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Tuesday, May 28, 2024

City of Naperville Opposes Plan to Freeze Municipalities’ Share of State Income Tax


Legislators’ Proposal in Springfield Would Negatively Impact City’s Fiscal Year 2013 Budget

The City of Naperville announced today it strongly opposes a budget proposal made recently by a group of Springfield legislators that would freeze Naperville’s share of state income tax revenue and negatively impact the Fiscal Year (FY) 2013 budget.

City staff is working diligently to contact legislators in Springfield to remind them that freezing what is known as the Local Government Distributive Fund (LGDF) would have a negative impact on the City’s operating budget and Naperville’s ability to maintain existing service levels for its residents and businesses. The proposal from the Senate Democratic Caucus, made as part of the ongoing state budget negotiations, includes a freeze on the LGDF monies to local governments, capping the amount at what was distributed last year. The LGDF is the tool by which the state distributes to local governments their portion of income tax collected by the state, since local governments are prohibited from collecting income tax directly.

“Naperville relies on its share of state income tax to provide essential programs and services to our residents and businesses,” City Manager Doug Krieger said. “We believe this proposal is simply a way to shift the burden of shoring up the state’s budget to local municipalities, and it’s the wrong thing to do. Throughout the past several years, the City has been forced to make difficult decisions to balance its budget, including decreased spending and two reductions in force. Naperville and all other municipalities deserve their fair share of state income tax, and as the economy continues to improve, it deserves a proportionate amount of increased tax revenues.”

State income tax accounts for 10 percent, or $11.3 million dollars, of the City’s Fiscal Year 2013 general fund budget. The City urges residents to contact their legislators and request the LGDF be left alone. A listing of Naperville’s legislators is available on the City’s website at www.naperville.il.us/priorities.aspx.

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City of Naperville
City of Napervillehttp://www.naperville.il.us.
About Naperville: Located 28 miles west of Chicago, Naperville, Ill., is home to approximately 145,000 people. This vibrant, thriving City consistently ranks as a top community in the nation in which to live, raise children and retire. The City is home to acclaimed public and parochial schools, the best public library system in the country, an array of healthcare options and an exceptionally low crime rate. Naperville has ready access to a variety of public transportation, housing and employment options. The City’s diversified employer base features high technology firms, retailers and factories, as well as small and home-based businesses. Residents also enjoy world-class parks, diverse worship options, the opportunity to serve on several City boards and commissions, a thriving downtown shopping and dining area, a renowned outdoor history museum known as Naper Settlement and an active civic community. For more information, please visit our website at www.naperville.il.us.