Symbolic resolutions for motor fuel, distributive taxes passed
By Paul DelGuidice
For The Villa Park Independent
The Villa Park Board of Trustees, at the Monday, Oct. 26 Formal Meeting, voted to approve two resolutions to urge state legislators to consider local municipalities on two tax questions.
The symbolic Resolutions entreat Governor Bruce Rauner and both Houses of the legislature to “protect full funding” of the Motor Fuel Tax (MFT) and the Local Government Distributive Fund (LGDF) revenues.
“Do we know if there are a lot of other municipalities doing these resolutions?” asked Trustee Nick Cuzzone.
“The answer to that is yes,” said Village President Deborah Bullwinkel, “We want our voices heard.”
The state of Illinois has been operating without a budget for nearly four months due to an impasse between Gov. Rauner’s ‘turnaround agenda’ budget, which seeks changes in collective bargaining rules (among other measures) and an unbalanced budget championed by House Speaker Michael Madigan and Senate President John Cullerton. State services and municipalities have been caught in the middle.
The MFT is collected by the State and then redistributed to the municipalities based on their fuel sales. In Villa Park, this amounts to about $540,000 annually.
“The budget impasse at the state level has resulted in a reduction in the local share of the motor fuel tax,” according to Village staff, “[which] would have a significant impact on road construction and road maintenance within the Village.”
The MFT funds can only be used for road-related construction and maintenance. This funding is built into the Village of Villa Park budget.
The Local Government Distributive Fund (LGDF) is income tax revenue that the state collects and then redistributes to municipal governments to help them provide services to taxpayers. Governor Rauner has proposed a 50% reduction in the amount of LGDF redistributed to municipalities as a way to help alleviate the state’s budget crisis. According to Village staff, a 50% reduction would amount to $1.1 million less annually for Villa Park.
Asked if the resolutions will be made known in Springfield, Village Manager Keehner said: “I will transmit them to Brad Cole, executive director of IML [Illinois Municipal League], and Brad Cole will distribute those with the other resolutions from across the state.”
Both resolutions were passed unanimously 6-0 by the Board as part of the Consent Agenda portion of the Formal Meeting. Trustee Chris Aiello was absent from the meeting.
