State Budget Includes Full Tax Payments to Municipalities

According to the state budget passed through the legislature Tuesday, municipalities throughout Illinois will get their full share of local government distributive funds during the next year.

That's good news for St. Charles, Batavia and a lot of other municipalities whose revenue streams would be impacted severely by other proposed cuts.

Gov. Pat Quinn, who has not yet signed the $33.2 billion Fiscal Year 2012 budget, had floated the idea of the state retaining $100 million in tax revenue normally distributed to municipalities, so the state could pay its own bills. This plan, he said, would be enacted if lawmakers did not allow him to borrow billions to prop up the state’s coffers.

The proposal was met with disbelief and hostility at the local level, with organizations like the Metropolitan Mayors Caucus and the MetroWest Council of Government organizing protests in Chicago and Springfield.

But the problem of late payments from the state is not expected to go away under this new budget. And in fact, it may get worse.

According to this Illinois Statehouse News story, the 2012 budget (which takes effect July 1) was balanced by delaying the payment of billions in unpaid bills. 

Whatever the speed of the payments, the Illinois Municipal League is calling it a win.

“This is a major victory for cities and counties who fought diligently to preserve their portion of the income tax,” the League wrote in a post to their website Wednesday. “The IML staff thank all of you wholeheartedly for your perseverance to send the message to legislators and the governor.”