JOLIET – Joliet estimates the city budget in 2018 will lose $1.9 million in state funding.
The shortfall is a result of changes in the state budget affecting Joliet and all municipalities.
Cities will get 10 percent less in a local share distributed from the state income tax and begin paying a 2 percent fee to the state for administering sales tax dollars that come back to local government.
The city will lose more than $1.4 million from income tax dollars and pay nearly $500,000 in sales tax fees, according to the analysis that will be presented to the Joliet City Council Finance Committee on Tuesday.
The actual cash impact may be different than the budget impact. The monthly tax distribution payments typically are slow arriving. But the state has promised to speed them up so cities will get 14 monthly payments in one year rather than 12 to offset the impact of the 10 percent cut.
"We'll have the cash in hand," Joliet Finance Direcxtor Jim Ghedotte said.
But the city budget is based on accrual accounting, Ghedotte said, and will count the monthly payments based in the years they are collected, not when the state distributes it.
Mayor Bob O'Dekirk asked for the analysis earlier this month when it was learned that the impact would be more than the city's original estimate of $1.5 million.
"People have to know that what happened in Springfield is going to cost us money," O'Dekirk said when he asked for the analysis at the Aug. 1 city council meeting.