If the Illinois House of Representatives approves a proposed new state budget today (Thursday) it could hurt Danville. Mayor Scott Eisenhauer says there are several says the city could be impacted. ‘’With a 10-percent reduction in Local Government Distributive Funds, with a 2-percent reduction in what we receive in local sales tax that will now go to the state as an administrative fee, when you look at some of the other cost or reductions that they are making to local revenue sources in an effort to try to help balance the budget – the City of Danville could lose somewhere between $700,000 and $750,000 in revenues that we desperately need in order to provide the services that we’re offering our citizens today,’’ said Eisenhauer.
There is some good news in the budget proposal, according to the Mayor, including the fact that Danville would still get the same amount of money it is getting this year for mass transit. But expanded gaming legislation is not included in the budget package. And a gaming expansion bill that includes a proposed Danville casino remains stalled in Springfield.
Mayor Eisenhauer notes the State Income Tax rate would rise from its current 3.75 percent to 4.95 for individuals, trusts and estates. And for corporations, the increase would be from 5.25 to 7.00 percent. But municipalities would receive no benefit from the State Income Tax Increase this fiscal year. And the State will start charging cities a new two-percent fee to oversee collection and remittance of sales tax revenues owed local governments. ‘’Again, this is another blow to the budget that we have in place and have been trying to minimize so that we don’t have a large tax increase upon our residents – and then the State steps in and with some reductions that they’ve made now to local revenue sources, it appears as though we’re going to be behind the ball another $750,000.’’
The new collection fee will cost Danville nearly $170-thousand dollars.
And property tax freeze legislation could also impact Danville if it gains sufficient votes for final approval.
