Will A 'Crazy' Springfield Take La Grange's Money?

Hinsdale IL

29 October, 2020

9:11 AM

Description

LA GRANGE, IL — La Grange Trustee Bill Holder has a fear involving the "crazy things" he sees in Springfield — that the state may claw back the village's savings for a rainy day. At this week's Village Board meeting, Holder expressed his concern after the presentation of the village's audit. He said the village budget has a surplus this year and that officials have worked "very, very hard" to reach reserves equivalent to 60 percent of the village's annual operating costs. Holder said a financially struggling Springfield may target towns that have achieved "some kind of liquidity as opposed to the folks who haven't." "Can they tax us and other municipalities that have clawed our way back through austerity measures and through food fiscal management that we have been able to create some of these reserves?" he asked. "Are (the reserves) at risk of being taken by Springfield if they need the money?" Lou Cipparrone, the village's finance director, said the state could not directly access the reserves. But he said the state could withhold money until the village spends down its reserves. That's something the state has done in the past with the income tax money that is shared with municipalities, he said. When Holder spoke of "crazy things" in Springfield, he referred to the referendum in Tuesday's election for a constitutional amendment to allow a progressive tax system, which supporters call the Fair Tax. "I hesitate to call it a Fair Tax because it certainly isn't," he said.