Politics & Government

Quinn Looks at New Plan to Keep Money From Local Government

To pay back $4.5 billion in old bills, Gov. Pat Quinn proposed suspending payment of municipalities' share of state taxes.

Despite pleading from local governments, Gov. Pat Quinn wants to suspend payments of their share of state taxes so Illinois can pay off $4.5 billion of debt.

According to Illinois Statehouse News, Quinn has floated a new way to pay off the $4.5 billion the state owes to schools, social service providers, doctors and others. The plan would suspend paying municipalities part of the Local Government Distributive Fund, a cut of many state taxes.

Lawmakers would have to give the state permission to suspend local payments, but this solution would avoid earlier plans Quinn had to borrow as much as $8.5 billion.

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“Our goal is to pay the bills and we need the General Assembly's support to make this happen,” Kelly Kraft, Quinn’s Office of Management and Budget spokeswoman, said in the Statehouse News article.

Quinn’s plan could suspend payments to municipalities until the legislature approves borrowing at least $4.5 billion. Senate Leader Christine Radogno (R-Lemont) said the legislators wouldn't support borrowing without more spending cuts.

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The Illinois Municipal League is trying to stop the governor's plan, and has asked municipalities throughout the state to pass resolutions opposing it, .

Orland Park could lose about $1.25 million, all of which “provide fundamental services that promote the health and safety of the public, pave roads, (and) clean streets,” according to the Illinois Municipal League (IML), whose been mobilizing resistance.

"We instituted furlough days, layoffs, and hiring freezes to make our budget work,” Mayor Dan McLaughlin wrote in a letter sent to the Illinois General Assembly. “Can we say the same of the State?”

The state is facing about a $13 billion budget deficit, and some proposals to reduce that include cutting state-collected revenue for local governments, including one such plan that would take an additional $300 million in income tax from municipalities.

McLaughlin also noted in his letter that the local share of state income tax has already fallen 14 percent on a per capita basis since 2008 and highlighted Orland Park as a model of responsible government.

Patch Reporter Jesse Marx contributed to this report.


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