Peoria City Council Discusses Budget Deficit

Sep 19, 2018

The Peoria City Council Tuesday night had a first look at a $6-million deficit in next year’s city budget. An increase in pension costs and a drop in sales tax revenue are responsible for nearly 40% of that projected shortfall.

City manager Patrick Urich says the city faces cuts to public safety unless the state legislature can address these issues.

"The city council has to balance a budget every  year and they have to put together a spending plan that’s balanced. I think the issues we are facing are driven largely by inaction in Springfield and it would be nice to see leadership and see some of that taken care of," says Urich.

The city expects an 8% increase in pension costs and a 2% drop in sales tax revenue next year. Urich says Illinois has the lowest per capita sales tax collections in the Midwest. It’s primarily due to the lack of a sales tax on services.

Tuesday night’s meeting was the first in a series of budget policy sessions that will extend into November.