August 26, 2020 – A new survey is showing that local leaders will face tough spending decisions for Illinois communities and their budgets in the near future. The Illinois Municipal League has stated that 87% of municipalities will face revenue shortfalls of 20-30% due to COVID-19. “That is a pretty big number. I mean that is almost everybody,” Illinois Municipal League Executive Director Brad Cole said. “Not everybody has sales tax, or hotel-motel, or motor fuel tax revenue that is significant, so even the very small communities are saying they are going to see losses and it’s going to be a problem for their budgets.” The survey was held in 227 municipalities in Illinois. They reported shortfalls in areas that generate tax revenue such as gaming taxes, income taxes, motor fuel taxes, and sales taxes.
The options will be to decrease expenses or increase revenues. Increasing revenue will lead to raised taxes and decreasing expenses would mean cutting workers, services, or programs. The report said that “the survey results show the extreme impact that COVID-19 has had on municipalities throughout the state. The varied size and location of municipalities, as well as the relative prevalence of the virus, showed how difficult it is to provide one-size-fits-all policies related to a global health pandemic.” Cole noted that without direct financial assistance from both the federal and state government, this will create a ripple effect for years to come.
