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State threatens to withhold motor fuel funds from local governments

State agencies are planning to withhold motor fuel tax funds from municipalities throughout Illinois beginning next month unless the budget crisis is resolved.

Spokesmen for the Illinois Department of Revenue and Department of Transportation confirmed Thursday that hundreds of thousands of dollars collected from the motor fuel tax in July will not be distributed to local governments in August, although no formal announcement has been made to mayors or state legislators.

Municipalities use the motor fuel tax money to repave roads and to obtain matching funds from county, state and federal highway agencies to build new roads…Please click here to read Phil Kadner’s column in the Daily Southtown/Tribune.

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