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Lee County officials say budget faces roughly $1.5 million gap and multiple revenue uncertainties
Summary
County finance staff told the Lee County Finance Committee the preliminary 2026 budget shows about a $1.5 million shortfall and that several major revenue streams — property tax growth, use tax, PPRT and public safety receipts — carry unusual uncertainty.
LEE COUNTY, Ill. — Lee County finance staff told the county’s Finance Committee that the preliminary fiscal 2026 budget faces roughly a $1.5 million shortfall and that several large revenue streams remain uncertain.
Jeremy (staff member), who presented the revenue overview, said the committee’s first task was to set assumptions for revenues and that this meeting was a “first look” at next year’s figures. “If you don’t ask, then nobody learns,” Jeremy said, encouraging committee members to press staff and department heads on lines they did not understand.
The county’s largest revenue source is property tax, which accounts for roughly half of county general fund revenue, Jeremy said. The county is currently using a state CPI figure of 2.9 percent and an initial estimate of $18 million in new construction to project levy growth. By contrast, staff estimated last year’s new construction at about $45 million and prior years at roughly $6.5 million. Jeremy cautioned that the new-construction number is the “big factor” that can change the levy calculation and that staff will continue to refine that estimate.
Other statewide revenue streams — use tax (often described in the meeting as the “Wayfair” or internet-sales tax), sales tax and Personal Property Replacement Tax (PPRT) — were described as unstable. Jeremy said use tax collections have fallen sharply in recent months following state reclassification of some large retailers’ collections; he gave a rough example that past years’ run rate might have been $400,000–$500,000 but that the county could receive as little as $90,000 if current trends continue.
On PPRT, the presentation showed a multi-year decline: about $1.6 million in 2022, roughly $1.04 million in 2023, about $800,000 in 2024 and a projected run rate near $500,000 for 2025. Committee members discussed state decisions that removed certain salary amounts (for example, for the sheriff) out of the PPRT distribution pool and the likelihood that additional state-funded salary shifts could reduce the county’s PPRT share further.
Jeremy and other staff noted additional revenue categories with mixed outlooks: fines and fees overall were expected to be relatively steady, though circuit clerk and bond-related receipts have trended downward after changes tied to the Safety Act; zoning and building permit revenue could be large but timing and legislative changes have shifted how those funds are collected and reported; and interest income should rise modestly if property tax disbursements produce larger cash balances to invest.
On the spending side, early budget “asks” submitted by departments currently exceed anticipated revenues by roughly $1.5 million. Jeremy said the committee will refine the numbers as department hearings proceed in August and recommended the committee assume conservative revenue estimates.
The committee did not vote on any budget items at the meeting. Reed (county staff/committee member) and Paul (county staff/committee member) joined Jeremy in answering questions; Clay (participant) and Tom Kitson (participant) asked about public-safety and bond implications during the discussion.
The county plans a sequence of department hearings in early August to review individual requests and will bring preliminary levy and budget drafts to the committee for formal decisions later in the process.
