SPRINGFIELD – On April 10, the City of Harvey announced it would be laying off 40 employees, including nearly half of its police and fire staff, due to a state law that intercepts payments from municipalities who do not make their obligated pension payments.
Since then, State Senator Napoleon Harris III (D-Harvey) has been working to find a way to make this process more manageable for distressed municipalities like Harvey.
“It’s unfair for the public safety of the people of Harvey to be put at stake because of a state law that requires much more than the municipality can handle,” Harris said. “I am going to continue working on this issue because I want to ensure that the people of Harvey aren’t being penalized for living in a poor community.”
Harris recently amended Senate Bill 370 to give distressed municipalities until fiscal year 2020 before the Comptroller’s office can enforce its intercept power.
The proposal also gradually increases the percentage of the delinquent payments the Comptroller can intercept by the following:
- In fiscal year 2020, one fourth of the total amount of any payment of State funds to the municipality;
- In fiscal year 2021, one half of the total amount of any payments of State funds to the municipality;
- In fiscal year, 2022, three fourths of the total amount of any payments of State funds to the municipality;
- In fiscal year 2023 and each year thereafter, the total amount of any payments of State funds to the municipality.
The legislation was approved by the Senate Licensed Activities and Pensions Committee on Wednesday.