A recent survey by the Illinois Municipal League (IML) has found that 87 percent of responding municipalities have experienced revenue shortfalls of 20-30 percent when compared to last year due to the ongoing coronavirus pandemic.
The IML issued a press release on its findings Tuesday.
"With local business sales at record lows and a lack of state and federal action in providing direct aid to local governments, the impact on municipal budgets could be felt for several years," the release states. "To make up for these shortfalls, elected officials are forced to make difficult decisions, which include possible layoffs of personnel, reductions in municipal programs and services, delaying infrastructure projects and spending down already-limited reserve funds."
Last Wednesday, the Madison County Board voted 17-11 to freeze pay increases for 362 non-bargaining unit employees in an effort to save money as the county looks at a projected $3.7 million deficit in the general fund as a result of COVID-19.
IML's survey included results from 227 municipalities across the state. The full survey results can be found at iml.org/covid-survey.
Municipalities reported shortfalls across several categories that usually generate tax revenue, with the following sources resulting in the largest losses
- 21 percent reported a loss in sales tax revenue
- 17 percent reported a loss in gaming tax revenue
- 17 percent reported a loss in motor fuel tax revenue
- 15 percent reported a loss in income tax revenue
"Illinois communities have been dramatically impacted by the COVID-19 pandemic and without direct financial assistance from both the federal and state government, this will create a ripple effect for years to come," said IML executive director Brad Cole. "It is imperative that action is taken to address this significant drop in local revenue and provide relief to communities large and small."