R-1072 - 03/23/2010 - LOCAL GOVERNMENT - Resolutions Supporting DocumentsITEM 6.D.3)
AGENDA ITEM
Regular Board of Trustees Meeting
of
March 23, 2010
SUBJECT: Governor Quinn's Proposed Reduction of Local Government Distributive Fund
FROM: David Niemeyer, Village Manager N/V\
BUDGET SOURCE/BUDGET IMPACT: Loss of $200,970+ Annually
RECOMMENDED MOTION: I move for passage of Resolution R -1072, A Resolution
Opposing Reduction of Local Government Distributive Fund.
Background/History:
In his March 10, 2010 Budget Address, Governor Quinn proposed to reduce the local
government income tax share from ten percent to seven percent. At a calculation of $23.10 per
resident, this would impact the Village in the amount of not less than $200,970 annually, In a
time when the Village has already instituted drastic cuts, it would be extremely detrimental to
suffer this loss of revenue which is included when budget forecasts are done. Additionally, for
Oak Brook, the Governor's proposal represents an even greater loss of revenue due to the
daytime corporate population of 80,000 to 100,000 which must be supported by Village fire and
police services.
Recommendation:
I recommend the Village Board approve the attached Resolution
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RESOLUTION 2010 -LG -R -1072
A RESOLUTION OPPOSING REDUCTION OF
LOCAL GOVERNMENT DISTRIBUTIVE FUND
WHEREAS, the national economy has suffered a recession and as a result, the Village of Oak
Brook's revenues have seriously declined; and
WHEREAS, during the past two years, the Village has responded to this downtrend by reducing
costs, expenditures and personnel, including elimination of jobs, an equivalent of almost fifteen percent of
its workforce; and
WHEREAS, ten percent of the income tax collected by the State of Illinois is transferred to the
Local Government Distributive Fund for distribution to units of local government based on population; and
WHEREAS, local governments depend on these revenues to balance their budgets, pay their
employees and deliver services to their residents; and
WHEREAS, the Village of Oak Brook approved a balanced budget for 2011 that included
receiving ten percent of the income tax from the State of Illinois; and
WHEREAS, Governor Quinn proposed in his March 10, 2010 budget address to withhold thirty
percent of this shared revenue keeping $300 million of that for the state budget and would reduce the
local government income tax share from ten percent to seven percent; and
WHEREAS, this proposed withholding of municipal revenue will cost each municipality $23.10 per
resident, amounting to not less than $200,970 annually for Village residents, which could be used to
provide services which Oak Brook residents need; and
WHEREAS, with this reduction the Village will be financially impacted and will be forced to make
more budget cuts and reductions of services; and
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES,
ILLINOIS as follows:
Section 1: The Village of Oak Brook strongly opposes any reduction of the Local Government
Distributive Fund due municipalities and demands the ten percent be kept whole.
RESOLUTION 2010 -1-G -R -1072
OPPOSING REDUCTION OF
LOCAL GOV. DISTRIBUTIVE FUND
Page 2 of 2
Section 2: The Village of Oak Brook implores Governor Quinn to revise his Fiscal Year 2011
budget proposal to eliminate any reductions to local government shared revenues.
Section 3: The Village of Oak Brook calls on the members of the Illinois General Assembly to
reject any budget proposal that shifts State budget problems to local government.
Section 4: The Village Clerk is hereby directed to send copies of this Resolution to Governor
Quinn, the legislative leaders of both chambers of the Illinois General Assembly and members
representing the Village of Oak Brook.
APPROVED THIS 23`d day of March, 2010.
PASSED THIS 23rd day of March, 2010.
Ayes:
Nays:
Absent:
John W. Craig
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk