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FOR IMMEDIATE RELEASE
May 17, 2011
Mayor Larry Hartwig
630/543-4100, ext. 7502
ADDISON FIGHTS SPRINGFIELD “STEALTH TAX”
State’s Threat to Pilfer Local Budgets Will Increase Taxes,
Just months after state lawmaker increased income taxes by 66 percent,
Addison residents could face devastating cuts in essential services if
Springfield politicians get their way and don’t return hundreds of millions of
dollars already paid by local taxpayers, that are legal owed to local
One legislative proposal is threatening to cut Addison’s funding by $848,000 per
year. This amounts to a “stealth tax” on local taxpayers and our communities.
Taking away this revenue, which pays for essential local programs, front-line
services and critical personnel will merely shift the state’s burden onto
municipal and county governments and will have a disastrous impact on local
services for residents.
“Local governments have been reducing spending and balancing their budgets
responsibly during these difficult economic times,” said Addison Mayor Larry
Hartwig. “Springfield cannot expect local taxpayers to fix the state’s budget
Like Illinois families, cities, village and counties have been making
significant sacrifices and cutting back during these tough economic times,
slashing programs, curbing constituent services, delaying projects and laying
off workers, including police and firefighters.
In recent years, Addison has lived within its means done more with less. The
Village eliminated 24 full-time and 30 part-time positions through attrition;
remaining staff has taken on additional duties to cope with these vacancies.
Village employees agreed to forgo their cost of living increases for the past
two years. Village equipment purchases, scheduled maintenance and capital
projects have been delayed wherever possible. The Community Days festival has
been cancelled for the past two years, and will not take place in 2011.
But instead of making those same difficult decisions to balance the state’s
budget, some members of the Illinois General Assembly have proposed changing
state law to hijack locally generated revenue. This money has been paid by local
taxpayers with the understanding that it would return to their local communities
to fund local services.
Mayors, Village Presidents and County Board Chairs from around Illinois are
launching new efforts to stop the Springfield “stealth tax” and are calling on
residents to voice their opposition and tell lawmakers to tighten their own
belts without picking the pockets of local communities, they are asking
residents contact their local state senators and representatives, letting them
know they oppose cuts in local funding.
Local leaders across Illinois have been identifying how the cuts would impact
their individual communities and are preparing for reductions if state lawmakers
succeed in pilfering the funds and denying the money that legally belongs to
their communities, not as a bailout for state government. One proposal is
calling for Springfield to take some $300 million local funding while another
proposal could eliminate more than $1 billion in local funding.
Illinois municipalities and counties rely on the Local Government Distributive
Fund, which was instituted in 1969 in exchange for cities, villages and counties
not imposing their own income tax. It guarantees municipalities and counties a
share of state income tax receipts to help fund local services.
The legislature’s stealth tax would serve as yet another in a series of blows to
local communities. In addition to residents and businesses feeling the pain of
the 66 percent income tax increase, cities, villages and counties were excluded
from collecting on any new revenue while experiencing lower Local Government
Distributive Fund receipts due to the sluggish economy. Meanwhile, the state is
now four to five months behind in disbursing payments to local governments.
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