State and local government agencies, politicians and media pundits have had much to say in the past 24 hours about Gov. Bruce Rauner’s Wednesday budget address, which proposes what Crane’s Chicago Business calls “some big no’s” in a number of budget categories, including local-government revenue, transportation spending and pension and benefit reform.
“We must be willing to take actions we’d rather avoid and make decisions that may seem unpopular in the short run but serve the best interests of the people of Illinois in the long run,” Rauner said in his speech.
Among the proposals outlined in the budget is a 50 percent cut in allocation to the Local Distributive Fund, which Kane County Finance Department Executive Director Joe Onzick describes as the local-government share of state income tax.
The effect on suburban municipalities was among the top headlines this morning (Thursday, Feb. 19, 2015), and two Kane County cities were listed among the top three suburbs that stand to lose the most in 2016.
According to a report in the Daily Herald, the Illinois Municipal League ranks Aurora at the top of the hit parade among suburban municipalities, standing to lose almost $9.8 million. Naperville’s lost revenue was second at a little more than $7.02 million, and Elgin was third at more than $3.35 million.
The income-tax revenue is based on population. The proposed budget would reduce each municipality’s share from $99 per resident to $49.50 per resident.
Onzick said Thursday that Kane County’s revenue loss would add up to about $2.8 million annually. Onzick said the county budgeted a little more than $5.62 million for fiscal 2015.
Onzick said it was too soon to say where Kane County might look to make up the difference. The decision, of course, is up to Kane County policymakers. The next Finance and Budget Committee meeting is set for 9 a.m. Feb. 25, in the County Board Room of Building A at the Kane County Government Center, 719 S. Batavia Ave.
Gov. Bruce Rauner delivered his 2015 Budget Address on Wednesday, Feb. 18.
- Budget Archived Audio
- Budget Archived Video
- Budget Archived Video (Open Captioned)
- Budget Transcript
Rauner’s Turnaround Budget Talking Points
The state budget:
- Eliminates $6.2 billion structural deficit.
- Relies on no tax increases or borrowing.
- Includes $500 million to pay down unpaid bill backlog.
- Increases K-12 education spending by roughly $300 million
- Increases early childhood education funding by $25 million.
- Addresses pension and benefit reform, saving the state nearly $3 billion in the first year.