Mayor Brad Cole said a shortfall in a special city sales tax forr Saluki Way could ultimately cost Southern Illinois University money.
Saluki Way has a budget of $83 million. Students will make up $41.5 million, while $20 million will come from a sales tax increase placed on the citizens of Carbondale.
The sales tax money will be funneled into Saluki Way over the next 20 years. At the end of each fiscal year, SIU is given the first $1 million of the sales tax collection.
But what if the sales tax fails to bring in $1 million dollars in a given year?
“If it comes in at $900,000, that’s all they get. They have to make up the difference,” Cole said.
When the sales tax increase was implemented, it was projected to bring in $1.2 million per year. A bad economy has changed that projection to under $1million..
Cole pushed for the sales tax increase and it was enacted in January of 2008. At the time, Cole claimed public safety was the drive behind the increase, but he also saw the potential for the university to benefit.
“It’s a total package in our opinion,” Cole said. Although there are no estimations on how Saluki Way will help Carbondale’s economy, he expects the renovations to SIU Arena and construction of a new football stadium to attract tourism and pump money into the city. He believes that if SIU suffers, Carbondale would too, and he is willing to help.
The bad economic situation in Illinois has also affected the city’s budget and the number of jobs available in Carbondale.
Carbondale’s fiscal year lasts from May 1 to April 30, and the city is currently deciding on the annual budget. The current fiscal year’s budget is $42 million, and Cole is predicting a zero-growth budget for the next one.
Because the city does not plan to spend any more money than last year, many projects and renovations people are expecting may not happen. But Cole said he has made preparations for the upcoming fiscal year, hoping to avert a bad economic situation for the city of Carbondale.
Cole said that unknown factors may affect the economy and cost-saving efforts must be made beforehand. To do this, he said the city plans to trim back on some projects, which would mean eliminating the staffing needs for those projects.
Normally Carbondale would receive funding through the state for these projects, but the current economic situation presents a problem. Illinois has made many cutbacks and is delaying payments to Carbondale, forcing Cole to adjust and find ways to provide funds.
“We have to make budget decisions because we have to pay for it somehow,” Cole said.
Cole has made it his policy to operate without a property tax, so most funding comes from the above-average sales tax. But, by eliminating the property tax, Cole’s intention is to save the citizens money, hoping that they will spend more on businesses and stimulate the economy.
Another pressing situation is job cutbacks. Although Carbondale faces a 1.6 percent lower unemployment rate than the average in Illinois, jobs are still being lost.
There will be positions available through the city, such as neighborhood inspectors. But only half a dozen positions are currently available and will not significantly affect the unemployment rate.
“The average citizen will not receive an impact from this,” Cole said.
But Cole hopes that his preparations and cutbacks will ultimately lead Carbondale down the right path. He has
confidence that Carbondale will remain financially soundl and keep the city’s strengths intact.
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