R-1480 - 07/14/2015 - GOVERNMENT LEGISLATION - Resolutions RESOLUTION 2015-GL-BD-R-1480
A RESOLUTION IN SUPPORT OF HOUSE BILL 0298
PERMITTING MUNICIPALITIES TO FILE FOR FEDERAL BANKRUPTCY PROTECTION
WHEREAS, Illinois state law currently makes no provision for a municipality to exercise recourse
to the protections of United States Bankruptcy law when a municipality is beset by unfunded state
mandates, irreversibly extractive collective bargaining agreements, and reduced support from traditional
state funding sources; and
WHEREAS, the Illinois Supreme Court has recently instructed "the government to control itself,"
and has cited James Madison's words that"you must first enable the government to control the governed;
and in the next place oblige it to control itself." In Re Pension Reform Litigation, 2015 IL 118585 at 36,
citing Federalist No. 51 (1788); and
WHEREAS, the framers of the United States Constitution deemed it worthy and proper to set
forth among the legislative powers in Article 1, Section 8 the power "to establish...uniform Laws on the
subject of Bankruptcies throughout the United States"; and
WHEREAS, for more than 200 years, federal bankruptcy law has provided a means to contain,
reorganize, restructure and discharge the burden of unsustainable debts, including debts imposed over
time which have turned out to be destructive and irresolvable by any other means within a relevant
timeframe; and
WHEREAS, it is the public policy of the United States, and should be the public policy of the State
of Illinois, to outlaw any form of "debtor's prison" or financial involuntary servitude, simply to support a
creditor class of extractive elites, and this public policy should protect not only citizens in private
enterprise, but also in their role as public taxpayers within the boundary of Illinois municipalities; and
WHEREAS, legislation has been introduced by Representative Ron Sandack before the Illinois
legislature in the form of House Bill 0298, an Act concerning local government, to amend the Illinois
Municipal Code to add new Section 8-1-19, to provide simply that"Any municipality may file a petition and
exercise powers pursuant to applicable federal bankruptcy law," and this Bill is intended to become
effective immediately upon passage; and
WHEREAS, providing Illinois municipalities with access to federal bankruptcy law will extend the
beneficial protections of bankruptcy law to help restructure crushing debt obligations, streamline
government operations, balance budgets, and fix a boundary to heretofore perpetually increasing
spending demands imposed upon municipalities with vanishing capabilities of paying for those demands;
and
WHEREAS, due to the fiscal emergency facing the State of Illinois, State sources of revenue for
municipalities are facing reductions or in some cases cancellations of past funding, showing that the
same State government that cannot even pay its own bills, continues to force up municipal costs while
refusing to control its profusion of unfunded mandates and unbalanced budgets; and
NOW,THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of
Oak Brook, DuPage and Cook Counties, Illinois as follows:
RESOLUTION 2015—GL-BD-R-1480
Permitting Municipalities to File for
Federal Bankruptcy Protection
Page 2 of 2
Section 1: The foregoing recitals are hereby incorporated into, and made a part of, this
Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: The President and Village Trustees of the Village of Oak Brook hereby endorse
House Bill 0298, and commend Representative Sandack for his initiative to extend the protections of the
United States Constitution more fully to the people of the State of Illinois, in their capacity as residents of
municipalities impaired by the fiscal policies of the State of Illinois, by their unsustainable collective
bargaining agreements, and other unsustainable financial obligations; and that it is the sense of the
Village President and Village Trustees of the Village of Oak Brook that bankruptcy protections will
enhance local control, reduce costs, empower local voters, increase competiveness in our community
and throughout Illinois.
Section 3: All resolutions or parts thereof in conflict with this Resolution are hereby repealed
to the extent of the conflict.
Section 4: The Village President and Village Clerk are hereby authorized to send a suitable
copy of this Resolution to the Village's local State senators and representatives and the Illinois Governor.
Section 5: This resolution shall be in full force and effect from and after its passage,
approval, and publication as required by law.
APPROVED THIS 14th day of July, 2015. '
Gopal G. Lalmalani
Village President
PASSED THIS 14" day of July, 2015.
Ayes: Trustees Manzo, Tiesenga, Yusuf, President Lalmalani
Nays: Trustees Adler, Baar, Moy
Absent: None
y
7 ,u. ",t3'�•z,
J .X�
Charlotte K. Pruss
I F i Village Clerk
w°
t m