If passed, SB622 would divert $6.6 million from the Local Government Tax Fund (this fund has been called a number of things, including the Local Government Distributative Fund or LGDF) to cover a shortfall in the Illinois State Medical Disciplinary Fund.  In other words, instead of allowing local sales tax revenue to go back to the cities that generate it, the State of Illinois is diverting funds to fix their own budget issues. 

This bill represents a dangerous and constant threat to local government revenue. (see the botom of this post for some history on the issue)  The City of Des Plaines generates sales tax revenue and it should be spent on streets, sewers, and sidewalks right here in Des Plaines.  The State should not use our local revenue to mend their budget. 

I have continued to fight to protect local government revenue from the State.  The alternative is just not acceptable - we will not raise local taxes to pay for the State's budget problems.   

This issue continues to surface in Springfield.  Here's what I had to say in 2011:

 

Additional background from the 3rdWard.org archives:

Help Me Fight Local Tax Increases - March 27th, 2011

Local Taxes Update, It's a Must Read - May 1, 2011

I was recently asked a simple question that didn’t have a simple answer: “How can I learn more about our city’s budget?”  Attending marathon meetings, downloading huge files off the city website, or combing through the 451 page budget might be a start but that isn’t fair to taxpayers.  After all, the people funding the budget – you and I – shouldn’t need to invest hours to understand how our city is performing.  

At our last monthly 3^rd Ward Meeting, I shared a draft Budget Health Check with neighbors.  The following datasets and brief descriptions were built following that ward meeting and are designed to translate the confusing budget process for all taxpayers to understand.  Please spend a few minutes drawing your own conclusions.  I think you’ll find that:

• We have far less debt: down from $102 million high in 2005 to $58 million in 2012
• Savings are up: from a dangerous low of 2% to a healthy 42% of annual operating
• The property tax levy has not increased in three year

In 2003, Moody’s – an independent credit rating agency – saw the city’s rapid debt accumulation as a risk and downgraded our credit rating.   We regained our strong A2 credit rating in 2010 after retiring & refinancing bond debt.  Identifying other relief points will ensure that we maintain our credit rating, save on interest, and invest today’s capital projects dollars in today’s projects. 

In 2008, Des Plaines had no savings, record debt, and a poor credit rating.  When Cook County was slow to remit property taxes to municipalities, we were forced to secure a short-term loan to make payroll.  Since then, we have made significant operational adjustments to start building back our savings while retiring debt.  A healthy and appropriate Unassigned Fund Balance will protect us from the unexpected, allow for rapid debt reduction, and promote investments in infrastructure like roads, sidewalks, and sewers.   

I’m proud to say that this council has paid down debt and built a savings account without increasing the property tax levy.  In the ten years before 2009, taxpayers felt an average annual increase of 3.7% with some years over 5%.   This combination of debt, savings, and tax levy proves that aggressive action can stabilize city finances. 

I hope you found this Budget Health Check helpful.  Please reach out if you have any specific questions or feedback: Matt@3rdWard.org or 847-514-6318

The award represents a significant achievement by the entity.  It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation. These guidelines are designed to assess how well an entity's budget serves as:

• a policy document
• a financial plan
• an operations guide
• a communications device

Budget documents must be rated "proficient" in all four categories, and the fourteen mandatory criteria within those categories, to receive the award.

1,289 entities received the award for budgets including fiscal period 2010.  According to a GFOA correspondence, “Award recipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America.”

The Government Finance Officers Association of the United States and Canada (GFOA) recently announced that the City of Des Plaines was the recipient of the “Distinguished Budget Presentation Award” for its budget document. Dorothy Wisniewski, Director of the Finance for the City of Des Plaines, was identified as being primarily responsible for having achieved the award. 

While I understand the need to make a few map changes, it is always hard to transition.  Know that I worked with my fellow aldermen to make shifts that were as non-obtrusive as possible.  To those new 3rd Ward residents east of 1st Ave, welcome! To those former 3rd Ward residents west of Mt. Prospect Rd, know that neither my phone number nor my email address has changed so please never hesitate to reach out.   

Here is a quick look at the new 3rd Ward: View City Ward Map

Of the 10 casinos in the State, I'm proud to have lead and passed the only resultion like it.  We need to continue to lead by example.  

"We need to be able to support essential city services without casino revenue," said Ald. Matthew Bogusz, chairman of the Finance Committee. "Relying on this casino revenue is like gambling itself."

Read the complete report.