The passage of the state budget brings relief to local nonprofits, while an approved income tax hike hampers local businesses.
Carol Merna is the Executive Director for the Center for Prevention of Abuse and says she is “pleased” with the vote.
“There was a lack of funds in the fiscal year 2017 for our two emergency shelters,” Merna explained. “We didn’t received a single penny from the state. Then the Illinois Coalition against sexual assault saw our rape crisis center shortened quite a bit of funds. Both of those will receive money in 2018.”
Merna says the funding isn’t as substantial as it used to be.
“We do take a 20 percent cut in the new budget from fiscal year ’18,” she said. “But we are relieved to have some solid footing. And we will work with that.”
Merna says the center’s self-neglect programs were put on a hiatus a year ago because of a lack of funding. But those will be reinstated.
After suspending multiple projects for about a week, the Illinois Department of Transportation says construction will be resuming statewide.
This includes multiple local projects, counting work on Interstate 474 over the Illinois River and Interstate 74 through several points through Peoria.
A state income tax increase to nearly five percent, however, will punish successful, small businesses.
“Small businesses often pay the profits through their personal income tax return. So the downside is they will have an increase on the tax they will take on the success of that business,” said Jim Foley, Director of the Bradley University Turner Center For Entrepreneurship.
But Foley says a solidified budget eases uncertainty in the business community, which will hopefully lead to growth.
“Small businesses don’t like uncertainty. And I think with the last two years, the lack of certainty with the state wasn’t helping with the overall economy,” Foley continued.
The income and corporate tax hike, as well as funding for nonprofits is retroactive to July 1.