EAST ST. LOUIS, Ill. – The City of East St. Louis is heading towards a financial crisis due to its ongoing battle with the police department.
The Police Pension Board met Tuesday and voted to send paperwork to the state comptroller to take millions of city dollars.
There are millions of dollars owed to the police pension fund. Now, officers are using a state law that allows the request of the state comptroller to seize $3.7 million in city funds to reduce the balance.
“The intercept consists of moneys that were earmarked from the state, for the municipality, that will now be intercepted at the comptroller level and redirected straight into the police pension fund,” Police Pension Board Attorney Dennis Orsey said. “In fiscal year 2016, fiscal year 2019, and fiscal year 2021, the City of East St. Louis underfunded the police pension fund to the tune of about $3.7 million. That’s what we’re seeking to recover at this time.”
If the intercept is successful, it could bring major troubles for the city, that already has a tight budget.
“The city has been working with the police union, with the fire unions to try to come to some agreement. I do know that we’re very close. The fire department has pretty much accepted an offer that we’ve been able to work out and I think the police department is very close,” City Manager Robert Betts said. “So, we’re continuing to be very optimistic that we can work together and do what’s in the best interest of our citizens.”
According to Orsey, the board had to turn to intercepts years ago and recouped $1.8 million.
The city owed the fire department more than $4 million but made a deal to avoid intercepting state funds. As for the police pension, the comptroller will have 60 days to decide on whether to authorize the intercept that could harm the city’s financial status.
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