State Rep. Fran Hurley (D-Chicago) is sponsoring legislation to release motor fuel tax and other state payments owed to local governments that have been delayed during the months-long budget impasse in Springfield.
Hurley announced her support to pay cities and villages the millions the state owes them only days after the Palos Heights City Council voted last week to adopt a resolution also passed by the Southwest Conference of Mayors calling upon the governor and General Assembly to “immediately release all non-general fund state revenues owed to local governments,” including revenues from the motor fuel tax, local government video gaming, casino gaming, wireless services and use tax.
Copies of the resolution were sent to Hurley, fellow area state lawmakers who represent Palos Heights in the General Assembly, Gov. Rauner, the four partisan leaders of the state Senate and House of Representatives and the Illinois Municipal League.
More than $150 million is owed by the state to municipal governments as a result of the state having no budget since July 1, Palos Heights Mayor Bob Straz told his City Council on Nov. 3.
Backing the mayors’ resolution’s call for immediate disbursement of the back-logged funds Illinois owes to cities and villages, Rep. Hurley said: “Some of the most important government work happens at the local level, and these cities and villages not only were promised a portion of this funding, but their essential services depend on these state dollars,” Hurley said in a release. “From upkeep on local streets to life-saving 911 services, we need to be sure that municipalities can continue to function.”
Hurley’s House Bill 4305 would allocate funding to local villages, cities, and townships from the state tax on motor fuels and gambling they are owed since July. Although Illinois has continued to collect this funding, Gov. Rauner’s veto of the budget eliminated the ability to distribute this money, according to Hurley.
While some communities have considered property tax increases, Hurley believes local governments, and ultimately taxpayers, should not suffer due to the budget crisis, her office stated.
Palos Heights Mayor Robert Straz, decrying “the total mayhem in Springfield,” introduced and won unanimous passage by the City Council on Nov. 3 of a resolution urging Gov. Rauner and leaders of the General Assembly to release the revenues payable to local governments.
No state budget has cost Palos Heights about $25,000 a month since July in delayed motor fuel tax revenues that would normally be disbursed by the state, Straz noted.
He and other local mayors in the 21-member southwest mayors group are also concerned that revenues from the local government distributive fund, or the share of state income taxes disbursed back to municipalities from the state, are in jeopardy.
In a normal year, Illinois’ budget is passed by both houses of the General Assembly and signed into law by the governor before or on or around the deadline of June 30. And now Veterans Day has come and gone, and Illinois is still without a long overdue spending plan.
Straz and fellow mayors many don’t expect the delayed state budget to be adopted until January or February, “maybe even not until April,” he has said.
Meantime, “our communities should not be held hostage over this budget impasse, and there is absolutely no reason that already overburdened homeowners should pay a single dollar more in property taxes because of dysfunction in Springfield,” Hurley said. “The state has continued to collect this revenue, which sits in accounts separate from the rest of the state budget. Communities that count on this funding for things as critical as police and fire services, should be given what they were promised and are owed.”