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Springfield loses thousands in sales tax revenue to the state

The state adds they're sending two extra payments to each area, to help cover the deficits. (WICS)

As Springfield battles this budget deficit, they're facing another money problem a new, state administration fee.

It's a collection fee that passed as a part of the budget in July.

With the bill, every municipality and county is obligated to annually give the state 2 percent of their sales tax.

For Springfield, that's about $840,000 dollars.

Springfield’s Director of Budget and Management said this will only exacerbate the money problems they have now, as they are looking to start the new fiscal year at an $8 million deficit.

On top of that, for one year, the state will withhold ten percent of their income tax distribution.

For Springfield, that's about $1.2 million which is a concerning amount for some residents.

"Well it’s shocking; it's news to me,” said one Springfield mother of four, Brandy Welsh. “And I don't like the fact more money is being taken out of my paycheck to go to the state and there's a lot that needs to be fixed within our own city."

In Champaign County, the sales tax collection is about $96,000 and about $316,000 for the income tax distribution.

In total, that's $60 million dollars more to the state which officials say will help cover Illinois money distribution costs.

The state adds they're sending two extra payments to each area, to help cover the deficits.

Both the city of Springfield and Champaign county tell me they're considering options to help fill the budget hole, such as transferring money through departments and cutting back.

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