Cautions against lower revenues, loss of state funding

November 24, 2009 (Wheaton, IL) – State Senator Dan Cronin (R-21), a Republican candidate for DuPage County Board Chairman, supports the FY 2010 DuPage County budget plan while cautioning against the prolonged consequences of a sustained economic recession.

“This budget plan funds county government in a responsible manner without increasing the tax burden on county residents,” Cronin said. “At a time when many families and businesses are struggling financially, the County Board has submitted a modest budget that lives within its means while providing crucial county services.”

The $451 million budget funds transportation needs, public safety, public works and health/human services for DuPage County residents. The total property tax levy is reduced by $100,000 over FY 2009 and the county still maintains a $37 million cash reserve.

While supporting the overall budget plan, Cronin also cautions against the revenue implications of both the economic recession and the state’s budget crisis. “The county revenue projections are based on modest economic growth in 2010 that would yield an increase in sales tax revenues. Sadly, there is no guarantee that this recession will abate next year. To the contrary, some economic news released last week indicated this recession will continue well into next year and beyond.” Cronin referred to discouraging news in the housing market with starts for both single-family and multi-family homes plummeting in October, as well as more jobless claims. “Even if the economy improves, it will take years before our municipalities recover from the fall-out of home foreclosures, unemployment and empty retail developments.” Revenue from other economy-based taxes such as impact fees could also be lower than expected.

Cronin also warned against possible cuts to state-funded grants that are allocated for specific county services. “Our state is on a crash-course to be the next California with a budget shortage of several billion dollars and a Democratic-controlled legislature that has no plan on how to fix this crisis,” Cronin continued. “We must anticipate that some of our state funding could be eliminated next year. The County Board will need an alternative plan if the state is forced to cut state grants to county government.”

As far as new bond issuance is concerned, Cronin does not support any plans to assume additional interest costs on bonding authority for capital projects. “Even with the credit available under the RZ bond program, the county would still be responsible for millions of dollars in debt service. This is no time to take on more costs to county taxpayers.”

In addition to his support of the county tax levy reduction, Cronin also commends the board for maintaining current staffing levels. “Until the private sector is strong enough to add jobs, county government shouldn’t increase its employment base, either,” Cronin stated. “Just like families all across DuPage County, we have to tighten our expenses and not assume any additional financial burdens at this time.”

The FY 2010 budget is effective December 1, 2009.