The Village of Niles Board of Trustees urged the state government not to cut the village’s share of the state income tax.
Under Governor Bruce Rauner’s budget proposal, the local share of the revenue from the state income tax would be reduced by a half. The village has argued that the decrease would cost the village to lose $1,475,248. During its March 24 meeting, the board approved a resolution urging the governor and the Illinois General Assembly to reconsider.
While most of the board spoke in favor of the resolution, Trustee Chris Hanusiak argued that the village should be spending less money, which would make the fallout less severe. Ultimately, the board approved the resolution 4-0, with Hanusiak abstaining. Trustee John Jekot was absent.
Since 1969, every municipality in Illinois received a portion of the state income tax revenue. The state currently allocates eight percent of its income tax revenue for that purpose. The money is collected into the Local Government Distributive Fund and split between the municipalities based on the population.
According to the most recent village budget, the LGDF revenue is the third largest source of revenue for the General Fund, which provide funds for most of the village’s day-to-day expenses. Last year, the village received $2,822,344 through the fund. The General Fund budget had a total of $44,126,615 in revenue.
Rauner’s budget proposal calls for the decrease of the amount of tax revenue allocated into LGDF from eight percent to four percent. The proposed budget would need to be approved by the Illinois General Assembly before it is implemented.
On March 2, the village issued a press release urging residents to contact the governor and state legislators about the issue. On March 24, Mayor Andrew Przybylo brought a resolution before the Village Board urging the governor and the General Assembly to keep LGDR at the same level as before.
Przybylo warned the public of the dangerous consequences of the cuts.
“This funding can’t be easily replaced, and it will require service reductions,” he said. “It would impair our ability to implement the village plan.”
Trustee Chris Hanusiak, who is also running for re-election, was the only trustee who spoke against the resolution. He argued that the voters would want the village to be more fiscally responsible and live within its means.
“23 precincts [in Niles] overwhelmingly voted for Rauner,” he said. “We had a deficit but we still continued to hire. We need to be fiscally responsible, for the sake of the residents of Niles.”
Przybylo responded that Niles has been fiscally sound, and that the state government would be taking advantage of that to fix its own problems. He argued that Niles shouldn’t give up the money without a fight.
“Let’s see how [the state government] is going to correct their fiscal mismanagement first,” said Przybylo.
During the public comment period, Village Board candidate David Carrabota echoed Hanusiak’s arguments.
“There was a message sent by residents in electing this new governor,” he said. “We have the responsibility to stop spending money we don’t have. Let’s send a message to the [state] government showing that we’re responsible by straightening out our budget and straightening out our pensions.”
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While he and Hanusiak are running as independents, the two have released a joint campaign platform and put out joint campaign yard signs.
“Resident Susanna Atanus spoke strongly in favor of the resolution.
“I urge the mayor and the Village Board to join other other mayors in opposing this,” she said. “We wil not be robbed. Governor Rauner – grow up and do your job right. We didn’t put you in office to be blind to 99 percent of your constituents.”
Igor Studenkov is a freelance reporter for Pioneer Press.