Rockford Park District faces a $300,000 budget gap from the $11 minimum wage requirement. | Adobe Stock
Rockford Park District faces a $300,000 budget gap from the $11 minimum wage requirement. | Adobe Stock
The Rockford Park District anticipates having to make up a nearly $300,000 hit to the budget after Illinois' minimum wage increased on Jan. 1 to $11 an hour.
"As far as the overall impact of what minimum wage will have on the Park District is about $2.3 million, so each year we will be planning to adjust our employees' minimum wages accordingly," Rockford Park District Superintendent of Human Resources Rhashonda Williams told channel 23WIFR.
Based in Rockford, the Park District was formed in 1909 and is run by a five-member board of commissioners tasked with improving the quality of life for residents, including developing a park system to increase recreation opportunities and increase property values and decrease youth crime.
The budget shortfall will be caused by the district having to pay more for its minimum wage workers. Gov. J.B. Pritzker signed the $11 minimum wage increase, the third hike in recent months, into law in 2019.
The 23WIFR report said that for companies and industries that work with minimum wage workers like the Rockford District, the impact is a strain on budgets in part because of COVID-19.
The district's website said in December that commissioners looked at ways to fund the minimum wage increase and keep up with inflation to prevent having to drastically cut services and programs.
"We are aggressively pursuing non-tax revenue support, continuing to reduce our footprint, and making good business decisions," Rockford Park District Executive Director Jay Sandine said on the Rockford Park website. "This is a critical point in our organization's history, where continuing to eliminate programs, services, and facilities will negatively impact youth, crime, property values, and economic development opportunities. Our community has a lot to risk without a strong and financially sustainable park district."
As of December, the district had a budget deficit of $760,000, but grant funding had narrowed that amount down to $486,000.
The final budget was presented on Jan. 12, with the board set to ratify it at a meeting on Tuesday, Feb. 23.
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