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Wednesday, November 25, 2015

It's Snowing, But We Have No Salt!

One source of revenue that is currently being held up because of the State of Illinois' budget impasse is the motor fuel tax revenue that many township road districts and other government entities rely on for purchasing salt.  House Bill 4305 is currently pending in the General Assembly and proposes to fix the problem with the funds being barred from release.  This legislation, if passed, permits the State to release MFT funds, along with other funds such as lottery payouts, notwithstanding a lack of an agreement on the State budget.  

On November 10, 2015, the House passed the Bill. It is likely that this legislation will pass the Senate and become law in early December.  In the meantime, it has already snowed, and not all road districts or other government entities have sufficient funds on hand to continue to purchase salt for snow operations.  What can road districts or other government entities do to fund salt purchases until MFT funds are released?  One alternative is to use intergovernmental agreements to “borrow” salt from other governments who may have an excess of salt on hand at the beginning of the season.  If you have questions about the bill or need assistance on an IGA, please contact Keri-Lyn Krafthefer at 312-604-9126.

Post Authored by Keri-Lyn Krafthefer, Ancel Glink


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