," said Mark Fowler, executive director Northwest Municipal Conference, which represents area governments. "This isn't money that creates a slush fund for municipalities."

Schaumburg Mayor Al Larson said the roughly $6.5 million his city received from income tax revenue last year was crucial to the city's operations. With the drop in local sales tax revenue, he said Schaumburg "counts on every penny at this point."

"What he is showing is disdain for every taxpayer in the state of Illinois," Larson said, of Andrzejewski's plan. "You've got communities that are increasing property taxes, cutting programs and eliminating staff. This will have a devastating impact on local budgets."

Elgin city spokeswoman Sue Olafson said the idea seemed "a little bit like robbing Peter to pay Paul" and Andrzejewski would have to "really evaluate that system and make sure it would be viable for everyone involved, not just the state."

Elgin, for example, received almost $9 million in state income tax revenue last fiscal year.

Andrzejewski acknowledged his idea is a hot-button issue for local governments, but made it clear he couldn't do this on his own and "would have to have the approval of the Chicago Democrats and Michael Madigan" in the General Assembly. Andrzejewski said if local governments aren't on board with the idea, they should get behind some of his other proposed cuts that he says could save billions.

"I'm the only candidate in the Republican field of seven that has the political courage and is showing the leadership to defend the hardworking families, taxpayers and people that have legitimate needs for state services," Andrzejewski said.

Andrzejewski has suggested eliminating unnecessary spending through an audit of state government, which he said could save as much as $5 billion. He also suggested pension reform that would require agencies to provide for the state portion of benefits in their budgets.

Other GOP governor hopefuls include former state GOP chairman Andy McKenna, state Sen. Kirk Dillard of Hinsdale, former Illinois Attorney General Jim Ryan, state Sen. Bill Brady of Bloomington, conservative commentator Dan Proft and DuPage County Board Chairman Bob Schillerstrom.

The Illinois primary is Feb. 2.