Another example of how this tough economy’s is causing things to change for the worse comes from the town of Schaumburg.
For the first time in its 53-year history, the northeastern Chicago suburb is ready to impose a municipal property tax to cover the village’s budget, the Daily Herald reports.
Unlike surrounding villages that are still relying on reserve funds, Schaumburg has run out of money from the $25 million it still had in 2006 for emergency situations lasting up to four months.
Since then, the village has cut 136 full-time and part-time jobs, and has frozen non-union wages to cover some of the expenses. But it might still end up running out of money if further measures aren’t taken.
“We’re not in a position to wait,” Village Manager Ken Fritz told the Daily Herald.
The surrounding villages of Oak Brook and Carol Stream are experiencing similar economic woes, but have so far managed to stay away from imposing a property tax.
Oak Brook cut $1.3 million in costs last summer, when it eliminated 15 full-time jobs and cut staff at its public library.
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Carol Stream, with six months of reserve-cash still available, has projected a five percent loss in sales tax revenue next year, but is looking at ways to reduce expenses by outsourcing services.
But if a solution isn’t found soon, Carol Stream might be forced to take the Schaumburg-route.
"The board has said routinely that it's a last resort," Village Manager Joe Breinig told the Daily Herald. "It's one of the very last things that would ever be done. Our economy is no different from Schaumburg or the rest of the world. It's off. Across the board, every major revenue source is in decline."
