In three Illinois cities, Joliet, Aurora and Elgin, casinos have helped keep property taxes down. But with the withering effects of the economy hurting even gaming profits, these cities are having to either raise taxes or cut city expenses.

Joliet, which has two casinos, just passed a 12 percent increase in property taxes. It collected $28.3 million in taxes from casinos last year, which was about 20 percent less than the year before, a figure that was more or less mirrored by Aurora and Elgin, although they received less gross income: $12.6 million and $19.1 million respectively.

The decline in casino profits went hand in hand with declines in the income tax revenues, more unemployed and less consumer spending.

Instead of raising property taxes, as Joliet did, Aurora and Elgin cut city jobs and pulled the belt tighter on their budgets. But their property tax rates were already higher than Joliet's rates.

Joliet's city manager Thomas Thanas was quoted by the Courier-News talked about his city's philosophy on taxes. "I think it's a sign of what the city (of Joliet) has done for a long time, which is using other revenue to keep the tax rate down," he said.

Because it gets so much more money from casinos, Joliet's government has become somewhat dependent on that revenue, using it to pay city workers and for operations, instead of for one time capital expenditures, as it originally planned to do.

By Staff