Inflation and a dwindling tax base have forced the city of Decatur to pass a budget for next year with a $3 million shortfall, according to the Illinois Policy Institute.
The Decatur Herald & Review blamed the deficit on falling sales taxes, as well as reductions in tax on cable TV and hotels.
“That lost revenue should be no surprise, given the rate at which Decatur is shrinking,” according to the Illinois Policy Institute. “With a population drop of 3,400, or 4.5 percent, from 2010 to 2016, Decatur is Illinois’ fastest shrinking city. Among Illinois cities with populations over 50,000, that is the worst mark on a percentage basis.”
Decatur Mayor Julie Moore Wolfe
| https://juliemoorewolfe.com
The budget comes after the Decatur City Council passed a property tax increase of 15 percent in 2015, the institute reports, which increased the median amount per homeowner past neighboring counties to slightly above $2,000.
The institute cited an interview with Decatur Mayor Julie Moore Wolfe broadcast on WAND-TV as proof the city's leaders recognize the burden on their citizens. Wolfe was quoted in the institute article as saying the $3.2 million deficit is “a significant amount of money” and a tax hike was not a perfect solution.
The institute’s report suggested a twofold remedy for Decatur’s rising taxes. The city should re-evaluate its spending habits, while state government should reduce the costly regulatory burden placed on Decatur and other small cities.
“Otherwise, Illinois’ once-thriving cities will continue to see downward trends in population, revenue and promise,” the report said.
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