Revenue Sharing and your District

by Eugene Berghoff

Units of local government are creatures of our states and federal government. We have only the duties and functions that are permitted by these agencies. Our revenues and ability to tax are also controlled by our big brothers.

Local government is closer to the people and if power is to be shared we must also develop a system of sharing revenues.

Under the present systems adopted by the State of Illinois and our federal government, only counties, cities and townships are eligible for reveune sharing. I am sure you are well aware, our only sources of revenue are the property tax and the fees that we collect for the use of park and recreation facilities.

There are a number of reasons why every district today has its back to the wall with respect to revenue. They can be broken down into three major categories:

(1) Inflation has affected local government as it does the individual taxpayer. Operating and maintaining park and recreation facilities is costing more of the average tax dollar than they receive. It is like a fixed income which is worth less with respect to purchasing power.

(2) Our citizens are demanding more services which is a national trend. Since the average American work week has diminished, our citizens are using and enjoying more of our parks and recreational areas than ever before. Some of our industrial companies are researching the possibility of a four day work week and this of course, would provide every family with a three day weekend every week. This would prove beyond all doubts that our current recreation programs would not be able to absorb this increased demand.

In addition, the "Energy Crisis" will demand less traveling and more of our citizens will be remaining in their local communities and using state and local park systems to provide leisure time activities.

Many experts in the field of governmental finance have recommended that the state and federal government share more of their tax revenues with all units of local government with no restrictions.

The first report on the actual use of Federal Revenue monies showed a greater portion of the funds were spent to cover operation and maintenance cost rather than capital improvements. Many state governments expended as much as 94% of their funds for operation and maintenance.

In the category of recreation and culture approximately 70% went into capital costs. This category includes: parks, boating and camping facilities, recreational and sports programs. The first report listed 116.7 million dollars as expended in this category.

The least amount of expenditure was reported by townships. Even though a few townships in Illinois have shared some of this revenue with park districts, many are still preparing studies on how these funds can best be spent for the betterment of their area. As I have mentioned many times in the past, more districts should meet with township officials and request financial assistance to develop better recreation programs and parks for the whole community. This would also apply to municipal and county governments.

It is imperative that additional funds be provided by our federal and state government through revenue sharing on an unrestricted basis if our local park systems are to survive. Your Association will continue to speak out on this issue, but we do need your cooperation and support.

Some park officials constantly ask this question, what can we do to help?

(1) Develop a financial survey of your district showing the amount of revenue you now receive from property taxes and fees. The property taxes should be broken down by real and personal.

(2) A report should be prepared which lists your financial needs over the next five (5) year period.

(3) Get acquainted with your state and federal representatives and senators and communicate to them the desperate need for other sources of revenue.

(4) Keep your citizens informed through the press, radio and television.

(5) Encourage all districts to become members of the Association, we are no stronger than our weakest link.

(6) Attend seminar, meetings and the annual conference to become more familiar with the problems and their solutions.

I would suggest that each district obtain a copy of the report from the Superintendent of Documents, U.S. GPO, Washington, D.C., 20402 entitled "GENERAL REVENUE SHARING—the first actual Use Reports." The stock number is 4800-00241; cost 65 cents.

Illinois Parks and Recreation 11 July/August, 1974