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When the Illinois General Assembly increased the tax rate for individuals and corporations last year, it was bound to cause a stir.
And, indeed, it has. Residents now pay 67 percent more in personal income taxes, and businesses shell out 46 percent more in corporate taxes. Members of both groups have decried the hikes, particularly since the state’s fiscal condition is still catastrophic.
Seeing that the state was planning to raise tax rates to deal with its financial problems, Illinois municipalities opted to be amenable. Under a plan made in 1969, municipalities have received about 10 percent of all income tax receipts collected by the state. This revenue is placed in the Local Government Distributive Fund and dispensed to cities, towns and villages throughout the state.
Municipal leaders agreed to adjust the percentage of state income taxes they received to 6 percent under the “temporary” tax increase. They wouldn’t really lose money, as they’d get a smaller percentage of a larger pool of money.
But the state has continued its practice of delaying cash disbursements to the LGDF, sometimes up to six months. This means that municipalities must adjust their budgets until they receive the funds pledged by the state.
Representatives of the DuPage Mayors and Managers Conference recently met with editorial board of Suburban Life Publications, the parent company of this newspaper and 20 others across Chicago’s western suburbs. As part of their legislative priorities for 2012, they are calling for this revenue to be dispersed by the state comptroller as soon as it is collected and certified.
As municipal budgets are subject to state laws, we agree that they must have the revenue promised by the state in a timely manner. We urge lawmakers from our coverage area to take up this measure and move it through the process. The financial stability of our communities depends in part on this.
When the Illinois General Assembly increased the tax rate for individuals and corporations last year, it was bound to cause a stir.
And, indeed, it has. Residents now pay 67 percent more in personal income taxes, and businesses shell out 46 percent more in corporate taxes. Members of both groups have decried the hikes, particularly since the state’s fiscal condition is still catastrophic.
Seeing that the state was planning to raise tax rates to deal with its financial problems, Illinois municipalities opted to be amenable. Under a plan made in 1969, municipalities have received about 10 percent of all income tax receipts collected by the state. This revenue is placed in the Local Government Distributive Fund and dispensed to cities, towns and villages throughout the state.
Municipal leaders agreed to adjust the percentage of state income taxes they received to 6 percent under the “temporary” tax increase. They wouldn’t really lose money, as they’d get a smaller percentage of a larger pool of money.
But the state has continued its practice of delaying cash disbursements to the LGDF, sometimes up to six months. This means that municipalities must adjust their budgets until they receive the funds pledged by the state.
Representatives of the DuPage Mayors and Managers Conference recently met with editorial board of Suburban Life Publications, the parent company of this newspaper and 20 others across Chicago’s western suburbs. As part of their legislative priorities for 2012, they are calling for this revenue to be dispersed by the state comptroller as soon as it is collected and certified.
As municipal budgets are subject to state laws, we agree that they must have the revenue promised by the state in a timely manner. We urge lawmakers from our coverage area to take up this measure and move it through the process. The financial stability of our communities depends in part on this.
