The state is pulling us off the same cliff edge they jumped off years ago.
David Vaught, Governor Quinn’s budget director, announced Quinn’s intention of reducing income tax payments to municipalities in Illinois by 30%.
“You need to take a look and say OK, does everybody have skin in the game here?” Vaught said. “It just doesn’t make sense that the municipalities would get a pass.”
While there is no plan to fully fund the $4.1 billion in required state pension obligation, the state proposes refusing to distribute the normal 10% of state income tax receipts to local municipalities, creating a $300 million gain for the state.
For 2010, DG had budgeted for $3.75 million in state income tax revenue. That budgeted number represents a grimly realistic decline of almost 10% over 2009, and almost 19% from 2008. If adopted by the state, DG stands to lose up to $1.125 million in revenues, blowing another hole in the financials.
On Wednesday Quinn plans a state address to broach this topic, along with another pitch for a large increase in the state income tax.
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