The League Extends Its Gratitude
As Municipalities Continue To Receive The Surcharge Revenues

By THOMAS G. FITZSIMMONS, Executive Director

It was a long campaign to keep the income tax surcharge revenues for municipalities. The Illinois Municipal League Board of Directors and staff wish to express their sincere gratitude toward all municipalities for their dedicated hard work. As a result of your collective and individual efforts, municipalities in Illinois will continue to receive income tax surcharge revenues. The contacts, resolutions, letters, media-coverage, phone calls, and visits to Springfield all led to a tremendous success.

Municipalities will continue to receive their share of the income tax surcharge revenues and will get the full 75%. The allocation will take longer, but the entire $237 million will be distributed. The new agreement is contained in Senate Bill 1783, Public Act 87-860. The law distributes the income tax surcharge in the following manner: During the first phase (July 1, 1992 until January 31, 1993), municipalities will receive 50% of the revenues (the same as last year). During the second phase (February 1, 1993 until June 30, 1993), municipalities will receive 75% of the revenues. However, the June check will come in July. The final phase (from August, 1993 on), is the distribution of the remaining $40 million due to municipalities. This arrangement was reached in order to accomplish two goals. The first goal was to help the state during its financial crunch. The second goal was to make sure municipalities receive the total due under the 1991 agreement.

It is important to remember that the income tax surcharge is still only temporary and the tax will expire on June 30, 1993. Efforts must begin now to make the surcharge permanent. If municipalities do not keep the pressure on, a tremendous financial loss will occur. The Municipal League will be developing plans and materials to assist you in this next endeavor. This should be brought out as an issue in the November elections for members of the General Assembly. It will only be an issue if you, as municipal officials, make it an issue and get commitments from candidates running for office. All State, Senate, and Representative candidates need to be contacted to secure their commitment to municipal government.

Thank you once again. Keep the pressure on. A big battle is ahead to push for the permanent receipt of the income tax surcharge funds by municipalities. •

August 1992 / Illinois Municipal Review / Page 7