The Financially Distressed City Law allows home-rule municipalities in the top 5% of tax rates and the bottom 5% of tax income per capita to apply for fiscal relief via a state takeover of finances. The law was invoked once before, in East St. Louis in 1990. The Department of Revenue determined that while Harvey meets the requirement of being in the top 5% of tax rates, it is not in the bottom 5% for tax yield per capita, according to the letter.
Harvey will know it’s in dire financial straits when it has to turn over ownership of city hall to satisfy a lawsuit judgement against the town as payment as East St. Louis did when it couldn’t pay the family of a man beaten into a coma by other people in his jail holding cell.
David F
1 month ago
The right answer is for start to allow municipal bankruptcy and then HELLO Chicago….
taxpayer
1 month ago
Harvey wants “fiscal relief via a state takeover of finances.” If they obtain it, what happens then? Does the State take on some of the municipal debt? Or does the State provide a direct subsidy for essential services? Or what?
Brian Jones
1 month ago
They seriously need to just dissolve the town. The government there is actively dragging the town down, it would be better off unincorporated.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Harvey will know it’s in dire financial straits when it has to turn over ownership of city hall to satisfy a lawsuit judgement against the town as payment as East St. Louis did when it couldn’t pay the family of a man beaten into a coma by other people in his jail holding cell.
The right answer is for start to allow municipal bankruptcy and then HELLO Chicago….
Harvey wants “fiscal relief via a state takeover of finances.” If they obtain it, what happens then? Does the State take on some of the municipal debt? Or does the State provide a direct subsidy for essential services? Or what?
They seriously need to just dissolve the town. The government there is actively dragging the town down, it would be better off unincorporated.