Tune In to the Psychic Energy

Headline: “Quinn: Approve borrowing or lose local tax revenue”.

Legislative leaders are considering a proposal that would authorize [Illinois Governor Pat] Quinn to shift money from other state accounts if he is not granted permission to borrow the money.

The plan also includes a proposal disclosed Friday to suspend local income-tax payments to cities and counties through December. That’s about $100 million a month from February through the end of the year. The last payment was made in January.

That sounded familiar. As it turns out, in early May, 2010, I argued both here and at the FY2011 budget hearings that we had too many what-ifs, including —

What if the State of Illinois — already tardy — cuts income tax payments to DeKalb? The projected revenues are $3.5 million from the state. Can we really count on all of it?

State income tax revenues would comprise 10% of the proposed General Fund budget for FY2012 of $29.3 million.