2015/12/15 - Walter's Blog: State Budget Update

A few weeks ago, I wrote about how the state government was withholding local government revenues and a bill was introduced to release those funds. I am pleased to report that the State Senate approved the bill on December 7 and Governor Rauner immediately signed it into law.

We will now resume receiving revenue from the Motor Fuel Tax (MFT), video gambling, and use tax. The most significant of these for the City of O’Fallon is the Motor Fuel Tax and is used for vital projects and services such as:

  • Street and intersection improvements
  • Roundabouts
  • Street maintenance
  • Road salt
  • Snow plowing

The other revenue sources are relatively minor but still contribute to funding O’Fallon’s annual budget. While we will now be receiving our full array of revenues, the state government still has not approved a budget.

The City of O’Fallon’s primary revenue sources (such as the income tax, property tax, and sales tax) are not subject to state budget appropriation and we continue to receive those funds. As a result, most of our services are unaffected by the state budget impasse. However, economic growth will be challenged in O’Fallon and throughout Illinois if the state government is unable to resolve its substantial financial shortfalls. In the meantime, the City of O’Fallon continues to operate under a balanced budget.