IML survey: 87 percent of communities face revenue shortfalls due to COVID-19

Submitted by the Illinois Municipal League


Aug 26, 2020 at 4:40 PM

SPRINGFIELD – 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.

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. 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.

The survey included results from 227 municipalities across the state. The full survey results can be found at

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. It is imperative that action is taken to address this significant drop in local revenue and provide relief to communities large and small," said Brad Cole, IML Executive Director.

Abouth the Illinois Municipal League

The Illinois Municipal League is the statewide organization representing local communities throughout Illinois. Founded in 1913, IML has worked continuously for the benefit of all 1,298 municipalities in Illinois to provide a formal voice on matters involving common interests.


via The McDonough County Voice

August 26, 2020 at 05:36PM

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