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Whatever happened, the city has a $40 million budget hole it didn’t disclose until now

Friday, Nov 22, 2024 - Posted by Rich Miller

* The mayor’s people were telling city council members and at least some reporters this week that the Illinois Retail Merchants Association had blown a $40 million hole in the city budget. IRMA sent out a press release countering that argument…

The Illinois Retail Merchants Association (IRMA) released the following statement regarding the mayor’s proposed telecom tax increase.

“IRMA did not kill the mayor’s proposed telecom tax increase, but we would be happy to take credit for protecting low-income users. The city is not meaningfully nor consistently engaged in Springfield.

IRMA remains ready to offer assistance on issues where we align – as we have always done with previous administrations – but, prior to today, we have not seen a clear effort from the mayor’s office to do so,” said Rob Karr, president and CEO, Illinois Retail Merchants Association.

* Fran Spielman explains

A tax on prepaid phones and calling cards the Johnson administration was counting on to raise $40 million has been shot down in Springfield.

Illinois Retail Merchants Association President Rob Karr said there were technical problems that must be fixed in the legal language the city drafted.

The city also had assumed the increased tax (9%, up from 3%) would take effect Jan. 1 — a virtually impossible deadline for retailers. […]

“There was a fix that was available, but we couldn’t implement it by Jan. 1. So we had suggested July 1. The governor’s office and others told the city, ‘No, we’re gonna take it back and you can … get it done correctly in the spring.’” […]

The change only exacerbates the Johnson administration’s dismal track record in Springfield at a time when the Mayor’s Office of Intergovernmental Affairs is shorthanded.

       

13 Comments »
  1. - Demoralized - Friday, Nov 22, 24 @ 12:46 pm:

    Why does the Mayor’s office continue to think that they can get things done though attacks and lack of engagement?


  2. - Three Dimensional Checkers - Friday, Nov 22, 24 @ 12:49 pm:

    I ran outta gas. I had a flat tire. I didn’t have enough money for cab fare. My tux didn’t come back from the cleaners. An old friend came in from outta town. Someone stole my car. There was an earthquake, a terrible flood, locusts! It wasn’t my fault! I swear to God!


  3. - PoliticsD - Friday, Nov 22, 24 @ 12:54 pm:

    Don’t think I can think of more regressive tax. Vast majority of people are on prepaid because they have bad credit and cell phone companies won’t give them a postpaid account.


  4. - Pundent - Friday, Nov 22, 24 @ 12:55 pm:

    At the end of the day, whether your governing philosophy is conservative or progressive, success is dependent on executing the blocking and tackling. And the mayor and his administration are woefully bad at that.


  5. - Donnie Elgin - Friday, Nov 22, 24 @ 12:57 pm:

    = Vast majority of people are on prepaid because they have bad credit=

    They are also the phone of choice for criminals.


  6. - Frida's Boss - Friday, Nov 22, 24 @ 12:59 pm:

    Is it really this difficult? Why do they think they can continue to throw people under the bus and it not coming back ten fold to show how inept and incapable they are of occupying the 5th floor.
    Alderman Taylor said it best- We’re not ready for the 5th floor we look real stupid.
    And that was before the Mayor brought in even more DSA progressive leadership and removed anyone with any idea how to run City Hall.


  7. - ChrisB - Friday, Nov 22, 24 @ 1:07 pm:

    What’s the old saying? If you’re not at the table, you’re on it?

    The Mayor’s Office is getting roasted right now.


  8. - Google Is Your Friend - Friday, Nov 22, 24 @ 1:17 pm:

    - Pundent - Friday, Nov 22, 24 @ 12:55 pm:

    The biggest insult you could give the mayor is comparing him to McCaskey, Warren, Poles, and Eberflus.


  9. - Moe Berg - Friday, Nov 22, 24 @ 1:23 pm:

    “The dog ate my homework” excuse from the former-teacher mayor is getting pretty old.


  10. - ElTacoBandito - Friday, Nov 22, 24 @ 1:47 pm:

    ==The biggest insult you could give the mayor is comparing him to McCaskey, Warren, Poles, and Eberflus.==

    You can’t compare MBJ to Poles, Poles has actually done decent work (I blame McCaskey for keeping Eberflus).


  11. - Long Time Independent - Friday, Nov 22, 24 @ 1:54 pm:

    Do you think maybe, just maybe Kevin Warren has figured out that hitching himself and the Bears to MBJ might be the wrong wagon after all?


  12. - low level - Friday, Nov 22, 24 @ 2:41 pm:

    ==“The city is not meaningfully, nor consistently engaged in Springfield,” Karr said.==

    Devastating critique. The 5th Floor is worse off than I realized.


  13. - Amalia - Friday, Nov 22, 24 @ 3:56 pm:

    yeah, but tired of all the talk about what is a ta on whatever economic group. the cell phone tax is absolutely not just about the poor. and yep, prepaid use by criminals so prevalent. is there still a suspension on water bills for some? what about the proposed garbage tax? why shouldn’t people pay by volume? some people recycle. why should the people who recycle not get a break? map the communities that do not recycle. somehow that tracks with $$$ Are we supposed to call recycling a regressive request? while other areas recycle? paying for services…police and schools…that are used most by the lowest income levels…has to come from somewhere.


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