All Press Items

April 21, 2015

Gov. Bruce Rauner has proposed cutting the amount of state income tax shared with local governments by half. That's about a $600,000 reduction for Northlake. Since the state and city run on different budget years — the state's fiscal year starts July 1 and the city of Northlake's on January 1 — Northlake could find itself with $300,000 less in 2015 and an additional $300,000 less in 2016.

The city also plans to cut several items from its budget. That includes paying for a lobbyist at the state capital at a cost of $36,000.

Bobby Otter describes the proposed cut of state income taxes to local governments as "pretty extreme." Otter is the budget director for the Center for Tax and Budget Accountability, a nonpartisan, nonprofit in Chicago analyzes state budget issues.

"Fifty percent is larger [in proposed cuts] than what we're seeing in human services or Medicaid," Otter said. "Higher education is seeing a 20 percent cut. That still pales in comparison."

The CTBA has several ideas for reducing the state debt. First, reinstate the 2 percent income tax increase that was phased out this year. Second, tax services — haircuts, lawn service, pet grooming, club membership, dry cleaning, etc. Third, re-amortize the debt structure.

Source: Pioneer Press