State Budget Battle Affects Local Revenues
As the state budget battle continues, Illinois local governments are understandably concerned about how this battle will affect their own revenues. One of the first threats to local government revenues was a state plan to cut in half the local government share of the state income tax. That hasn't happened yet, but two new threats emerged recently when the state threatened to withhold motor fuel tax and video gaming revenue from local governments.
According to recent news stories, in June alone, Illinois local governments collected $3 million in video gaming revenues. $534 million in motor fuel tax revenue went to Illinois local governments in 2014. That's a lot of money for Illinois local governments, many of which have already trimmed local budgets over the past few years to address declining sales tax and other revenues.
The Illinois Municipal League has been working with legislators to try to come up with a legislative solution that would protect local revenues.
Post Authored by Julie Tappendorf
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