Quinn Proposal Could Mean Lay-Offs For Village of LITH

The village of Lake in the Hills could face staff lay-offs if a proposal by Gov. Pat Quinn to cut funding for municipalities moves forward.

Quinn's proposal aims to cut by 30 percent the money that Illinois collects in income tax and doles out to municipalities to help reduce the state’s $13 billion budget deficit.

Gerald Sagona, administrator for Lake in the Hills, said the village gets about $2.2 million a year in local-government revenues, which comes from state income tax. If the governor’s 30-percent plan is approved it would mean more layoffs.

“If it’s 30 percent, that means we’d take about a $700,000 hit,” Sagona said.

Sagona said the bills keep piling up and costs are on the rise. For example, liability insurance increased to $593,000, up from $354,000 last year, he said.

Overall spending for the village is slated to increase this year. In 2010, the village earmarked $14 million in the general fund for spending, while in 2011, the village approved $15.2 million for general-fund budget, which Sagona said was just enough to pay the bills.

As a way to save money last year, Lake in the Hills trustees voted to lay-off two police officers, eliminate two police positions, demote a sergeant to patrol officer, reduced the hours of part-time staff, froze salaries (except at the police department where salary increases are guaranteed by contract) and increased employee contribution expenses for health insurance.

“Despite several years of hard decisions and painful sacrifice, local governments are in danger of losing even more scarce revenue," according to a village newsletter from last week. "These revenues would come not from natural revenue declines, but by an act of the General Assembly.”

The newsletter went on to urge residents to contact Illinois Sen. Pam Althoff and urge her and other state lawmakers to side with municipalities.

Local Lawmakers Sound Off on Reductions

Local lawmakers Sen. Pam Althoff and Rep. Michael Tryon said they would consider cutting what is called "local-governement revenues," but not as much as the governor is proposing.

“Thirty-percent is unrealistic,” Althoff said. “I may consider a 5-percent reduction. We all understand this will not be easy, but we have serious issues when it comes to spending. There needs to be a fair reduction on all levels.”

Tryon, in a written statement, told Lake in the Hills Patch that a lot of options are on the table for discussion "and it is possible that many agencies may see reductions."

“We simply cannot continue to spend money we do not have and we must move toward a balanced budget," Tryon wrote in the statement.

To see what some of Lake in the Hills top officials are being paid, visit this article.